McDonald’s Shares Rise on Strong Earnings, Beating Analyst Expectations
McDonald’s shares saw a 2% increase in premarket trading today after the fast food giant reported third-quarter results that surpassed analyst expectations. The company reported earnings of $3.19 per share on revenue of $6.69 billion, beating the predicted $3 per share on revenue of $6.58 billion. Additionally, same-store sales, a crucial metric for restaurants, grew by 8.8% globally during the quarter, surpassing a StreetAccount forecast of 7.8%.
Monday’s Rebound Driven by Technical Factors and Investor Anticipation
According to Adam Crisafulli of Vital Knowledge, Monday’s rise in stock futures is driven by several technical factors, including extremely oversold prices. After the S&P 500 fell over 2% for two consecutive weeks, investors are hopeful that the end of the month, along with central bank decisions and desired economic developments, will help stabilize the market. However, after three consecutive months of losses, confidence has diminished, and there is limited interest in buying the tape, according to Crisafulli.
US Set to Announce New IPEF Initiatives to Strengthen Indo-Pacific Trade Relations
In November, the US will announce new initiatives from the Indo-Pacific Economic Framework (IPEF) as it seeks stronger ties with trading partners in the Indo-Pacific region. U.S. Trade Representative Katherine Tai highlighted the importance of cooperation with US partners to promote sustainability, resilience, and inclusivity, especially during times of economic challenges. Tai also emphasized the need to expedite negotiations rather than waiting several years for completion. The IPEF was launched by President Joe Biden in May 2022 and serves as the US’s primary economic strategy in Asia.
WTO Chief Warns of Global Growth Impact if Israel-Hamas Conflict Spreads
Ngozi Okonjo-Iweala, the director-general of the World Trade Organization (WTO), has warned that global growth will be affected if the ongoing Israel-Hamas conflict extends to the broader Middle East region. The WTO chief emphasized the significance of the Middle East as a major source of natural gas and oil for the world, suggesting that escalating conflict could worsen the already grim state of trade growth.
Japan 10-Year Bond Yield Nears 11-Year High Ahead of BOJ Meeting
As the Bank of Japan (BOJ) begins its two-day monetary policy meeting, Japan’s 10-year government bond yields have climbed closer to an 11-year high. Yields for the 10-year JGB reached 0.893%, its highest level since briefly touching 0.895% on October 26. This rise comes after the BOJ expanded the permissible yields on the 10-year JGB by 50 basis points in July.
Stock Futures Open Higher, Investors Bet on Oversold Bounce
S&P 500 futures opened 0.2% higher, Nasdaq-100 futures gained 0.4%, and Dow Jones Industrial Average futures rose slightly. Investors are anticipating a bounce due to oversold conditions, as all three benchmarks head towards their third consecutive month of negative performance.
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