LONDON -- Stock markets are seeing a negative session in Europe Wednesday, with a series of weak earnings results placing pressure on the benchmark indexes. The U.K.'s Bank of England reduced its GDP growth estimate for the country to near zero in its monthly inflation report today, adding yet another headwind for the markets to fight against. U.S. equities look set to follow in Europe's footsteps at the open, with early premarket trade showing the S&P 500 (INDEX: ^GSPC ) down 0.3%.
Against this negative backdrop, a number of companies are still managing to stand out. Here are three American depositary receipts that are set to beat the S&P today.
Telecom Italia (NYSE: TI )
Shares in TI are continuing to build on recent positive news today, climbing 2.3% as demand continues following its strong earnings performance last week. The ban on its Brazilian subsidiary from selling phones, which was lifted last week, is coming to the fore again after a newspaper report in the country suggested the company purposefully cut off customers calls, despite the fact they were under the unlimited-coverage tariff known as "infinity." The company denies that the cut-offs experienced by these customers were deliberate.
Rio Tinto (NYSE: RIO )
The mining giant is up 2.2% in London despite reporting weaker-than-expected earnings results today. The company said that weak iron ore, copper, and aluminum prices led to a 22% drop in first-half profits. However, this was alleviated somewhat as net income fell from last year's $7.6 billion to just $5.9 billion, beating estimates of a fall to $5 billion. At the same time, the company increased its interim dividend by 34% to $0.725 per share, despite falling profits, giving its stock a boost today.
Randgold Resources (Nasdaq: GOLD )
Randgold is up 1.1% this morning, boosted after analysts at Canaccord Genuity said they expected the company's earnings report to show that its African mines are producing more than anticipated. Canaccord suggests that the results, due Thursday, will show a production increase of 20% for the quarter and 7% year on year to 198,000 ounces. Canaccord maintained its buy recommendation on Randgold, with a price target of 65 pounds per share.
Despite the ongoing eurozone troubles, this morning's European trading did provide some winners -- and perhaps some European buying opportunities. Indeed, legendary investor Warren Buffett has recently spent more than $1 billion buying the stock of a prominent European large cap. If you want to know why Buffett has bought into Europe, this special Motley Fool report -- "The One European Share Warren Buffett Loves" -- reveals everything, including the price he paid. You can download the report today for free, but hurry -- the report is available for a limited time only.
The Motley Fool is helping Europe invest. Better. And with the eurozone economy so uncertain, we're urging everyone to read "10 Steps To Making A Million In The Market" -- this report may transform your wealth. Click here now to request your free, no-obligation copy.
Further Motley Fool investment opportunities: