Back to top

Image: Bigstock

Pre-Market Indexes Mixed

Read MoreHide Full Article

Pre-market futures are mixed but flattening out from last week’s performance, when the tech-heavy Nasdaq saw a bigger selloff than the blue-chip Dow index. Currently, the Dow is -88 points but the Nasdaq is +376 points — not quite making up for Friday’s losses, but we’re early yet. The S&P 500 splits the difference, +38 points, while the small-cap Russell 2000 is +12 points at this hour.

Spot oil prices remain elevated but are off their inflamed near-term highs: $101 per barrel (/bbl) on WTI and $108/bbl on Brent crude. Bond yields, similarly, are still lofty but cooling from recent levels: the 10-year, for instance, is currently +5.102% — consider that we were near +5.3% back in late September. The 2-year yield is now +4.749% and the 30-year +5.440%.

Q3 Earnings at a Glance: FITB, CLF

We get some marquee names reporting Q3 earnings later this week — including GE, GM and NFLX Tuesday and META and TSLA Wednesday — but we start this week easing back into earnings season:

Fifth Third Bank (FITB - Free Report) shares are up modestly on its mixed Q3 report ahead of today’s open. Earnings of $1.13 per share outperformed the Zacks consensus $1.09 by +3.67%, while revenues of $3.28 billion missed expectations by -1.74%. The Cincinnati-based bank continues to absorb Comerica synergies, and the stock has gained +7.6% year to date.

Shares are jumping +15% at Ohio-based steel manufacturer Cleveland-Cliffs (CLF - Free Report) , which has outpaced estimates on both top and bottom lines for its Q3 this morning. Earnings of $0.28 per share surpassed the Zacks consensus of $0.24 on revenues of $5.61 billion, for a +0.56% positive surprise. The stock is now trading in the green for the first time since briefly in the summer.

Housing Data After the Bell & Tuesday

We see some new housing data after today’s open and tomorrow, with a fresh survey from North American Home Builders’ (NAHB) Housing Market Index for October. Analysts are looking for a print of 31, a tick down month over month and way sub-50, which is the breakeven point between profit and loss. The last time this index was at 50 it was April 2024.

On Tuesday morning, Housing Starts for September is expected to remain steady month over month, at +1.3 million seasonally adjusted, annualized units. Building Permits, something of a proxy for new Starts, is expected to bounce back to +1.4 million from a disappointing +1.39 million reported the prior week. As always, we will have the breakdown between single-family (which brings a better bang for the buck to the overall economy) and multi-family housing.

Also, Pending Home Sales for September are expected early Tuesday, with a drop of -0.3% projected to follow a +0.3% bump the prior month. Last week, we saw Existing Home Sales increase by +1.5% for September. We don’t expect any major changes in household development until we begin to see mortgage rates come down, which we won’t as long as bond yields remain high.

Published in