With 24 percent of the S&P 500 companies set to report third
quarter earnings this week, Apple stands out as one of the most
highly anticipated. The technology giant is set to open its books
to the public after the bell on Monday.
After the second quarter showed a negative trend in iPad sales,
many will be watching for a reversal; though it is possible that
the decline will continue as customers wait for November to upgrade
to Apple's latest model.
The technology sector has been on fire for third-quarter
results, with 84 percent of companies having beat analyst
expectations. Amazon and Microsoft released better than expected
figures last week, leading the S&P 500 to finish the week on at
all-time high of 1,759.79.
In other news around the markets:
China's Communist Party Leaders are set to hold a meeting in
November at which the country's economic agenda could see several
large scale changes. Most notably, the government could relax the
country's one child policy and make it easier for parents to
qualify for having a second child. Bank of America was found liable
for making bad home loans and passing them on to Freddie Mac and
Fannie Mae under a long unused civil fraud statute, Financial
Institutions Reform, Recovery and Enforcement Act. The statute
allows the US Justice Department to make a criminal case against
financial institutions without the burden of having to prove fault
beyond a reasonable doubt. Although German news outlets are
reporting that President Obama was aware of the NSA's eavesdropping
on Chancellor Angela Merkel's phone calls, US officials claim the
White House was unaware that the NSA was monitoring nearly 35 world
leaders. Whatever the case, this marks the first admission from the
government that the US has in fact been spying on international
leaders. In an interview with Focus Magazine, German Finance
Minister Wolfgang Schaeuble said Germany is planning to cut debt to
GDP to below 60 percent over the next 10 years by refraining from
issuing any new debt.
Asian markets started off the week on a high with the Japanese
NIKKEI posting the largest gains, up 2.19 percent. The South Korean
KOSPI was up 0.68 percent and Hong Kong's Hang Seng index gained
0.36 percent. Australia's ASX 200 was up 1.02 percent and the New
Zealand NZ 50 rose 0.59 percent.
European markets were mostly higher, the UK's FTSE was up 0.07
percent and the eurozone's STOXX 600 was up 0.09 percent. Italy's
MIB was up 0.61 percent but France's CAC 40 lost 0.21 percent.
Energy futures were mixed with Brent futures up 0.09 percent and
WTI futures down 0.35 percent. Gold lost 0.27 percent and silver
was down 0.44 percent. Industrial metals were mostly higher with
tin up 1.42 percent and aluminum up 1.07 percent.
The euro remained above $1.38 and the pound to dollar ratio was
quiet, up just 0.07 percent. The yen lost 0.17 percent against the
dollar and the Australian dollar gained 0.21 percent against the
Earnings From Last Week
Notable earnings released on Friday included:
Procter & Gamble Company (NYSE:
) reported first quarter EPS of $1.05 on revenue of $21.21 billion,
compared to last year's EPS of $1.06 on revenue of $20.74 billion.
United Parcel Services (NYSE:
) reported EPS of $1.16 on revenue of $13.50 billion, compared to
last year's EPS of $1.06 on revenue of $13.07 billion. Moody's
) reported third quarter EPS of $0.83 on revenue of $705.50
million, compared to last year's EPS 0f $0.75 on revenue of $688.50
million billion. Lear Corporation (NYSE:
) reported third quarter EPS of $1.45 on revenue of $3.92 billion,
compared to last year's EPS 0f $1.29 on revenue of $3.54 billion.
) was up 6.38 percent in premarket trade after beating expectations
in last week's earnings report. Facebook, Inc. (NASDAQ:
) gained 1.46 percent ahead of its much anticipated earnings
release Amazon.com, Inc. (NASDAQ:
) gained 7.78 percent after beating expectations in last week's
Earnings reports expected on Monday include:
Merck & Company, Inc. (NYSE:
) is expected to report third quarter EPS of $0.88 on revenue of
$11.19 billion, compared to last year's EPS of $0.95 on revenue of
$11.49 billion. Apple Inc. (NASDAQ:
) is expected to report EPS of $7.88 on revenue of $36.76 billion,
compared to last year's EPS of $8.67 on revenue of $35.97 billion.
Biogen Idec Inc. (NASDAQ:
) is expected to report third quarter EPS of $2.10 on revenue of
$1.78 billion, compared to last year's EPS of $1.91 on revenue of
$1.39 billion. Herbalife LTD. (NYSE:
) is expected to report third quarter EPS of $1.14 on revenue of
$1.20 billion, compared to last year's EPS 0f $1.04 on revenue of
Monday's economic releases will likely be overshadowed by
earnings reports. US pending home sales, US industrial production
and Italian business confidence will be among the most watched
Happy trading and good luck!
For a recap of Friday's market action, click .
Tune into Benzinga's pre-market info show with Dennis Dick and
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