Ahead of the Bell: Dow futures are trading up 39 points and S&P futures are trading up 4 points on optimism the Federal Reserve will maintain its aggressive stimulus program at least for the next few months when it concludes its two-day meeting this afternoon. Market participants are operating under the assumption that the central bank will not begin to taper its $85 billion a month asset purchase program until March. Investors are hopeful that the mixed economic data would force Chairman, Ben Bernanke and company to keep its status quo on QE3. According to a survey, China's manufacturing sector likely grew in October, a sign the second largest economy is stabilizing, while mixed economic data from Japan kept gains in check.
- On the economic calendar today, the ADP employment report will be released before the market opens and economists are expecting 138K jobs were added to payrolls in October. The September consumer price index will also be released before the opening bell and a 0.2% increase is forecasted, vs. a 0.1% rise in August. The FOMC meeting announcement will be at 2:00 pm est.
- The dollar is down against the major currencies. Gold is trading at $1,350. Crude oil is currently trading at $97 a barrel.
- Yesterday, stocks extending the S&P 500's string of record highs, as economic data supported views the Federal Reserve will keep its stimulus intact for several months.
- On CNBC today, Kenneth Langone, Chairman, President, and Chief Executive Officer of Invemed Associates, Inc. and Co-Founder of The Home Depot, talked about the impact of the healthcare law. Langone said no matter what, cost in healthcare will go up as Americans are living longer and healthier lives and commanding more healthcare. We need to create a law that addresses this specific sector of the population or else we are going to discombobulate the whole healthcare system. He suggested that you can fix the healthcare law by targeting tort laws, as doctors are terrified of lawsuits. The Affordable Care Act has to also address preventative medicine. Langone added, both political parties should have contributed and compromised on the healthcare law, which did not happen.
- Have a great day!
Tuesday’s Close
DJIA up 111.42 pts/+0.72%/ 15,680.35
S&P up 9.84 pts/+0.56%/ 1,771.95
Nasdaq up 12.21 pts/+0.31%/ 3,952.34
Wednesday’s Futures
Dow Futures up 39.00 pts/+0.25%
S&P Futures up 4.50 pts/+0.23%
Nasdaq Futures up 16.50 pts/+0.47%
Overseas Markets
FTSE +0.43%
CAC 40 +0.48%
NIKKEI 225 +1.23%
HANG SENG +2.00%
Overseas: World stock markets are up today. European markets are up after sharp gains in US indices, but high unemployment in Germany continues to be a concern. Asian markets are up following a survey that China's manufacturing sector improved in October.
Economic Reports: ADP Employment Report (138K expected) at 8:15 a.m.; Consumer Price Index (+0.2% expected) at 8:30 a.m.
Top Headlines:
- Reports indicate the tentative $13 billion settlement between JPMorgan Chase (JPM) and the DOJ over allegations of faulty mortgage securities is on the verge of collapse on disagreement of who owns the obligations of Washington Mutual.
- Reports indicate activist investor Nelson Peltz has stepped up the pressure on Mondelez International (MDLZ) with a surprise presentation accusing the company of doing too little to cut costs.
- Bloomberg reports Royal Bank of Scotland Group (RBS) is reviewing how it trades in the minutes before key foreign exchange benchmarks are set amid a regulatory probe into possible manipulation of the $5.3 trillion-a-day market.
- Reports indicate Honda Motor Corporation (HMC) has agreed to sell its electronics parts unit to Japan's Nidec Corporation for about $500 million.
Commodities/Currency:
Gold:up $4.70 to $1,350.80
Oil:down $0.67 to $97.53
EUR/USD 1.3763 +0.0013
USD/JPY 98.2250 +0.0565
GBP/USD 1.6071 +0.0018
Volatility Index (VIX): As of the close of business Tuesday, October 29, 2013 the VIX is up 0.10 at 13.41.
Companies Reporting Quarterly Earnings:
General Motors reports Q3 adj EPS ex-items 96c, vs. Est 93c and Q3 revenue $39.0B, vs. Est $39.49B
ADP reports Q1 EPS 68c, vs. Est 66c and Q1 revenue $2.84B, vs. Est $2.81B.
Hess Corp. reports Q3 EPS $1.18, vs. Est $1.44 and Q3 revenue $2.7B, vs. Est $2.67B.
Corning reports Q3 core EPS 33c, vs. Est 32c and Q3 revenue $2.1B, vs. Est $2.09B.
Today’s Opening and Closing Bells:
Congratulations to Brixmor Property Group Inc. celebrating its IPO on the NYSE which will ring the opening bell.
NYSE Euronext Hosts Second Annual TEDxWallStreet at the NYSE -Wall Street Thought Leaders Discuss “Filling the Void”. TEDxWallStreet Speakers and Participants will ring the closing bell.
Nothing herein constitutes an offer to sell or a solicitation of an offer to buy any security or a recommendation of any security or trading practice. Some information included above has been aggregated from multiple public third-party financial news sources for informational purposes only and redistributed to the NYSE Euronext community. NYSE Euronext does not control the content provided by these sources and does not guarantee the accuracy, integrity or quality of such content.
