US stocks are set to extend yesterdays losses after the Federal
Reserve opted to stay the course, but struck a more hawkish tone.
Yesterday, stocks fell from record highs when the Federal Reserve
announced that it will leave interest rates and the level of asset
buying as is due to the uncertainty caused by the recent government
shutdown. However, the Fed will probably follow through on the
taper that was foretold back in May fairly soon.
Last week, 340,000 people filed for unemployment insurance, down
from 350,000 in the week prior. Economists expected 5,000 fewer
claims. However, this indicator has been unreliable of late due to
delayed processing of applications in California and private
furloughs tied to the government shutdown.
Before the data releases,
(INDEXDJX:.DJI) futures were down 0.10% at 15,538.00. Futures on
(INDEXSP:.INX) sank 0.05% to 1,757.70.
(INDEXNASDAQ:.IXIC) futures fell 0.37% to 3,379.75.
Today was also a big day for energy earnings.
) reported that profit fell 18% to $7.87 billion. EPS came in at
$1.79, down from $2.09 a year ago. The company said that weak
margins in refining especially, decreased earnings by $2.4 billion.
Oil and natural gas output rose 1.5% due to new projects.
) reported that profit rose to $2.48 billion. Adjusted earnings per
share beat expectations by a penny at $1.47, up from $1.38 a year
ago. Trouble in Libya, led the company to reduce its production
goals for the quarter by 50 million barrels per day. Shares were up
0.75% this morning.
) beat earnings expectations for the third quarter, sending shares
up nearly 17% initially yesterday. However, the rally petered out
when the company acknowledged that it is losing American teenagers.
Facebook is also going to be a bit more cautions before increasing
the quantity of its Newsfeed ads. Management did not quantify the
decline in teen users. Shares of Facebook were up 1.3% this
European shares are mixed today after some indicators threw the
recovery narrative into question. Eurozone joblessness rose to
12.2% in September from 12% in August. That headline number would
have been much worse had it not been for a dip in Germany's
unemployment rate to 5.2%. France and Italy both saw unemployment
rise 0.1 percentage point. German retail sales fell 0.4% in
September after rising 0.5% in August.
(INDEXNIKKEI:NI225) fell 1.2% overnight despite an encouraging
report on manufacturing. The country's PMI rose to a three-year
high of 54.2 this month, up from September's 52.5. PMI readings
over 50 indicate expansion of the sector.