MARKET WRAPS
STOCKS: Stocks rose for the second straight session amid optimism ahead of the Federal Reserve statement and mega-cap tech earnings.
TREASURYS: Treasury yields rose ahead of the Fed decision.
FOREX: The U.S. dollar rose against rivals as traders positioned themselves for a hawkish Fed statement.
COMMODITIES: Oil futures fell amid hopes for diplomatic progress in the Middle East.
HEADLINES
Boeing Turnaround Shows Progress but Commercial Unit Sputters
Boeing posted another quarterly loss after higher costs ate into
profits within its commercial-jet business.
Heavy investments in new airplane production, a roughly $700 million
payment to cover a Justice Department settlement and other accounting
charges also crimped profits during the September quarter. But the plane
maker continued generating cash, a major test of its turnaround.
Boeing booked an overall third-quarter loss of $116 million, compared
with a $5.34 billion loss a year earlier. On a per-share basis, the loss
shrank to 26 cents from $7.14 a year earlier.
Coca-Cola Raises Outlook as Increased Volumes, Prices Boost Results
Coca-Cola raised its forecast for the year after higher volumes and
prices lifted results in the latest quarter.
The beverage conglomerate on Tuesday posted a third-quarter profit of
$4.06 billion, or 93 cents a share, compared with $3.68 billion, or 86
cents a share, a year earlier.
Adjusted earnings per share were 91 cents, compared with analyst
estimates of 88 cents, according to FactSet.
General Motors Moving Stock Listing to Nasdaq From NYSE
General Motors is moving its stock listing to Nasdaq from the New York
Stock Exchange, becoming the latest marquee name to make the jump from
the Big Board to its younger rival.
GM on Tuesday said it expects to begin trading as a Nasdaq-listed
company on Nov. 17 under its current GM stock symbol.
GM's shares will continue to trade on the NYSE, the automaker's home
since it returned to the public markets in 2010 following a bankruptcy
and public bailout, through the close of business on Nov. 16.
U.S. Consumer Confidence Improved in October, Conference Board Says
Consumer confidence in October revived to June levels as consumer
appraisals improved both for the present situation and for future
expectations, a monthly survey from The Conference Board said.
The research group said its consumer confidence index rose to 91.7
this month from 84.2 in September. Economists polled by The Wall Street
Journal had expected a reading of 81. September's level was revised
slightly upward.
The recovery was in line with retail gasoline prices easing from
September to October, said Fergus McCormick, Senior Economist, Global
Indicators at the Conference Board.
U.S. Home Price Growth Kept Climbing in August
U.S. home price growth climbed again in August, led by major
metropolitan areas including Chicago and New York.
The S&P Cotality Case-Shiller National Home Price Index, which
measures home prices across the country, rose 2.1% in the 12 months
through August, compared with a 1.9% increase in July.
For the 15th consecutive month, U.S. home values fell in real terms,
as August's 3.4% inflation ran roughly 1.3 percentage points above the
2.1% home price gain, the survey said.
Durable Goods Orders Rose in September
Demand for U.S. durable goods was up in September, according to data
published by the Commerce Department.
Total orders for durable goods-which comprise goods meant to last
three years or more-increased $6.3 billion to $345.4 billion, following a
0.1% August increase.
Economists polled by The Wall Street Journal had expected an increase
of 1.7%.
UPS Raises Outlook as Revenue Climbs
United Parcel Service lifted its full-year outlook and logged higher
revenue in the third quarter, as recent restructuring efforts continued
to bear fruit.
The carrier said Tuesday it now expects full-year adjusted earnings of
$7.28 a share, up from a prior forecast of $7.22 a share and ahead of the
$7.19 a share that analysts polled by FactSet expected.
The company also raised its revenue outlook to about $92.6 billion,
from approximately $91.2 billion previously. Wall Street had modeled
$91.78 billion.
PayPal Lifts Full-Year Outlook, CEO Stresses Turnaround Plan
PayPal Holdings lifted its full-year outlook and reported higher
revenue in the third quarter as the financial-technology company looks to
persuade investors that it can grow and thrive as an independent entity.
The results follow months of speculation about a possible PayPal
takeover. Rival fintech Stripe and Advent International offered to buy
the company for $60.50 a share this summer, The Wall Street Journal has
reported, but a deal has yet to materialize.
Enrique Lores, who became PayPal's chief executive in March,
reiterated that while the company will evaluate any merger or acquisition
proposal, he remains focused on executing PayPal's turnaround. He said
the company will be targeting earnings-per-share growth in the
double-digits.
HCA Healthcare Profit Slips but Revenue Rises
HCA Healthcare reported a lower profit in the third quarter after a
surge in uninsured patients offset higher revenue, but said it expects
full-year results at the high end of its guidance.
The operator of healthcare facilities on Tuesday posted net income of
$1.58 billion, compared with $1.64 billion in the same quarter a year
ago.
On a per-share basis, earnings came to $7.27, up from $6.96.
Corning Profit Surges on AI Demand
Corning's third-quarter net income rose 58% amid torrid demand for
fiber-optic materials from the artificial-intelligence buildout, a boom
the company expects to lift adjusted earnings in the fourth quarter.
The maker of specialty glass, ceramics, and optical fiber posted net
income of $680 million, or 78 cents a share, up from $430 million, or 50
cents a share, a year earlier.
Core earnings per share, an adjusted figure that strips out
exceptional items and one-off costs, came to 91 cents a share, besting
the Wall Street peg of 88 cents a share, as per FactSet.
Centene Lifts 2026 Guidance as Medicare Cost Controls Offset Lower
Membership
Centene raised its full-year outlook for the third time as the health
insurer continued to control medical costs.
However, its total at-risk membership fell to 25.7 million as of Sept.
30, down from 28 million a year earlier, primarily reflecting a
contraction in its Health Insurance Marketplace enrollment.
The company's health-benefits ratio, a measure of how much was paid
out to cover enrollees' medical expenses, held steady at 92.7%, below the
mean analyst estimate of 92.9%, based on FactSet. The company said the
underlying performance in its Medicare Advantage and Prescription Drug
Plans drove the stability, alongside improved pricing and risk transfer
in Marketplace reflecting member acuity.
TALKING POINT The 'Buy, Borrow and Die' Wealth Strategy Has Become a $5 Trillion Market
Buy, borrow and die is a mantra of the rich. They love to take out loans against stock they own, so they don't have to sell it when they want to buy other things such as mansions, yachts and movie studios.
Lend-and-thrive appears to be the approach of banks and others supplying the loans. The arrangement lets them book almost all their fees as pure profit because losses on collateral are rare and most of it can be sold quickly.
A new survey of 57 of the world's biggest private banks and other lenders, conducted by Deloitte and reviewed by The Wall Street Journal, offers the fullest picture yet of this opaque corner of finance. Banks don't always break out such lending on their balance sheets, and there is no central tally of how much is outstanding. The report finds that stock-based lending, better known as Lombard loans to borrowers in Europe and Asia, is increasingly available to those lower down the wealth scale.
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