By RTT News, October 17, 2013, 06:33:00 AM EDT
(RTTNews.com) - The tenuous deal struck by the lawmakers has not led to much cheer, as the markets had traded up in anticipation of the announcement and have now begun to focus on the ground realities. The major U.S. index futures are pointing to a lower opening on Thursday after Congress passed a bill to re-open the government and temporarily raise the debt ceiling. With more pains to follow in the wake of the deal only temporarily resolving the crisis, traders may remain skeptical. Some tech earnings, including those from IBM, have been disappointing. Traders may also shift focus to manufacturing and jobless claims data due for the day.
At 6:15 am ET, the Dow futures are receding 48 points, the S&P 500 futures are moving down 3.70 points and the Nasdaq 100 futures are down 2 points.
Deal hopes lifted U.S. stocks on Wednesday, as lawmakers worked towards last minute efforts to clinch a deal to avert a potential default and to reopen the federal government.
On the economic front, the Labor Department is scheduled to release its jobless claims report for the week ended October 12th at 8:30 am ET. Economists expect claims to have declined to 330,000 from 374,000 in the previous week. The Federal Reserve is due to release its industrial production report for September at 9:15 am ET. The consensus estimates call for a 0.4 percent month-over-month increase in industrial output, while capacity utilization may have increased to 78.1 percent.
At 10 am ET, the Philadelphia Federal Reserve will release the results of its manufacturing survey for October. Economists expect the general business conditions index to decline to 15 from 22.3 in September.
Chicago Federal Reserve Bank PresidentÂ Charles EvansÂ is scheduled to speak on the economy and monetary policy in Madison, Wisconsin at 12:45 pm ET. Kansas City Federal Reserve Bank PresidentÂ Esther George will speak on the economy in Oklahoma City at 1:45 pm ET. Additionally, Minneapolis Federal Reserve BankÂ Narayana KocherlakotaÂ is due to speak on the monetary policy in Butte, Montana at 2:45 pm ET.
In corporate news, IBM ( IBM ) reported third quarter earnings that were ahead of estimates, while its revenues missed expectations. The company maintained its 2013 guidance. EBay's ( EBAY ) third quarter earnings were in line, while its revenues exceeded estimates. The company's fourth quarter guidance was weak.
American Express ( AXP ) reported third quarter net income of $1.25 per share, up from $1.09 per share last year. Total revenues net of interest expense rose 6 percent to $8.30 billion. The results exceeded estimates.
SanDisk ( SNDK ) reported better than expected third quarter results, which also increased year-over-year. Xilinx ( XLNX ) reported second quarter earnings of 49 cents per share, including an expense of 9 cents per share, on sales of $599 million, up 10 percent year-over-year. For the third quarter, the company expects sales to be down 2 percent to up 2 percent sequentially. The results exceeded estimates and the third quarter sales guidance was in line.
Capital One Financial ( COF ), Chipotle Mexican Grill ( CMG ), Google ( GOOG ), Las Vegas Sands ( LVS ), Rambus ( RMBS ), Stryker (SYK) and WD-40 ( WDFC ) are among the companies due to release their quarterly results after the close of trading.
Most Asian markets advanced, as the lawmakers succeeded in clinching a deal, although the Chinese, Indian and Hong Kong markets retreated modestly.
Japan's Nikkei 225 average ended up 119.37 points or 0.83 percent at 14,587. A majority of stocks advanced, with export stocks leading the gains on the yen's weakness. Australia's All Ordinaries held above the unchanged line throughout the session before closing up 17.50 points or 0.33 percent at 5,282. Hong Kong's Hang Seng Index closed at 23,095, down 133.45 points or 0.57 percent. China's Shanghai Composite Index closed 4.53 points or 0.21 percent at 2,189.
On the economic front, the results of a survey by the National Australia Bank showed that confidence among Australians improved to the highest levels in two years in the third quarter, helped by the domestic election results. The business confidence index rose to 3 in the September quarter from -1 in the second quarter.
European stocks opened lower and have seen further weakness, as traders digest some mixed earnings news and react to the 'done deal' in Washington.
In corporate news, Nestle reported that its underlying sales growth slowed to 4.4 percent for the nine-month period, trailing estimates by most analysts. German department store Metro reported nine-month revenues that fell year-over-year but was in line with estimates. French retailer Carrefour reported higher sales for the third quarter, helped by strong performance by its French hypermarkets.
Pay television giant BskyB reported higher a decline in quarterly profits despite an increase in revenues. Swiss agri-firm Syngenta reported higher third quarter sales and affirmed its full year sales outlook. Swiss drug giant Roche reported higher third quarterly sales on higher sales of its oncology portfolio. Diageo and Remy Cointreau reported worse than expected revenues. Meanwhile, SABMiller reported 4 percent increase in first-half net revenues, helped by strength in emerging markets.
On the economic front, a report released by the U.K. Office for National Statistics showed that U.K. retail sales rose 2.2 percent year-over-year, ahead of the 2 percent increase expected by economists. Excluding auto fuel, sales was better than expected at 2.8 percent.
Eurozone's construction output increased at a slower pace in August, preliminary data released by statistical office Eurostat showed. Production increased a seasonally adjusted 0.5 percent month-over-month, following a 0.7 percent gain in July.
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