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TradeTheNews.com US Market Update: S&P500 Pulls Back from Fresh Record Highs
US Market Update: S&P500 Pulls Back from Fresh Record Highs
Wed, 23 Oct 2013 11:15 AM EST
- (BR) Brazil Oct FGV Consumer Confidence: 111.7 v 114.2 prior
- (US) MBA Mortgage Applications w/e Oct 18th: -0.6% v +0.3% prior
- (TR) Turkey Central Bank (CBRT) left its Repurchase Rate unchanged at 4.50%,
- (US) Sept Import Price Index M/M: 0.2% v 0.2%e; Y/Y: -1.0% v -1.0%e
- (BE) Belgium Oct Business Confidence: -7.7 v -6.2e
- (US) Aug House Price Index M/M: 0.3%
- (CA) Bank of Canada (BOC) leaves Interest Rates unchanged at 1.00%, as
- (EU) Euro Zone Oct Advance Consumer Confidence: -14.5 v -14.5e
- (US) Weekly DOE Crude Oil Inventories (week of Oct 18th): DOE CRUDE: +5.25M V
+2ME; GASOLINE: -1.8M V 0E; DISTILLATE: +1.54M V -1ME
- Global equity markets have headed lower across the board over the last 12
hours on a variety of concerning developments. Yesterday the S&P500 hit all-time highs after rising for nine out of
the last ten sessions, for a total gain of 5% from its government shutdown low.
In China overnight, money market rates rose after yesterday PBoC suggested it
could tighten policy in response to rising inflation. In the US,
Caterpillar's weak showing has dampened sentiment. As of writing, DJIA is down
0.50%, the S&P500 is down 0.69% and the Nasdaq is down 0.92%.
- Overnight the EUR/USD failed to break
the $1.3800 level and fell back to around $1.3750, although it has made another
run for $1.3800 during the US session. In addition to the money market
concerns, in China there has also been some caution ahead of the audit results
from the Local Government Financing Vehicles (LGFV), which will likely be released
- Caterpillar's Q3 earnings slid 44% on
a y/y basis and the company once again cut its FY13 forecast. EPS fell well
short of expectations. Most of the softness comes from Cat's mining business,
where revenue is expected to fall 40% y/y in FY13 thanks to slowing growth in
China and the related fall-off in Australia mining expansion. Shares of
CAT are down 5.5%.
- Boeing's adjusted Q3 earnings topped expectations for the eighth straight
quarter and the company again raised its profit forecast for all of 2013. The
firm delivered 170 commercial planes in the quarter, up from 149 a year
earlier. It nearly doubled deliveries of 787 Dreamliners to 23 from 12. Shares
of BA are up 6% on the day.
- Shares of Corning rose 18% after
reporting preliminary Q3 results and entering a deal to buy out joint venture
partner Samsung's 43% share of their display business, Samsung Corning
Precision Materials. Preliminary results were in line with consensus
expectations, however it also warned that Q4 results would be below current
estimates due to significant y/y decreases in fiber sales in North America and
China. GLW is only up 12% or so as of writing.
- Defense names General Dynamics and
Northrop Grumman both beat expectations in Q3 reports, and NOC also raised its
FY13 outlook. While GD hit revenue expectations in the quarter,
investors appear to be spooked by the -30.1% y/y decline in combat systems
revenue and the declines in its backlog. NOC is up 3.5%, while GD is down 2%.
- Among the big decliners this morning is semi name STMicro, who surprised
investors with a sizable Q3 loss, which the firm blamed on restructuring.
However, before charges the firm's profit was mostly due to the sale of its
ST-Ericsson nav system. STM is down 7.5%. USNA slashed its FY13 guidance,
driving shares of USNA down 12.4%.
- Homebuilders are bucking the overall
declines this morning thanks to several positive factors. LPS's
September mortgage report indicated that foreclosure inventory remains on
downward trend, along with y/y delinquencies. The AIA Sep Architecture Billings
Index rose to 54.3 versus 53.8 m/m. Finally Meritage Homes beat expectations in
its Q3 report and disclosed big gains in orders and backlog.
- 11:15 (CA) Bank of Canada Gov post rate decision press conference
- 13:30 (ES) Bank of Spain Gov Linde in Palma Mallorca
- 21:45 (CN) China Oct HSBC/Markit Flash Manufacturing PMI: 50.4e v 50.2 prior
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