- Facebook’s (FB September quarter results showed it hadn’t been hit as bad as feared following Snap’s (SNAP results, which were affected by Apple’s (AAPL privacy changes in iOS 15.
- New coronavirus cases in the U.S. look to be rolling over.
- While the economic data coming in of late is pointing to slowing, the pace isn’t quite as bad as feared.
Equity indices in Asia finished mixed today following new record closing highs for U.S. markets yesterday. The gainers were the Nikkei 225, which rose 1.8%, South Korea’s Kospi added 0.9%, and Australia’s ASX 200 rose marginally. On the downside, China’s Shanghai Composite lost 0.3%, the Shenzhen Component lost 0.4%, and Hong Kong’s Hang Seng dropped 0.4%. By mid-day trading, the major equity indices in Europe were in the green, and U.S. futures point to minor gains at the open.
Coronavirus
The FDA Advisory Committee is expected to rule this afternoon on coronavirus vaccines for kids aged 5-11.
International Economy
South Korea’s GDP in Q3 slowed more than expected to 4.0% YoY after its 6.0% YoY pace in Q2 and compared to expectations for slowing to a 4.2% pace. The QoQ sequential pace came in at half of the 0.6% pace expected, slowing to just 0.3% QoQ from Q2’s 0.8% growth. Domestic Economy
Yesterday’s release of the Chicago Fed National Activity index revealed the second consecutive decline in economic momentum for the US with a drop to -0.13 in September from 0.05 in August, the lowest level since April.
On the other end of the spectrum, yesterday’s Dallas Fed Manufacturing Index rose from September’s 14-month low of 4.6 to 14.6. The production index dropped 5.9 points to 18.3, indicating that while factory activity increased, it did so at a slower pace. Shipments and capacity utilization fell slightly, and supply-chain disruptions continue to vex manufacturers, with the unfilled orders index and delivery time index rising to 20.9 and 25.9, respectively. Prices rose at a record pace, and labor market metrics indicate longer workweeks and strong employment growth. After Today’s Market Close
Alphabet (GOOG, GOOGL, Boyd Gaming (BYD, Digital Realty Trust (DLR, F5 Networks (FFIV, Microsoft (MSFT, Robinhood Markets (HOOD, Twitter (TWTR, and Visa (V are among the companies slated to report their quarterly results. Those looking to get a jump on the earnings reports in the coming days should visit Nasdaq’s earnings calendar page.
On the Horizon
- October 27: Durable Goods Orders, Wholesale Inventories, Durable Goods, Goods Trade Balance
- October 28: Q3 GDP (advance estimate), Weekly Jobless Claims, Pending Home Sales
- October 29: Personal Income & Spending, PCE Price Index, Employment Cost Q3, Chicago PMI, Michigan Consumer Sentiment
- November 1: Markit and ISM Manufacturing PMIs, Construction Spending
- November 2: Total Vehicle Sales, IBD/TIPP Economic Optimism, API Crude Oil Stock
- November 3: ADP Employment Change, Markit Services & Composite PMIs, ISM Non-Manufacturing & Composite PMIs, Factory Orders, Federal Reserve Interest Rate decision
- November 4: Balance of Trade, Unit Labor Costs, Nonfarm Productivity, weekly jobless claims
- November 5: Non-Farm Payrolls, Unemployment Rate
- November 9: PPI, API Crude Oil stock change
- November 10: Inflation, Weekly jobless claims, Wholesale inventories, EIA Crude and Gasoline stocks, Monthly budget statement
- November 12: JOLTs report, Michigan Consumer Sentiment
Thought for the Day
“Invite some people into your life. You better learn how to do that. And there’s only one way you do that - you’ve got to open the doors.” ~ Bruce Springsteen
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