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Stock Futures Flat as Bank Earnings Pour In

Investors are sifting through earnings from Bank of America and Goldman Sachs this morning

Deputy Editor
Oct 14, 2020 at 9:26 AM
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Stock futures are flat this morning, struggling for direction after all three major indexes snapped a four-day win streak. Futures on the Dow Jones Industrial Average's (DJI) are up roughly 40 points, while S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures are marginally higher as well. The stagnant moves come as investors eye a deluge of bank earnings, including reports from Bank of America (BAC) and Goldman Sachs (GS). The former posted revenue that missed analysts' expectations, while the latter handily topped Wall Street's estimates. 

Elsewhere, investors are still awaiting news on the stimulus front. Yesterday, Senate Majority Leader Mitch McConnell announced that the Senate will vote on a limited stimulus bill later this month. 

Continue reading for more on today's market, including:

  • Match stock could pivot higher thanks to a surefire bull signal.
  • Schaeffer's Senior Quantitative Analyst Rocky White explains the Coppock Curve indicator, and what it could mean for markets. 
  • Plus, more on Apple's latest product reveal; UnitedHealth came through with a stellar earnings report; and Six Flags announced some employee cuts.

Futures Chart October 14

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.7 million call contracts traded on Tuesday, and 665,755 put contracts. The single-session equity put/call ratio fell to 0.39 and the 21-day moving average slipped to 0.49. 
  2. Shares of Apple Inc. (NASDAQ:AAPL) fell following the company's Tuesday reveal of new iPhone models. AAPL has a history of stumbling after product introduction days, though the equity was seen 0.2% higher in pre-market trading. Longer term, Apple stock boasts an impressive 105.4% year-over-year lead.
  3. Health insurance giant UnitedHealth Group Inc (NYSE:UNH) beat Wall Street's third-quarter earnings and revenue forecasts with ease, and raised its full-year outlook. The company noted medical care trends disrupted by the pandemic are returning nearly to normal. UNH is up 0.4% before the open, and has tacked on 12.7% this year.
  4. Six Flags Entertainment Corp (NYSE:SIX) announced it will cut 10% of its full-time workforce, equating to 240 employees, and said it will offer severance pay and outplacement services to those employees. Meanwhile, the theme park operator is up 0.6% ahead of the bell, but down 55.5% in 2020.
  5. Today the producer price index (PPI) is on tap, while PNC (PNC), Progressive (PGR), U.S. Bancorp (USB), and Wells Fargo (WFC) will all report earnings. 

Buzz Chart Oct 14

European Stock Slide as Economic Growth Indicator Contracts

Stocks in Asia were a mixed bag today, after Chinese President Xi Jinping’s speech in celebration of the 40th anniversary of the Shenzhen Special Economic Zone. China’s Shanghai Composite fell 0.6%, while the South Korean Kospi dropped 0.9%. The winners closed modestly higher, with Japan’s Nikkei adding 0.1%, and Hong Kong’s Hang Seng gaining 0.07%.

Over in Europe, stocks are slightly lower midday, as investors break down the International Monetary Fund’s (IMF) revised outlook for economic growth this year, with the global economy now projected to contract by 4.4% -- higher than the 4.9% estimate from June. A pause in two key coronavirus drug trials is also weighing on global markets. London’s FTSE 100, the French CAC 40, and the German DAX are all down 0.2% at last check.

 

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