By William Watts and Chris Matthews, MarketWatch
JP Morgan shares jump after posting record revenue
Stock-index futures point to a slightly higher start for Wall
Street Tuesday as the corporate earnings reporting season gets
fully under way for the third quarter and investors weigh the
implications of a partial U.S.-China trade deal
How are the major benchmarks faring?
Futures on the Dow Jones Industrial Average rose 67 points, or
0.3%, to 26,813, while S&P 500 futures gained 10.25 points, or
0.3%, to 2,975.50. Nasdaq-100 futures rose 20 points, or 0.3%, to
7,877.50.
The Dow edged 29.23 points lower on Monday to end at 26,787.36,
a loss of 0.1%. The S&P 500 closed 4.12 points lower, down
0.1%, at 2,966.15, while the Nasaq Composite lost 8.39 points, or
0.1%, to finish at 8,048.65.
Read:5 prominent U.S. companies are most at fault for the
earnings recession
(http://www.marketwatch.com/story/5-prominent-us-companies-are-most-at-fault-for-the-earnings-recession-2019-10-14)
What's driving the market?
Enthusiasm over a U.S.-China trade deal boosted stocks at the
end of last week, but analysts said a lack of detail around planned
tariff increases and other elements damped enthusiasm, leaving
stocks to drift lower on Monday.
"The latest twist in the U.S.-China trade conflict is yet
another reminder to investors not to get caught up in the hype,"
said Han Tan, market analyst at FXTM, in a note. "Trying to bridge
the conflicting interests between the world's two largest economies
is a gargantuan task; an undertaking that has already proven to be
protracted and complicated."
Speaking with reporters in London, St. Louis Fed President James
Bullard said investors might be too optimistic about how long it
takes to reach trade deals
(http://www.marketwatch.com/story/bullard-says-pandoras-box-has-been-opened-on-trade-that-will-take-a-long-time-to-resolve-2019-10-15).
He also emphasized that data on consumption, while strong, was
"backwards looking" and said that was why he has been "emphasizing
these downside risks and also emphasizing pre-emptive types of
action to stay out of recession."
Bullard dissented last month
(http://www.marketwatch.com/story/feds-bullard-dissent-was-due-in-part-to-worries-about-slowing-economy-2019-09-20)
from the Federal Reserve's decision to cut interest rates by a
quarter point, calling instead for half-point decrease.
S&P 500 index company earnings are expected to fall 4.6% in
the third quarter, according to Factset. This would be the first
time that index company earnings have fallen for three straight
quarters since the fourth of quarter of 2015 through the second
quarter 2016, Factset analyst John Butters said.
Earnings forecasts focused on headwinds from the global economic
growth slowdown and international trade policy uncertainty, with
profit margins seen under pressure. However, corporate buybacks are
again seen supporting earnings per share.
Which stocks are in focus?
Meanwhile, investors were parsing earnings reports from some of
the largest banks on Wall Street. Shares of JPMorgan Chase &
Co. (JPM) were higher in premarket action after reporting revenue
and earnings
(http://www.marketwatch.com/story/jp-morgan-chase-beats-profit-and-revenue-expectations-stock-rallies-2019-10-15)
that rose more than expected.
Shares of Goldman Sachs Group Inc.(GS)(GS) were lower in
premarket action after delivering earnings that came in below Wall
Street estimates.
Shares of BlackRock Inc.(BLK) were holding slight gains after
reporting a smaller-than-expected fall
(http://www.marketwatch.com/story/blackrock-profit-slips-8-in-q3-2019-10-15)
in profit.
Check out:Banks look to put earnings recession in revers, but
aren't expected to succeed ()
Citigroup Inc.(C) stock edged lower after reporting
third-quarter results.
Shares of Wells Fargo & Co.(WFC) were slightly higher
following its earnings release.
Shares of UnitedHealthGroup Inc.(UNH) jumped in premarket trade
after earnings and revenue came in above expectations
(http://www.marketwatch.com/story/unitedhealths-stock-jumps-after-earnings-rise-above-expectations-and-guidance-raised-2019-10-15)
and after the health-care services company raised its full-year
outlook.
Johnson & Johnson(JNJ) shares were also higher in premarket
after earnings and revenue rose more than Wall Street estimates
(http://www.marketwatch.com/story/johnson-johnson-shares-rise-after-earnings-beat-estimates-company-raises-guidance-2019-10-15),
while the company raised its full-year guidance.
How are other markets trading?
The yield on the 10-year U.S. Treasury note fell to 1.690% from
1.748% late Friday. Bond markets were closed Monday for the
Columbus Day holiday.
In commodities markets the price of crude oil fell about 63
cents to $52.95 on the New York Mercantile Exchange and Gold
futures ticked up 60 cents to $1428.20 on Comex.
In Asia overnight, stocks trade mixed with Japan's Nikkei rising
1.9%, the China CSI 300 falling 0.4% and Hong Kong's Hang Seng
index falling 0.1%. In Europe, stocks were mostly high, as the
Stoxx Europe 600 added 0.4%.
(END) Dow Jones Newswires
October 15, 2019 08:15 ET (12:15 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.