US Markets: Broader indices in the United States traded in green - particularly, the S&P 500 index traded 18.26 points or 0.52 per cent higher at 3,501.60, Dow Jones Industrial Average Index expanded by 241.25 points or 0.85 per cent higher at 28,735.45, and the technology benchmark index Nasdaq Composite traded higher at 11,757.04, up by 43.17 points or 0.37 per cent against the previous day close (at the time of writing, before the US market close at 12:05 PM ET).
US Market News: The Wall Street traded in the green on firm US retail sales number. The retail sales in the US increased by 1.9% month on month in September 2020 against an expected increase of 0.7%. Among the gaining stocks, shares of CIT Group surged by nearly 23.1% as it announced an all-stock merger deal with First Citizens BancShares Inc, which was up by about 8.7%. Pfizer gained by around 2.7% after it announced that its vaccine for covid-19 would be ready by November 2020 for Emergency Use Authorization application. Bank of New York Mellon moved up by close to 2.2% after its provision for credit loss declined to USD 9 million in the third quarter from USD 143 million in the previous quarter. Among the decliners, Schlumberger fell by 6.3% after it reported revenue below analyst’s expectation that was affected by lower drilling in North America. VF Corp was down by around 2.2% after it reported a quarterly profit of 67 USD cents per share. Hewlett Packard declined by close to 1.1%, although it increased its outlook for FY21.
US Stocks Performance*
European News: The London and European markets traded in the green as the UK continues to extend covid-19 restrictions. The UK car registration fell by 4.4% year on year in September 2020. Meanwhile, Boris Johnson asks to prepare for a no-deal Brexit. Among the gaining stocks, Rolls Royce was up by about 9.1% as it led the FTSE-100 gain. Man Group gained by around 5.6% after it reported funds under management of USD 113.1 billion in Q3 20. Among the falling stocks, shares of JD Wetherspoon plummeted by nearly 10.1% after it reported an annual loss. IAG was down by around 2.4% after the UK’s data protection regulator fined British Airways. Superdry slipped by close to 0.9% after its CFO Nick Gresham plans to step down.
European Indices Performance (at the time of writing)
FTSE 100 Index One Year Performance (as on 16 October 2020)
1 Year FTSE 100 Chart (Source: Refinitiv, Thomson Reuters)
Top 3 Volume Stocks in FTSE 100*: Lloyds Banking Group Plc (LLOY); Vodafone Group Plc (VOD); BP Plc (BP.).
Top 3 Sectors traded in green*: Industrials (+2.70%), Consumer Cyclicals (+1.80%) and Financials (+1.68%).
Top Sector traded in red*: Real Estate (-0.63%).
London Stock Exchange: Stocks Performance (at the time of writing)
Crude Oil Future Prices*: Brent future crude oil (future) price and WTI crude oil (future) price were hovering at $42.98/barrel and $40.89/barrel, respectively.
Gold Price*: Gold price was quoting at US$1,906.15 per ounce, down by 0.15% against the prior day closing.
Currency Rates*: GBP to USD: 1.2917; EUR to GBP: 0.9073.
Bond Yields*: US 10-Year Treasury yield: 0.739%; UK 10-Year Government Bond yield: 0.174%.
*At the time of writing
High yielding dividend stocks may be a good bet amid lower Government Bond yield regime.
With yields on UK government bonds are at a record low, stocks with higher dividend yield (%) will be back in investor’s attention.
Dividend stocks usually do not get into a free fall and outperform most of the time.
Dividend stocks are easy to get cash flow from your stock investments without liquidating anything. Further, you can use dividends to buy additional units of stock. And, if you reinvest dividends, you can significantly increase your long-term return from your investments because of the power of compounding.