Coffee With Greta: New Month, Same Rally?
DJIA Futures: +225 (+0.7%)
SPX Futures: +42 (+1.1%)
NASDAQ Futures: +158 (+1.4%)
Good morning friends!
Futures are rising as a new month of trade kicks off on Wall Street and this week’s Fed meeting is set to begin.
Let’s get right to it!
Can The October Rally Extend?
October was the best month for the Dow Jones since January 1976.
The blue chip index rallied 14% last month, the S&P 500 jumped 8%, and the Nasdaq rose 3.9%.
The new month begins with all eyes on the Fed as the Central Bank kicks off its two-day policy meeting today.
CME Group’s FedWatch tool shows 89.8% of traders expecting another 75 basis point hike on Wednesday.
Pfizer Tops Q3 Expectations, Hikes Guidance
Pfizer (PFE) shares are up 3.9% in premarket trade after beating Q3 expectations and hiking its guidance.
Here’s how the pharmaceutical giant’s results compared to analysts’ expectations:
- Adjusted EPS: $1.78 vs $1.39 expected
- Revenue: $22.6 billion vs $21 billion expected
Covid vaccine sales fell sharply in the quarter to $4.4 billion globally, down 66% from Q3 2021.
But the weaker global demand was offset by strong demand in the U.S. where sales jumped 83% year over year due to the rollout of new omicron specific boosters.
Pfizer’s antiviral pill Paxlovid also generated $7.5 billion in global sales last quarter.
The company now expects EPS of $6.40 to $6.50 in 2022, up from the previous forecast of $6.30 to $6.45.
Pfizer raised its full-year guidance for Covid vaccine sales to $34 billion, up $2 billion from the previous forecast.
It maintained revenue expectations of $22 billion for Paxlovid.
Uber Rallies On Revenue Beat
Uber (UBER) shares are rallying 11.7% ahead of the open after beating Q3 revenue expectations.
Here’s a look at the ride share giant’s results:
- Loss per share: $0.61
- Revenue $8.34 billion vs $8.12 billion expected
Revenue jumped 72% year over year.
Uber’s adjusted EBITDA came in at a record $516 million, beating prior guidance for $440 million to $470 million and topping analysts’ estimates for $457.7 million.
Gross bookings jumped to $29.1 billion, up 26% compared to a year ago.
Uber expects gross bookings to grow between 23% and 27% year over year in Q4 with adjusted EBITDA of $600 million to $630 million.
Oil Prices Rise
Oil prices are higher today as a weakening dollar offsets demand concerns in China.
West Texas Intermediate crude futures are up 2.3% to $88.50 bbl while Brent crude futures are up 2.1% to $94.75 bbl.
Both contracts posted their first monthly gains since May in October.
September JOLTS On Deck
The first piece of this week’s labor market data will be out today.
The Labor Department releases its September Job Openings and Labor Turnover Survey (JOLTS) at 10:00 a.m. ET.
That survey is expected to show the number of job openings fell to 9.8 million from 10.1 million.
Key Earnings After the Close
This is the busiest week of Q3 earnings season so far. Here are the companies scheduled to report after the close today:
- Advanced Micro Devices (AMD)
- Airbnb (ABNB)