Electrolux to Cut Costs After Warning on Weak 3Q Earnings

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NIO Inc.
9866,
+17.98%

shares soared in Hong Kong, tracking Wall Street gains overnight as slower-than-expected U.S. inflation buoyed markets and helped investors shrug off the Chinese electric-car maker’s earnings miss.

Shares rose as much as 19% on Friday and were 13% higher at 79.30 Hong Kong dollars (US$10.11) at midday, on track for one of their largest-ever gains. NIO’s U.S.-traded shares
NIO,
+11.78%

ended 12% higher at US$10.34.

Other Chinese electric-vehicle makers also rose. Li Auto Inc.
2015,
+10.74%

added 7.2% and XPeng Inc.
9868,
+8.95%

was 6.3% higher.

The gains capped a volatile week for NIO, which fell 25% over three consecutive sessions before Friday’s turnaround.

Analysts say the rebound is likely a result of rising hopes for a less hawkish stance by the Fed after October data showed consumer-price increases in the U.S were slower than expected.

High-growth stocks such as NIO are particularly sensitive to market expectations about interest-rate changes. “I’m not surprised by the CPI pump for NIO today,” US Tiger Securities analyst Bo Pei said.

NIO on Thursday reported a wider-than-expected loss for the third quarter due to higher battery costs and sales expenses.

But investors were willing to look past the results given improving macroeconomic signals and NIO’s ambitious guidance for the final quarter of the year.

“On the positive side, the company did set encouraging fourth-quarter sales target,” Citi analysts said in a note.

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Image and article originally from www.marketwatch.com. Read the original article here.

By admin