Key Takeaways
- Delta Air Lines (DAL) reported strong third-quarter results, beating revenue and EPS estimates, and raised its full-year adjusted EPS guidance to approximately $6.
- Ursula Von der Leyen successfully fended off no-confidence votes, securing her position and indicating stability in European leadership despite internal dissatisfaction.
- Ferrari (RACE) shares experienced a significant decline, dropping 14%, marking their largest fall since 2016.
- The European Central Bank (ECB) continues to grapple with "unprecedented levels of uncertainty," as stated by ECB's Escriva.
- Geopolitical discussions are active, with Germany's Foreign Minister discussing a Gaza plan in Paris, and a US-Finland icebreaker cooperation deal being finalized.
Delta Air Lines (DAL) reported an impressive third quarter, with adjusted revenue reaching $15.20 billion, surpassing the estimated $15.08 billion. The airline also posted adjusted earnings per share (EPS) of $1.71, comfortably beating the $1.56 estimate. Passenger revenue stood strong at $13.51 billion, slightly above the $13.48 billion estimate. Following these robust results, Delta's shares rose 5%. The company also provided an optimistic outlook, seeing full-year adjusted EPS of approximately $6, higher than the previous estimate of $5.80. For the fourth quarter, Delta projects adjusted EPS between $1.60 and $1.90 and adjusted revenue growth of 2% to 4%.
In other corporate news, Alphabet Inc (GOOGL, GOOG) received a target price upgrade from BMO, which raised its target to $294 from $225. Conversely, luxury automaker Ferrari (RACE) saw its shares extend a drop to 14%, marking its biggest decline since 2016. Russian energy giant Gazprom reported an 15% year-over-year increase in 8-month gas exports to Central Asia.
On the political front, Ursula Von der Leyen successfully navigated no-confidence votes, securing her position as the head of the European Commission. The margin of votes against the motions was slightly larger than in July, indicating that centrist parties, despite some dissatisfaction, are not keen on repeated challenges. In France, Jean-Louis Borloo denied rumors of his appointment to Matignon, assuring that he has "no" contact with the Élysée.
International diplomacy remains active, with Germany's Foreign Minister stating that a Gaza plan is being discussed today with international partners in Paris. The Israeli Foreign Minister expressed an interest in expanding the "circle of peace and normalization" in the region. Meanwhile, Brazil's President Lula reported that Senator Marco Rubio contacted their Foreign Affairs Minister yesterday. Finland's President Stubb announced that he would sign a Memorandum of Understanding (MOU) on icebreaker cooperation with Donald Trump, emphasizing that the deal wouldn't have been possible without Trump's involvement. The MOU is expected to lay the foundation for commercial agreements between the United States Coast Guard and Finnish companies. However, US Commerce Secretary Lutnick dismissed any prospect of an auto deal between the US and Canada.
From a monetary policy perspective, ECB’s Escriva highlighted "unprecedented levels of uncertainty" currently facing the economy. In Portugal, Pereira stated he is "absolutely not a dove," leaving questions about his future policy stance. In Japan, Takaichi is set to name Itsunori Onodera as the LDP Tax Chief.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.