Overnight earnings reports have been mixed. Alphabet’s big beat ($2.12 vs street $1.84, up 6.6% premarket) has helped to prop up the NASDAQ. Other companies that beat expectations include Visa ($2.71 vs street $2.58, up 2.4% premarket). Several companies had disappointing numbers including: Advanced Micro Devices (down 7.5% premarket) Eli Lilly ($1.18 vs street $1.45, down 11.3% premarket), and Caterpillar ($5.17 vs street $5.35 down 3.0% premarket). Chipotle (down 2.5% premarket) beat the street on earnings but missed on sales. After the close today, results are due from Microsoft and Meta Platforms.
On this news, NASDAQ and S&P Futures are flat while Dow Futures are down 0.2%. European markets are getting hammered this morning with the FTSE falling 0.6% and the Dax dropping 1.3%. Although not as bad as feared, German Q3 GDP dropped into negative territory suggesting a recession could be starting (-0.2% vs street -0.3% and previous 0.0%).
US GDP did better than Germany in Q3 but still not as well as investors had hoped (2.8% vs street and previous 3.0%). US ADP payrolls came in much better than expected this month (233K vs street 115K). The US 10-year treasury note yield is hanging around 4.25% on this news.
Energy and metals action is mixed today. US Crude Oil is up 1.9% today following a 0.5 mmbbl drawdown in US weekly API Crude Oil Inventories. Natural Gas, however, is down amid unusually high temperatures heading into Friday’s start to home heating season. Gold is up 0.4% and approaching $2,800/bbl, while Silver and Copper are both down 0.6%.