Yum! Brands, Inc (YUM) plummeted 18.9% or $15.77 to $67.65 after the quick-service restaurant chain operator reported revenues in the third-quarter ending on September 5 increased 2% from a year ago to $3.43 billion.
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European equities also increased broadly Wednesday, with Germany’s benchmark DAX index at Frankfurt Stock Exchange up 0.68 percent, as shares in energy companies rallied strongly after a few recovery in oil prices.
The United States dollar rose against the euro and the Swiss franc, while the yen gained against the dollar after the Bank of Japan left monetary policy unchanged.
The Chicago Board Options Volatility Index fell 5.2 percent Wednesday to 18.40, its lowest since August 19.
Investors shifted attention to the next Bank of Japan meeting scheduled on October 30 and speculated that the central bank may be ready to offer more easing steps.
Expectations that the Federal Reserve will lift interest rates off near-zero levels this year are fading, with concerns mounting about slowing global growth and its effect on corporate results.
S&P 500 E-mini contracts expiring in December fell 0.4 percent to 1,980 at 7:22 a.m.in New York. The Dow Jones industrial average rose 121.96 points, or 0.73 per cent, to 16,912.15, and the Nasdaq Composite added 42.79 points, or 0.9 per cent, to 4791.15.
Gold and silver futures have been climbing in recent sessions and are up since the end of September, giving a boost to materials shares.
Analysts have been cutting forecasts for US third-quarter earnings since the start of the quarter.
But even as Citi strategists have warned that analyst earnings forecasts are too optimistic, they have backed the view that the bull market has yet to die, predicting global equities will rise 20 percent through the end of 2016. The yearslong rally in health-care shares took a turn in August as the broader market pulled back, and fears of legislation targeting drug pricing deepened losses. Output in mining and quarrying surged 17.7%, manufacturing output fell 0.8% and output in electricity declined 3.1% from a year ago month, Office of the National Statistics said.
Asian shares reached a seven-week high. “The movement has come from people looking to see if oil prices can hold above $US50, or if there is an oversold bounce”.
On the other hand, steel stocks have moved notably higher on the day, driving the NYSE Arca Steel Index up by 2.1 percent. Benchmark 10-year Treasuries US10YT=RR were down 10/32 in price to yield 2.072 percent, up nearly 4 basis points from late Tuesday. Worries over the American economy grew after the largest expansion of the US trade deficit in five months.
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