Plenty of action this Friday - 4 Things to know for today
- by Roger Gain
Friday is here, but before the weekend starts:
Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:
1. Markets overview and economics
U.S. stock futures are flat early on Friday.
All major European markets opened higher. In Asia, the picture was more mixed.
The Thai stock market bounced up 4.5% Friday. It had lost about 5% earlier this week on reports about the deteriorating health of King Bhumibol Adulyadej, who died Thursday.
The Dow Jones industrial average and the S&P 500 each lost 0.3% on Thursday, and the Nasdaq shed 0.5%.
The GBP is slipping against the USD again, trading below $1.20. Oil futures are up 1%, back above $50 a barrel.
The Census Bureau will post new monthly retail sales data at 12:30GMT. Also at 12:30GMT, the Bureau of Labor statistics will update the Producer Price Index with September's figures.
At noon, investors will turn their attention to Janet Yellen, who will be speaking at the Boston Fed conference. They'll be watching for any more indication of a rate hike this year.
2. JP Morgan kicks off banks’ Q3 earnings season
Though markets traditionally consider Alcoa’s earnings, out last Tuesday, to be the unofficial start of the third quarter (Q3) reporting season, JP Morgan has the double duty of being the first major financial institution and the first component of the Dow Jones to release earnings.
The world’s largest bank smashed estimates in the second quarter which may imply that the market has set the bar high for the July to September period.
Experts currently expect JP Morgan to report earnings-per-share (EPS) of $1.39, compared to $1.68 in the same period last year, while revenue is expected to increase to $23.8 billion from last year’s $23.5 billion.
After JP Morgan’s earnings release scheduled for 10:45GMT, both Wells Fargo and Citigroup will step up to the plate at 12:00GMT.
3. China consumer prices
Chinese consumer prices rose 1.9% year on year in September, the strongest increase in five years. Inflation is up thanks to a weaker yuan and higher prices of commodities, including oil. Producer prices also grew in September, the first increase in almost five years.
The positive reading eased concerns about China's economy after disappointing export data Thursday.
4. Companies to watch
Samsung now expects the Galaxy Note 7 scandal to cost it more than $5 billion in profit, the company said Friday. Samsung was up 1.3% after falling around 8% since the start of the week.
Boeing is expected to announce the retirement of its chief jetliner salesman John Wojick as early as Friday. The choice of his replacement, Ihsanne Mounir, who currently runs sales for Northeast Asia, highlights the importance of sales to Chinese airlines.
Yahoo is down in premarket trading, after Verizon (VZ, Tech30) said Yahoo's massive security breach could have a meaningful financial impact on its decision to buy the company.
Illumina is up 2% premarket, after nosediving 25% earlier this week. The manufacturer of DNA sequencing equipment said its sales in the third quarter will be lower than expected.