Stocks Higher As Earnings, Bullish Chinese Data Boosts Confidence

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Stock futures are higher this morning in preparation for a flood of corporate earnings as upbeat Chinese manufacturing data and strong earnings from 3M ( MMM ) and Ford ( F ) eases fears of a slowdown in the global economy. Although gains in European equities were stifled by weak EU-zone manufacturing indices, the markets are all in positive territory, following the lead of their U.S. counterparts. Investors are not only encouraged by third-quarter earnings, but by the expectation that generous liquidity provided by the Fed will continue to fuel corporate growth, offsetting any detrimental impact from the government shutdown.

This morning's data on initial jobless claims and the balance of trade did not have much of an impact on the financial markets with the trade deficit narrowing only 0.7% and jobless claims declining 8,000 from the week prior, but coming in slightly higher than estimates. With the Fed expected to remain sidelined until possibly March 2014, all economic data from Q3 is unlikely to generate much of a response.

-Dow Jones Industrial up 0.36%

-S&P 500 futures up 0.29%

-Nasdaq 100 futures up 0.25%

SENTIMENT

Nikkei up 0.42%

Hang Seng down 0.71%

Shanghai Composite down 0.86%

FTSE-100 up 0.49%

DAX-30 up 0.58%

PRE-MARKET SECTOR WATCH

(+) Large cap tech: higher

(+) Chip stocks: higher

(+/-) Software stocks: mixed

(+) Hardware stocks: higher

(+/-) Internet stocks: mixed

(+/-) Drug stocks: mixed

(+/-) Financial stocks: mixed

(+) Retail stocks: higher

(+/-) Industrial stocks: mixed

(+) Airlines: higher

(+) Autos higher

UPSIDE MOVERS:

MCK (+7.65%) Agreed to acquire a majority stake in German company Celesio for $8.3 billion, also beat earnings estimates with FQ2 EPS of $2.27 on revenue of $33 billion.

LOGI (+9.20%) Reported Q2 2014 non-GAAP diluted EPS of $0.20, up from $0.17 in the same period last year.

F (+3.54%) Q3 adjusted EPS of $0.45 beat estimates of $0.38 per share and revenue was also better than estimates.

DOWNSIDE MOVERS:

XRX (-1.58%) Beat EPS estimates but revenues of $5.26 billion were below consensus of $5.34 billion.

KFN (-8.00%) Downgraded by analysts at FBR Capital to Market Perform from Outperform.

ERIC (-5.94%) Q3 sales dropped 3% to $8.32 billion, missing estimates



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Commodities

Referenced Stocks: F , MMM

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