US benchmark equity indexes ended higher Thursday, reflecting a positive sentiment as markets digested the latest economic data and corporate earnings just ahead of Netflix's upcoming results. The significant increase in US retail sales in September underscored a trend of heightened consumer spending, particularly in restaurants and apparel stores.
This suggests that consumers are showing resilience, especially during the crucial back-to-school shopping period. Retail sales figures, alongside jobless claims and industrial production data, further support BMO's opinion that the Federal Reserve is likely to reduce interest rates at a more gradual pace.
The central bank notably cut its benchmark lending rate by 50 basis points last month, marking the first reduction since March 2020. In the oil market, November West Texas Intermediate crude oil saw a slight increase, closing up $0.28 to settle at $70.67 per barrel. Similarly, December Brent crude, considered the global benchmark, was last reported up $0.24, settling at $74.46.
This upward movement was attributed to easing geopolitical concerns and an unexpected decline in US inventories from the previous week. Turning to specific corporate performances, shares of Blackstone experienced a notable rise of 6.5%. This surge followed the alternative asset manager reporting third-quarter earnings that surpassed Wall Street's expectations, along with an increase in assets under management.
In contrast, Elevance Health faced a setback with a 12% drop in its share prices. The health insurer downgraded its full-year earnings outlook despite reporting Q3 revenue that outperformed market estimates. However, the company’s earnings fell short of expectations, largely due to challenges encountered in its Medicaid business.
These contrasting performances highlight the varied landscape in corporate earnings amidst a fluctuating economic backdrop..