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Pre-market futures are up at this hour, a day after a mixed session among major indexes that saw a pullback in the Nasdaq and S&P 500 but a new record-high close for the blue-chip Dow. This looks like a step in the right direction in terms of breadth of market growth. The Dow is up another +103 points currently, the S&P 500 is +22, the Nasdaq +151 and the small-cap Russell 2000 +7 points.
Operatives on Capitol Hill are still working to re-open the government after a record-long shutdown (we’re officially on Day 43). The House is scheduled to vote this afternoon and this evening on re-opening. That’s not to say we’re definitely going to get this week’s planned CPI, PPI, Weekly Jobless Claims and Retail Sales reports, but they are still a possibility. And these would go a long way toward mapping out how the economy is doing ahead of the holiday shopping season.
In particular, the Inflation Rate — year over year Consumer Price Inflation — is of interest. The last report we got, in September, this struck +3% for the first time since January. Perhaps more importantly, it is up significantly from the +2.3% we saw in April, and is expected to reach +3.1% for October. This would illustrate inflation clearly inserting itself back into the U.S. economy, regardless what any elected officials haver to say about it.
This, in turn, would be important data for the Fed in considering future interest-rate cuts, and THAT is important because the stock market has already likely priced-in a December cut and possibly more. The Fed, as we know, puts greater weight on Personal Consumption Expenditures (PCE) data, which does not yet carry a “3-handle” as of our last look, but still rose more than 14 basis points (bps) month over month — another sign of growing inflation.
Earnings Reports Ahead of Today’s Open
Tencent Music Entertainment Group (TME - Free Report) , the Chinese music streaming developer, posted beats on both top and bottom lines in today’s Q3 report. Earnings of 22 cents per share beat expectations by a penny, on revenues of $1.19 billion in the quarter, representing +20.6% year over year. Investors are selling the news a bit: the stock is -2% at this hour, skimming a bit off the top of +82% gains year to date.
On Holding (ONON - Free Report) , the sports apparel giant based in Europe, posted big surprises in its Q3 report this morning: earnings of 50 cents per share versus expectations of 34 cents anticipated amounted to a +47% positive surprise. Revenues of $992.9 million outpaced the Zacks consensus by +5.74%. As a result, shares are +23% at this hour, taking a big bite out of its -35.8% losses from the start of the year. For more on ONON’s holdings, click here.
Education materials provider McGraw-Hill (MH - Free Report) had perhaps the most impressive earnings surprise of the morning, with $1.40 per share 4x the expected $0.35. This marks an earnings surprise of +300%. Revenues of $669.2 million soared past the $638.76 million (although still -2% year over year). Shares are up +14% in the pre-market on the news.
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House to Vote on Government Re-Opening
Pre-market futures are up at this hour, a day after a mixed session among major indexes that saw a pullback in the Nasdaq and S&P 500 but a new record-high close for the blue-chip Dow. This looks like a step in the right direction in terms of breadth of market growth. The Dow is up another +103 points currently, the S&P 500 is +22, the Nasdaq +151 and the small-cap Russell 2000 +7 points.
Operatives on Capitol Hill are still working to re-open the government after a record-long shutdown (we’re officially on Day 43). The House is scheduled to vote this afternoon and this evening on re-opening. That’s not to say we’re definitely going to get this week’s planned CPI, PPI, Weekly Jobless Claims and Retail Sales reports, but they are still a possibility. And these would go a long way toward mapping out how the economy is doing ahead of the holiday shopping season.
In particular, the Inflation Rate — year over year Consumer Price Inflation — is of interest. The last report we got, in September, this struck +3% for the first time since January. Perhaps more importantly, it is up significantly from the +2.3% we saw in April, and is expected to reach +3.1% for October. This would illustrate inflation clearly inserting itself back into the U.S. economy, regardless what any elected officials haver to say about it.
This, in turn, would be important data for the Fed in considering future interest-rate cuts, and THAT is important because the stock market has already likely priced-in a December cut and possibly more. The Fed, as we know, puts greater weight on Personal Consumption Expenditures (PCE) data, which does not yet carry a “3-handle” as of our last look, but still rose more than 14 basis points (bps) month over month — another sign of growing inflation.
Earnings Reports Ahead of Today’s Open
Tencent Music Entertainment Group (TME - Free Report) , the Chinese music streaming developer, posted beats on both top and bottom lines in today’s Q3 report. Earnings of 22 cents per share beat expectations by a penny, on revenues of $1.19 billion in the quarter, representing +20.6% year over year. Investors are selling the news a bit: the stock is -2% at this hour, skimming a bit off the top of +82% gains year to date.
On Holding (ONON - Free Report) , the sports apparel giant based in Europe, posted big surprises in its Q3 report this morning: earnings of 50 cents per share versus expectations of 34 cents anticipated amounted to a +47% positive surprise. Revenues of $992.9 million outpaced the Zacks consensus by +5.74%. As a result, shares are +23% at this hour, taking a big bite out of its -35.8% losses from the start of the year. For more on ONON’s holdings, click here.
Education materials provider McGraw-Hill (MH - Free Report) had perhaps the most impressive earnings surprise of the morning, with $1.40 per share 4x the expected $0.35. This marks an earnings surprise of +300%. Revenues of $669.2 million soared past the $638.76 million (although still -2% year over year). Shares are up +14% in the pre-market on the news.