LONDON (SHARECAST) - -Workday rockets 75 per cent after IPO
-Lacker (Fed) believes risks to growth will dissipate next year
-S&P 500 at 50 day moving average
Dow Jones Industrial: -0.07%
Nasdaq Comp.: -0.08%
S&P 500: -0.27%
US stocks have fallen back slightly into the red despite upbeat economic data out this morning. That as investors react to worries regarding the outlook for growth in China and the Eurozone, not to mention the looming “fiscal cliff” at home, in the US.
Thus, banks are today one of the weakest sectors as the S&P 500 teeters on its 50 day moving average; what at it does at this point -bounce back or fall through support- will decide the market’s direction in the most extreme short-run.
Banks down as net interest margins fallTwo banking giants had varying fortunes as the third quarter results season got under-way, with JP Morgan topping expectations and Wells Fargo falling short of them. Citigroup's earnings are scheduled for Monday.
JP Morgan reported third quarter earnings per share (EPS) of $1.40, 20 cents above the $1.20 that the market consensus was anticipating. The bank reported a profit of $5.7bn compared to $4.3bn generated in the year-ago period.
Revenue rose by 6% to $25.9bn compared to $23.76bn a year earlier and the $24.12bn expected by the market.
JP Morgan Chief Executive Jamie Dimon said that the US housing market "has turned the corner" and that the bank would be reducing the amount set aside to cover losses from mortgages. Dimon also said that there has been continued momentum and a strong performance across all businesses. Revenue rose in every business line. Nevertheless, litigation charges are expected to remain high for some time to come.
Wells Fargo's third quarter revenue was a shade shy of the $21.41bn Wall Street was expecting at $21.37. EPS of 88 cents was slightly above the 87 cents median forecast, however.
The lender has been benefitting from intense mortgage activity, but the drop in its net interest margins led to the above “revenue miss.”
Computer chip firm Advanced Micro Devices continues to struggle. After the bell last night it warned that third quarter revenue would be below expectations. The firm now expects third quarter revenues will be about a tenth lower than in the second quarter, instead of one hundredth less.
Wal Mart was raised to buy at Jefferies, while Sun Trust Banks was downgraded by BTIG.
The worst performing sectors now are: Platinum (-3.12%), Coal (-2.17%) and Banks (-2.16%).
Consumer expectations rise more than forecast
The Thomson Reuters/University of Michigan preliminary October consumer sentiment index had been tipped to slide to 78.0 from 78.3 in September (Consensus: 74), but in fact rose to 83.1.
So-called "core" producer prices -which strip out the effect of changes in food and energy inflation- remained flat during the month of September, versus August, below the 0.2% gain expected.
Fed keeps buying debt
Crude oil for November delivery is falling 35 cents to $91.74 on the New York Mercantile Exchange. For the week it rose over 2% on rising Mid-East tensions.
US Treasuries are down by 3/32 dollars, with the yield on the benchmark 10-year note down to 1.66% from 1.67% overnight. This after the Federal Reserve today purchased $1.89bn in debt maturing between 2036 and 2042.
S&P 500 - Risers
Monster Beverage Corp (MNST) $57.10 +4.89%
Carmax Inc. (KMX) $32.57 +4.22%
Ecolab Inc. (ECL) $66.04 +3.72%
Dell Inc. (DELL) $9.65 +3.21%
Hasbro Inc (HAS) $38.89 +2.86%
Helmerich & Payne Inc. (HP) $49.63 +2.84%
CH Robinson Worldwide Inc (CHRW) $60.42 +2.58%
Teradata Corp. (TDC) $74.67 +2.28%
Electronic Arts Inc. (EA) $13.34 +2.18%
Mattel Inc. (MAT) $36.00 +2.13%
S&P 500 - Fallers
Advanced Micro Devices Inc. (AMD) $2.84 -11.41%
Alpha Natural Res (ANR) $7.94 -7.13%
First Horizon National Corp. (FHN) $9.48 -4.72%
Dollar Tree Stores Inc. (DLTR) $41.45 -4.23%
Regions Financial Corp. (RF) $7.30 -4.20%
Harris Corp. (HRS) $48.74 -4.15%
Fifth Third Bancorp (FITB) $15.27 -3.93%
R.R. Donnelley & Sons Co. (RRD) $10.69 -3.91%
PNC Financial Services Group (PNC) $62.60 -3.62%
Janus Capital Group Inc. (JNS) $8.83 -3.60%
Dow Jones I.A - Risers
Boeing Co. (BA) $71.66 +1.17%
Wal-Mart Stores Inc. (WMT) $75.79 +1.05%
International Business Machines Corp. (IBM) $207.84 +1.01%
Home Depot Inc. (HD) $59.60 +1.00%
Cisco Systems Inc. (CSCO) $18.43 +0.93%
Microsoft Corp. (MSFT) $29.22 +0.92%
Hewlett-Packard Co. (HPQ) $14.35 +0.74%
Merck & Co. Inc. (MRK) $45.68 +0.51%
Walt Disney Co. (DIS) $50.56 +0.44%
Coca-Cola Co. (KO) $38.16 +0.13%
Dow Jones I.A - Fallers
Bank of America Corp. (BAC) $9.13 -2.25%
AT&T Inc. (T) $35.68 -1.61%
American Express Co. (AXP) $57.74 -1.25%
JP Morgan Chase & Co. (JPM) $41.71 -0.93%
Verizon Communications Inc. (VZ) $44.78 -0.92%
Chevron Corp. (CVX) $112.08 -0.86%
Travelers Company Inc. (TRV) $68.61 -0.80%
Intel Corp. (INTC) $21.54 -0.65%
Alcoa Inc. (AA) $8.72 -0.57%
3M Co. (MMM) $92.55 -0.30%
Nasdaq 100 - Risers
Monster Beverage Corp (MNST) $57.10 +4.89%
Dell Inc. (DELL) $9.65 +3.21%
CH Robinson Worldwide Inc (CHRW) $60.42 +2.58%
Electronic Arts Inc. (EA) $13.34 +2.18%
Mattel Inc. (MAT) $36.00 +2.13%
Baidu Inc. (BIDU) $111.00 +1.80%
Comcast Corp. (CMCSA) $35.69 +1.59%
Check Point Software Technologies Ltd. (CHKP) $45.99 +1.23%
Oracle Corp. (ORCL) $31.09 +1.20%
Altera Corp. (ALTR) $32.36 +1.19%
Nasdaq 100 - Fallers
Infosys Technologies Ltd. (INFY) $44.00 -8.75%
Vertex Pharmaceuticals Inc. (VRTX) $53.85 -5.33%
Dollar Tree Stores Inc. (DLTR) $41.45 -4.23%
Netflix Inc. (NFLX) $64.29 -2.56%
Staples Inc. (SPLS) $11.17 -2.36%
Micron Technology Inc. (MU) $5.64 -1.83%
Marvell Technology Group Ltd. (MRVL) $8.75 -1.46%
Sears Holdings Corp. (SHLD) $60.04 -1.44%
Vodafone Group Plc ADS (VOD) $28.14 -1.40%
F5 Networks Inc. (FFIV) $97.51 -1.30%
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