Investing.com – Here are 5 important things to know about the financial market on Tuesday, November 7:
h2 1. U.S. stock index futures fell/h2
U.S. stock index futures fell on Tuesday, giving up recent gains.
According to Investing.com’s U.S. stock market, as of 19:17 Beijing time (07:17 a.m. Eastern Time), the blue-chip Dow futures fell 83.7 points, or 0.25%, while the S&P 500 futures fell 83.7 points, or 0.25%. or about %, futures points for the tech-heavy Nasdaq 100 index, or %.
Wall Street’s major stock indexes closed higher in the previous session, with benchmarks the S&P 500 and the Dow Jones Industrial Average both rising for six consecutive days for the first time since the summer. The tech-heavy Nasdaq Composite also rose for a seventh straight day.
Last week, U.S. stocks also posted their best weekly performance this year, boosted by expectations that the Federal Reserve may soon cut interest rates. However, the market is still paying attention to the relatively uncertain outlook for economic growth and inflation, and continues to evaluate the Federal Reserve’s policy path.
h2 2.WeWork files for bankruptcy/h2
WeWork (NYSE:WE) has filed for bankruptcy in a New Jersey court. WeWork, founded by Adam Neumann and invested by SoftBank (TYO:9984), is a shared office space provider. However, working from home due to the epidemic and the decline in office occupancy rates after the epidemic have hit the company’s revenue.
WeWork said in a statement on Monday that it is restructuring its business to strengthen its capital structure and financial performance. The company also said it has received support from stakeholders and will “significantly reduce existing financing debt.”
The company previously said in August that its net long-term debt amounted to $2.9 billion and its long-term leases exceeded $13 billion, but this data raised “serious doubts” about the company’s operating capabilities.
However, the company noted that franchisees outside the United States and Canada and in other parts of the world will not be affected by the bankruptcy.
WeWork was once hailed as the future of global office space, but its occupancy rate in the latest quarter was still well below expectations, and its cash operating profit was negative in the first half. Currently, the company’s market value has fallen to about US$40 million, far lower than the US$47 billion valuation of the company by private equity in 2019.
h2 3. UBS recorded quarterly loss dragged down by Credit Suisse acquisition costs/h2
UBS Group AG (SIX:UBSG) lost $785 million in the third quarter, a wider-than-expected loss as the bank was weighed down by integration costs from its acquisition of Credit Suisse.
Earlier this year, the Swiss government all but forced a merger of two systemically important banks to prevent Credit Suisse from going bust. Credit Suisse is currently a subsidiary of UBS and is expected to complete its merger with UBS next year.
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UBS CEO Sergio Ermotti emphasized in a statement that the company was gradually absorbing Credit Suisse, saying that Credit Suisse’s important division wealth management unit had recorded “strong inflows”. The segment saw net new money inflows of $22 billion, mainly due to an influx of new clients.
In addition, online ride-hailing platform Uber Technologies (NYSE: UBER) and Buffett’s favorite Occidental Petroleum Company (NYSE: OXY) will also announce their latest quarterly financial reports.
h2 4. China’s imports increased, but exports were weaker than expected: Domestic demand is recovering, but external demand is weak? /h2
China’s imports unexpectedly increased in October, sparking cautious optimism about a rebound in domestic demand, but exports fell more than expected, highlighting potential risks in external demand.
In October, China’s imports increased by 3%, while it was expected to fall by 4.8%, which was a significant improvement from the 6.2% decline in September, indicating that a series of support measures by the Chinese government may be supporting the economic recovery.
However, China still faces pressure from a weak real estate industry and a relatively sluggish global economic environment.
At the same time, China’s exports fell 6.4% year-on-year in October, lower than the 5.4% decline expected, and accelerated from the 6.2% decline last month.
Business activity data for October released last week showed that Chinese companies, especially manufacturing companies, are suffering from weak overseas demand as foreign importers face pressure from rising interest rates and sticky inflation.
h2 5. Saudi Aramco profits decline/h2
Saudi Aramco (TADAWUL:2222) third-quarter revenue fell 23%, reflecting lower oil prices and production. Saudi Aramco’s net profit also fell to US$32.6 billion, although it was still higher than the company’s forecast of US$31.8 billion. The company’s stock price was flat after the earnings announcement.
Meanwhile, other energy groups such as Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX) have also seen earnings declines. This year, worries about the global economy have weighed on crude oil prices and weakened energy company results.
On the other hand, oil prices fell on Tuesday as mixed trade data from China heightened concerns about weakening oil demand.
As of 19:17 Beijing time (07:17 a.m. Eastern Time), Investing.com commodity prices showed: U.S. WTI crude oil futures prices fell 1.79% to US$79.50/barrel; Brent crude oil futures prices fell 1.75%, quoted at US$83.70/barrel.
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Compiler: Liu Chuan