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Pre-market futures have plenty to digest this morning, both on the economic data side and in the continuation of Q3 earnings releases, but they appear to be doing so with a fair amount of cheer. We’re now slightly in the green after being slightly in the red prior to these reports. Currently, the Dow is +22 points, the S&P 500 is +8 and the Nasdaq +62 points.
Initial Jobless Claims continue to portray an historically robust labor market, sinking below 200K again when many analysts were expecting a track back up to 250K or so: 198K new jobless claims is the lowest week since January of this year. They are also notably down from an upwardly revised 211K posted for the previous week.
Continuing Claims, on the other hand, did reach their highest level since June: 1.734 million was a jump higher from 1.705 million revised from the previous week. These figures are always reported a week behind new claims, and even at this somewhat hotter level, we’re still on very solid ground in terms of workforce on this data.
They also bear out from the still-healthy monthly jobs numbers, although those have slowed notably since the Great Reopening — these jobless claims figures have not. Employers tend to hang onto their personnel these days, and if they are let go, these folks appear to be finding new employment (or are retiring, perhaps early) relatively quickly.
The new Philly Fed manufacturing index for October reached -9, slightly below the -6.8 analysts had been looking for, but better than the -13.5 reported the previous month. This makes 10 of the last 11 months posting negative manufacturing numbers for the 6th largest city in the U.S., with only August putting up a +12.
Bond yields remain high this morning, as well — perhaps a telling factor in the pre-market selling we’d seen earlier, carrying over from a sell-off in the markets yesterday — with the 2-year now up to 5.24% and the 10-year getting ever-closer to 5%: 4.96%. In bank earnings so far for Q3, we’ve not seen these bond numbers hampering quarterly results, but for regular investment folk, these are presenting a clear alternative to equities, especially among the risk-averse.
Speaking of banks, Fifth Third Bank (FITB - Free Report) posted Q3 results this morning that outperformed expectations: earnings of 92 cents per share beat the Zacks consensus by a solid dime — making it three of the past four quarters of positive earnings surprises — on $2.15 billion in quarterly revenues which came up a smidge short of estimates: -0.09%. This is four straight negative surprises on the revenue side, although this was about as close to on the money as one can get. For more on FITB’s earnings, click here.
American Airlines (AAL - Free Report) also outperformed expectations on its bottom line: earnings of 38 cents per share improved over the 26 cents estimate, although revenues missed the Zacks consensus by -0.27% to $13.48 billion. While the company did cut profit guidance on higher labor and fuel costs, they also see strong holiday bookings, which may portend to an improved Q4. For more on AAL’s earnings, click here.
Image: Bigstock
Jobless Claims Sub-200K; AAL, FITB Mixed in Q3
Pre-market futures have plenty to digest this morning, both on the economic data side and in the continuation of Q3 earnings releases, but they appear to be doing so with a fair amount of cheer. We’re now slightly in the green after being slightly in the red prior to these reports. Currently, the Dow is +22 points, the S&P 500 is +8 and the Nasdaq +62 points.
Initial Jobless Claims continue to portray an historically robust labor market, sinking below 200K again when many analysts were expecting a track back up to 250K or so: 198K new jobless claims is the lowest week since January of this year. They are also notably down from an upwardly revised 211K posted for the previous week.
Continuing Claims, on the other hand, did reach their highest level since June: 1.734 million was a jump higher from 1.705 million revised from the previous week. These figures are always reported a week behind new claims, and even at this somewhat hotter level, we’re still on very solid ground in terms of workforce on this data.
They also bear out from the still-healthy monthly jobs numbers, although those have slowed notably since the Great Reopening — these jobless claims figures have not. Employers tend to hang onto their personnel these days, and if they are let go, these folks appear to be finding new employment (or are retiring, perhaps early) relatively quickly.
The new Philly Fed manufacturing index for October reached -9, slightly below the -6.8 analysts had been looking for, but better than the -13.5 reported the previous month. This makes 10 of the last 11 months posting negative manufacturing numbers for the 6th largest city in the U.S., with only August putting up a +12.
Bond yields remain high this morning, as well — perhaps a telling factor in the pre-market selling we’d seen earlier, carrying over from a sell-off in the markets yesterday — with the 2-year now up to 5.24% and the 10-year getting ever-closer to 5%: 4.96%. In bank earnings so far for Q3, we’ve not seen these bond numbers hampering quarterly results, but for regular investment folk, these are presenting a clear alternative to equities, especially among the risk-averse.
Speaking of banks, Fifth Third Bank (FITB - Free Report) posted Q3 results this morning that outperformed expectations: earnings of 92 cents per share beat the Zacks consensus by a solid dime — making it three of the past four quarters of positive earnings surprises — on $2.15 billion in quarterly revenues which came up a smidge short of estimates: -0.09%. This is four straight negative surprises on the revenue side, although this was about as close to on the money as one can get. For more on FITB’s earnings, click here.
American Airlines (AAL - Free Report) also outperformed expectations on its bottom line: earnings of 38 cents per share improved over the 26 cents estimate, although revenues missed the Zacks consensus by -0.27% to $13.48 billion. While the company did cut profit guidance on higher labor and fuel costs, they also see strong holiday bookings, which may portend to an improved Q4. For more on AAL’s earnings, click here.
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