Stocks surge on earnings

By Calamatta Cuschieri

US Stocks closed higher Tuesday; the Dow Jones Industrial Average jumped 2.2% to 25,798.42, recording its biggest point gain since March, the S&P 500 gained 2.2% to close at 2,809.92 with tech and health care among the strongest performers in a session. The Nasdaq Composite Index gained 2.9% to 7,645.49. It was the biggest single-day advance for all three indexes since March 26.

With regards to European market, the pan-European Stoxx Europe 600 rose 1.6% to end at 364.99, producing its sharpest single-session advance in more than six months. Germany’s DAX 30 gained 1.4% to 11,776.55, while France’s CAC 40 rallied by 1.5% to close at 5,173.05. It is also the French benchmarks best day since early April. The U.K.’s FTSE 100 climbed 0.4% to close at 7,059.40.

Audi slapped with a $930 million fine by German prosecutor for its diesel cheating scandal

German luxury automaker Audi will pay a fine of roughly $930 million to settle regulatory action in its home country for rigging some of its diesel vehicles with illegal software designed to defeat emissions tests, the company said Tuesday. Settling the case with prosecutors in Munich brings Audi parent Volkswagen one step closer to putting its ongoing diesel emissions scandal behind it. Volkswagen has already paid out billions of dollars in fines after news broke in 2015 that it fitted millions of vehicles with devices designed to make emissions levels on diesel vehicles appear lower than they actually were.

The Munich public prosecutor required Audi to accept responsibility as part of the agreement. In June, Audi CEO Rupert Stadler was arrested in connection with the scandal. Audi said in a statement that “the fine will directly affect Volkswagen AG’s financial earnings and, as a negative special item, reduce the group earnings for fiscal year 2018 accordingly.”

Netflix added seven million new customers in the three months to September, bringing its global total to more than 137 million

The stronger than expected growth – a record for the third quarter – sent shares up 11% in after-hours trading. The surge came as Netflix premiered a record amount of original programming, including new seasons of ‘Orange Is the New Black’ and ‘BoJack Horseman’. Netflix is among the first of the major US tech firms to report its results. Investors were looking for signs of a rebound at the company after an unusually weak second quarter, which had fanned worries about the online streaming firm’s future.

Netflix faces increased competition from traditional media companies and giants such as Amazon and its costs have been growing as it spends more on its own material. The firm plans to spend as much as $8bn on content this year, with more than a quarter devoted to original programming. Analysts estimate that it added about 676 hours of original programming in the US in the most recent quarter – 135% more than in the same period last year. Shares have surged more than two-thirds this year and closed on Tuesday at $346.40 in New York, valuing the company at almost $154bn.

This article provided by NewsEdge.