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Key week for earnings with many of the top companies reporting

  
  Analysis

Facebook, Apple, Alphabet (Google), Amazon, Microsoft, Boeing, McDonald’s, Starbucks, Exxon Mobil all scheduled to report

The new week will have a number of key earnings releases with some of the top companies reporting. Below is a look at the major names on the calendar:

Monday, October 25:
  • Kimberly-Clark
  • Facebook
Tuesday, October 26:
  • 3M
  • Alphabet
  • GE
  • Lockheed Martin
  • Raytheon technologies
  • Microsoft
  • Corning
  • Pinterest
  • Twitter
Wednesday, October 27
  • Aflac
  • Apple
  • Bristol-Myers Squibb
  • Boston Scientific
  • Boeing
  • Coca-Cola
  • Ford
  • McDonald’s
  • General Dynamics
  • Hess corporation
  • eBay
  • ServiceNow
  • Spotify
THursday., October 28
  • Amazon
  • Merck
  • Stryker
  • US Steel Corporation
  • Starbucks
  • Caterpillar
  • Comcast
  • Gilead Sciences
  • Sirius XM
  • MasterCard
  • VeriSign
  • Shopify
Friday, October 29
  • Phillips 66
  • Exxon Mobil
  • Colgate-Palmolive

S&P index snaps a seven day winning streak

  
Analysis, US Market

NASDAQ index lower for the second time in three trading days

The S&P index snapped a seven day winning streak with a modest decline of around five points or -0.11%.

  • The Dow industrial average posts a record close and is up for the third day in a row. The Dow’s record close was the first since August 16
  • The NASDAQ index was the big loser with a decline of -0.82%
  • The major indices close higher for the third week in a row
Next week is the granddaddy of all the earnings release weeks with Facebook, Amazon, Apple, Alphabet, Starbucks, Boeing, Caterpillar, etc. all on the schedule.
Ahead of those earnings Facebook fell 5.05%. Amazon fell -2.9%, Alphabet fell -3.04%, Boeing fell -0.64%, Microsoft fell -0.51%.
A look at the closes shows:
  • Dow industrial average up 73.94 points or 0.21% at 35677.02
  • S&P index down 4.84 points or -0.11% at 4544.95
  • NASDAQ index -125.50 points or -0.82% at 15090.20
For the week:
  • Dow industrial average rose by 1.08%
  • S&P index rose by 1.64%
  • NASDAQ index rose by 1.29%

Evergrande main unit says cannot guarantee that financial obligations will continue to be met

  
  Analysis

A statement released by Evergrande main unit, Hengda Real Estate

Evergrande
The statement reads that it has not made substantial progress in disposing Evergrande assets and that the firm cannot guarantee it will be able to continue to meet financial obligations under its contracts.
Adding that if Evergrande fails to meet obligations and cannot reach alternative plans with creditors, it will have a significantly negative impact on the group.
That’s a bit concerning ahead of the 29 October deadline for the next offshore bond payment due date lapse. Risk trades are taking the headline in stride for the most part but expect nerves to show up if there are more default rumours in the next few days.

Eurozone October flash services PMI 54.7 vs 55.5 expected

  
Analysis, Economy

Latest data released by Markit – 22 October 2021

  • Prior 56.4
  • Manufacturing PMI 58.5 vs 57.0 expected
  • Prior 58.6
  • Composite PMI 54.3 vs 55.2 expected
  • Prior 56.2

Softer readings across the board, with overall business activity growth weakening to its slowest in six months. The details reveal that supply bottlenecks are a key issue, weighing on manufacturing output as it slumps to its weakest in 16 months.

Adding to that is a survey-record increase in prices, as firms reportedly sought to pass on the rise in costs on to customers. Markit notes that:

(more…)

Evergrande makes bond payment but be mindful that there are other names in a tough spot too

  
  Analysis
Evergrande may have averted a formal default (for now) but it isn’t the only name that is under pressure in the Chinese property sector.
The market may be focused on the next key deadline for Evergrande, that being 29 October (which relates to the non-payment on 29 September) but there are also other developers who have missed or are set to miss out on their offshore bond payments.
Here is a neat list compiled by Reuters:

 

China
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