NEW YORK, NY – OCTOBER 16: Traders and others work on the floor of the New York Stock Exchange (NYSE) in New York City.
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This report comes from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open keeps investors updated on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
What you need to know today
European Central Bank cuts interest rates as expected
European Central Bank Thursday As expected, the key interest rate was lowered by 25 basis points to 3.25%. This is the third 25 basis point rate cut this year and the first rate cut in consecutive meetings since December 2011. The ECB’s Governing Council said the deflation process was “progressing well”.
Dow bucks trend and rises
U.S. markets were mixed on Thursday. this Dow Jones Industrial Average It rose 0.37% and closed at another record high. but S&P 500 Index and Nasdaq Index Most are unchanged. European Stoke 600 The index ended the day 0.83% higher as traders took the ECB’s rate cut and comments from ECB President Christine Lagarde that the bank “will not pre-commit to a specific interest rate path.”
More positive economic data
On a seasonally adjusted basis, U.S. retail sales increased 0.4% in September. That was up from August’s 0.1% gain and Dow Jones’ forecast of 0.3%, according to advance reports. In more positive economic news, initial jobless claims for the week ended October 12 fell by 19,000 from the previous week to 241,000. These reports reinforce the adage: Don’t bet on the American consumer.
Convenient earnings beat
Netflix The company on Thursday reported third-quarter profit and revenue that beat London Stock Exchange forecasts. The company added 5.1 million new subscribers in the quarter ended Sept. 30, 600,000 more than StreetAccount expected. at the same time, British Semiconductor The report stated that its third-quarter net income increased by 36% year-on-year and raised its fourth-quarter revenue.
(PRO) Small Caps Surge
For example, unlike larger companies, smaller companies don’t have the muscle to negotiate low-interest loans or the cash moats to withstand fluctuations in consumer habits. Therefore, when the Fed cuts interest rates, small stocks tend to benefit more. They just hit a three-year high.
bottom line
The bottom line is off today. Normal programming will resume on Monday 21 October 2024.
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