CME Group Q3 Volumes Solid, September ADV Increases Y/Y
Zacks Investment Research | Oct 02, 2019 11:18PM ET
CME Group (NASDAQ:CME) reported solid third-quarter 2019 average daily volumes (“ADV”). Volumes increased 30% year over year to 20.2 million contracts per day. Four of its six product lines reported double-digit growth in ADV.
Interest Rate options ADV of 10.9 million contracts surged 39% while Equity Indexes ADV of 3.9 million contracts jumped 47%. Metals ADV increased 32% to a record 0.8 million and Energy ADV of 2.5 million increased 12%. However, Agricultural Commodities and Foreign Exchange ADV declined 2% and 10% respectively.
Concurrently, the company also reported double digit increase in September ADV in Interest Rate options, Equity Indexes, Energy and Metals. Foreign Exchange and Agricultural Commodities reported single-digit decline in September ADV.
Interest rate volume of 9.9 million contracts per day shot up 16% while Equity index volume of nearly 4 million contracts per day increased 18%. Metals volume of 0.8 million contracts per day increased 37% whereas Energy volume of 2.8 million contracts per day witnessed an increase of 10% year over year. However, Agricultural Commodities volume of 1.2 million contracts decreased 8%. Foreign exchange volumes contracted 6% to 1.1 million contracts per day.
CME group boasts 90% market share of global futures trading and clearing services. Given its sturdy market position with diverse derivative product lines and global reach, ADV should continue to retain momentum. Also, increasing electronic trading volume adds scalability and hence leverage to CME Group’s operating model.
The Zacks Consensus Estimate for earnings in the third quarter is pegged at $1.71, indicating year-over-year improvement of 17.9% on 36.7% higher revenues. Our proven model presently shows that the company is likely to beat estimates as it reports third quarter results on Oct 30. This is because it has the right combination of its Zacks Rank #2 and the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here .
Nasdaq is a leading provider of trading, clearing, marketplace technology, regulatory, securities listing, information and public and private company services. The company delivered 2.52% positive earnings surprise in the last reported quarter.
CNA Financial provides commercial property and casualty insurance products, primarily in the United States. The company came up with a positive surprise of 6.93% in the last reported quarter.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
Get The News You Want
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft (NASDAQ:MSFT) in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.
Zacks Investment Research
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.