Investor sentiment shifted during the European trading day thanks, in part, to upbeat forecasts for fourth-quarter demand from German carmaker Daimler, and strong earnings from the third quarter from French peer Peugeot. US futures have also been buoyed by Twitter, which announced strong earnings in a pre-market report. The volatility gripping markets comes just ahead of Amazon and Google's parent Alphabet announcing results after the closing bell today, following on from a string of disappointments from the semiconductor sector. The tech-heavy Nasdaq index is on track to post its weakest monthly performance since October 2008, while the S&P 500 has more than wiped out all of this year's gains. (FT)
Despite the carnage, earnings news has still been resoundingly positive. 81% of S&P 500 companies have beat on EPS, and 63% have beat on revenue. We're still on track for 22% year-on-year earnings growth, and 7.5% growth on the top line. This isn't a prediction, but for those believers in the "peak earnings" narrative, the average US recession doesn't occur for 4 years until after peak earnings. Tesla, Merck, Microsoft, Conoco Phillips, and Visa all higher on earnings beats. (Thomson Reuters)
The European Central Bank has signaled that market turmoil and mounting risks to the eurozone economy will not sway policymakers from withdrawing one of the most important strands of their crisis-era stimulus, after Mario Draghi confirmed plans to halt the expansion of its quantitative easing program by the end of this year. Euro is higher on the news, a welcome sign for US multinationals. (FT)
S&P 500 futures are up 20, and NASDAQ futures are up 88. The MSCI international index is down 1/3 of a percent.
Oil is up $.43 at $67.25 a barrel.
Gold is up $4 at $1235 a Troy ounce.
With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Josh Fenili.