U.S. Shares Higher on Bank Earnings, Data

U.S. Market
U.S. shares were higher as banks reported their third-quarter earnings, and data was positive.

U.S. bank Wells Fargo (WFC) said that its third-quarter net profit slipped to $5.6 billion from $5.8 billion a year earlier but beat market expectations. Diluted earnings per share dropped to $1.03 from $1.05, but analysts were expecting earnings per share to come in at $1.01. Revenues rose 2% to $22.3 billion.

U.S. bank Citigroup (C) said that net income in the third quarter fell to $3.8 billion, or $1.24 per diluted share, from $4.3 billion, or $1.35 per diluted share, a year earlier. Revenues fell to $17.8 billion from $18.7 billion. Excluding credit and debt valuation adjustments, revenues decreased 4% and earnings per diluted share decreased 5% from $1.31 in the prior-year period.

The U.S. Producer Price Index for final demand rose 0.3% in September from the previous month, according to data from the Bureau of Labor Statistics. The PPI was flat in August. The increase in the final demand index was led by prices for final demand goods, which rose 0.7%. The index for final demand services climbed 0.1%. Economists had expected a 0.2% increase.

U.S. manufacturing and trade inventories were up 0.2% month on month at $1.817 billion in August, the U.S. Commerce Department said. Inventories were up 0.7% year on year. Sales were up 0.2% from the month before at $1.304 billion and were unchanged from the previous year. The total business inventories/sales ratio based on seasonally adjusted data at the end of August was 1.39. The June 2015 ratio was 1.38.

The preliminary reading of U.S. consumer sentiment fell to 87.9 in October from 91.2 in the previous month, according to data from the University of Michigan. Expectations were for an increase to 91.9. The current economic conditions index climbed to 105.5 in October from 104.2 a month earlier, while the index of consumer expectations fell to 76.6 from 82.7.

Stocks on the Move
HP Inc (HPQ) fell after the personal computer company disclosed a cautious forecast along with plans to cut 3,000 to 4,000 employees.

Foreign Markets
After an upbeat opening, European shares were sharply higher, rebounding from Thursday's losses. Sentiment was lifted by the release of stronger-than-expected Chinese inflation data that helped ease concerns over the health of the world's second-biggest economy and over prospects for global growth, after weak Chinese trade data released Thursday showed a sharp fall in exports. Rising oil prices also helped lift sentiment.

Asian shares closed mostly higher, trimming the week's losses and rebounding from three-week lows. Tokyo shares closed moderately higher in volatile trade, snapping a two-day losing streak. Seoul shares also ended moderately higher, while Sydney stocks were flat.