Research Market strategy
By Swissquote Analysts
Morning News

American Express Posts Earnings and Revenue Beats

American Express earned $2.27 a share in the third quarter on revenue of $10.9 billion, beating analysts’ estimates on both metrics, as cardholding spending jumped. Net income in the period was $1.83 billion vs. $1.07 billion a year earlier. The credit card giant was expected by analysts to report third-quarter earnings of $1.80 a share on revenue of $10.52 billion. Provisions for credit losses were a net of $191 million, compared with a provision expense of $665 million a year earlier. Cardholder spending jumped to a record high and was up 19% from the third quarter of 2019. Spending by Millennial and Gen-Z cardholders rose 38% from the third quarter of 2019.

By
Nadine PEREIRA
Morning News

WeWork Shares Rise on First Day of Trading, Two Years After Failed IPO

The shared-office company WeWork started trading publicly Thursday, capping a journey to a listing that included the implosion of its initial public offering in 2019 and the ouster of its co-founder and chief executive, Adam Neumann. The company went public through a combination with BowX Acquisition Corp., a special-purpose acquisition company. Shares rose $1.40, or 13%, to $11.78. In 2019, WeWork's IPO fell apart as the company faced questions about its corporate governance and how much it was worth. Now the entity that is making its debut on the New York Stock Exchange has undergone a refresh under Chief Executive Sandeep Mathrani.

By
Nadine PEREIRA
Morning News

Tesla Posts Record Quarterly Earnings on Supply-Chain Resilience

Tesla Inc. notched a third consecutive record quarterly profit, thanks in part to the electric-vehicle maker’s ability to navigate persistent global supply-chain disruptions. The strong earnings came after Tesla delivered roughly 73% more vehicles than in the year-ago period. Underpinning that growth was an uptick in sales of vehicles made in China, now home to Tesla’s largest auto plant by output. The company on Wednesday said it also benefited from cutting some expenses.

By
Nadine PEREIRA
Morning News

Higher Sales Across Divisions Lift Johnson & Johnson as Healthcare Sector Recovers

Johnson & Johnson's sales climbed in the latest quarter compared with the same stretch of last year, reflecting a return of more doctor's visits and medical procedures after the pandemic disrupted the industry. The New Brunswick, N.J., company's revenue rose 11% year over year in the third quarter to $23.34 billion. Its results are closely watched in the healthcare sector because its products span multiple categories. Medical-device sales grew 7.6% amid a higher level of surgical procedures. Pharmaceutical sales were up 14%, the result of more prescriptions of drugs for multiple myeloma, inflammatory diseases and other conditions. Johnson & Johnson's sales of consumer products such as Tylenol, Motrin and skin-care lines rose 5.7%. Those sales trends exclude acquisitions and divestitures.

By
Nadine PEREIRA
Morning News

Philips 3Q Sales Missed Market Views, Lowers FY Guidance

The Dutch medical technology group Koninklijke Philips NV reported on Monday a rise in net profit for the third quarter but sales declined and it lowered its full-year growth and margin guidance. The Dutch medical-technology group said its results were hit by supply-chain issues, which led to longer lead times to convert its strong order book to revenue during the period. It expects the problems to continue in the fourth quarter.

By
Nadine PEREIRA
Morning News

Goldman Sachs Profit Rises on Deal Bonanza

Goldman Sachs Group Inc. on Friday reported a 60% jump in profit and a 26% increase in revenue, beating analysts’ expectations. The Wall Street titan rounded out earnings season for the biggest U.S. banks, all of which reported double-digit profit gains. Goldman’s investment bankers brought in $3.7 billion in fees, the second-best quarter on record and 88% higher than a year ago. They earned $1.65 billion just from advising on mergers and acquisitions, a quarterly record and more than triple the year-ago results. Third-quarter trading revenue jumped 23% at Goldman, to $5.61 billion. Bond trading came back to earth after a supercharged 2020, when nervous companies raced to raise debt.

By
Nadine PEREIRA
Morning News

Bank of America Quarterly Profit Rises 58% on Higher Interest Income

Bank of America Corp. said Thursday that third-quarter profit rose 58%, suggesting banks’ lending businesses are starting to improve from a pandemic slump. The bank released $1.1 billion of the reserves it had set aside for pandemic loan defaults, helping boost its profit. Revenue was up 12% from the year-ago period. Bank profits soared in the latest quarter in large part because the U.S. economy bounced back so quickly from the pandemic recession. Banks last year set aside billions of dollars to prepare for a wave of loan defaults, but now they are releasing the money they had socked away. That helped power double-digit earnings gains at JPMorgan Chase & Co., Citigroup Inc. and Wells Fargo & Co.

By
Nadine PEREIRA
Morning News

JPMorgan Profit Jumps on Reserve Release

JPMorgan Chase & Co.'s third-quarter profit rose 24%, the bank said Wednesday. The bank posted a profit of $11.69 billion, or $3.74 per share, up from $9.44 billion, or $2.92 per share, a year ago. That beat the $3 per share that analysts had expected, according to FactSet. The bank freed up $2.1 billion it had set aside for soured consumer and corporate loans during the worst days of the coronavirus crisis. Excluding the boost from the release and a tax benefit, the bank's profit was $9.6 billion in the third quarter.

By
Peter Rosenstreich
Morning News

LVMH 3Q Sales Rose at Steady Pace

LVMH Moet Hennessy (+0.35%) Louis Vuitton SE’s third-quarter sales rose at the same rate seen earlier in the year, driven by Asia and the United States. Sales for the three months to the end of September came to 15.51 billion euros ($17.92 billion), 11% higher than in the same period of pre-pandemic 2019, the French luxury-goods group said Tuesday. The increase is the same booked in the first half of the year. Analysts had expected sales of EUR15.38 billion, according to a FactSet-compiled consensus.

By
Nadine PEREIRA
Morning News

Emerson Plans to Merge Industrial-Software Businesses With AspenTech

Emerson Electric Co. (-2.6%) plans to merge two of its software businesses with Aspen Technology Inc. (+12.3%) in a roughly $11 billion deal aimed at capturing growing demand for industrial technology. The cash-and-stock transaction would value AspenTech, as the company is known, at around $160 a share, officials from the companies said. AspenTech's shareholders would receive $87 and 0.42 share of the combined company for each share they currently own. The transaction is expected to be announced Monday.

By
Peter Rosenstreich