Wednesday, October 31, 2018
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What to watch today
On Wednesday, investors will be greeted by the final trading day of what’s been the market’s worst months during the post-crisis bull run. And as The Financial Times noted Tuesday, the S&P 500 has dropped 16 of 22 trading days in October so far, putting it on track to see the highest percentage of losing sessions since 2000. Markets on Wednesday could take their direction from shares of Facebook (FB), with the company’s third quarter earnings report released after the market close on Tuesday showing the company beat on earnings per share but came in a bit light on revenue. In after hours trading shares were trading up as much as 4.5%.
The earnings schedule remains busy with General Motors (GM), Kellogg (K), Yum Brands (YUM), and AIG (AIG) among the notable companies set to report results. And on the economic data side, the flow of labor market data for the month of October will begin when ADP releases its report on private payroll growth in October in the morning, which is expected to show 190,000 jobs were created in the private sector this month.
Facebook revenue disappoints: Facebook (FB) followed a second-quarter flop with tepid third-quarter results. The social media giant narrowly missed expectations for global daily active users and revenue while beating on earnings per share. Facebook delivered earnings of $1.76 per share on revenue of $13.73 billion. This beat consensus estimates of earnings of $1.47 per share but missed the $13.8 billion in revenue foreseen by average analyst expectations. [Yahoo Finance]
China’s export gauge signals worse to come: China’s manufacturing sector worsened in October as the trade war hit home, adding to risks the global economy may be edging toward a synchronized slowdown. China’s official factory gauge missed estimates with a reading of 50.2 and its exports sub-index slumped to the lowest reading since early 2016. [Bloomberg]
Crypto CEO: Bitcoin bear market to last 18 months: BitMEX CEO Arthur Hayes told Yahoo Finance UK: “My view is the volatility environment that exists right now could persist for another 12 to 18 months, the flatness.” Bitcoin (BTC-USD) surged to a high of over $20,000 in December last year but crashed at the start of 2018 and has traded in a tight range close to $6,300 for the past few months. [Yahoo Finance UK]
Barnes & Noble countersues ex-CEO it fired: Barnes & Noble Inc. (BKS) on Tuesday filed a countersuit seeking damages from the former chief executive officer it fired in part because of claims he sexually harassed a female employee. The largest U.S. bookstore chain said Demos Parneros breached his duties of loyalty and good faith by sexually harassing the female employee, bullying subordinates, and attempting to “sabotage” a potential sale of the New York-based company. [Reuters]
Waymo gets crucial first California OK: Alphabet Inc.’s (GOOGL) Waymo unit on Tuesday became the first company to receive a permit from the state of California to test driverless vehicles without a backup driver in the front seat, the state’s Department of Motor Vehicles said. [Reuters]
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