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Busy Week for Earnings, Fed, Reports; MCD, ON Beat in Q3
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It’s the start of the busiest week of Q3 earnings season, and pre-market futures are up. Perhaps this is a sign of optimism for expected earnings, or perhaps it’s looking favorably on a parade of economic reports out this week. Perhaps it’s the widely held expectation that the Fed, on Wednesday, when it reports an update on interest rates following the second day of the Federal Open Market Committee (FOMC), will decide not to raise another 25 basis points (bps) and increases the chances hikes overall are finished.
At first blush, this would appear to be the case. While we may see pleasant data from Case-Shiller home prices tomorrow, private-sector jobs numbers Wednesday, U.S. Productivity and Unit Labor Costs Thursday or nonfarm payrolls Friday, more than likely the coming hold from Fed Chair Jerome Powell & Co. mid-week is the reason we currently see the Dow +177 points, the Nasdaq +83, the S&P 500 +21 and the small-cap Russell 2000 +10.
Perhaps Apple’s (AAPL - Free Report) latest earnings quarter is also hotly anticipated? Perhaps, though cooler results may provide a glimpse into a less-ravenous global marketplace for iPhone updates — we’ll see. Among other industry leaders reporting the reminder of this week are AMD (AMD - Free Report) , Caterpillar (CAT - Free Report) , ConocoPhillips (COP - Free Report) , Eli Lilly (LLY - Free Report) , Pfizer (PFE - Free Report) and Starbucks (SBUX - Free Report) , to get alphabetical about it.
We also see some value on the major indices this morning, after mid-October near-term highs have given way to lower trading levels for the most part in the past couple weeks. We’re down, month to date, between -2.8% on the Dow and -6.5% on the Russell. Both of these indices are back in the red year-to-date, while the Nasdaq is still up +31% and the S&P +8.2% from the start of the year.
Ahead of today’s open, McDonald’s (MCD - Free Report) reported Q3 results that outperformed expectations: earnings of $3.19 per share posted a +6.3% positive earnings surprise over the $3.00 per share in the Zacks consensus. Revenues in the quarter of $6.69 billion topped estimates by +1.79%. Shares are up +2.3% on the beat, bringing the stock back near breakeven year-to-date. For more on MCD’s earnings, click here.
ON Semiconductor (ON - Free Report) beat expectations on both top and bottom lines in its Q3 report out this morning, with earnings of $1.39 per share beating the Zacks consensus by 4 cents (slightly below the $1.45 per share reported in the year-ago quarter) on $2.18 billion in revenues, slightly ahead of the $2.15 billion projected. However, softer guidance for Q4 has led to a pre-market sell-off of about -10% at this hour; the shares are still up +25% year-to-date.
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Busy Week for Earnings, Fed, Reports; MCD, ON Beat in Q3
It’s the start of the busiest week of Q3 earnings season, and pre-market futures are up. Perhaps this is a sign of optimism for expected earnings, or perhaps it’s looking favorably on a parade of economic reports out this week. Perhaps it’s the widely held expectation that the Fed, on Wednesday, when it reports an update on interest rates following the second day of the Federal Open Market Committee (FOMC), will decide not to raise another 25 basis points (bps) and increases the chances hikes overall are finished.
At first blush, this would appear to be the case. While we may see pleasant data from Case-Shiller home prices tomorrow, private-sector jobs numbers Wednesday, U.S. Productivity and Unit Labor Costs Thursday or nonfarm payrolls Friday, more than likely the coming hold from Fed Chair Jerome Powell & Co. mid-week is the reason we currently see the Dow +177 points, the Nasdaq +83, the S&P 500 +21 and the small-cap Russell 2000 +10.
Perhaps Apple’s (AAPL - Free Report) latest earnings quarter is also hotly anticipated? Perhaps, though cooler results may provide a glimpse into a less-ravenous global marketplace for iPhone updates — we’ll see. Among other industry leaders reporting the reminder of this week are AMD (AMD - Free Report) , Caterpillar (CAT - Free Report) , ConocoPhillips (COP - Free Report) , Eli Lilly (LLY - Free Report) , Pfizer (PFE - Free Report) and Starbucks (SBUX - Free Report) , to get alphabetical about it.
We also see some value on the major indices this morning, after mid-October near-term highs have given way to lower trading levels for the most part in the past couple weeks. We’re down, month to date, between -2.8% on the Dow and -6.5% on the Russell. Both of these indices are back in the red year-to-date, while the Nasdaq is still up +31% and the S&P +8.2% from the start of the year.
Ahead of today’s open, McDonald’s (MCD - Free Report) reported Q3 results that outperformed expectations: earnings of $3.19 per share posted a +6.3% positive earnings surprise over the $3.00 per share in the Zacks consensus. Revenues in the quarter of $6.69 billion topped estimates by +1.79%. Shares are up +2.3% on the beat, bringing the stock back near breakeven year-to-date. For more on MCD’s earnings, click here.
ON Semiconductor (ON - Free Report) beat expectations on both top and bottom lines in its Q3 report out this morning, with earnings of $1.39 per share beating the Zacks consensus by 4 cents (slightly below the $1.45 per share reported in the year-ago quarter) on $2.18 billion in revenues, slightly ahead of the $2.15 billion projected. However, softer guidance for Q4 has led to a pre-market sell-off of about -10% at this hour; the shares are still up +25% year-to-date.
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