Coffee With Greta: Stocks Rebound From Rollercoaster Week
DJIA Futures: +344 (+1.2%)
SPX Futures: +52 (+1.4%)
NASDAQ Futures: +195 (+1.8%)
Good morning friends!
Futures are higher following a rollercoaster of a week.
Let’s get right to it!
Empire State Manufacturing Index Falls
The New York Fed’s Empire State manufacturing index fell more than expected this month.
The index dropped 7.6 points in October to negative 9.1.
That’s the third straight negative reading and worse than economists’ expectations for negative 5.
Any reading below 0 indicates deteriorating business conditions.
The new orders index was unchanged at 3.7 while the shipments index plunged 19.9 points to negative 24.1.
Unfilled orders rose by 3.8 points to negative 3.7 and the prices paid index jumped 9 points to 48.6.
That’s the first increase in prices paid over the past three months.
This index and the Philly Fed’s manufacturing index are both considered barometers for national factory activity.
Bank of America Earnings
Bank of America (BAC) shares are up 2.4% ahead of the open after topping Q3 expectations on the top and bottom line.
Here’s how the bank’s results compared to economists’ expectations:
- EPS: $0.81 vs $0.77 expected
- Revenue: $24.61 billion vs $23.57 billion expected
Profit fell 8% compared to a year ago as Bank of America built up its loan loss reserves by $378 million and paid $520 million in charge-offs for bad loans.
But the consumer bank benefited from higher interest rates, with net interest income surging 24% to $13.87 billion.
Oil Prices Rise
Oil prices are higher this morning as the market digests loose monetary policy decisions from China against global recession fears.
West Texas Intermediate crude futures are up 0.5% to $86 bbl while Brent crude futures are up 0.6% to $92 bbl.
China’s central bank left interest rates unchanged for the second month in a row, bucking the trend of tightening monetary policy around the world.
But the strength of the dollar and continued tightening from the U.S. Federal Reserve is keeping a lid on price gains today.
Housing Market In Focus This Week
The bulk of big economic data releases this week will focus on the U.S. housing market.
The National Association of Homebuilders releases its October sentiment index at 10:00 a.m. ET on Tuesday.
The Census Bureau reports housing starts and building permits for September on Wednesday.
And the National Association of Realtors reports existing home sales for September on Thursday.
The housing market has slowed drastically as mortgage rates have surged higher.