Citigroup Inc. Reveals Gain In Q3 Earnings

Citigroup Inc. (C) reported earnings for its third quarter that increased from last year.

The company’s profit totaled $4.91 billion, or $2.07 per share. This compares with $4.62 billion, or $1.73 per share, in last year’s third quarter.

Analysts had expected the company to earn $1.95 per share, according to figures compiled by Thomson Reuters. Analysts’ estimates typically exclude special items.

The company’s revenue for the quarter rose 1.0% to $18.57 billion from $18.39 billion last year.

Citigroup Inc. earnings at a glance:

-Earnings (Q3): $4.91 Bln. vs. $4.62 Bln. last year.
-EPS (Q3): $2.07 vs. $1.73 last year.
-Analysts Estimate: $1.95
-Revenue (Q3): $18.57 Bln vs. $18.39 Bln last year.

European Economics Preview: UK Unemployment Data Due

Labor market statistics from the UK and economic confidence survey results from Germany are due on Tuesday, headlining a busy day for the European economic news.

At 2.30 am ET, the Federal Statistical Office is set to issue Swiss producer and import prices for September. Economists forecast producer and import prices to fall 1.7 percent annually, following a 1.9 percent drop in August.

At 2.45 am ET, France’s final inflation data is due. Inflation is seen at 0.9 percent in September, unchanged from flash estimate.

At 3.00 am ET, unemployment data from Turkey is due.

At 4.30 am ET, the Office for National Statistics releases UK unemployment data. The jobless rate is forecast to remain unchanged at 3.8 percent in three months to August.

In the meantime, the Treasury Committee hearing on the “Bank of England Financial Stability Report” is due.

At 5.00 am ET, Germany’s ZEW issues results of the monthly economic confidence survey. The economic sentiment index is seen at -27.0 in October versus -22.5 in September.

Gold Prices Edge Up As Dollar Weakens Ahead Of Brexit Talks

Gold prices edged higher on Tuesday and the dollar nursed losses as optimism over U.S.-China trade talks faded and investors reacted to more positive Brexit news flow.

Spot gold edged up 0.2 percent to $1,496.37 per ounce, while U.S. gold futures were up 0.3 percent at $1,501.75.

The U.S. and China reached a phase one deal late on Friday, but scant details about the deal cast doubts over the durability of the partial preliminary deal.

The real sticking points of technology transfer and intellectual property theft do not find any significant mention in the proposed deal.

According to a report in Bloomberg News, China may send a delegation led by Vice Premier Liu He to finalize a written deal that could be signed at the Asia-Pacific Economic Cooperation summit next month in Chile.

Also, China reportedly wants a planned tariff hike in December to be scrapped in addition to the hike scheduled for this week.

Meanwhile, the British pound held near recent multi-month highs against the euro and dollar after EU Brexit negotiator Michel Barnier said that securing a Brexit deal at this week’s EU summit will be difficult but “still possible”.

According to Irish broadcaster RTE, the United Kingdom would make new Brexit proposals today in a last-ditch bid to secure a Brexit deal.

Auto, metal stocks drive Sensex up 292 points

Top gainers in the Sensex pack included Vedanta, M&M, ONGC, Hero MotoCorp and Maruti, rising up to 3.79 per cent.

Illustration: Uttam Ghosh/Rediff.com

Extending its gains for the third consecutive session, market benchmark BSE Sensex rallied about 292 points on Tuesday driven by gains mainly in auto, metal and banking stocks.

After soaring 421 points during the day, the 30-share Sensex ended 291.62 points, or 0.76 per cent, higher at 38,506.09.

It hit an intra-day high of 38,635.19 and a low of 38,238.27.

The broader NSE Nifty too rose 87.15 points, or 0.77 per cent, to settle at 11,428.30.

Top gainers in the Sensex pack included Vedanta, M&M, ONGC, Hero MotoCorp and Maruti, rising up to 3.79 per cent.

On the other hand, Bharti Airtel, Infosys, Tata Motors, HCL Tech and Tech Mahindra fell up to 2.53 per cent.

Wells Fargo’s stock falls after profit miss, but revenue surprises to the upside

Shares of Wells Fargo & Co. WFC, +0.12% lost 0.6% in premarket trading Tuesday, after the bank reported third-quarter profit that missed expectations, while revenue surprisingly rose. Net income fell to $4.61 billion, or 92 cents a share, from $6.01 billion, or $1.13 1 share, in the same period a year ago. The latest quarter’s earnings per share included a 35-cent litigation accrual and a 20-cent gain on the sale of assets. The FactSet EPS consensus was $1.24. Total revenue rose to $22.01 from $21.94 billion, while the FactSet consensus was for a decline to $21.09 billion. Net interest income fell 7.5% to $11.6 billion, to miss the FactSet consensus of $11.7 billion, while noninterest income rose 11% to $10.4 billion to beat expectations of $9.6 billion. Net interest margin declined to 2.66% from 2.94%, missing expectations of 2.68%. The stock has rallied 5.5% over the past three months through Monday, while the SPDR Financial Select Sector ETF XLF, +0.14% has slipped 1.7% and the S&P 500 SPX, -0.14% has eased 1.6%.

Prologis Raises FY19 Outlook – Quick Facts

While reporting its financial results for the third quarter on Tuesday, Prologis Inc. (PLD) raised its fiscal 2019 outlook for earnings as well as core funds from operations.

The company now forecasts fiscal 2019 net earnings in a range of $2.65 to $2.69 per share, up from the prior range of $2.38 to $2.46 per share.

On average, analysts polled by Thomson Reuters expected the company to report earnings of $1.82 per share for the year. Analysts’ estimates typically exclude special items.

Prologis also increased its fiscal year 2019 core funds from operation or core FFO outlook to a range of $3.30 to $3.32 per share from the prior range of $3.26 to $3.30 per share.