Written by Gary
Major US stock indexes jumped more than 1 percent today (SPY +1.5%), helped by strong gains for chip and transport stocks.
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The Market in Perspective
Here are the headlines moving the markets. | |
Facebook misses estimates for monthly users, revenueFacebook Inc on Tuesday missed estimates for quarterly user growth and revenue but topped profit expectations as the social network tries to recover from privacy and content scandals. | |
Wall Street ends up more than 1 percent; chip, transport shares helpMajor U.S. stock indexes jumped more than 1 percent on Tuesday, helped by strong gains for chip and transport stocks as investors took advantage of cheaper prices following a steep recent pullback for equities. | |
Oil prices down more than 1 percent on rising supply, trade warOil prices dropped more than 1 percent on Tuesday on signs of rising supply and concern that global economic growth and demand for fuel will fall victim to the U.S.-China trade war. | |
Apple spruces up Macs, iPad Pros and raises pricesApple Inc refreshed some of its lesser-known products at a New York event on Tuesday, adding iPhone features like facial recognition to the iPad Pro and faster processors and better displays to some Mac computers that had gone years without a major update. | |
EV maker Faraday Future’s co-founder Nick Sampson steps down: VergeChinese electric vehicle developer Faraday Future’s co-founder Nick Sampson has resigned, tech news website Verge reported on Tuesday, a week after the cash-starved company planned pay cuts and layoffs to reduce operational costs. | |
Exclusive: Buyout firms Bain, CVC compete for Papa John’s – sourcesBain Capital and CVC Capital Partners are among the private equity firms competing to acquire Papa John’s International Inc , the world’s third-largest pizza delivery company, people familiar with the matter said on Tuesday. | |
Third Point, Campbell spar over plans for company’s futureInvestment firm Third Point LLC and Campbell Soup Co squared off over plans for the company’s future on Tuesday, with the hedge fund pushing for hiring a “highly qualified” chief executive officer and the company saying it was already searching for a permanent chief. | |
U.S. leads equities higher on hopes of U.S.-China trade dealBroad gains in the U.S. equity market turned global stocks higher on Tuesday after President Donald Trump said a “great deal” could be struck with China that would relieve fears of a growing trade war between the world’s two largest economies. | |
Fiat Chrysler’s lower cash forecast overshadows special dividend pledgeFiat Chrysler (FCA) reported better-than-expected third-quarter earnings and promised to pay 2 billion euros ($2.3 billion) in special dividends, but a lower net cash forecast and its over-reliance on the North American market weighed on its shares. | |
Facebook Slides After Missing On Revenue, Daily Users As Operating Costs SoarExactly three months ago, with its stock trading at $218, or 50% higher than where it is now, Facebook shocked Wall Street with a second-quarter revenue miss and a warning that growth would slow while profits shrank as spending rose which sent its stock crashing more than 20%, wiping out $132 billion in market cap – the biggest single-day shareholder value loss in history. Fast forward to today, when with the company’s Q3 earnings due, investors will be watching user growth and engagement numbers, expenses and of course, profits closely. The top wish: no more surprises. They did not quite get that when moments ago Facebook reports a revenue miss, an earnings beat, while both daily and monthly avereage users missed, and rather badly at that. Here are the Q3 details: Revenues of $13.73BN, below the estimate of $13.80BN EPS $1.76, Above the estimate of $1.47 Daily Active Users 1.49B, up 9% Y/Y but below the estimate of 1.557B Monthly Active Users 2.27B, up 10% but also below the estimate 2.352B Some more details from the latest report: Q3 advertising rev. $13.54 billion Q3 mobile ad revenue as percentage of ad revenue 92%, up from 89% Y/Y But the biggest problem may be that Facebook’s costs, as feared, indeed soared, jumping from $5.2BN a year ago to $7.9BN, up 52%. Commenting on the results, FB CEo Jeff Zuckerberg said that “Our community and business continue to grow quickly, and now more than 2 billion people use at least one of our services every day,” He added that “we’re building the best services for private messaging and stories, and there are huge opportunities ahead in video and commerce as well.” * * * In kneejerk reaction, the stock is down, but only modestly, some 2% a far cry from the 20% plunge a quarter ago. Developing � … | |
Stocks Bounce In ‘Pause That Refreshes’ For Bears As Systemic Risk SurgesThe last few days explained…
China started off weak but quickly ramped, pushing CHINEXT green for the week – briefly… European stocks failed to be inspired by China and limped weaker with Italy worst today… | |
“Organized Busing Operation” Exposed, Moving Migrants Closer To US BorderTraveling at a sluggish pace of 10 miles per day, the migrant caravan probably wouldn’t arrive at the nearest US border crossing at McAllen, Texas until February, according to one observer, who debunked claims widely circulated by the media that the caravan would arrive before the Nov. 6 midterm election. But as it turns out, the organizations that have been aiding the caravan since it first formed in Honduras nearly three weeks ago have already accounted for this. And to help ensure that images of border patrol agents arresting families and separating small children from their parents are flashing across cable news in the days and hours before the polls open, these groups are employing a new tactic: Busing. That’s right. As Fox News report on Tuesday showed, migrants traveling with the caravan are being loaded on to chartered buses and transported to the next stop on the trail to the US, having refused Mexico’s offer of asylum, shelter and jobs should they opt to stay in the country. Fox News reporter Griff Jenkins revealed that multiple professional buses have lined up to board the migrants, as footage from the report showed. As more than 5,000 troops mass on the border and a second caravan crosses into Mexico from Guatemala, Jenkins exposed more than 11 buses carrying some of the migrants organized in the state of Oaxaca. While the buses can’t carry every member of the caravan – that would require more than 80 buses, by Fox’s count, they can speed members closer to their next stop. Meanwhile, two more caravans in Guatemala and El Salvador.
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Peter Schiff: Rising Interest Rates Will Collapse The Stock MarketAuthored by Mac Slavo via SHTFplan.com, Peter Schiff is sounding more economic alarms. This time, without mincing words, he says that the Federal Reserve’s raising of the interest rates will cause a stock market collapse. Euro Pacific Capital CEO Peter Schiff and Steven Quirk, the executive vice president of TD Ameritrade’s trader group discussed the Federal Reserve’s impact on the stock market and whether corporate earnings can help the market make a comeback.According to Fox News, Schiff’s assessment was none too calming.
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October 2018 Conference Board Consumer Confidence Modestly ImprovesWritten by Steven Hansen The latest Conference Board Consumer Confidence Index’s headline number is 137.9 (1985=100), up from 135.3 in September. | |
Bond Report: 10-year Treasury yield posts largest daily climb in 3 weeks on trade-deal optimismTreasury prices pull back, pushing yields higher, in Tuesday after President Donald Trump said a deal with China on trade may be reached. | |
Market Extra: S&P 500 on the brink of notching this nearly 50-year record as stock market swoonsThe degree to stock-market sentiment has turned sour may be best illustrated by a likely unwelcome record. | |
Earnings Results: FireEye earnings top expectations, outlook in-line or betterFireEye Inc. reports third-quarter earnings late Tuesday that top Wall Street estimates and the cybersecurity company expects in-line or better results for the current quarter as their forecasts revenue and billings ranges bookend the consensus. |
Summary of Economic Releases this Week
Earnings Summary for Today
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