US stock markets displayed a mixed bag on Thursday, with the tech-heavy Nasdaq Composite gaining momentum while the Dow Jones Industrial Average faced downward pressure. The Nasdaq rose by 0.3%, driven by positive sentiment in the tech sector, while the Dow shed 0.72%, settling at 42,206.88. The S&P 500 also experienced a slight dip, dropping 0.16% to 5,788.23.
One notable factor impacting the Dow’s performance was Honeywell International Inc.’s (HON) third-quarter earnings report. Shares of the company tumbled around 4% after the report revealed that revenue fell short of analysts’ expectations, coming in at $9.728 billion compared to the anticipated $9.901 billion. While adjusted earnings per share (EPS) exceeded estimates at $2.58, surpassing the consensus of $2.50, the company revised its full-year 2024 sales guidance downwards.
This revision saw Honeywell lowering its sales projection to a range of $38.6 billion to $38.8 billion, down from the previous forecast of $39.1 billion to $39.7 billion. This move further contributed to the decline in Honeywell’s stock price.
Despite the overall mixed performance, the consumer discretionary sector experienced a notable surge, rising by 2.6% on the day. However, materials shares lagged behind, declining by 1.1%.
Looking at individual stock performances, several companies saw significant moves in their share prices. Nxu, Inc. (NXU) shares surged 216% to $0.7930, fueled by news of a proposed merger with Verde Bioresins. QuantumScape Corporation (QS) also witnessed a significant surge, gaining 25% to $6.49, driven by the announcement of the company’s production of its first B-sample cells and the commencement of cell shipments for automotive customer testing. Molina Healthcare, Inc. (MOH) shares also rose, gaining 22% to $336.39, following the release of better-than-expected third-quarter financial results.
On the other hand, some companies experienced significant declines in their share prices. Beyond, Inc. (BYON) shares plummeted 26% to $7.03, impacted by the company’s announcement of worse-than-expected third-quarter adjusted EPS and sales figures. Marinus Pharmaceuticals, Inc. (MRNS) shares took a steep dive, falling 80% to $0.3413, after the company reported that its Phase 3 TrustTSC trial of Oral Ganaxolone failed to meet its primary endpoint. Community Health Systems, Inc. (CYH) also faced a decline, dropping 23% to $4.2550, following the release of its third-quarter earnings.
In the commodities market, oil prices dipped 0.7% to $70.29, while gold prices rose 0.4% to $2,741.10. Silver prices edged down 0.1% to $33.790, and copper prices also fell 0.1% to $4.3350.
The European market exhibited a more positive sentiment. The eurozone’s STOXX 600 index gained 0.25%, while Germany’s DAX index rose 0.54%, and France’s CAC 40 index climbed 0.27%. Spain’s IBEX 35 Index also saw an increase of 0.12%, and London’s FTSE 100 gained 0.28%.
Despite this upward trend, the S&P Global UK composite PMI declined to 51.7 in October from 52.6 in September. In contrast, the Eurozone composite PMI edged higher, reaching 49.7 in October compared to 49.6 in the previous month. The HCOB Germany composite PMI improved to 48.4 in October from 47.5 in September, while the French composite PMI dipped to 47.3 in October from 48.6 in September.
Asian markets displayed a mixed performance on Thursday. Japan’s Nikkei 225 index edged higher by 0.10%, while Hong Kong’s Hang Seng Index fell by 1.30%. China’s Shanghai Composite Index also experienced a decline of 0.68%, and India’s BSE Sensex dropped 0.02%.
The HSBC India composite PMI rose to 58.6 in October, up from 58.3 in the previous month. However, the au Jibun Bank Flash Japan composite PMI declined to 49.4 in October, compared to a final reading of 52.0 in September.
Economic data released on Thursday included the Chicago Fed National Activity Index, which fell to -0.28 in September from a revised level of -0.01 in August. US initial jobless claims declined by 15,000 from the previous week to 227,000 during the period ending October 19, compared to market estimates of 242,000. US building permits decreased by 3.1% to an annual rate of 1.425 million in September.
The S&P Global flash manufacturing PMI rose to 47.8 in October, rebounding from a 15-month low of 47.3 in September. The S&P Global services PMI also showed an increase, rising to 55.3 in October from 55.2 in the previous month. Sales of new single-family homes in the US surged 4.1% to an annual rate of 738,000 in September.
