Stocks slide after some disappointing earnings from McDonald’s, Travelers
Stocks closed lower Tuesday as investors pored through a slew of key earnings from companies such as McDonald’s, Travelers, Procter & Gamble and United Technologies. The Dow Jones Industrial Average closed 37 points lower, or 0.1% after rising more than 100 points earlier in the day. The S&P 500 slid 0.4% while the Nasdaq Composite dipped 0.7%.
McDonald’s shares dropped 5% earnings and revenue for the previous quarter that missed analyst expectations. The company’s U.S. same-store sales, a key metric for franchises, grew by 4.8%. That’s below a StreetAccount estimate of 5.1%. Travelers plunged more than 8% after reporting earnings that badly missed estimates.
United Technologies shares rose 2.2% after the company posted earnings that topped analyst expectations. Better-than-expected revenues from the company’s Otis, Pratt & Whitney and Collins Aerospace divisions helped drive the beat.
Procter & Gamble climbed 2.6% after its results topped expectations. The company’s numbers were driven by Procter’s beauty, health care and fabric and home care lines.
European markets returned to square one on Tuesday afternoon following a choppy session for stocks, as U.K. lawmakers debate Prime Minister Boris Johnson’s EU Withdrawal Agreement Bill ahead of two crucial votes. The pan-European Stoxx 600 returned to the flatline having been 0.4% either side during morning trade. Oil and gas stocks rose 0.9% to lead gains while the travel and leisure sector slipped 1% lower.
Swiss banking giant UBS on Tuesday reported a 16% drop year-on-year in its third-quarter profit as the bank warned of a “challenging environment.” The lender’s shares traded 0.4% lower during afternoon deals.
Novartis also reported before the bell, the Swiss pharma powerhouse boosting its 2019 targets after beating third-quarter profit and sales expectations. Novartis stock traded up 0.7%.
NIIS: NIS to start producing oil and gas in Romania
These days, the first samples of oil from the test production in Romania have arrived to be tested at the Pancevo Refinery. An oil and gas site has already been detected in the Pannonian Basin in Romania. The drilling will continue and we will try to find new options for expanding the company's resource base, as the achieved results are encouraging – says the president of the Board of Directors of NIS, Vladimir Jakovljev. The Editor in Chief of Sputnik, Ljubinka Milincic, says that it is well known that there is plenty of oil in Romania.
Investment plan to be adopted December 5th or 6th
Serbian President Aleksandar Vucic announced late Monday a National Investment Plan was due to be adopted on December 5 or 6, after the passage of the new budget bill. "This will be an in-depth increase of living standards in Serbia. We will set aside 10 bln euros over the next four or five years. The goal is to introduce waterworks and sewerage networks in every municipality and to try to expand the gas supply network everywhere," Vucic told Sputnik in an interview. He also said many projects he had discussed with Russian PM Dmitry Medvedev would be included in the investment plan.
Export of Serbian IT industry amounts to 900 million euro
Serbia’s IT industry has reported exports worth more than 900 million euro in the first eight months of 2019, the Serbian government said on Monday. A press release said that those exports, which totalled 913 million euro, are twice the size of the IT industry’s exports in 2016 and 26.4 per cent higher than in the same period a year earlier. The Serbian government will continue to focus on the IT sector as “the branch of the economy with the highest prospects and one of the greatest movers for the country’s economic growth”.