European stock markets closed mixed on Monday, lacking a clear direction at the start of the new trading week. The pan-European Stoxx 600 provisionally closed slightly above the apartment line, with basic materials stocks up 1.3% while travel and leisure stocks fell 1.1% as sectors pointed in opposite directions. The lackluster day followed mixed trading in Asia-Pacific overnight, where investors reacted to trade data from China released over the weekend.
The S&P 500 closed at a record high on Monday after Congress passed an infrastructure spending package. The U.S. House of Representatives passed an infrastructure bill worth more than $1 trillion late Friday, sending it to President Joe Biden for his signature. The package, passed by the Senate back in August, includes new funding for transportation, utilities and broadband. Industrial and basic materials stocks rallied on Monday as these stocks are expected to benefit from the spending package.
Asian stock markets are trading mixed this morning, following positive cues from Wall Street the previous evening. Traders reacted positively to news that the House of Representatives passed a $1 trillion infrastructure bill over the weekend and support from higher crude oil prices. However, traders seemed hesitant to make any major moves given the uncertainty surrounding the near-term outlook for the markets following the recent uptrend.
AMC posts narrower-than-expected loss, but CEO says pandemic challenges remain
Shares of AMC Entertainment fell more than 5% in extended trading Monday, despite the movie theater operator reporting a narrower-than-expected loss in the third quarter. “Our financial results continue to improve,” CEO Adam Aron said in a statement Monday. “You can see and feel that our industry and our company are on a path of recovery and improvement. But even amid this good news, we are not yet where we want or need to be.” As moviegoers returned to theaters, AMC posted a net loss of $224.2 million, or 44 cents a share, compared with a loss of $905.8 million, or $8.41 a share, a year ago. Analysts had expected a loss of 53 cents per share, according to a Refinitiv survey. Revenue rose to $763.2 million from $119.5 million a year earlier, beating analysts’ expectations of $708.3 million.
PayPal issues disappointing revenue forecast for next year
PayPal reported 13% revenue growth for the third quarter on Monday and announced that it is working with Amazon to allow U.S. customers to pay with Venmo at checkout starting in 2022. Total payments volume rose 26% to $310 billion in the quarter ended Sept. 30, and the company added 13.3 million new active accounts, bringing the total to 416, PayPal said in a statement. PayPal’s Venmo app, which began supporting cryptocurrency services in April, saw a 36% increase in payment volume to $60 billion. Customers in the U.S. can buy, sell and check out with digital currencies. With its network of 33 million retailers, PayPal’s crypto ambitions have positioned it as a competitor to Coinbase, the country’s most popular crypto exchange.