Ahead of the Bell: Dow futures are trading up 32 points and S&P futures are trading up 5 points. Investors are concerned sluggish global growth could drag down 3rd quarter earnings. However, JPMorgan Chase and Wells Fargo kicked off the banking sector with a strong start, after both financial giants reported better than expected quarterly results. Traders continue to speculate when Spain will make an official request for a financial rescue package to the European Union. Industrial production in the euro zone rose for a second straight month in a row, as a result of higher durable consumer goods output.
- On the economic calendar today, the Bureau of Labor Statistics will release September’s data prior to the opening bell, 0.8% is expected compared with 1.7% for August. The Reuter's/University of Michigan's consumer sentiment index for October will be out after the market opens, a reading of 78.3 is forecasted versus the same for the prior month.
- Richmond Federal Reserve Bank President, Jeffrey Lacker, will be speaking at the University of Virginia in Charlottesville on "Challenges to Economic Growth." The dollar is down against all major currencies. Gold is trading at $1,770. Crude oil is currently trading at $92 a barrel.
- Yesterday, stocks trimmed earlier gains, as optimism about a drop in jobless claims faded and technology and consumer shares turned lower, after a U.S. appeals court overturned a preliminary injunction on the sale of Samsung’s Galaxy smartphone.
- On CNBC today, Steve Wynn, Chairman and CEO of Wynn Resorts, talked about what it takes to build a business today, taxes, and regulation. Wynn said it takes a lot of courage to build a business with the uncertainty of taxes and regulation implemented by Washington. He went on to say, he has been in business a long time and he feels Obama-care does not have any of the elements to improve the health care business. He suggested we should have aggressive interstate competition between companies. Wynn pointed out, defensive testing of patients is costing the healthcare industry billions, coupled with lawyers suing for unnecessary claims. He does not agree with the President’s jobs bill either, these are all bad government. Finally, he said, if you believe Mitt Romney will win the elections you should go long on the stock market.
- Happy Friday have a nice day and a wonderful weekend.
Thursday’s Close
DJIA down 18.58 pts/-0.14%/13,326.39
S&P up 0.28 pts/+0.02/1,432.84
Nasdaq down 2.37 pts/-0.08/3,049.41
Friday’s Futures
Dow Futures up 32.17 pts/+0.24%
S&P Futures up 5.90 pts/+0.36%
Nasdaq Fut up 5.70 pts/+0.20%
Overseas Markets
FTSE -0.15%
CAC 40 -0.15%
NIKKEI 225 -0.15%
HANG SENG +0.65%
Overseas: World stock markets are down today. European and Asian markets are down on concerns of slowing global growth will impact earnings season.
Economic Reports: Producer Price Index expected to be 0.8% at 8:30 a.m., Consumer Sentiment expected to be 78.3 at 9:55 a.m., and Treasury Budget is expected to be flat at 2:00 p.m.
Top Headlines:
- Reports indicate Sprint Nextel Corporation (S) is in talks with Japan's Softbank Corporation, in which the Japanese firm will acquire a 70% interest in the US wireless carrier.
- Reports indicate Best Buy (BBY) plans to match the prices offered by internet competitors like Amazon.com (AMZN), including free delivery for some in-store items for the holiday season.
- Bloomberg reports Kraft Foods Group (KRFT) is putting its Breakstone’s sour cream and cottage cheese business up for sale which may be worth about $400 million.
Commodities/Currency:
Gold:down $8.90 to $1,770.85
Oil: up $0.02 to $92.06
EUR/USD 1.2971 +0.0100
USD/JPY 78.4220 +0.0300
GBP/USD 1.6067 +0.0100
Volatility Index (VIX): As of the close of business Thursday, October 11, the VIX is down 0.70 at 15.59
Companies Reporting Quarterly Earnings:
JPMorgan reports Q3 EPS $1.40, vs. Est $1.21 and Q3 revenue $25.15B, vs. Est $24.53B.
iGATE reports Q3 EPS 46c, vs. Est 37c and Q3 revenue $271.1M, vs. Est $277.21M
Today’s Opening and Closing Bells:
Workday, Inc. Lists IPO on the NYSE Chairman, Co-Founder and Co-CEO Aneel Bhusri and Dave Duffield, Co-Founder and Co-CEO celebrates its IPO and will ring the opening bell.
Lighthouse International will ring the closing bell.
Paras Madho
NYSE Euronext
Market Watch & Corporate Actions
212 656 5404
Connect with me on LinkedIn
Exclusive Market Intelligence, Insight, and Network: NYSEConnect
