- European stock markets closed slightly higher on Wednesday, while global sentiment was more mixed as investors digested a string of corporate earnings. The pan-European Stoxx 600 provisionally closed 0.35% higher, with most sectors and major bourses in positive territory. Food and beverage stocks added 1.9% to lead gains, while travel and leisure stocks slipped more than 1%. UK inflation unexpectedly slowed in September. It rose 3.1% year-on-year after rising 3.2% in August, the Office for National Statistics said Wednesday.
- The Dow Jones Industrial Average rose to a record Wednesday as investor sentiment was boosted by better-than-expected earnings reports and a new record for bitcoin. Verizon was among the biggest gainers in the Dow, rising 2.4% after its third-quarter earnings beat estimates. The telecom giant raised its forecast due to the growing adoption of 5G. Netflix released its highly anticipated third-quarter earnings report after the market closed Tuesday. The streaming giant added 4.4 million subscribers during the period. Wall Street analysts had expected 3.84 million new subscribers, according to StreetAccount estimates. However, the stock closed down 2.1%.
- Stocks in the Asia-Pacific region were mixed in early morning trading as investors watched shares of Hong Kong construction company China Evergrande Group. Shares of Evergrande fell 9.83% this morning, returning to trading after a more than two-week hiatus. The heavily indebted company had announced in a stock market filing late Wednesday that the sale of a 50.1% stake in its property services business to another developer, Hopson, had fallen through.
Tesla posts record third-quarter revenue and profit
Tesla reported third-quarter results after the bell Wednesday, posting record sales and profits. The company reported net income of $1.62 billion (GAAP) for the quarter, topping the $1 billion mark for the second time. That compares with net income of $331 million in the year-ago quarter. The record results were driven by improved gross margins of 30.5% in the automotive business and 26.6% overall, both records for at least the last five quarters. Automotive revenue increased to $12.06 billion and automotive cost of sales was $8.38 billion for the quarter.
Tesla also generated $806 million in revenue from its energy business, which includes solar and energy storage products, and $894 million in services and other revenue.
Verizon Q3 profit beats estimates and raises 2021 guidance
Verizon Communications said its third-quarter adjusted earnings per share rose 12.8 percent compared with the same period last year. The company said the result was highlighted by revenue and subscriber growth, as more than one in four wireless customers now own a 5G-enabled device. The company added 699,000 new postpaid customers, including 429,000 new phone lines, bringing the total number of customer lines to 122.0 million. Net additions of phone lines increased 51.6 percent year-over-year in the third quarter. Excluding Verizon Media, total consolidated operating revenues increased 5.5 percent in the third quarter. Total wireless services revenue increased 3.9 percent, driven by higher access revenue, volume growth and products.