Global stocks were mixed this morning, while the pound drifted lower, after MPs endorsed the terms of a Brexit agreement, however rejected the government’s proposed timetable, leaving investors grappling with extended uncertainty as they plow through today's earnings releases.
In Europe, all eyes are on the UK Parliament and Brussels, where the rejection of Prime Minister, Boris Johnson’s, legislative schedule for Brexit may trigger a snap general election in the world's fifth-largest economy; a fast-track plan to approve Johnson’s Brexit deal before Britain's scheduled departure from the European Union on Oct. 31.
US stocks and the British pound turned south yesterday, following initial reactions to the Parliament’s vote on Johnson’s withdrawal deal, sending shares of the S&P 500 down -0.33%, after having been up as much as +0.30% earlier in the day.
Ahead, in today’s economic calendar, Wednesday includes; House Price Index data for August at 9:00am EST, followed by Crude Oil Inventories for the week ended Oct. 18, at 10:30am EST.
In earnings news; Caterpillar (CAT), Boeing (BA), Microsoft (MSFT), Ford (F), eBay (EBAY), Eli Lilly (LLY), PayPal (PYPL), Tesla (TSLA), Blackstone Group (BX), General Dynamics (GD), Las Vegas Sands (LVS), Freeport-McMoRan (FCX), F5 Networks (FFIV) and ServiceNow (NOW) are amongst the major companies scheduled to report their earnings today.
TODAY'S TOP HEADLINES
Brexit: Boris Johnson Eyes Election After Parliament Forces Brexit Delay. (Bloomberg)
Boris Johnson looked set to try for an election after Parliament blocked his plan to rush his Brexit deal into US law.
Today's Economical Announcements.
09:00AM - ★☆☆ - House Price Index (MoM) (Aug) (Previous: 0.4%)
10:30AM - ★★★ - Crude Oil Inventories (Previous: 9.281M)
STOCKS IN THE SPOTLIGHT
Pre-Market Movers & News Related Stocks.
Texas Instruments (TXN): [EARNINGS] Beat estimates by 7 cents a share, with quarterly profit of $1.49 per share. The chip maker’s revenue came in below analysts’ forecasts, however, and the company gave a weaker-than-expected revenue forecast amid a slump in industry demand.
Six Flags (SIX): [EARNINGS] Came in 20 cents a share below forecasts, with quarterly earnings of $2.11 per share. The amusement park operator’s revenue fell short, as well, despite a 3% increase in park attendance.
Whirlpool (WHR): [EARNINGS] Earned an adjusted $3.97 per share for the third quarter, 8 cents a share above estimates. The appliance maker’s revenue fell short amid lower sales in Latin America.
iRobot (IRBT): [EARNINGS] Earned $1.24 per share for the third quarter, well above the consensus estimate of 52 cents, and the Roomba vacuum cleaner maker’s revenue exceeded forecasts as well. However, the stock Is being pressured by a weaker than expected holiday season outlook, with the company pointing to US tariffs on its vacuums among other factors.
Eli Lilly (LLY): [EARNINGS] Earned an adjusted $1.48 per share for the third quarter, 7 cents a share above estimates, helped by strong sales of diabetes drug Humalog. Revenue came in slightly below Street forecasts, however.
Caterpillar (CAT): [EARNINGS] Missed estimates by 22 cents a share, with an adjusted quarterly profit of $2.66 per share. Revenue also missed expectations and Caterpillar cut its full-year outlook as its results are impacted by weak demand in construction and mining equipment.
Chipotle Mexican Grill (CMG): [EARNINGS] Reported adjusted quarterly earnings of $3.82 per share, beating the consensus estimate of $3.22 a share. The restaurant chain’s revenue was also above Street forecasts, with comparable sales up 11% during the quarter and digital sales soaring nearly 88%.
Anthem (ANTM): [EARNINGS] Came in 5 cents a share above estimates, with adjusted quarterly profit of $4.87 per share. Revenue also beat forecasts. Anthem said its full-year earnings will top $19.40 per share, compared to a consensus estimate of $19.35 a share as sales of its government-backed health plans rise.
Boeing (BA): [EARNINGS] Earned an adjusted $1.45 per share for the third quarter, well below the consensus estimate of $2.09 a share. Revenue was slightly above Wall Street forecasts. Boeing continues to target a fourth-quarter return to service for the 737 Max, even though most airlines have cut Max flights from their schedule until early 2020.
Blackstone (BX): [EARNINGS] Reported distributable earnings per share of 58 cents per share, 5 cents a share above estimates. Revenue came in above analysts’ forecasts, as well. Fee-related earnings were up 27% from a year ago, and assets under management grew by 21%.
Hilton Worldwide (HLT): [EARNINGS] Reported adjusted quarterly earnings of $1.05 per share, 3 cents a share above forecasts. Revenue also topped estimates and Hilton raised its full-year earnings forecast but narrowed its forecast for revenue per available room.
Nike (NKE): [NEWS] Nike Chairman and CEO Mark Parker will step down in January and take the role of executive chairman. Parker will be replaced by ServiceNow CEO John Donahoe, who is currently on the athletic footwear and apparel maker’s board of directors.
Snap (SNAP): [EARNINGS] Lost 4 cents per share for its latest quarter, a penny a share less than Wall Street had been anticipating. The Snapchat parent’s revenue came in above analysts’ forecasts, as did the average revenue per user.
Amazon.com (AMZN): [NEWS] Announced the expansion of its “Counter” program, which gives customers the option of picking up packages in-store at staffed locations.
Netflix (NFLX): [NEWS] Netflix raised $2.2 billion in a sale of junk-rated bonds. The video streaming service plans to use some of that revenue to invest in new content amid intensifying competition.
Alphabet (GOOGL): [NEWS] Will reportedly be at the center of a meeting of state attorneys general in Colorado next month, according to Reuters. The meeting is said to center around an antitrust probe.
GAINERS: PII, MIK, JBLU, PETS, COTY
DECLINERS: SERV, RUN, CVA, TRV, KMB
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