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DJIA Futures: -92 (-0.3%)
SPX Futures: -21 (-0.5%)
NASDAQ Futures: -104 (-0.7%)
Good morning friends!
Futures are lower as earnings season picks up steam and traders look ahead to Tesla (TSLA) and Netflix (NFLX) after the close.
Let’s get right to it!
Morgan Stanley (MS) shares are dropping 3.4% ahead of the open after topping Q3 expectations but profits were down year over year.
Here’s how the investment bank’s results compared to analysts’ estimates:
Profit fell 9% from a year ago while revenue rose 2%.
Stronger than expected trading revenue helped offset misses in other divisions.
Morgan Stanley's bond trading revenue came in at $1.95 billion, about $200 million more than analysts were expecting.
Equity trading revenue of $2.51 billion beat expectations by about $100 million.
But the wealth management division's revenue of $6.4 billion missed estimates by more than $200 million.
Investment banking produced $938 million in revenue vs $1.11 billion expected.
United Airlines (UAL) shares are down 4.8% in premarket trade after beating Q3 expectations but issuing weak guidance.
Here’s how the airline’s results compared to analysts’ estimates:
United said higher fuel costs and a halt to its Tel Aviv flights will eat into profits in the current quarter.
The company forecast Q4 adjusted EPS of $1.50 to $1.80 vs analysts’ estimates of $2.06.
For the full-year that would put adjusted earnings between $9.55 and $9.85 per share, down from its previous forecast of $11 to $12 per share.
Jet fuel prices have surged nearly 25% since the start of the summer.
United said Q4 revenue will rise 9% year over year if its Israel flights remain suspended through the end of the year and 10.5% if the suspension lasts only through October.
Costs, excluding fuel, are expected to rise between 3.5% and 5%.
Procter & Gamble (PG) shares are up 2.2% ahead of the open after beating fiscal Q1 expectations on the top and bottom line.
Here’s how the consumer goods maker’s results compared to analysts’ estimates:
Net sales rose 6% year over year with organic revenue up 7%.
P&G widened its fiscal 2024 revenue outlook, anticipating foreign exchange rates to be a larger drag than previously expected.
The company forecast revenue growth of 2% to 4% vs its previous forecast of 3% to 4%.
P&G reiterated its full-year forecast for organic revenue growth.
New home construction rebounded in September following a sharp drop the previous month.
The Commerce Department reported housing starts rose 7% last month to a seasonally adjusted annual rate of 1.36 million units.
That was in line with expectations for an SAAR of 1.36 million units.
Single-family starts rose 3.2% while multi-family starts jumped 17.1%.
Building permits fell less than expected, down 4.4% to a rate of 1.47 million units.
Economists were anticipating a 6% decline to 1.45 million units.
Single-family permits rose 1.8% while multi-family permits dropped 14%.
Permits are a forward looking indicator for housing starts.
Mortgage demand dropped to a 28-year low last week as rates neared 8%.
The Mortgage Bankers Association reported total application volume fell 6.9% from the previous week, the lowest total since 1995.
Purchase applications dropped 6% weekly and 21% annually.
Refinance applications tumbled 10% weekly and 12% annually.
The average 30-year contract fixed rate increased to 7.70% from 7.67%, the highest rate since November 2000.
The adjustable-rate mortgage share was 9.3%, the highest in 11 months as more borrowers turn to these loans which offer lower upfront rates.