Friday Financial Report
U.S. exchange futures are up this morning, despite a less-than-stellar trading day on Thursday, and at the end of the trading week for Hong Kong’s Hang Seng. The 10-year Treasury yield is hovering around its 6-month high of 1.88%, continuing its steady incline following a July low of 1.34%. The Bureau of Economic Analysis reported its preliminary estimate of the U.S. GDP for Q3 at 8:30am. The report beat analyst expectations, showing a 2.9% annualized growth in Real GDP, brought upward by the surge in durable goods and food exports. With the strongest growth rate since Q3 2014, analysts are optimistic about the momentum carrying into Q4.
Amazon (AMZN) released their quarterly earnings yesterday, significantly lower than expectations. The online retail giant posted earnings of $0.52 per share against analyst expectations of $0.78 per share, leading to a 7% drop in stock price after-hours. The news isn’t entirely bad, however. Amazon has a reputation for aggressively reinvesting its profits to expand the business. As such, Amazon plans to add 26 fulfillment centers (hubs to pick up orders) this year compared to only 14 last year.
UBS Group AG is under investigation in Hong Kong over its role in several IPOs in the Chinese market. The bank has been under-fire in Asia after several reports of misdealings over the past two years, which have already drawn them from their position as the top underwriter in Asia (sans Japan) last year, with the bank now listed as #21. The misdealings include alleged accounting fraud and a possible quid-pro-quo hiring of the daughter of the chairman of Tianhe Chemical Group Ltd., which had hired UBS for is IPO. It remains to be seen as to what the punishment may be, but it may range from a fine to suspension.
10.28.16↑ Back to top