Stocks Gaining on Bullish Earnings, Benign Employment
Stock futures are holding onto early gains following a weaker than expected jobs report in which September non-farm payrolls rose by a less than expected 148,000 versus the consensus estimate of a 185,000 gain. Although the jobless rate declined 0.1% to 7.2%, the overall employment situation will continue to keep the Fed sidelined in regard to their monthly asset-purchase program which has been providing ample liquidity to the financial markets.
Also contributing to the bullish environment for equities is the continued decline in Treasury yields where the 10-year yield is down another 6 basis points to 2.55%, and cheaper energy prices as the price of crude oil continues to trade below $100 per barrel.
Along with the employment situation, earnings will also hold center stage with upbeat third quarter results from Netflix ( NFLX ) and DuPont ( DD ) contributing to this morning's modest gains. Amid the flood of earnings expected throughout the day today is Amgen ( AMGN ), Broadcom ( BRCM ) and Juniper Networks ( JNPR ).
-Dow Jones Industrial up 0.31%
-S&P 500 futures up 0.24%
-Nasdaq 100 futures up 0.40%
Nikkei up 0.13%
Hang Seng down 0.52%
Shanghai Composite down 0.83%
FTSE-100 up 0.27%
DAX-30 up 0.08%
PRE-MARKET SECTOR WATCH
(+) Large cap tech: higher
(+) Chip stocks: mixed
(+) Software stocks: higher
(+) Hardware stocks: higher
(+) Internet stocks: higher
(+) Drug stocks: higher
(+) Financial stocks: higher
(+/-) Retail stocks: flat
(+) Industrial stocks: higher
(+) Airlines: higher
(+) Autos higher
PTIE (+24.00%) Pain Therapeutics's partner Pfizer Inc. (PFE) said it will continue with clinical studies for Remoxy, a pain reliever for moderate-to-severe pain.
DAL (+3.20%) Reported Q3 adjusted net income of $1.2 billion, or $1.41 per diluted share, topping the consensus forecast for $1.36 on Capital IQ.
FRX (+2.69%) Reported earnings of $0.36 per share in Q2 2013, up from $0.15 per share in Q2 2013.
NFLX (+7.80%) Reports Q3 revenue of $1.10 bln, in line with the analyst consensus on Capital IQ. EPS was $0.52, vs. expectations of $0.49 per share.
RSH (-4.26%) Q3 loss widened to $112 million, or $1.11 per diluted share, from a loss of $47 million, or $0.47 per share, in the year ago period, falling far short of analysts' estimates of a loss of $0.36 per share
LTBR (-10.32%) Priced a direct sale of 2.5 million units at $1.75 per unit.