Spreadex Market Update
Heavy dollar hit for Johnson & Johnson doesn’t bode well for Dow’s earnings season
The Dow opened around 20 points lower, with Johnson & Johnson’s third quarter results the only thing on offer. Those results didn’t bode well for the rest of the index’s components, with the strong dollar reducing the consumer giant’s revenue by 8.2% to $17.1 billion; news, however, that the company would buyback $10 billion in shares mitigated its losses when the bell rang on Wall Street, with Johnson & Johnson only falling around a percent. Twitter, meanwhile, jumped 5% after a statement from CEO Jack Dorsey that it would be cutting its workforce by 8%.
The continued support of SABMiller, which has held onto its 9%, 330 point increase from the moment the ‘in principle’ Anheuser-Busch InBev news was announced this morning, alongside a 3% jump for Shire after its drug cinryze got FDA fast track status for kidney transplants, meant the FTSE could shrink its losses to around 25 points. Still, the UK index couldn’t quite get them to disappear, with this morning’s pesky plunge in Chinese imports ensuring a limp day from its commodity stocks.
The DAX, on the other hand, couldn’t relinquish its 3 digit decline, the weight of its disastrous ZEW economic sentiment figure, and a further fall from the giant thorn in its side that is Volkswagen, putting investors off of the German index for the entire day.
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