The S&P 500 Futures remain under pressure after they sank further yesterday. Pessimistic sentiment grew after U.S. Treasury Secretary Steven Mnuchin indicated that a deal for further fiscal stimulus is unlikely before the November election.
Later today, the U.S. Labor Department will release initial jobless claims in the week ending October 10 (0.82 million expected) and September import price index (+0.3% on month expected). The New York Federal Reserve will publish October Empire Manufacturing Index (14.0 expected). The Philadelphia Federal Reserve will report its Business Outlook Index for October (14.3 expected).
European indices are on the downside. France's INSEE has posted final readings of September CPI at +0.0% (vs +0.1% on year expected).
Asian indices closed in the red except the Australian ASX. The Australian economy shed 29,500 jobs in September (-40,000 jobs expected) and jobless rate edged up to 6.9% (7.0% expected) from 6.8% in August.
WTI Crude Oil futures are bullish. OPEC+ nations implemented 102% of agreed supply cuts in September. The American Petroleum Institute (API) reported that U.S. crude oil inventories dropped 5.4M barrels in the week ending October 9. Later today, the EIA will release official crude oil inventories data for the same period.
Gold loses some ground while the U.S dollar rebounds on fading U.S stimulus hopes.
Gold fell 7.73 dollars (-0.41%) to 1893.79 dollars.
The dollar index rose 0.31pt to 93.689.
U.S. Equity Snapshot
Morgan Stanley (MS), the banking group,posted third quarter net sales up 16% to 11.66 billion dollars, above estimates. Adjusted EPS increased to 1.59 dollar from 1.21 dollar.
Walgreens Boots Alliance (WBA), a global leader in retail and wholesale pharmacy, is surging before hours after posting fourth quarter adjusted EPS of 1.02 dollar, above estimates, vs 1.43 dollar a year earlier. Sales increased 2.3% to 34.75 billion dollars, beating expectations. Regarding current fiscal year, the company expects strong second half adjusted EPS growth.
Source: TradingView, GAIN Capital
United Airlines (UAL), the transportation company, reported third quarter adjusted LPS of 8.16 dollars, worse than anticipated, down from an EPS of 4.07 dollars a year ago, on revenue of 2.5 billion dollars, as expected, down from 11.4 billion dollars a year earlier.
Alcoa (AA), one of the largest American aluminum producers, dived after hours after saying it "expects flat sequential quarterly results in the Bauxite segment" in the fourth quarter. Separately, the company reported third quarter earnings that beat estimates.
Regeneron Pharmaceuticals (REGN), a biotech, "announced that the U.S. FDA approved Inmazeb for the treatment of infection caused by Zaire ebolavirus".
Roku (ROKU), the video streaming platform, was downgraded to "sector weight" from "overweight" at KeyBanc.
Viacom (VIAC), the media company, was upgraded to "overweight" from "equalweight" at Barclays, with a 36 dollars share price target.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.