Account
New to ADSS? Open an
account now to get started.
Already have an account?
Add funds to your ADSS account
Account
New to ADSS? Open an
account now to get started.
Add funds to your ADSS account
What’s happening: Shares of General Motors Company surged on Tuesday, after the company released results for its third quarter.
What happened: The automaker reported stronger-than-expected sales and earnings for the third quarter.
GM also increased its annual profit guidance citing rising consumer demand.
How were the results: The Detroit, Michigan-based company reported low double-digit growth in sales for the quarter ended September 30.
Why it matters: Sales of new vehicles in the US had been declining since the beginning of the year, as inflation and higher financing costs weighed on demand.
Several automakers slashed prices and offered more attractive incentives in a bid to dispose of inventory. However, General Motors was able to post upbeat profits due to higher demand for some of its vehicles, including GMC Yukon and Chevy Silverado.
The company closed the quarter with $23.7 billion in cash and equivalents and $8.5 billion in marketable debt securities. Inventories at the end of quarter stood at $17.33 billion.
On Monday, GM declared a cash dividend of 12 cents per share for the fourth quarter.
“We’ve been able to grow retail share with above average prices, below average incentives and well managed inventory. This has put us in a position to update guidance once again,” CFO Paul Jacobson said.
Management raised their 2024 guidance for adjusted EBIT (earnings before interest and taxes) to a range of $14 billion to $15 billion, from their earlier projection of $13 billion to $15 billion. The adjusted earnings guidance came in at $10.00-$10.50 per share.
How shares responded: Shares of General Motors climbed 9.8% to close at $53.73 on Tuesday. The stock has jumped around 49% year to date.
What to watch: Investors will continue monitoring the Fed’s monetary policy and overall inflation trends in the US, which are expected to significantly impact the company’s overall results ahead.
Context: The CAD/USD forex pair rose slightly on Tuesday, as investors assessed PPI data from Canada.
Details: Data released on Tuesday showed industrial producer prices in Canada declined by 0.6% in September, following a 0.9% decline in the previous month. The easing in prices was more than market expectations of 0.5% and signalled producer price deflation in the region for the second straight month, amid lower energy and petroleum prices.
The Raw Materials Price Index fell 3.1% in September, after a 3% decline in August.
Consumer inflation eased to 1.6% in September, recording its lowest reading in more than three years and below market estimates of 1.8%.
The Bank of Canada had cut its key interest rate by 25bps to 4.25% last month. This was the third rate, each of 25bps, this year. Markets widely expect the BoC to lower interest rates more by a more substantial 50bps during its meeting later today.
A rise in the price of crude oil, one of Canada’s major exports, lent support to the loonie on Tuesday. WTI crude oil prices jumped more than 2% to close at $72.09 a barrel.
Strength in the US dollar limited the overall gains for the CAD/USD forex pair. The US dollar index, which measures the greenback’s performance versus a basket of major peers, gained around 0.1% to 104.08 on Tuesday.
The CAD/USD forex pair added around 0.1% to reach 1.3819 on Tuesday. The S&P/TSX Composite Index fell 0.03% to close at 24,716.70.
What to watch: Investors await the interest rate decision by the Bank of Canada today. Markets widely expect policymakers to reduce rates by 50bps.
Other Markets: European indices closed lower on Tuesday, with the FTSE 100, DAX 40, CAC 40 and STOXX Europe 600 Index down by 0.14%, 0.20%, 0.01% and 0.21%, respectively.
The US is considering providing an aid package of $700-$800 million to Ukraine for the domestic development of long-range capabilities for its war with Russia. The news sent the safe-haven US dollar index higher in forex trading this morning.
South Korea’s Composite Consumer Sentiment Index rose to 101.7 in October, from 100 points in the previous month. However, consumer sentiment on current living standards came in flat at 90, exerting pressure on the KRW/USD forex pair.
Mexico’s economic activity rose by only 0.4% year-over-year in August, after a 3.8% surge in the previous month. The latest reading also missed market estimates of 0.7%, which sent the MXN/USD pair lower in forex trading this morning.
Poland’s retail sales contracted by 3% year-over-year in September, compared to market expectations of 2.1% growth, which exerted pressure on the PLN/USD forex pair.
Hong Kong’s annual inflation rate slowed to 2.2% in September, from 2.5% in August, sending the HKD/USD pair slightly higher in forex trading this morning.
Turkey’s consumer confidence, South Africa’s inflation rate, US MBA mortgage applications, existing home sales, crude oil inventories, gasoline stocks change, distillate stocks and Fed minutes, Reserve Bank of India’s monetary policy meeting minutes, Mexico’s retail sales, Eurozone’s consumer confidence indicator, Russia’s industrial production, as well as Argentina’s monthly economic activity estimator.
ADSS
8th floor, CI Tower
Corniche Road
PO Box 93894
Abu Dhabi
United Arab Emirates
Trading Services
ts@adss.com
+971 2 657 2414
Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.
ADS Securities LLC – S.P.C (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates under First Category: Dealing in Securities and Fifth category: Arrangement and advice (Introduction). ADSS is a Limited Liability Company – Sole Proprietorship Company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.
The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.
ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.
