econintersect .com

FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.

21Oct2015 Pre-Market Commentary: U.S. Stock Future Indexes Higher, Odds Of SP500 Cracking 2040 Level Today Are Slim To None

Written by Gary

U.S. stock future indexes started out this morning almost a half percentage point higher indicating the SP500 will try again to test the 2040 level. This 2040 level is significant as it kept the markets afloat for 6 months but with resistance so close at hand we have no interest in being buyers at the moment.

Markets are expected to open higher, but another day in the red will not come as a surprise.

Here is the current market situation from CNN Money

European markets are higher today with shares in Germany leading the region. The DAX is up 0.98% while France's CAC 40 is up 0.63% and London's FTSE 100 is up 0.39%.

What Is Moving the Markets

Here are the headlines moving the markets.

Oil price falls as oversupply worries deepen

LONDON (Reuters) - Oil prices fell on Wednesday after a big build in U.S. crude inventories which fed concerns that demand may not be enough to absorb one of the largest global surpluses in modern times.

Biogen to cut 11 percent of workforce

(Reuters) - Biogen Inc said it would cut 11 pct of its global workforce by the end of this year and stop a late-stage study on its blockbuster drug Tecfidera for secondary progressive MS, sending its shares up 7 percent in premarket trading.

Boeing lifts 2015 outlook as profit jumps 25 percent

(Reuters) - Boeing Co reported a 25 percent rise in quarterly profit and lifted its financial guidance for the year, as a rise in commercial aircraft deliveries boosted revenue.

Trucks, China drive GM to beat Street in third quarter

DETROIT (Reuters) - General Motors Co reported record quarterly earnings before charges for the third quarter, as strong demand for trucks in North America and improved profit margins in China overcame declining revenues.

Coca-Cola quarterly revenue misses on strong dollar

(Reuters) - Coca-Cola Co reported lower-than-expected quarterly revenue as a strong dollar reduced the value of sales in markets outside North America.

Western Digital to buy SanDisk in $19 billion deal

(Reuters) - Hard disk drive maker Western Digital Corp said it would buy memory chip maker SanDisk Corp for about $19 billion, the latest in a wave of consolidation in the chip-making industry.

EU rules Starbucks, Fiat tax deals are illegal

BRUSSELS (Reuters) - The European Commission ruled on Wednesday that Starbucks and Fiat benefited from illegal tax deals with the Dutch and Luxembourg governments, in cases with major implications for the taxation of multinational companies.

Stock futures rise ahead of GM, Coca-Cola results

(Reuters) - U.S. stock index futures were slightly higher on Wednesday, set to reverse the small losses on Tuesday, ahead of earnings reports from heavyweights including General Motors , Boeing and Coca-Cola .

Meanwhile, In Front Of The NYSE, They Are Celebrating The "Recovery"

There may be no flying cars, but at least there are Ferraris.

And what better way to celebrate the pinnacle of the economic recovery, if only for the "0.1%", than by laying out $25 million worth of Ferrari cars in front of the TV studio formerly known as the New York Stock Exchange on the day the legendary Italian carmaker celebrates its $10 billion public valuation courtesy of $13 trillion in central bank liquidity "trickling down" into at least a few select pockets.

With Fiat Chrysler CEO Sergio Marchionne outside the NYSE with the SF15-T. Ferrari IPO coming up! $RACE

â€" Bob Pisani (@BobPisani) October 21, 2015

Source: Twitter

Biogen Fires 11% Of Workers Despite Reporting Stellar Earnings, Boosting Guidance

There may not be many biotechs with positive cash flows out out there, but the 4th most profitable, Biogen (after Gilead, Amgen and Shire), saw its shares halted moments ago ahead of reporting earnings, which were a blowout: the company reported Q3 EPS of $4.48, not only beating consensus of $3.77, but coming ahead of the highest estimate in the range of $4.04, as revenue of $2.78 billion also solidly beat expectations of $2.64 and was also above the highest forecast. The reason: sales of the company's blockbuster drug Tecfidera, which generated sales of $937 million, above the $897 expected, following misses in Q1 and Q2.

Furthermore, the company also raised guidance, and now expects year end EPS of $16.20-$16.50 up from $15.50-$15.95, and well above the $15.78 estimate.

One wonders, however, just how credible the company's optimism is in light of the recent crackdown on "astronomical, non-competitive" pricing practices by specialty pharma companies spearheded by the Democratic presidential candidates.

That remains to be seen, however what is even more confusing is why, in light of the company's glowing earnings and impressive guidance, it also announced it would be laying off 11% of its workforce, or about 800 workers, while cutting a number of pipeline programs.

From the release:

Biogen also announced a corporate restructuring, which includes the termination of a number of pipeline programs and an 11% reduction in workforce. These changes are expected to reduce the current annual run rate of operating expenses by approximately $250 million. The Company plans to reinvest these savings to support key commercial initiatives, including increased sales and marketing activities behind TECFIDERA, and the advancement of high potential pipeline candidates in areas such as Alzheimer’s disease, multiple sclerosis, and spinal muscula ...

Frontrunning: October 21

Global Stock Markets Edge Higher Though Global Growth Concerns Weigh (WSJ)

Nikkei up 1.9% because Japan export growth slows sharply, raising fears of recession (Reuters)

Saudis Risk Draining Financial Assets in 5 Years, IMF Says (BBG)

Syria's Assad flies to Moscow to thank Russia's Putin for air strikes (Reuters)

US Prosecutor Preet Bharara Probing Daily Fantasy-Sports Business (WSJ)

Syrian army denies Russian ground forces fighting in Syria (Reuters)

OPEC Is About to Crush the U.S. Oil Boom (BBG)

J.P. Morgan Near Deal to Sell Majority of Highbridge Private Equity Business (WSJ)

Paul Ryan's Demands for House Speaker Race Meet Early Resistance (BBG)

Credit Suisse Drops as Investors Question Strategy's Targets (BBG)

Uber CEO Travis Kalanick: 30% of Our Trips Take Place in China (

Credit Suisse to Launch $6.3 Billion Capital Increase

Credit Suisse revealed details of a planned overhaul under its new chief executive, including raising roughly $6.3 billion in new capital, as the Swiss bank delivered a set of disappointing third-quarter results.

Global Stock Markets Edge Higher

Global equities markets edged higher Wednesday amid lingering concerns over global growth and central-bank policy.

Aging And The Economy: The Japanese Experience

from the St Louis Fed

-- this post authored by Maria E. Canon , Marianna Kudlyak, and Marisa Reed

As the population of the world's developed economies grows older, the causal effect of aging on the macroeconomy is bound to land at the top of academic and policy research agendas.

Market Snapshot: U.S. stock futures rise as traders cheer Ferrari IPO, deal news

U.S. stock futures point to a higher open Wednesday, as deal news and Ferrari’s market debut give a lift to sentiment.

Asia Markets: China stocks post biggest daily loss in more than a month

Chinese stocks log their biggest daily fall in more than a month, the first reminder of the summer’s panicked selling after weeks of calm.

Earnings Summary for Today

Earnings Calendar provided by

leading Stock Positions

Leading Stock Quotes powered by

Current Commodity Prices

Commodities are powered by

Current Currency Crosses

The Forex Quotes are powered by

To contact me with questions, comments or constructive criticism is always encouraged and appreciated:

Click here for Historical Releases Listing

Make a Comment

Econintersect wants your comments, data and opinion on the articles posted. You can also comment using Facebook directly using he comment block below.

Econintersect Live Market

Print this page or create a PDF file of this page
Print Friendly and PDF

The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.

Keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Middle East / Africa
USA Government

 navigate econintersect .com


Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day


Asia / Pacific
Middle East / Africa
USA Government

RSS Feeds / Social Media

Combined Econintersect Feed

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution



  Top Economics Site Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2018 Econintersect LLC - all rights reserved