Wall Street 3Q Reports Positive



By: YOSEF TASTASSA  
Published: October 21st 2010
in Economics » World

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Pic: Fotolia

It's the reporting season, and we are in the middle of fiscal year 2010 3Q reports.

 

The American communication giant, AT&T (NYSE-T), reported 3Q earnings of less than 12.3B US Dollars or 2.08 Dollars per share. The huge profit is due to tax arrangements the company achieved, and also due to selling some of its business. AT&T also reported an increase of 2.6 million new clients in 3Q only. The company's incomes were 250 million US Dollars above analysts' estimations.

 

McDonald's financial reports were not bad at all. Profits jumped 10.3% to 1.4B US Dollars, 1.32 Dollars per share, 7 cents more than analysts' estimations.

 

Again Asia and how it reflects the heavy industry. Caterpillar beat all analysts: its profits went up by 96% to 792M US Dollars per share or 1.22 Dollars per share, nearly 12% higher than markets' expectations.

 

Nokia (NYSE – NOK) will also report today. Positive and optimistic expectations made it soar yesterday by 6.83% to 11.57 US Dollars and a market capacity of 42.6 Billion Dollars. Apple (NASDAQ – AAPL) is traded at around 313 US Dollars per share, nearly 30% higher since mid August. Investors will estimate whether new peaks are justified.

 

Google is also at a peak, after positive reports, making an impressive comeback of 42$ in one year. The share is trading for 615 US Dollars as we speak.

 

Back to China, Google's Chinese competitor Baidu (NASDAQ – BIDU) is at a fantastic race in the last 12 months. Baidu tripled its value in one year to 105 Dollars, the multiple factor (P/E) of Baidu is 105, meaning that the company is expecting fast growth in the future.

 

The positive wind blowing from Wall Street in addition to Ben Bernanke’s careful but positive estimations about the US economy are positively affecting other world markets.

 

Toronto TSX

 

Keeps moving north and is in a green territory. The Chinese interest’s negative impact is forgotten and the Index is over 1% high in two days, led by the metal & mining, health care, financial and the industrial sectors.

 

Potash will probably get more headlines as CTV reported that the government will let BHP buy the Corporation for 39Dollars, despite the resistance by Saskatchewan to the deal.

 

Tel Aviv (TASE)

 

Markets reached their highest peak ever in the last trading day in Israel. Stock accelerated after the Wall Street report. TA 25 up 1.25%, TA 100 up 1.05%. The banking sector is up by 1.37%, what a green day in the eastern part of the Mediterranean.

 

Technology sector is up 1.1%, expecting reports of the "Duals" (Shares traded both in Tel Aviv and New York).

 

Europe

 

Mainly positive, FTSE 100, DAX, CAC are in the green territory amid world data. Euro is over 1.40 US Dollars. Data will put Jean Claude Trichet, the ECB Governor under pressure on what steps must be taken to boost the limping European economy.

 

UK’s modesty plan to decrease 0.5 million positions in the public sector is being covered by financial papers in the continent.

 

Foreign Exchange

 

In response to the positive data from around the world, attention to currencies is lower today. The Currency War is at a small cease fire, and currencies fluctuate mildly by barely 0.2% to both directions.

 

At focus

 

Financial sector reports, China's monetary policy and Yuan appreciation. Canada's chemical, metal and mining sector. US labor market, consumer's mood. Europe – PIGS (Portugal, Ireland, Greece and Spain) macro data. Israel – Oil and Gas sector – "Leviathan' drilling initial results.



Related articles: (Wall Street, 3Q, World economy)
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