Nike shares jumped 7.9% after hours. Nike reported earnings after stiff competition - from the likes of Adidas and running-shoe maker On Holding - and weaker demand for sneakers and clothing kept prices lower, after last year’s surge in inflation forced customers to cut back on spending as they covered more basic needs. The athletic-gear giant reported fiscal first-quarter net income of $1.45 billion, or 94 cents a share, compared with $1.47 billion, or 93 cents a share, in the same quarter last year. Revenue crept higher to $12.94 billion, compared with $12.69 billion in the prior-year quarter. Analysts polled by FactSet expected Nike to report earnings per share of 76 cents, on revenue of $13 billion. Gross margin fell 10 basis points to 44.2%, weighed by higher product costs and a tougher foreign-exchange backdrop, and offset by “strategic pricing actions.” The company’s inventories fell 10%, as Wall Street seeks progress on efforts by businesses to narrow down their stockpiles of unsold goods.

On Thursday, the SMI gained 0.3 per cent to 10,918 points. Among the 20 SMI stocks, there were 15 price gainers and four price losers, with Lonza closing unchanged. 17.7 (previously: 26.14) million shares were traded. The shares of the pharmaceutical giant Novartis were in demand. Novartis shares rose by 1.4 per cent. Roche, on the other hand, lost 0.9 per cent and was the day's loser. Alcon (+1.7 per cent), Givaudan (+1.5 per cent) and UBS (+1.4 per cent) were at the top of investors' buy lists. Richemont shares recovered slightly by 0.5 per cent after suffering marked losses over the week due to analysts' downgrades and target price cuts. The shares of competitor Swatch (+0.7%) fared better as well. Index heavyweight Nestle again showed marked decreases (-0.8%) after the previous day's heavy losses, dragging the SMI down. In the broader market, AMS-Osram shares slumped 20.2 per cent. Investors did not appreciate being asked again to foot the bill for the restructuring of the semiconductor group. The group plans to use a combination of a capital increase, new bonds and other financing instruments totalling 2.25 billion euros to finance its long-term growth. Komax advanced 4.7 per cent. The wire processor has set ambitious targets for 2028 and intends to continue growing strongly.

The European stock markets recovered slightly on Thursday after five consecutive sessions in the red, benefiting from encouraging signals concerning inflation in Germany. The Stoxx Europe 600 index climbed 0.4% to 448.5 points. In Paris, the CAC 40 and SBF 120 gained 0.6% each. The DAX 40 in Frankfurt rose by 0.7%, while the FTSE 100 in London added 0.1%. Boat builder Bénéteau (-12.5%) warned that rising interest rates could curb its growth next year. Satellite operator Eutelsat Communications (+2.3%) announced that its merger with British broadband Internet provider OneWeb was now complete, following the go-ahead granted by its shareholders. Renewable energy producer Neoen (+2%) won solar projects in France representing a total maximum capacity of 238.5 megawatts-peak (MWp) from the Commission de régulation de l'énergie (CRE) following competitive tenders. US perfume and cosmetics specialist Coty (-0.9%) debuted at the Paris Bourse on Thursday. Volkswagen (-0.4% in Frankfurt) has restarted production after resolving an IT problem that affected several of the German carmaker's sites for several hours on Wednesday, a group spokesman confirmed on Thursday.

The rise in Treasury yields paused Thursday, helping stocks stage their biggest move higher in weeks. The benchmark S&P 500 advanced 0.6%, and the tech-focused Nasdaq Composite gained 0.8%, each notching their best day since Sept. 14. The Dow Jones Industrial Average edged up 0.3%. Stocks’ gains were fairly broad-based, with utilities the only sector in the S&P 500 to retreat. Materials and communications services led the advancers. Peloton Interactive shares gained 5.4% after the fitness-equipment company unveiled a partnership with the apparel-maker Lululemon Athletica, ending a turf battle between the companies. Chip stocks also rose. Advanced Micro Devices added 4.8%. CarMax’s shares shed 13% after the used-car retailer reported that revenue declined 13.1% in its quarter ended Aug. 31 compared with a year earlier. While Americans are window-shopping for used cars, sticker shock is keeping them from buying. Finance and human resources software company Workday (-8.5%) has lowered its subscription revenue growth target for the next three years. Business consultancy Accenture (-4.3%) reported lower-than-expected revenues for the fourth quarter of its financial year to date and presented a less favourable outlook than expected. Micron Technology (-4.4%) published sharply lower sales for the fourth quarter of its financial year ending 31 August, although its adjusted loss was smaller than expected. Printer manufacturer Xerox (+2.7% to 16.01 dollars) confirmed on Thursday that it would be buying back 542 million dollars worth of its own shares from businessman Carl Icahn. The group will pay 15.84 dollars per share, a premium of 1.6% on Xerox's closing price on Wednesday. The United Auto Workers union has issued a new ultimatum to Ford (+1.3%), General Motors (+2.5%) and Stellantis (+0.1% for ADR), threatening to step up strike action this Friday unless sufficient progress is made towards new collective agreements.

In the wake of the upward trend on Wall Street, there is a recovery rally on the Hong Kong stock exchange on Friday. The Hang Seng Index shoots up by 2.7 per cent, driven by technology stocks, which are considered particularly sensitive to interest rates. Their sub-index rises by 3.7 per cent. There is markedly less activity at the other stock exchanges in the region. Seoul and Shanghai remained closed due to mid-autumn holidays. In Tokyo, the Nikkei 225 index remained virtually unchanged at 31,856 points.

Buyers of U.S. government debt emerged on Thursday to counteract a round of selling seen earlier in the session which left 10- and 30-year yields near their highest levels since 2007 and 2011. The 10-year Treasury note yield eased by 5 basis points to 4.579%, with the 2-year Treasury note yield giving up 8 basis points to 5.06%. However, the bond market remains under pressure due to the inability of congressional representatives to reach an agreement on the federal budget in Washington, which could lead to a partial shutdown of the administration as early as Sunday.

Target price Schindler: Jefferies downgrades to CHF 205 (220) - Hold
Target price Cosmo: Kepler Cheuvreux raises to 72 (70) CHF - Buy
Deutsche Bank lowers H&M to Hold (Buy) - 175 (195) SEK

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