Markets

Halliburton third-quarter profit edges past estimates

Halliburton’s third-quarter profit edged past analysts’ estimates on Monday, as tight pipeline capacity in the top Permian basin led to fewer well completions. Oil services firms, which help operators drill and complete wells, are seeing demand for their services cool as producers cut down on spending and delay completions due to pipeline bottlenecks in the Permian basin of Texas and New Mexico. Halliburton said revenue from North America, its biggest market, rose 18.2 percent to $3.74 billion from a year earlier. International revenue rose 5 percent from the second quarter to $2.4 billion. “Our international business continues to show signs of a steady recovery,” Chief Executive Officer Jeff Miller said in a statement. Rival Schlumberger NV also managed a slight pr...

Stocks making the biggest move premarket: KMB, HAL, HAS, PII, INTC & more

Check out the companies making headlines before the bell: Kimberly-Clark – The consumer products company named President and Chief Operating Officer Michael Hsu as its new CEO, effective in January. He’ll replace Thomas Falk, who had been CEO since 2002 and will become Executive Chairman. Separately, company reported adjusted quarterly profit of $1.71 per share, 8 cents a share above estimates. The company also gave a full-year forecast range that is largely above Street forecasts, however it said that foreign currency translation will have a larger-than-expected negative sales impact. Halliburton – The oilfield services company beat estimates by 1 cent a share, with quarterly earnings of 50 cents per share. Revenue came in slightly above estimates, as well. Halliburton said North Am...

Hasbro results dented by lingering Toys R Us woes, shares fall

Toymaker Hasbro missed analysts’ estimates for quarterly revenue and profit on Monday, as the demise of major retail partner Toys R Us hurt sales in the United States and Europe, sending its shares down 9 percent in early trading. Investor expectations were high going into the quarter after Chief Executive Officer Brian Goldner and Wall Street analysts indicated that Hasbro may mitigate some of the loss from the toy retailer’s bankruptcy in the second half of the year. However, Hasbro reported a 7 percent drop in quarterly sales in the United States and Canada to $924.2 million, due to the loss of Toys ‘R’ Us revenue and an inability to meet shipping demands of other retailers. Hasbro and rival Mattel have scrambled to find new avenues to sell their products followi...

Philips earnings fall short of analyst expectations amid currency headwinds

Dutch health care technology company Philips reported weaker-than-expected third-quarter net income on Monday, citing subdued growth in key markets and foreign currency headwinds. Here are the key highlights: Third-quarter net profit: 292 million euros vs. 350.5 million euros expected by analysts at data firm Refinitiv. EBITA came in at 590 million euros in the third quarter, compared with 532 million euros in the same period last year. “The profit improvement of 40 basis points on the operating income could have been a bit higher if it were not for currency headwinds, which were sizable in the emerging markets. It is something that of course we will compensate as we go forward so not a structural issue,” Frans van Houten, CEO of Philips, told CNBC’s “Squawk Box Eur...

Guest Contribution: “Modeling Time-Variation Over the Business Cycle (1960-2017): An International Perspective”

Today, we are pleased to present a guest contribution written by Enrique Martínez-García (Federal Reserve Bank of Dallas), based on his forthcoming article in Studies in Nonlinear Dynamics and Econometrics. The views expressed here are those solely of the author and do not reflect those of the Federal Reserve Bank of Dallas or the Federal Reserve System. A sustained wave of globalization has led to deeper ties in the post-World War II period: The decision to terminate the convertibility of the U.S. dollar into gold in 1971 effectively ended Bretton Woods, ushering in a new era of fiat and free-floating currencies. The international monetary system has evolved since—removing the multilateral constraints of Bretton Woods (which fixed exchange rates and distorted the allocation of resources w...

Guest Contribution: “China’s Q3 GDP Reportedly Slowed to 6.5%. Or Is It 6.4%?”

Today, we present a guest post written by Jeffrey Frankel, Harpel Professor at Harvard’s Kennedy School of Government, and formerly a member of the White House Council of Economic Advisers. Headlines today note a further slowdown in China’s growth. Newly announced GDP data give a preliminary estimate of 6.5 % in the 3rd quarter of 2018, relative to Q3 of 2017. The growth rate had been 6.7% previously. The change is part of the long-term slowdown that, perhaps inevitably, followed the spectacular 10% average growth rate achieved by China from 1980 to 2010. One thing that interests me in the reports is a particular (very wonkish) detail. For the US and most other countries, the quarter’s GDP is routinely reported relative to the preceding quarter, not relative to four quarters ago. Why do th...

Stocks making the biggest move premarket: PG, HON, F, VFC, HOG AMZN & more

Check out the companies making headlines before the bell: Procter & Gamble – The consumer products giant reported adjusted quarterly profit of $1.12 per share, exceeding estimates by 3 cents a share. Revenue also came in above Street forecasts and the company posted organic sales growth of 4 percent for its fiscal first quarter. Honeywell – Honeywell earned an adjusted $2.03 per share for the third quarter, 4 cents a share above estimates. Revenue also came in above forecasts, with strong sales in the company’s warehouse automation and aerospace businesses. Ford Motor – The automaker’s stock was downgraded to “equal-weight” from “overweight” at Morgan Stanley, which said it’s seen limited progress from Ford’s restructuring as well as incr...

The aging tech unicorn’s dilemma: An IPO during rough market conditions

There’s plenty of talk that some aging unicorns might go public next year, including Palantir, Airbnb and maybe Uber. But if this market volatility continues into next year, they are either going to have to drop their prices dramatically, or postpone their IPOs. Simply put, the recent after-market performance of initial public offerings has been terrible. In the last 90 days, IPO after-market returns, which are the returns retail investors get after the first day of trading, have been down an average of 5 percent, according to Renaissance Capital. Of 55 IPOs in the last three months, about half are below their issue prices, including internet browser Opera (down 38 percent), speaker manufacturer Sonos (down 13 percent), real estate giant Cushman & Wakefield (down 4 percent) and l...

Honeywell says China growth is slowing, and tariffs are expected to squeeze margins

Honeywell said on Friday it was seeing slower growth in China and that trade tariffs would squeeze margins and potentially cost it “hundreds of millions” of dollars in 2019. Like most U.S. industrial companies, Honeywell is taking a hit from the ongoing trade war between Beijing and Washington, while China’s economy shows signs of slowing. Shares of the company, which makes everything from aircraft engines to catalysts used in petroleum refining, rose earlier in the day after better-than-expected quarterly results, but pared most of those gains by midday. “We grew the Chinese market but not at the double-digit pace that we saw earlier in the year. So that’s probably my number one area to watch,” said Chief Executive Officer Darius Adamczyk. “As I l...

Procter & Gamble shares jump on earnings beat as beauty business boosts sales

Procter & Gamble shares jumped Friday after the company said beauty sales helped propel higher-than-expected revenue growth during the latest quarter. It also maintained its profit outlook for the full year. Its stock climbed 5 percent in premarket trading on the news. As of Thursday’s close, its shares had fallen about 11 percent this year, bringing P&G’s market cap to roughly $202 billion. Here’s what P&G reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv: * Earnings per share: $1.12, adjusted, vs. $1.09 expected* Revenue: $16.69 billion vs. $16.46 billion expected “This keeps us on track to deliver our top-and bottom-line targets for the fiscal year,” CEO David Taylor said in a statement. Net income...

Procter & Gamble shares jump 7% on biggest quarterly sales gain in 5 years

Procter & Gamble shares jumped Friday after the company said beauty helped propel higher-than-expected revenue growth and reported the strongest quarterly sales gains in five years. It also maintained its profit outlook for the full year. In recent quarters, the company has struggled to grow sales as demand has waned for some of its household brands like Pampers for diapers. But the company said it sold a higher volume of goods in the latest quarter thanks to a healthy economy in the U.S. encouraging shoppers to spend more, coupled with new product innovation on P&G’s behalf. Its stock climbed more than 7 percent in morning trading on the news, making it the top gainer on the S&P 500 Consumer Staples Index. Shares were on pace to show its biggest gain since of October 200...

Q3 Chinese Growth

Q/q Chinese growth in 2018Q3 is estimated at 1.6% (not annualized), after downwardly revised 1.7% rate in Q2. Y/y growth was 6.5%. [1] [2] Source: TradingEconomics. There are two things to remember. First, reported GDP growth is implausibly smooth; even so, this is not proof that GDP is overstated. There is widespread belief that services are undercounted; hence the level of GDP might be higher than reported, even if the growth rate is lower. On this second count of growth rates, we might profitably refer to alternative estimates. The Li Keqiang index (40% electricity consumption, 40% outstanding loan growth, 20% rail freight) is the most common reference. This index provides a different perspective. Source: Ailing Tan. Fernald, Malkin and Spiegel (2013) show that the Li Keqiang index corr...