Market Breaking Up with TINA
Off last week’s near-term highs, stock market indices across the board are lower, including in today’s final pre-market session of the week. Currently, the Dow is -80 points, the S&P 500 is -13, the Nasdaq -65 points and the Russell 2000 -6. Bond yield rates are off their recent highs, but still tantalizingly close the 5% on the 10-year, which is a psychological barrier for those investors who used to look at stocks and say “TINA (There Is No Alternative).”
We’re devoid of major economic data this morning, meaning economists will be set adrift to make sense of this market based on incremental Q3 earnings, global oil prices and the whims of the bond market. A week from today we’ll get Personal Consumption Expenditures (PCE) datas for September, which is now sub-4% on both year over year headline and year over year core. This is the economic metric Fed Chair Jay Powell name-drops more than any other; it includes plenty of data from other prints throughout the month.
Aside from PCE, next week also brings Q3 earnings season to a new level. Not only will we hear from the stocks-previously-known-as-FANG — Alphabet GOOGL, Microsoft MSFT, Meta META and Amazon AMZN — but also Ford F, GM GM, GE GE, IBM IBM, 3M MMM and Boeing BA. We’ll also see new data on Durable Goods, the first look at Q3 GDP, Service & Manufacturing PMI, Case-Shiller and New Home Sales. Plenty of grist for the mill.
Ahead of today’s open, American Express AXP posted mixed quarterly results: earnings of $3.30 per share solidly outperformed the $2.96 in the Zacks consensus, a positive surprise of +11.5%, while revenues of $15.38 billion was a smidge below the $15.41 billion expected. It’s only the second earnings beat in the past four quarters, and for that the stock is selling off -1% in pre-market trading. This brings the stock right near break-even year to date. For more on AXP’s earnings, click here.
Oilfield services giant Schlumberger SLB beat expectations on its bottom line this morning, with earnings of 78 cents per share outshining estimates by a penny. Revenues were basically breakeven with expectations — $8.31 billion missed the Zacks consensus by -0.08% — but share are selling -2% on this news ahead of today’s opening bell. For more on SLB’s earnings, click here.
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