Eli Lilly surpasses expectations but lowers profit outlook
Eli Lilly reported better-than-expected financial results for the third quarter, driven by strong demand for its diabetes drug Mounjaro. The pharmaceutical company reported earnings of $0.10 per share, surpassing estimates of a loss of $0.13 per share. Revenue also exceeded expectations, coming in at $9.50 billion compared to the expected $8.95 billion. However, Eli Lilly lowered its full-year profit guidance due to charges related to recent acquisitions. The company now expects adjusted earnings of $6.50 to $6.70 per share for 2023, down from the previous range of $9.70 to $9.90 per share.
Moderna takes a $1.3 billion write-down for unused Covid vaccines
Moderna reported a sharp loss for the third quarter, largely due to a $1.3 billion write-down from unused Covid-19 vaccines. The company reported a loss of $9.53 per share, but it was unclear how this compared to analyst estimates. Despite the loss, Moderna’s revenue exceeded expectations. Shares dipped by over 2% in premarket trading.
Treasury yields fall as Fed rate hikes are reevaluated
Treasury yields declined across the curve as traders reassessed the likelihood of further interest rate hikes by the Federal Reserve this year. The benchmark 10-year Treasury yield dropped to 4.718%, down 7 basis points, while the 2-year note yield fell by about 2 basis points to 4.956%.
European stocks open higher following a positive session
European stock markets opened higher on Thursday, extending a three-day streak of gains. The Stoxx 600 index was up 1.16% at 8:28 a.m. London time, with France’s CAC 40 gaining 1.26% and Germany’s DAX up 1.16%. The UK’s FTSE 100 also rose by 1%.
Hong Kong retail sales growth slows down in thick global high interest rate environment
Retail sales in Hong Kong grew at a slower pace in September, indicating the impact of a global high interest rate environment. Sales rose by 13% compared to the previous year, down from the prior month’s growth of 13.7%. The sluggish recovery was attributed to elevated interest rates that dampened consumption, tourism, external trade, and investment. The Hong Kong economy closely follows that of mainland China, and tepid external demand from both China and the rest of the world further contributed to the slowdown.
Australia’s September trade surplus narrows to lowest level in over two years
Australia’s trade surplus for September narrowed to 6.79 billion Australian dollars ($4.37 billion), the lowest level since March 2021. Exports fell by 1.4%, driven by a decline in non-monetary gold shipments. Meanwhile, imports surged by 7.5%, with a 74% increase in imports of industrial transport equipment. The Australia Bureau of Statistics announced that data on trade services will now be published quarterly instead of monthly.
South Korea’s inflation rate exceeds expectations for third consecutive month
South Korea’s inflation rate accelerated for the third straight month in October, with the consumer price index increasing by 3.8% year-on-year. This was higher than the expected 3.6% rise and the 3.7% increase in September. The upward trend in inflation marks a recovery from a 25-month low of 2.3% in July.
Stocks on track for weekly gains
The three major stock indexes are on track to finish the week higher. The Dow Jones Industrial Average has climbed 2.6% since the start of the week, while the S&P 500 and Nasdaq Composite have advanced 2.9% and 3.3% respectively. Technology stocks have particularly performed well.
Stock futures show little change
Stock futures traded close to flat on Wednesday night. Dow futures remained steady, while S&P 500 and Nasdaq 100 futures inched slightly higher.
