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Stocks Slip After Budget, Debt Deal; Jobless Claims, Q3 Earnings Disappoint

By: MT Newswires
Posted: 10/17/2013 9:00:00 AM
Referenced Stocks: GS;IBM

US stock futures slipped Thursday amid profit-taking after a deal in Washington that put an end to more than two weeks of a government shutdown and raised the debt ceiling to narrowly avert a default. Stocks rallied ahead of the deal yesterday.

Meanwhile, the weekly jobless claims report showed that initial claims fell by a less-than-expected 16,000 to 358,000, missing the 330,000 consensus.

Miller Tabak commented on the claims numbers in a research report today, stating, "The data is therefore clear as mud (related to California issues with computer upgrade), although its weight on investor sentiment is likely to have been lowered on account of the eleventh-hour reprieve passed by both houses overnight and signed after midnight by the President."

In equities, Goldman Sachs ( GS ) fell 2.67% before the market open after reporting revenue fell to $6.72 billion from $8.35 billion and missing the $7.22 billion consensus estimate. The bank's Q3 EPS beat expectations. IBM ( IBM ) also disappointed with its earnings last night, falling 7.19% pre-bell as revenue was nearly a billion dollars below expectations.

U.S. PRE-MARKET INDICATORS

-Dow Jones Industrial down 0.35%

-S&P 500 futures down 0.18%

-Nasdaq 100 futures down 0.02%

-Nasdaq-100 Pre-Market Indicator down 0.28%

GLOBAL SENTIMENT

Nikkei up 0.83%

Hang Seng down 0.57%

Shanghai Composite down 0.21%

FTSE-100 down 0.21%

DAX-30 down 0.63%

PRE-MARKET SECTOR WATCH

(-) Large cap tech: lower

(-) Chip stocks: lower

(-) Software stocks: lower

(-) Hardware stocks: lower

(-) Internet stocks: lower

(-) Drug stocks: lower

(-) Financial stocks: lower

(+/-) Retail stocks: mixed

(+/-) Industrial stocks: unchanged

(+/-) Airlines: unchanged

(+/-) Autos: mixed

UPSIDE MOVERS

(+) VZ (+2.33%) Q3 results top forecasts

(+) PACT (+8.56%) Blackstone consortium to buy co for $7.30/ADS in cash

(+) SVU (+3.81%) Reports Q214 profit over year-earlier loss, flat sales

(+) SNDK (+4.07%) Hits 52-week high on expected record FY13 revenue and EPS

DOWNSIDE MOVERS

(-) AMRN (-60.74%) FDA Votes Against Approving Vascepa Drug

(-) SCSS (-26.40%) Q3 EPS, sales misses views; lowers FY outlook

(-) EBAY (-6.20%) Q3 revenues slightly below consensus; cautious on Q4

(-) RDA (-5.00%) Lowers Q3 outlook to miss estimates