Dow futures dropped Monday ahead of a busy week for corporate earnings against the backdrop of increasing U.S. oil prices and a tick-up in bond yields. The Dow, the S&P 500 and the Nasdaq rallied Friday and for all of last week. The flood of earnings takes a pause Monday but picks back up Tuesday with Netflix, Johnson & Johnson, United Airlines and Procter & Gamble reporting. (CNBC)
So far, 41 S&P 500 companies have delivered third-quarter results, with 80% of them topping EPS expectations, according to data from FactSet. Taking into account those already out and estimates for the rest, third-quarter profit growth would total 30%, the third-highest quarterly profit growth rate for S&P 500 firms since 2010, according to FactSet. (CNBC)
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IN THE NEWS TODAY
Colin Powell, the former secretary of State and chairman of the Joint Chiefs of Staff, has died from Covid complications at the age of 84. "We have lost a remarkable and loving husband, father, grandfather and a great American," the family said, noting he was fully vaccinated. (CNBC)
Bitcoin crept close to its April all-time highs near $65,000, rising about 1.5% on Monday to more than $61,000. The world's biggest digital currency hit a six-month high above $60,000 on Friday. Traders are optimistic the SEC won't stand in the way of the first bitcoin futures exchange-traded fund, which would begin trading Tuesday unless regulators stepped in. (CNBC)
U.S. oil prices, as measured by West Texas Intermediate crude, jumped another 1%, topping $83 per barrel, their highest level since October 2014. Behind the march higher are continued recovering demand as Covid-depressed business activity picks up, and as high natural gas and coal prices encourage a switch to fuel oil and diesel for power generation. (Reuters)
The 10-year Treasury yield started the week moving back up toward 1.62%. Before topping those levels earlier this month, the last time it was that high was in June. Industrial production figures for September are out at 9:15 a.m. ET, with estimates calling for a 0.2% increase following a 0.4% jump in August. (CNBC)
China's third-quarter gross domestic product grew a disappointing 4.9% from a year ago as industrial activity in the world's second-largest economy rose less than expected in September. Many factories had to stop production in late September as a surge in the price of coal and a shortage of electricity prompted local authorities to abruptly cut off power. (CNBC)
A substantial portion of investors expect the U.S. Federal Reserve and the European Central Bank to keep monetary policy slightly too loose for too long, according to Deutsche Bank. In a survey of more than 600 investment professionals polled by the German lender, 42% expect the Fed to stay slightly too dovish. The prospect of a dovish policy error from the ECB was seen as more likely at 46%. (CNBC)
Apple is holding a launch event Monday to announce new products, likely including a redesigned MacBook Pro. The company has a chance to drive continued momentum to its Macs ahead of the holiday shopping season, especially since it's expected to announce more computers that run on its own chips instead of Intel's processors. (CNBC)
Facebook (FB) plans to create 10,000 jobs in the European Union over the next five years in a push to build a digital world known as the "metaverse." The social media giant said on Sunday it would hire high-skilled engineers in countries across the bloc. The company is focusing its recruitment drive on Germany, France, Italy, Spain, Poland, the Netherlands and Ireland. (CNBC)
Foxconn, the Taiwanese company that manufactures smartphones for Apple and other global brands, announced plans Monday to produce electric cars for auto brands under a similar contract model. Foxconn's chairman said the company will produce cars and buses for brands in China, North America, Europe and other markets. (AP)
Walmart (WMT) will not only dangle discounts on giant TVs, air fryers and Legos this holiday season. It will also push its subscription service, Walmart+. The retail giant said Monday the program's members will be first in line for Black Friday deals. Those customers can start shopping online sales four hours earlier than other shoppers throughout the month of November. (CNBC)
Southwest Airlines (LUV) asked a federal court to reject an effort by its pilots to block the airline from enforcing a Covid vaccine mandate. The pilots union said Southwest changed work rules unilaterally without negotiating first. (Bloomberg)
STOCKS TO WATCH
Zillow (Z) slid 6.4% in premarket trading, following a Bloomberg report that the company has temporarily stopped its home-buying service due to overwhelming demand.
Revance Therapeutics (RVNC) plunged 33% in Monday's premarket after the FDA declined to approve an injectable treatment for facial lines, noting deficiencies following the agency's inspection of manufacturing facilities. Revance said no other concerns were raised in the FDA's response. The treatment is seen as a possible competitor to the best-selling treatment Botox.
Walt Disney (DIS) lost 1.8% in the premarket after Barclays downgraded the stock to "equal weight" from "overweight," citing concerns about a significant slowdown in growth for the Disney+ streaming service.
Albertsons (ACI) earned 64 cents per share for its latest quarter, beating estimates of 45 cents a share. Revenue also topped forecasts. The supermarket operator increased its quarterly dividend by 20% to 12 cents per share. Its shares jumped 3.6% in premarket action.
Philips (PHG) reported lower-than-expected sales for the third quarter, and the Dutch medical technology company lowered its sales and profit outlook for the full year. Philips is taking a hard hit from a respirator recall and a global shortage of electronic components. Its shares fell 2% in the premarket.
Stellantis (STLA) is forming a joint venture with South Korean battery maker LG Energy Solution to produce batteries and components for the North American market. The batteries will be produced at the automaker's plants in the U.S., Canada and Mexico. Stellantis shares slid 1% in premarket trading.
Goldman Sachs (GS) received approval from China regulators to take full ownership of a local securities unit. Goldman did not disclose how much it paid for the 49% it did not own in the business that it has co-owned since 2004.
Biogen (BIIB) said a late-stage trial of an experiment ALS treatment did not reach its primary goal, but noted favorable trends in other measures of progress toward treating the fatal disease. Shares of the drugmaker lost 1% in the premarket.
Netflix (NFLX) estimates the value of its hit series "Squid Game" at nearly $900 million, according to an internal document seen by Bloomberg. The South Korean series cost just $21.4 million to produce. The nine-episode thriller, in which cash-strapped contestants play childhood games with deadly consequences in a bid to win $38.58 million, became an international hit after launching last month. (CNBC)
Source : https://www.msn.com/en-us/finance/markets/what-to-watch-today-wall-street-set-to-start-the-week-lower-after-fridays-rally/ar-AAPEZV41538