3M post earnings of USD1.78 vs. expectations of USD1.75

U.S. multinational conglomerate 3M reported better-than-expected third quarter earnings and revenue figures ahead of Thursday’s opening bell.

Earlier in the day, in its third quarter earnings report, 3M said earnings per share came in at USD1.78, above expectations for USD1.75 per share.

The company’s third quarter revenue totaled USD7.92 billion, beating forecasts for revenue of USD7.85 billion.

3M said it now expected full-year earnings per share in a range between USD6.65 to USD6.75, compared to a previous estimate in the range of USD6.60 to USD6.85 per share.

Meanwhile, the outlook for U.S. equity markets was higher. The Dow Jones Industrial Average futures indicated a gain of 0.45% at the open, S&P 500 futures pointed to a rise of 0.4% and Nasdaq 100 futures indicated an increase of 0.35%.

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Forex - EUR/USD off 23-month highs after euro zone data

The euro eased back from 23-month highs against the dollar on Thursday after data on euro zone manufacturing and services activity indicated that the recovery in the region remains sluggish.

EUR/USD pulled back from 1.3821, the highest since November 2011, to hit 1.3802 during European afternoon trade, still up 0.19% for the day.

The pair was likely to find support at 1.3740 and resistance at 1.3850.

Data released on Thursday showed that the preliminary reading of the euro zone’s manufacturing purchasing managers’ index ticked up to 51.3 in October from a final reading of 51.1 in September, slightly below expectations for a reading of 51.4. 

The euro zone services PMI fell to 50.9 this month from 52.2 in September.

Germany’s manufacturing PMI edged up to 51.5 from a final reading of 51.1 in September, but the services PMI declined to a three-month low of 52.3.

Manufacturing and service sector activity in France declined unexpectedly this month.

The single currency rose to 23-month highs against the dollar earlier after data showed that manufacturing activity in China expanded at the fastest rate in seven months in October.

The data offset fears over the Chinese economy, a day after market sentiment was hit by concerns that China’s central bank would tighten monetary policy to help control inflation.

The dollar remained under pressure after data earlier in the week showing that U.S. jobs growth slowed in September cemented expectations that the Federal Reserve would continue the current pace of its asset purchase program well into next year.

Elsewhere, the euro was slightly higher against the pound and the yen, with EUR/GBP easing up 0.11% to 0.8532 and EUR/JPY edging up 0.11% to 134.31 after rising as high as 134.76 earlier.

Investors were looking ahead to U.S. data on initial jobless claims, the trade balance and new home sales later in the trading day.

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European stocks remain higher after PMI data; Dax up 0.60%

European stocks remained higher on Thursday, supported by a string of economic reports out of the euro zone and China, while speculation that the Federal Reserve could delay the tapering of its bond purchases persisted. 

During European afternoon trade, the EURO STOXX 50 climbed 0.59%, France’s CAC 40 rose 0.23%, while Germany’s DAX 30 gained 0.60%. 

The preliminary reading of the euro zone’s manufacturing purchasing managers’ index ticked up to 51.3 in October from a final reading of 51.1 in September, slightly below expectations for a reading of 51.4. 

The euro zone services PMI fell to 50.9 this month from 52.2 in September.

Germany’s manufacturing PMI edged up to 51.5 from a final reading of 51.1 in September, but the services PMI declined to a three-month low of 52.3.

Manufacturing and service sector activity in France declined unexpectedly this month. 

Sentiment also improved after the preliminary reading of China’s HSBC manufacturing index for October rose to a seven-month high of 50.9, up from a final reading of 50.2 in September. Economists had expected the index to tick up to 50.5. 

Elsewhere, data earlier in the week showing that U.S. jobs growth slowed in September cemented expectations that the Fed would continue the current pace of its asset purchase program well into next year. 

Financial stocks were mostly higher, as French lenders BNP Paribas and Societe Generale rallied 1.77% and 1.83%, while Germany's Deutsche Bank climbed 0.92%. 

But peripheral lenders turned lower, with Spanish banks BBVA and Banco Santander falling 0.03% and 0.50% respectively, while Italy's Intesa Sanpaolo and Unicredit retreated 0.47% and 0.79%. 

Banco Santander earlier said third-quarter profit rose more than eightfold, thanks to lower costs for absorbing losses on real estate. 

Elsewhere, Daimler surged 3.07% after the maker of luxury vehicles said third-quarter earnings before interest and taxes rose 16% to EUR2.23 billion, surpassing market expectations. 

In London, FTSE 100 advanced 0.51%, still supported by sharp gains in the financial sector. 

Shares in HSBC Holdings rose 0.32% and Barclays climbed 0.59%, while the Royal Bank of Scotland rallied 1.90% and Lloyds Banking surged 2.12%. 

In the mining sector, stocks also remained mostly higher, with Glencore Xstrata gaining 0.44% and Rio Tinto up 0.61%, while rival company Fresnillo jumped 1.51%. 

In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.39% rise, S&P 500 futures signaled a 0.40% increase, while the Nasdaq 100 futures indicated a 0.40% climb. 

Also Thursday, official data showed that Spain's unemployment rate ticked down to 26.0% in the third quarter, from 26.3% in the three months to June, compared to expectations for a fall to 26.1%. 

Later in the day, the U.S. was to release data on initial jobless claims, the trade balance and new home sales.

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U.S. futures rise ahead of data, earnings; Dow Jones up 0.49%

U.S. stock futures pointed to a higher open on Thursday, supported by speculation the Federal Reserve could postpone the tapering of its stimulus program, as well as by strong manufacturing data out of China. 

Ahead of the open, the Dow Jones Industrial Average futures pointed to a 0.49% rise, S&P 500 futures signaled a 0.50% climb, while the Nasdaq 100 futures indicated a 0.49% increase. 

The dollar remained under pressure after data earlier in the week showed that U.S. jobs growth slowed in September, cementing expectations that the Fed would continue the current pace of its asset purchase program well into next year. 

Separately, market sentiment found support after the preliminary reading of China’s HSBC manufacturing index for October rose to a seven-month high of 50.9, up from a final reading of 50.2 in September. Economists had expected the index to tick up to 50.5.

The data offset fears over the Chinese economy, a day after market sentiment was hit by concerns that China’s central bank would tighten monetary policy to help control inflation. 

Financial stocks were expected to be active, after Morgan Stanley and Bank of America said the days of paying big bonuses to lure each other’s brokers and keep their own in place may be ending. 

Shares in the two lenders declined 0.38% and 0.56% respectively in extended trading. 

Separately, on Thursday, Bank of America's Countrywide unit was found liable by a jury for selling Fannie Mae and Freddie Mac thousands of defective loans in the first mortgage-fraud case brought by the U.S. government to go to trial. 

In the tech sector, Hewlett-Packard slipped 0.08% after hours, amid reports the company is seeking buyers for some of its mobile-computing patents, in an effort to bolster its financial position. 

Elsewhere, Boston Scientific saw shares jump 0.98% in late trading after the maker of heart devices announced plans to eliminate an additional 1,100 to 1,500 jobs through 2015 as part of a new restructuring program. 

Other stocks likely to be in focus included Ford, 3M, Amazon.com, Microsoft, Western Digital and Zynga, all scheduled to report quarterly earnings later in the day. 

Across the Atlantic, European stock markets were higher. The EURO STOXX 50 climbed 0.59%, France’s CAC 40 added 0.24%, Germany's DAX gained 0.72%, while Britain's FTSE 100 rose 0.47%. 

During the Asian trading session, Hong Kong's Hang Seng Index declined 0.71%, while Japan’s Nikkei 225 Index advanced 0.42%. 

Later in the day, the U.S. was to release data on initial jobless claims, the trade balance and new home sales.

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Dollar broadly lower as U.S. data eyed

The dollar was broadly lower against the other main currencies on Thursday on expectations that the Federal Reserve will hold off on tapering stimulus until next year, as investors looked ahead to U.S. data due later in the trading day.

During European morning trade, the dollar was trading at 23-month lows against the euro, with EUR/USD up 0.20% to 1.3804.

The euro briefly trimmed gains after data released on Thursday showed that manufacturing activity in the euro zone expanded at a slower than expected rate in October, indicating that the recovery remains sluggish.

The preliminary reading of the euro zone’s manufacturing purchasing managers’ index ticked up to 51.3 in October from a final reading of 51.1 in September, slightly below expectations for a reading of 51.4. 

The euro zone services PMI fell to 50.9 this month from 52.2 in September.

The dollar was almost unchanged near two-week lows against the yen, with USD/JPY dipping 0.05% to 97.34.

The dollar briefly touched session highs against the yen earlier after data showed that manufacturing activity in China expanded at the fastest rate in seven months in October.

The data helped offset fears over the Chinese economy, a day after market sentiment was hit by concerns that China’s central bank would tighten monetary policy to help control inflation.

The dollar fell to fresh 20-month lows against the traditional safe haven Swiss franc, with USD/CHF down 0.20% to 0.8906 and was also lower against the pound, with GBP/USD rising 0.14% to 1.6184.

The dollar remained under pressure after data earlier in the week showing that U.S. jobs growth slowed in September cemented expectations that the U.S. central bank would continue the current pace of its asset purchase program well into next year.

The greenback was mixed against its Australian and New Zealand counterparts, with AUD/USD inching up 0.07% to 0.9628 and NZD/USDdown 0.33% to 0.8363. 

The greenback pushed higher against the Canadian dollar, withUSD/CAD easing up 0.12% to 1.0397.

The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, fell to an eight month low, slipping 0.15% to 79.23. 

Investors were looking ahead to U.S. data on initial jobless claims, the trade balance and new home sales later in the trading day.

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