(As of 7:15 am PST)
Stocks opened near the unchanged line but are inching
higher in early trade as investors look to a peak week in earnings and upcoming
economic data. It’s a big week for
earnings with names like McDonald’s, Proctor & Gamble, Microsoft and
AT&T set to report. It’s been a
mixed bag for Q3 earnings so far. Of the
93 companies that have reported from the S&P500 so far, 53% have topped
Wall St. estimates on the revenue line, which is slightly below the 4 year
average of 59%. On the bottom line
(earnings), 69% have topped estimates compared with a 4 year average of
73%. Most reports have slid past markets
as the government shutdown and debt ceiling debate took over headlines the past
month. Besides earnings, investors are
looking ahead at a full week of economic data.
Several reports which were delayed by the government shutdown will be
released this week including the Labor department’s key US nonfarm payrolls
report. This week’s report (delayed by
18 days) will not reflect the impact of the shutdown so market reaction will be
difficult to interpret. In any case, a return
to fundamentals, including earnings and economic data, should determine price
direction for this week and hopefully the remainder of the year.
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