Monday Morning Cheat Sheet: 3 Stories Moving Markets
It’s Monday, October 21, and earnings season is in full swing. With corporate profits dominating the headlines and the recent fiscal-political snafu taking a seat on the back burner, the market is finally free to take some time and smell what’s cooking — and so far, everything appears fine.
Most major corporations that have reported third-quarter earnings so far have beat analyst estimates, perhaps most notably Google Inc. (NASDAQ:GOOG), which beat by 40 cents per share. McDonald’s Corp. (NYSE:MCD) and Halliburton Co. (NYSE:HAL), which reported earnings Monday morning, each beat by 1 cent per share.
More good news came with the Chicago Fed National Activity Index, which increased to +0.14 in August from -0.43 in July. The three-month average climbed back to -0.18 after declining over the past several months. The CFNAI is a weighted average of 85 economic indicators ranging from production, income, employment, consumption, housing, and inventories, and it offers a broad perspective on whether the economy is performing up to its potential. There is a close relationship between this index and gross domestic product.
U.S. equities edged higher in premarket trading. At 8:35 a.m., Dow futures were up 0.02 percent, S&P 500 futures were up 0.1 percent, and Nasdaq futures were up 0.28 percent.