US equity markets closed close to balance. The results season has started again with a vengeance. 3M, General Motors and Verizon appeared among the day's publications with varying degrees of success. The automaker's raising of its targets was welcomed. After its sharp rise on Monday, the yield on the American 10-year bond stabilized near 4.21%. The Dow Jones lost 0.02% to 42924.84 points and the Nasdaq Composite gained 0.18% to 18573.13 points. Oil gained 2.38% and the ounce of gold continued its run to records.
General Motors (+9.81% to $53.73) posted the second largest increase in the S&P500. The presentation of its third quarter results is accompanied by the raising of its annual objectives. What a contrast with its competitor Stellantis, which warned at the beginning of October! The American manufacturer expects an adjusted Ebit between 14 and 15 billion dollars compared to 13 to 15 billion previously, and an adjusted free cash flow for its auto branch between 12.5 and 13.5 billion compared to 9.5 to 11. 5 billion previously.
Today's economic figures
The Richmond Fed's manufacturing index came in at -14 in October, compared to a consensus of -19 and -21 in September.
Values to follow today
3M
The 3M industrial group raised its annual targets after a better-than-expected third quarter. Over this period, it recorded a net profit from continuing operations of $1.372 billion compared to a loss of $2.53 billion a year earlier. Excluding exceptional items, it came to $1.98 where the market expected $1.90. Adjusted sales rose 1.5% to $6.07 billion versus a consensus of $6.06 billion. They grew by 1% organically.
GE Aerospace
In the third quarter, GE Aerospace's revenue increased 6% to $9.84 billion. Net profit per share stood at $1.15, an increase of 25% over one year. On the outlook side, the group has revised upwards its outlook for the year 2024. It now expects an operating profit of between 6.7 and 6.9 billion dollars compared to previously of 6.5 to 6.8 billion dollars. Its adjusted earnings per share are expected to be between $4.20 and $4.35 compared to a prior estimate of between $3.95 and $4.20.
General Motors
General Motors is expected to fall in pre-market trading on Wall Street after the presentation of its third quarter results. The American manufacturer has nevertheless raised its annual objectives: it expects an adjusted Ebit between 14 and 15 billion dollars compared to 13 to 15 billion previously, and an adjusted free cash flow for its auto branch between 12.5 and 13.5 billion compared to 9.5 to 11.5 billion previously. GM, however, posted a loss of $137 million in China compared to a profit of $192 million last year.
Lockheed Martin
Lockheed Martin reported net revenue of $17.1 billion in the third quarter of 2024, compared to $16.9 billion in the third quarter of 2023. Its net profit for this quarter was $1.6 billion. dollars, or $6.80 per share compared to $1.7 billion, or $6.73 per share, a year ago. Free cash flow was $2.1 billion in the third quarter of 2024, compared to $2.5 billion in the third quarter of 2023.
Philip Morris
In the third quarter, Philip Morris' revenues stood at $9.9 billion, an organic increase of 11.6% year-on-year. Over this period, the gross margin stood at $6.5 billion, an organic increase of 13% over one year. Operating profit increased 13.8% organically to $3.7 billion. The tobacco company has raised its forecasts for 2024. It is now targeting earnings per diluted share of between $6.20 and $6.26 compared to a previous estimate of between $5.89 and $6.01.
Verizon
Verizon is expected to decline on Wall Street while the telecommunications operator reported revenues very slightly below expectations in the third quarter: 33.3 billion dollars against 33.4 billion targeted. The American firm recorded an 8.1% decline in its sales of telephones and mobile equipment. Its revenues from subscriptions and services grew by 1.7%. During that period, net income fell 30% to $3.31 billion, or 78 cents per share, from $1.13 per share a year earlier.
source: AOF
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