Equities look to end the worst month of 2023

A pullback in both Treasury yields and crude oil prices helped lift US shares Thursday, but the S&P 500 Index and Nasdaq Composite were still on pace for sharp drops for the week and the month.  The Dow Jones Industrial Average rose 0.35%, the S&P 500 gained 0.59%, and the Nasdaq Composite advanced by 0.83%, as gains were led by the communication services sector and materials.  The rate-sensitive utilities sector sank over 2%, continuing its recent slide.  European equities also managed to make some gains yesterday, with the Euro Stoxx 50 advancing by 0.7% thanks to a bigger-than-anticipated drop in inflation in Germany.   

Summary for 29.09.2023 

• Asian equity markets mostly rose this morning, as equities got relief from a pullback in Treasury yields, the dollar and oil prices. Shares in Australia and Hong Kong advanced, while Japanese equities struggled for traction. Markets in South Korea and mainland China are closed for their respective holidays. Still, most benchmark indices in Asia are on track to end the month lower as the higher-for-longer interest rate scenario pressured equity markets throughout the period. 
• European shares are set for a muted open while US equity futures are seen higher on the last trading day of the quarter. 
• Oil prices moved little in Asian trade on Friday after falling sharply from 2023 highs on some profit-taking, although the prospect of tighter supplies still put prices on course for their fourth straight month of gains. 
• Weekly initial jobless claims in the US came in at 204,000, below expectations for a number close to 215,000. Also, the government’s final estimate for second-quarter GDP growth was unchanged at an annual rate of 2.1%. The government also unexpectedly lowered the growth rate for consumption during the quarter to 0.8% from 1.7% initially, driven by weakness in services. Consumption is the biggest component of US GDP. 
• Preliminary data showed yesterday that Germany’s consumer inflation rate in September was 4.5%, which was slightly below what the market had been expecting at 4.6%. However, the situation in Spain painted a different picture, as their inflation rate continued to climb for the third consecutive month, reaching 3.5%, the highest level seen since April. 
• Nike Inc shares rallied by almost 8% in extended trading yesterday after the company reported EPS of $0.94 versus $0.75 expected on revenues of $12.94 billion versus $13.02 billion expected. 
• Accenture shares fell 4.4% yesterday after the consulting and outsourcing firm reported mixed results for its fiscal fourth quarter, as earnings per share slightly topped expectations but revenue missed. The company’s forecast for its next fiscal year was also disappointing.  
• Duolingo shares rose 3% on Thursday after UBS imitated coverage of the education technology company’s shares with a “buy” rating. 
• Peloton shares rallied more than 5% yesterday after the exercise equipment maker and athletic apparel company Lululemon on Wednesday announced a five-year strategic partnership. Lululemon shares fell about 0.2%. 
• Ryanair said Thursday it has made cuts to its winter schedule due to delayed deliveries of Boeing aircraft. The low-cost European carrier said it expected to receive 27 aircraft between September and December but due to delays at the Spirit fuselage facility in Wichita, Kansas and Boeing repair and delivery delays in Seattle, it now expects to receive only 14 aircraft.