U.S. stock future indexes are down this morning as oil prices slide, China's economic growth slipped below 7 percent and Morgan Stanley's results drop 42 percent sending shares sinking $1.85, or 5 percent, to $32.10 in pre-market trading.
Fears that China, the world's largest energy consumer, and signs that global oversupply is curbing Saudi crude exports has risen caution flags in the investment community.
Here is the current market situation from CNN Money
European markets are mixed. The DAX is higher by 0.18%, while the FTSE 100 is leading the CAC 40 lower. They are down 0.62% and 0.35% respectively.
(Reuters) - Halliburton Co , the world's No.2 oilfield services provider, reported a bigger-than-expected 36 percent drop in quarterly revenue, hurt by weak drilling activity and pricing in North America.
(Reuters) - Wall Street bank Morgan Stanley reported a quarterly profit that fell far short of market expectations, capping a generally downbeat quarter for big U.S. banks after investors fled the bond, currency and commodity markets.
LONDON (Reuters) - European stocks climbed on Monday after Chinese economic growth data came in slightly better than expected, allaying months of concerns over the slowdown in the world's second-largest economy.
LONDON (Reuters) - Oil prices fell on Monday on concerns about the pace of economic growth in China, the world's largest energy consumer, and signs that global oversupply is curbing Saudi crude exports.
(Reuters) - Valeant Pharmaceuticals International Inc , which is under fire for massive price hikes of its two heart drugs, reported a better-than-expected quarterly profit, boosted mainly by strong performance in its U.S. dermatology business.
(Reuters) - U.S. stock index futures were slightly down on Monday after data showed that China's economic growth slipped below 7 percent for the first time since the global financial crisis and Morgan Stanley reported a slump in quarterly profit.
BEIJING (Reuters) - China's economic growth dipped below 7 percent for the first time since the global financial crisis on Monday, hurt partly by cooling investment, raising pressure on Beijing to further cut interest rates and take other measures to stoke activity.
(Reuters) - An innovative, government-sponsored program aimed at funding energy-saving home improvements has drawn praiseÂ from powerful supporters, including President Obama. But complaints from a growing number ofÂ homeowners, lenders and realtors in California suggest the financing is making homes more difficult to sell and disruptingÂ the mortgage market.
While the big TBTF banks managed to hide much of their ugly balance sheet exposure, and prevent it from hitting the income statement in Q3 as reported previously, while covering up prop trading losses as well as they possibly could, the banks without trillions in deposits were less able to do so: first it was Jefferies, then Goldman posted its worst quarter in years, and now here comes the bank also known as Margin Stanley, which moments ago reported Q3 EPS of $0.34, which even if adjusted for various "one-time" items, at $0.48, not only missed consensus of $0.63 wildly, but it also missed the lowest range of the estimate range ($0.53-$0.70).
Q3 Net Income, on an apples to apples basis ex DVA, was a paltry $740 million, nearly $1 billion lower than Q2, and down 44% from the $1.4 billion a year ago.
The driver: a collapse in revenue, which at $7.3 billion non-GAAP and $7.8 billion as reported, was the lowest top-line print since 2012.
Not surprisingly, the biggest pain was again in Institutional Securities, as trading and liquidity ground to a halt in a quarter in which the CBOE literally had no idea what the VIX was for half an hour on August 24. The culprit, as usual, FICC: $583MM, which reported revenues down from $997MM. This was somewhat offset by Equity Sales: $1.8 billion, which were unchanged froim a year ago.
Overall, Investment Banking at $1.3 billion was down 15% from a year ago, while Trading plunged 17% to $2 billion.
Curiously, the biggest reason for the tumble had nothing to do with trading and everything to do with Investment Management, where revenue crashed 59% to $274 million. According to the company, "net revenues of $274 million decreased from $667 ...
Morgan Stanleyâ€™s bid to make its earnings less prone to market swings sputtered in the third quarter after drops in the trading and private-equity businesses led the New York firm to miss analystsâ€™ estimates.
-- this post authored by Robert DeYoung, Ronald J. Mann, Donald P. Morgan, and Michael R. Strain
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