China’s Reported First Daily Covid-19 Cases Decrease Helping Markets Get Back on Track

U.S. stocks recorded sharp losses yesterday as investors became alarmed that China's strict Covid-19 policies would negatively impact global economic growth. Investors were also assessing comments from Federal Reserve officials to get some insights on future rate hikes. The majority of the traders are now expecting the U.S. central bank to raise interest rates by 50 basis points during its December meeting, which is still high enough to hamper growth.

All the major sectors on the S&P 500 closed on a negative note, with real estate and energy stocks recording the biggest losses. The Nasdaq Composite dipped 1.43% to close at 11,587.75 yesterday, amid drops in shares of Apple (AAPL) and Microsoft Corp (MSFT). The S&P 500 retreated by 1.54%, while the Dow Jones tumbled around 1.45% to settle at 33,850. With U.S. stock futures trading higher this European afternoon, some of the stocks, earningswise, that may grab investor focus today are:

Hewlett Packard Enterprise Company (HPE) is expected to report quarterly earnings at $0.56 per share on revenue of $7.44 million after the closing bell. Hewlett Packard Enterprise shares gained 0.1% to $15.56 in after-hours trading. UnitedHealth Group Inc.(UNH) issued guidance for FY22 and FY23. The company said it sees FY23 revenue of $357 billion to $360 billion, versus estimates of $352.39 billion. The company also expects FY23 adjusted EPS of $24.40 to $24.90, versus expectations of $24.94. UnitedHealth shares fell 0.4% to $530.00 in the after-hours trading session. Also, market expects Intuit (INTU) to have earned $1.22 per share on revenue of $2.50 billion for the latest quarter. The company will release earnings after the markets close. Intuit shares rose 0.2% to $386.50 in the after-hours trading session.

Meanwhile, European indices are trading higher this afternoon. The German DAX climbed 0.17%, with Zalando SE (ZAL.DE) jumping 2.49%. The French CAC 40 rose 0.27%, as Kering SE (KER.PA) advanced 1.58% at the time of writing. British FTSE 100 was up by 0.71% concurrently, with Prudential plc (PRU.L) soaring by 4.14%. The euro gained 0.3% versus the dollar, to $1.03662 at 1:40 p.m. CET. At the same time, the pound sterling advanced by 0.44% against the greenback, to sell at $1.20011.

The European Commission revealed in its final report published earlier today, that consumer confidence in the Eurozone posted a noticeable rebound in November, rising by 2.8 pts and coming in at the expected negative 23.9. Across the entire EU, the figure stood at negative 25.8, up by 2.8 points compared to the number registered in October. The Economic Sentiment Indicator (ESI) advanced by 1 pts in both the euro area and the EU to reach 92.2 and 93.7, respectively. The report noted that a “rebound in consumer confidence more than outweighed a further deterioration of industry confidence,” while “sentiment in services, retail trade and construction remained broadly unchanged.”

The number of newly registered Covid-19 cases on the Chinese mainland has decreased for the first time in over a week, the country's National Health Commission (NHC) revealed on Tuesday. It confirmed 38,645 newly registered infections, down from the record highs reported over the weekend. As a result, equities in Hong Kong and the Chinese mainland rallied. China said it would bolster vaccination among its senior citizens.

Japan’s Nikkei ended the session lower by 0.48%. In mainland China, however, the Shanghai Composite declined to end the day higher by a hefty 2.31%, while the Shenzhen Composite having advanced by 2.40%. Concurrently, Hong Kong's Hang Seng spearheaded 5.24%, while South Korea's Kospi Composite added 1.04% at the close.