Futures fall after Apple, Amazon results
As earnings season continues, two of the largest companies miss analyst expectations.
Apple reported sales that beat expectations but earnings missed, and Amazon reported its first quarterly loss in years. S&P 500 futures fell below 1,400 on the recent string of weak earnings.
Also making headlines, the Japanese government announced a new round of stimulus measures totaling 422.6 billion yen, or $5.3 billion, as the country looks to boost growth from its decades-long stagnation. Economists are looking for the Bank of Japan to act next week in tandem with the fiscal authorities.
- Spain's unemployment rate rose to 25.0% in the third quarter, up from 24.6% in the third quarter and slightly below economist expectations of 25.1%.
- The IMF has finally admitted that Greece cannot meet its targets as set under the current bailout agreement, and it appears that the country will get extra two years to pay back the loans.
- European Central Bank Governor Jorg Asmussen spoke overnight, saying that the new OMT program is not inflationary and that the aid request does not automatically trigger bond purchases, rather it is just one condition. Also, on China, he said that some local governments are effectively bankrupt and that the rich-poor divide continues to grow, not shrink.
- Standard & Poor's downgraded BNP Paribas to A+ from AA- and lowered its outlook on Credit Agricole and Societe Generale, the other two French mega-banks.
- S&P 500 futures fell 10.3 points to 1,397.90.
- The EUR/USD was slightly higher at 1.2939.
- Spanish 10-year government bond yields rose to 5.672%.
- Italian 10-year government bond yields rose to 4.907%.
- Gold fell 0.47% to $1,705.00 per ounce.
Commodities were weak overnight on global growth fears. WTI Crude futures fell 0.72% to $85.43 per barrel and Brent Crude futures slipped 0.44% to $108.10 per barrel. Copper futures also fell on global weakness with futures falling 0.44% to $353.50 per pound. Gold was lower and silver futures fell 0.93% to $31.78 per ounce.
Currency markets did not echo the strong risk-off tone seen in other markets overnight, as the dollar was effectively flat in overnight trading and moves remained tepid. The EUR/USD was slightly higher and the dollar fell against the yen, sending the pair back below 80. Overall, the Dollar Index was flat at 80.04 with the dollar gaining against its Canadian counterpart and the Swedish krona and falling against the euro and the yen. The Aussie dollar was slightly weak against a basket of currencies, the only risk-off sign in currency markets.
- Amazon shares fell 1.4% pre-marekt following weak earnings.
- Boston Scientific (BSX) shares rose 0.78% in premarket trading after positive comments from Seeking Alpha.
- Yum Brands (YUM) fell 1.7% premarket as investors fear that one of its strongest units, its Asian arm, is set to see growth rates continue to slow.
- Freeport-McMoRan (FCX) fell 1.33% premarket as analysts warned on its earnings release.
- Coventry Health (CVH) is expected to report third quarter earnings per share of $0.73 vs. $0.82 a year ago.
- Lear Corp (LEA) is expected to report third quarter earnings per share of $1.19 vs. $1.08.
- Merck (MRK) is expected to report third quarter earnings per share of $0.93 vs. $0.94 a year ago.
- Weyerhaeuser (WY) is expected to report third quarter earnings per share of $0.18 vs. $0.12 a year ago.
On the economic calendar Friday, the initial estimate of third quarter GDP for the U.S. is due out as well as consumer sentiment data.
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But hey, you go on pulling their cart for them. Cant wait to see how Mitt rewards your persistence.
Probably with more regulations on small business and a freer hand for the large ones.
TO be exact, we should call it Bernankonomics.
NO, there is NO "RIGHT" Answer here. Why drive a car that only has a brake
pedal and cant handle Left turns?
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