Bonds & Stocks
Stocks fluctuated as traders waded through corporate earnings and awaited Jerome Powell’s speech for clues on the Federal Reserve outlook. Treasuries trimmed losses after the 10-year yield approached 5%. The S&P 500 was little changed. Netflix Inc. surged as much as 18% after posting its best quarter for subscriber growth in years.
Economy
The European Central Bank’s meeting on Oct. 25-26 will almost certainly result in the Governing Council leaving the deposit rate unchanged at 4.00%. In addition, it will probably try to communicate that its main policy rates will remain on hold through the first half of next year. The hard-line hawks seem to be losing their battle to keep alive the possibility of one final hike in December.
World
Contemporary Amperex Technology Co. Ltd., the world’s biggest battery maker, posted third-quarter net income and revenue that missed estimates as a slight cooling of demand for electric vehicles on its doorstep, a price war and rising competition in China eroded earnings. Net income rose 10% from a year earlier to 10.4 billion yuan ($1.4 billion) in the three months through September.