Big banks JPM and C are in the spotlight after earnings
Dow Jones Industrial Average (DJIA) futures are slightly lower ahead of the bell, following another record close yesterday, as financial stocks kick off third-quarter earnings season. JPMorgan Chase (JPM) stock is waffling in pre-market action, as traders weigh an earnings beat against weak trading results for the firm. Futures on the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) are slightly lower too, in what looks to be a potentially sluggish day for U.S. stocks.
Outside of earnings, traders are considering a six-week low in jobless claims, as well as an in-line rise in the producer price index (PPI) in September. Markets are also still digesting the Fed meeting minutes, which reaffirmed expectations for a December interest rate hike. Against this backdrop, several Fed members will give speeches today, including Fed Governor Jerome Powell.
Continue reading for more on today's market, including:
- Analysts: These FAANG stocks are headed for record highs.
- 25 stocks for short-term option bears.
- How Trump took down these 2 media stocks.
- Plus, Citigroup earnings; the drug stock down 60%; and the retailer headed for record lows.
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 735,067 call contracts traded on Wednesday, compared to 456,975 put contracts. The single-session equity put/call ratio rose to 0.62, and the 21-day moving average went up to 0.63.
- Citigroup Inc (NYSE:C) said its third-quarter profit came in at $1.42 per share, beating the consensus estimate by a dime. The banking giant also reported better-than-expected revenue of $18.17 billion. After closing last night at $74.94, C stock is up 0.3% in pre-market trading -- and could buck its historically bearish post-earnings trend.
- The Food and Drug Administration (FDA) rejected the approval of an acute pain drug from AcelRx Pharmaceuticals Inc (NASDAQ:ACRX) in its present form, and requested additional data for Dsuvia. ACRX stock hit an annual high of $5.75 yesterday before closing at $5.35, but is bracing for a 60% drop out of the gate.
- J.Jill Inc (NYSE:JILL) slashed its third-quarter outlook on sinking sales, with the women's retailer now calling for an adjusted per-share profit of 8 cents to 10 cents and a 3% to 5% drop in same-store sales. This is well below analysts' consensus forecast for earnings of 19 cents per share on a 7.4% increase in same-store sales. As a result, JILL stock has plummeted 46.2% in electronic trading -- set to open the session at a record low.
- The holiday-delayed weekly crude inventories update will be released today, as well as the monthly Treasury budget. Domino's Pizza (DPZ) and Lindsay (LNN) will step into the earnings confessional.
Stocks in Asia for the most part followed their Wall Street counterparts higher, highlighted by a continued push into 21-year-high territory from the Nikkei. The Tokyo-based index picked up another 0.4% win, even though a strengthening yen held back shares of major counterparts. South Korea’s Kospi also continued to outperform, rising 0.7%. China stocks, meanwhile, lagged behind. The Shanghai Composite dipped 0.02%, while the Hang Seng added a modest 0.2%.
In Europe, major indexes are mixed so far today. Travel stocks are among the best performers, while TV provider Sky PLC jumped after providing an upbeat financial update. At last check, the FTSE 100 was up 0.3%, as it continues to trade just below its record high from earlier this year. However, the French CAC 40 was down 0.3% at last glance, and the German DAX has dropped 0.1%.