Futures are lower ahead of the last trading day of the week, but well off session lows as JPM earnings were solid enough to push the stock higher and reverse some of the market's losses as Q3 earnings season was officially launched. As of 8:45am, S&P futures are down fractionally, while Nasdaq futures dropped 0.2%, hammered by TSLA which is down -5.8% pre-market as the Robotaxi event failed to meet market expectations. Bond yields are higher with the 10Y rising 3bps to 4.09%, while the Bloomberg Dollar index reversed earlier losses. Commodities are mixed with Oil fractionally lower, base metals higher, and precious metals mixed. Today’s macro focus will be banks earnings and PPI, which came in fractionally light MoM (headline 0.0% MoM, Exp. 0.1%; core 0.2%, exp. 0.2%), but hotter on a YoY basis (core 2.8% YoY, Exp. 2.6%). Over the weekend, key macro catalysts will be China finance minister’s press conference on stimulus package.
In premarket trading, JPMorgan rose 1% after the bank reported a surprise gain in net interest income for the 3Q and raised its forecast for the key revenue source. Wells Fargo also gained, rising 3% after posting 3Q profit that topped analyst expectations as a surge in investment-banking fees helped counter a dip in lending revenue as interest rates fall. Tesla fell 6% as Elon Musk unveiled prototypes of the automaker’s long-awaited robotaxi Cybercab. Analysts note that the event did give a clearer picture of the company’s autonomous plans, but it was “light on the details.” Here are some other notable premarket movers:
Aehr Test Systems (AEHR) jumps 13% after the semiconductor manufacturing firm reported fiscal 1Q results and reiterated its guidance for the fiscal year.
A.O. Smith (AOS) falls 10% after the manufacturer of water heating and water treatment equipment lowered its annual forecasts for net sales and adjusted earnings per share, citing continued softness in its China business.
BNY Mellon (BK) gains 1% after the bank’s 3Q adjusted earnings per share beat the average analyst estimate.
Humana (HUM) slips 3% after the US Medicare program released final quality ratings for private Medicare Advantage plans, confirming a previously announced cut for the health insurer.
The producer price index for final demand was flat from August after rising 0.2% in the prior month, printing below estimates. From a year ago, however, it rose more than expected up 1.8% and 2.8% for headline and core, respectively, both above estimates of 1.6% and 2.6%.
European stocks reversed earlier losses and rose 0.2% with automobile and telecommunications shares leading the decline, while real estate and basic resources stocks are the biggest outperformers. Here are the biggest movers Friday:
Aeroports de Paris gains as much as 2.7% as JPMorgan upgrades to overweight in note switching its top pick within the European airports space
Zalando shares rise as much as 1.5% after the online fashion retailer delivered preliminary third-quarter results that were significantly above expectations and boosted its full-year guidance
Brembo shares gained as much as 4.6% in Milan after the Italian company signed an agreement with Apollo Global Management’s Tenneco to buy a 100% stake in Öhlins Racing for $405m
BP shares drop as much as 1.6% after the UK oil company said in a 3Q trading update that it expects rising net debt due to weaker refining margins
Thales declines as much as 3.2% after Berenberg cuts to hold, citing in note continuing challenges for the defense contractor’s Space busines
J Sainsbury falls as much as 5.1% after the largest shareholder in the UK supermarket chain, the Qatar Investment Authority, offered around $400 million worth of shares at a discount to the last closing price
Revenio declines as much as 5.6% following a downgrade to sell from hold at Nordea, which cites short-term uncertainties for the Finnish ophthalmological device and software firm
THG shares drop as much as 7.9%, hitting their lowest intraday level since January 2023, after the online retailer reported third-quarter revenue that Citi said missed their estimates
Earlier, Asian equities were headed for a second week of losses as the rally in China fizzled. The MSCI Asia Pacific Index pared earlier gains of as much as 0.4%. TSMC and Fast Retailing were among the biggest boosts to the regional benchmark. Japanese stocks were mixed, while China’s onshore gauge capped its worst week since July ahead of a policy briefing by the Ministry of Finance on Saturday. Chinese stocks have been volatile this week as traders digested weaker-than-expected holiday spending data and await further announcements from the key meeting this weekend. Investors and analysts are expecting China to deploy as much as 2 trillion yuan ($283 billion) in fresh fiscal stimulus, according to a majority of 23 market participants surveyed by Bloomberg.
“We have to expect some profit taking” after China’s sharp rally in the past few sessions, said Jessica Amir, market strategist at Moomoo. Meanwhile, “traders are also considering the risks should China not deliver a second bazooka stimulus package on the weekend.”
In FX, the Bloomberg Dollar Spot Index is little changed. The Bloomberg Dollar Spot Index dipped 0.1% as the greenback slipped against most Group-of-10 peers; the Norwegian krone led gains alongside the British pound, while the Japanese yen slumped.
EUR/USD inched up 0.1% to 1.0943 reversing an earlier drop; France’s government unveiled a budget for next year that aims to deliver a €60.6 billion remedy for its creaking public finances
GBP/USD rose as much as 0.2% to 1.3081; The UK economy returned to growth in August, putting Britian on course for modest growth in the third quarter, albeit at a slower pace than in the first half of the year
In rates, treasuries are lower, with US 10-year yields rising 4bps to 4.10%, the highest since July 31. French government bonds dip after the government unveiled a budget for next year that aims to deliver €60.6 billion in spending cuts and higher taxes. The OAT-bund spread is steady around 77 bps.
Oil prices decline, with WTI down 0.7% as Israel’s government has yet to decide how to retaliate against Iran for a missile attack last week. Spot gold rises $8 to around $2,637/oz.
Today's data calendar includes September PPI (full summary here ) and October preliminary University of Michigan sentiment (10am). Fed speakers scheduled include Goolsbee (9:45am), Logan (10:45am) and Bowman (1:10pm)
Market Snapshot
S&P 500 futures down 0.1% to 5,822.75
STOXX Europe 600 little changed at 519.13
MXAP little changed at 192.69
MXAPJ up 0.2% to 613.35
Nikkei up 0.6% to 39,605.80
Topix down 0.2% to 2,706.20
Hang Seng Index up 3.0% to 21,251
Futures are lower ahead of the last trading day of the week, but well off session lows as JPM earnings were solid enough to push the stock higher and reverse some of the market's losses as Q3 earnings season was officially launched. As of 8:45am, S&P futures are down fractionally, while Nasdaq futures dropped 0.2%, hammered by TSLA which is down -5.8% pre-market as the Robotaxi event failed to meet market expectations. Bond yields are higher with the 10Y rising 3bps to 4.09%, while the Bloomberg Dollar index reversed earlier losses. Commodities are mixed with Oil fractionally lower, base metals higher, and precious metals mixed. Today’s macro focus will be banks earnings and PPI, which came in fractionally light MoM (headline 0.0% MoM, Exp. 0.1%; core 0.2%, exp. 0.2%), but hotter on a YoY basis (core 2.8% YoY, Exp. 2.6%). Over the weekend, key macro catalysts will be China finance minister’s press conference on stimulus package.
In premarket trading, JPMorgan rose 1% after the bank reported a surprise gain in net interest income for the 3Q and raised its forecast for the key revenue source. Wells Fargo also gained, rising 3% after posting 3Q profit that topped analyst expectations as a surge in investment-banking fees helped counter a dip in lending revenue as interest rates fall. Tesla fell 6% as Elon Musk unveiled prototypes of the automaker’s long-awaited robotaxi Cybercab. Analysts note that the event did give a clearer picture of the company’s autonomous plans, but it was “light on the details.” Here are some other notable premarket movers:
Aehr Test Systems (AEHR) jumps 13% after the semiconductor manufacturing firm reported fiscal 1Q results and reiterated its guidance for the fiscal year.
A.O. Smith (AOS) falls 10% after the manufacturer of water heating and water treatment equipment lowered its annual forecasts for net sales and adjusted earnings per share, citing continued softness in its China business.
BNY Mellon (BK) gains 1% after the bank’s 3Q adjusted earnings per share beat the average analyst estimate.
Humana (HUM) slips 3% after the US Medicare program released final quality ratings for private Medicare Advantage plans, confirming a previously announced cut for the health insurer.
The producer price index for final demand was flat from August after rising 0.2% in the prior month, printing below estimates. From a year ago, however, it rose more than expected up 1.8% and 2.8% for headline and core, respectively, both above estimates of 1.6% and 2.6%.
European stocks reversed earlier losses and rose 0.2% with automobile and telecommunications shares leading the decline, while real estate and basic resources stocks are the biggest outperformers. Here are the biggest movers Friday:
Aeroports de Paris gains as much as 2.7% as JPMorgan upgrades to overweight in note switching its top pick within the European airports space
Zalando shares rise as much as 1.5% after the online fashion retailer delivered preliminary third-quarter results that were significantly above expectations and boosted its full-year guidance
Brembo shares gained as much as 4.6% in Milan after the Italian company signed an agreement with Apollo Global Management’s Tenneco to buy a 100% stake in Öhlins Racing for $405m
BP shares drop as much as 1.6% after the UK oil company said in a 3Q trading update that it expects rising net debt due to weaker refining margins
Thales declines as much as 3.2% after Berenberg cuts to hold, citing in note continuing challenges for the defense contractor’s Space busines
J Sainsbury falls as much as 5.1% after the largest shareholder in the UK supermarket chain, the Qatar Investment Authority, offered around $400 million worth of shares at a discount to the last closing price
Revenio declines as much as 5.6% following a downgrade to sell from hold at Nordea, which cites short-term uncertainties for the Finnish ophthalmological device and software firm
THG shares drop as much as 7.9%, hitting their lowest intraday level since January 2023, after the online retailer reported third-quarter revenue that Citi said missed their estimates
Earlier, Asian equities were headed for a second week of losses as the rally in China fizzled. The MSCI Asia Pacific Index pared earlier gains of as much as 0.4%. TSMC and Fast Retailing were among the biggest boosts to the regional benchmark. Japanese stocks were mixed, while China’s onshore gauge capped its worst week since July ahead of a policy briefing by the Ministry of Finance on Saturday. Chinese stocks have been volatile this week as traders digested weaker-than-expected holiday spending data and await further announcements from the key meeting this weekend. Investors and analysts are expecting China to deploy as much as 2 trillion yuan ($283 billion) in fresh fiscal stimulus, according to a majority of 23 market participants surveyed by Bloomberg.
“We have to expect some profit taking” after China’s sharp rally in the past few sessions, said Jessica Amir, market strategist at Moomoo. Meanwhile, “traders are also considering the risks should China not deliver a second bazooka stimulus package on the weekend.”
In FX, the Bloomberg Dollar Spot Index is little changed. The Bloomberg Dollar Spot Index dipped 0.1% as the greenback slipped against most Group-of-10 peers; the Norwegian krone led gains alongside the British pound, while the Japanese yen slumped.
EUR/USD inched up 0.1% to 1.0943 reversing an earlier drop; France’s government unveiled a budget for next year that aims to deliver a €60.6 billion remedy for its creaking public finances
GBP/USD rose as much as 0.2% to 1.3081; The UK economy returned to growth in August, putting Britian on course for modest growth in the third quarter, albeit at a slower pace than in the first half of the year
In rates, treasuries are lower, with US 10-year yields rising 4bps to 4.10%, the highest since July 31. French government bonds dip after the government unveiled a budget for next year that aims to deliver €60.6 billion in spending cuts and higher taxes. The OAT-bund spread is steady around 77 bps.
Oil prices decline, with WTI down 0.7% as Israel’s government has yet to decide how to retaliate against Iran for a missile attack last week. Spot gold rises $8 to around $2,637/oz.
Today's data calendar includes September PPI (full summary here ) and October preliminary University of Michigan sentiment (10am). Fed speakers scheduled include Goolsbee (9:45am), Logan (10:45am) and Bowman (1:10pm)
Market Snapshot
S&P 500 futures down 0.1% to 5,822.75
STOXX Europe 600 little changed at 519.13
MXAP little changed at 192.69
MXAPJ up 0.2% to 613.35
Nikkei up 0.6% to 39,605.80
Topix down 0.2% to 2,706.20
Hang Seng Index up 3.0% to 21,251
