Morning Markets
December S&P 500 futures (ESZ22) this morning are down by -0.40%. Stock indexes are moderately lower on a mixed bag of corporate earnings results. 3M, Packaging Corp, and Zions Bancorp are sliding in pre-market trading after reporting weaker-than-expected Q3 EPS. Also, homebuilder PulteGroup is down more than -1% in pre-market trading after reporting that 24% of Q3 home purchase contracts were canceled, up from 15% in Q2.
On the positive side for stocks, General Motors is up more than +3% in pre-market trading after reporting better-than-expected Q3 EPS. Also, UPS is up more than +4% after receiving a buy recommendation from Jeffries. A decline in T-note yields is also supportive for stocks as the 10-year T-note yield today fell -9.4 bp to 4.148%.
The Euro Stoxx 50 today is down by -0.31%. European stocks are modestly lower on mixed earnings results. Banking stocks underperformed as HSBC Holding Plc fell after reporting higher-than-expected loan-loss charges in its Q3 results. Stocks were also weighed down after a gauge of German business confidence fell to a 2-1/2 year low.
On the positive side, UBS Group AG rose after reporting a better-than-expected profit in Q3. Also, European technology stocks got a boost after SAP Se reported Q3 revenue of 7.8 billion euros, above the consensus of 7.6 billion euros.
The German IFO Oct business climate index fell -0.1 to a 2-1/2 year low of 84.3, although that was stronger than expectations of 83.5.
Asian markets today settled mixed. China’s Shanghai Composite closed down -0.04%, and Japan’s Nikkei Stock Index closed up +1.02%.
China’s Shanghai Composite today extended Monday’s losses down to a new 1-1/2 week low. Chinese stocks remain under pressure, and the yuan fell to a fresh 14-year low against the dollar today on concern China will shift toward more state control versus a market-driven economy after Chinese President Xi Jinping moved to stack his leadership ranks with loyalists. Also, China looks to maintain its Covid Zero policies that will weigh on economic growth. In addition, stocks moved lower on concern the Chinese government may ramp up additional regulatory crackdowns on the tech sector after China’s Ministry of Finance issued a statement vowing “more progress” in promoting common prosperity.
Japan’s Nikkei Stock Index today closed moderately higher. Strength in Japanese technology stocks led the overall market higher amid optimism that the recent yen weakness will boost corporate earnings. Also, Nidec climbed more than +5% after maintaining its full-year outlook. In addition, M&A activity supports Japanese stocks after a consortium led by Japan Industrial Partners is considering a takeover of Toshiba Corp at a valuation of 2.4 trillion yen ($16.1 billion).
Pre-Market U.S. Stock Movers
Crown Holdings (CCK) tumbled more than -9% in pre-market trading after forecasting Q4 adjusted EPS of $1.00-$1.20, well below the consensus of $1.76, and cut its full-year adjusted EPS forecast to $6.60-$5.70 from a previous estimate of $7.65-$7.85, weaker than the consensus of $7.67.
3M (MMM) fell more than -2% in pre-market trading after reporting Q3 net sales of $8.60 billion, below the consensus of $8.72 billion, and cut its full-year adjusted EPS forecast to $10.10-$10.35 from a previous estimate of $10.30-$10.80.
PulteGroup (PHM) slid -1% in pre-market trading after reporting Q3 revenue of $3.94 billion, below the consensus of $4.05 billion.
Packaging Corp (PKG) fell more than -1% in pre-market trading after reporting Q3 net sales of $2.13 billion, weaker than the consensus of $2.20 billion, and CEO Kowlzan said the company faces “significant cost inflation.”
Arista Networks (ANET) slipped more than -2% in pre-market trading after Credit Suisse downgraded the stock to neutral from outperform.
Zions Bancorp (ZION) dropped more than -6% in pre-market trading after reporting Q3 EPS of $1.40, below the consensus of $1.58.
Ross Stores (ROST) climbed nearly +2% in pre-market trading after Wells Fargo Securities upgraded the stock to overweight from equal weight with a price target of $110.
Qualtrics (XM) rallied more than +10% in pre-market trading after raising its full-year revenue forecast to $1.450-billion to $1.452 billion from a previous forecast of $1.422 billion to $1.426 billion, above the consensus of $1.42 billion.
U.S.-listed Chinese stocks are climbing in pre-market trading as they recover some of Monday’s sharp sell-off. Pinduoduo (PDD) and JD.com (JD) are up more than +3%. Also, Alibaba Group Holding (BABA), Baidu (BIDU), and NetEase (NTES) are up more than +2%.
General Motors (GM) climbed more than +3% in pre-market trading after reporting Q3 adjusted EPS of $2.25, stronger than the consensus of $1.89.
United Parcel Service (UPS) jumped more than +4% after Jeffries initiated coverage of the stock with a buy rating and a $190 price target.
Today’s U.S. Earnings Reports (10/25/2022)
3M Co (MMM), Alphabet Inc (GOOGL), Ameriprise Financial Inc (AMP), Archer-Daniels-Midland Co (ADM), Biogen Inc (BIIB), Boston Properties Inc (BXP), Centene Corp (CNC), Chipotle Mexican Grill Inc (CMG), Chubb Ltd (CB), Coca-Cola Co/The (KO), Corning Inc (GLW), CoStar Group Inc (CSGP), Enphase Energy Inc (ENPH), Equity Residential (EQR), F5 Inc (FFIV), FirstEnergy Corp (FE), General Electric Co (GE), General Motors Co (GM), Halliburton Co (HAL), IDEX Corp (IEX), Illinois Tool Works Inc (ITW), Invesco Ltd (IVZ), Juniper Networks Inc (JNPR), Kimberly-Clark Corp (KMB), Microsoft Corp (MSFT), Moody's Corp (MCO), MSCI Inc (MSCI), NVR Inc (NVR), PACCAR Inc (PCAR), Pentair PLC (PNR), PulteGroup Inc (PHM), Raytheon Technologies Corp (RTX), Sherwin-Williams Co/The (SHW), Synchrony Financial (SYF), Teradyne Inc (TER), Texas Instruments Inc (TXN), United Parcel Service Inc (UPS), Universal Health Services Inc (UHS), Valero Energy Corp (VLO), Visa Inc (V).
More Stock Market News from Barchart
- Pre-Market Brief: Stocks Move Higher on Hopes of Fed Pivot
- The Dividend Aristocrat Has A Whopping 45% Upside
- Stocks Gain on Big-Tech Earnings Optimism
- Mega-Cap Tech Earnings in Focus this Week
/Microsoft%20Corporation%20logo%20on%20sign-by%20Jean-Luc%20Ichard%20via%20iStock.jpg)
/Advanced%20Micro%20Devices%20Inc_%20logo%20on%20phone%20and%20website-by%20T_Schneider%20via%20Shutterstock.jpg)
/Qualcomm%2C%20Inc_%20logo%20on%20phone-by%20viewimage%20via%20Shutterstock.jpg)
/Chipset%20held%20over%20rush%20hour%20traffic%20by%20Jae%20Young%20Ju%20via%20iStock.jpg)