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Stock futures are little changed as the Dow tries to avoid a third-straight losing day

The market suffered losses to start the week with the blue-chip Dow shedding 250 points.

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Stock futures were little changed on Tuesday as the market tried to get out of its recent funk driven by concerns about the economy and inflation.

Futures on the Dow Jones Industrial Average were lower slightly, having earlier pointed to a loss of more than 200 points at one point in the overnight session. S&P 500 futures were also about flat. Nasdaq 100 futures were the standout, adding 0.2%.

Tech stocks such as Tesla, Alphabet, Netflix, Nvidia and AMD were higher in premarket trading.

The market suffered losses to start the week with the blue-chip Dow shedding 250 points. The S&P 500 fell 0.7% Monday with nine of the 11 sectors registering losses, while the tech-heavy Nasdaq Composite dipped 0.6%. It was the second negative session in a row for the Dow, S&P 500 and the Nasdaq.

“There are a lot of headwinds out there as we embark on corporate earnings, and traders will be looking for any and all indications of guidance — especially as the threat of slower growth looms large,” said Chris Larkin, managing director of trading at E-Trade Financial. “As new data emerges and traders gain some potential insight into growth prospects, it may be wise to prepare for more bumps in the road.”

JPMorgan Chase and other big banks are about to kick off the third-quarter earnings season later this week. Earnings growth is expected to grow about 30% year over year this quarter following a 96.3% expansion in the second quarter, according to Refinitiv.

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“Expectations for third quarter earnings have been coming down in recent weeks and that should create some room for upside surprises, which is good for overall market sentiment,” said Rod von Lipsey, managing director at UBS Private Wealth Management.

Investors will monitor the latest employment data on Tuesday as the Labor Department releases its Job Openings and Labor Turnover Survey. Economists polled by Dow Jones expect 10.9 million job openings in August, unchanged from the total in July. Stocks fell on Friday after a disappointing jobs report.

The stock market went through a bumpy ride in September, with the S&P 500 falling 4.8% for its worst month since March 2020 and breaking a seven-month winning streak. The benchmark has recovered somewhat in October, up about 1.3% for the month.

But the rebound has stalled out a bit in recent days. Wall Street major strategists are seeing muted returns for the rest of 2021 as the average year-end S&P 500 target stands at 4,433, less than 2% from Monday’s close, according to the CNBC Market Strategist Survey.

The market suffered losses to start the week with the blue-chip Dow shedding 250 points. The S&P 500 fell 0.7% Monday with nine of the 11 sectors registering losses, while the tech-heavy Nasdaq Composite dipped 0.6%. It was the second negative session in a row for the Dow, S&P 500 and the Nasdaq.

Source: https://www.cnbc.com/2021/10/11/stock-market-futures-open-to-close-news.html

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Dow rallies nearly 500 points after hot start to the earnings season

A lower-than-anticipated number of weekly jobless claims added to the positive market sentiment.

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U.S. stocks rose Thursday after better-than-expected earnings reports from Bank of America and other major companies.

The Dow Jones Industrial Average jumped about 475 points, or 1.4%. The S&P 500 gained 1.5% and the Nasdaq Composite added 1.7%.

Third-quarter earnings season continued Thursday with several big banks and Dow members reporting financial results before the bell.

Eight members of the S&P 500 reported earnings this morning and all eight beat earnings-per-share expectations from Wall Street.

“So far, the overwhelming majority of large US companies have been able to generate higher profitability despite rising labor costs because sales growth has been so robust. We expect the same to be true in 3Q,” Mark Haefele, chief investment officer of UBS Global Wealth Management, said in a note Thursday.

Bank of America, Morgan Stanley saw their shares rise after beating earnings expectations. Wells Fargo shares declined and Citigroup traded near the flatline despite earnings beats.

Walgreens Boots Alliance shares gained after the drugstore chain beat earnings expectations and the stock was the top performer in the Dow. The company announced it would become majority owner of VillageMD with a $5.2 billion investment.

Dow constituent UnitedHealth also gained after the companies’ quarterly results topped estimates.

Meanwhile, falling rates boosted technology stocks. The benchmark U.S. 10-year Treasury yield dipped, typically benefiting high-growth names as lower rates lift the value of companies’ future earnings.

Big Tech stocks Microsoft, Apple and Facebook each rose at least 1%, while and Google-parent Alphabet gained more than 2%, providing the market with support.

Caterpillar was among the Dow’s biggest gainers after Cowen initiated coverage of the equipment maker with an outperform rating. UPS rose as one of the S&P 500’s top performers after an upgrade from Stifel, which cited upcoming holiday demand.

A lower-than-anticipated number of weekly jobless claims added to the positive market sentiment. Initial unemployment insurance claims last week totaled 293,000 – the first time the tally fell below the 300,000 level during the pandemic-era.

“We’re seeing fresh and welcome signs of improvement in the job market,” said Bankrate’s Mark Hamrick.

September’s producer price index was lighter than expected, also helping sentiment. Wholesale prices rose 0.5% from the month prior versus the 0.6% Dow Jones estimate.

—CNBC’s Michael Bloom contributed to this report.

Source: https://www.cnbc.com/2021/10/13/stock-market-futures-open-to-close-news.html

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Ford’s sales improving but still down by 27.4% in the third quarter

The drastic fall was narrower than auto forecasters expected, but wider than the overall industry that was projected to be down between 13% and 14%.

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Thousands of Ford F-150s without chips are stored at Kentucky Speedway in Sparta, Kentucky, U.S., September 8, 2021.

Jeff Dean | Reuters

DETROIT – Ford Motor’s U.S. vehicle sales showed signs of improvement during the third quarter, but still fell by 27.4% from last year as an ongoing shortage of semiconductor chips interrupted vehicle production.

The drastic decline was narrower than auto forecasters expected, but wider than the overall industry that was estimated to be down between 13% and 14% from the same time last year. Cox Automotive expected Ford’s sales to be down by 37.3% during the third quarter, while Edmunds forecast a 29.3% decline.

A silver lining is Ford’s sales improved during the quarter from losses of more than 30% in July and August to 17.7% in September, signaling better supply of semiconductor chips. Its vehicle inventory also improved to 236,000 cars and trucks, up 21,000 units compared with the start of September.

Shares of Ford were up by more than 4% in trading Monday morning.

Ford sold 400,843 vehicles in the third quarter, including more than 156,600 in September. Its sales heading into October were nearly 1.4 million, down by 7% compared with the first three quarters of 2020.

Ford said reservations for its upcoming F-150 Lightning electric pickup have topped more than 150,000. That compares with 100,000 reservations at the end of the second quarter, according to the company.

Shares of Ford were up by more than 4% in trading Monday morning.

Source: https://www.cnbc.com/2021/10/04/fords-sales-improving-but-still-down-by-27point4percent-in-the-third-quarter.html

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Pepsi earnings top estimates despite higher supply chain costs, company raises revenue forecast

PepsiCo on Tuesday raised its full-year forecast after its quarterly earnings and revenue topped analysts’ expectations.

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PepsiCo on Tuesday raised its full-year forecast after its latest quarterly earnings and revenue topped analysts’ expectations, despite higher costs and snarls in the supply chain.

Pepsi shares rose less than 1% in early trading.

Executives said supply chain disruptions and inflationary pressures for labor, commodities and transportation weighed on its fiscal third-quarter results. CFO Hugh Johnston told CNBC’s “Squawk Box” the company has been raising prices on its beverages and snacks, and he expects another price hike in the fiscal first quarter of 2022.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

  • Earnings per share: $1.79 adjusted vs. $1.73 expected
  • Revenue: $20.19 billion vs. $19.39 billion expected

Net income for the quarter ended Sept. 4 came in at $2.22 billion, or $1.60 per share. That’s down from $2.29 billion, or $1.65 per share, a year earlier.

Excluding items, the food and beverage giant earned $1.79 per share, topping the $1.73 per share expected by analysts surveyed by Refinitiv.

Net sales rose 11.6% to $20.19 billion, beating expectations of $19.39 billion. The company’s organic revenue, which strips out the impact of acquisitions and divestitures, climbed 9% in the quarter.

Pepsi’s North American beverage business reported organic revenue growth of 7% for the quarter. While the unit’s organic sales have risen 10% on a two-year basis, growth has moderated since bouncing back 21% in the prior quarter. The company said that it saw double-digit net revenue growth for its food service business, which includes sales to restaurants, stadiums and college campuses. Worldwide, the company’s away-from-home drink business is down just 10% from 2019 levels.

Frito-Lay saw its organic revenue increase by 5% as consumers maintained many of their pandemic snacking habits. Pepsi said that it gained market share in the salty and savory snack categories during the quarter.

Quaker Foods North America, which has been the most challenged of Pepsi’s business units, saw its organic revenue increase by 1%. It was the only segment to report shrinking volume, which excludes the impact of price changes, and reported the largest drop in operating profit.

For the full year, Pepsi said it expects its organic revenue to increase by 8%, up from its prior forecast of 6% growth. The company reiterated its forecast for core constant currency earnings per share of 11% growth. Analysts were forecasting full-year earnings growth of 13% and a revenue increase of 9.5%.

Looking ahead to 2022, executives said they expect organic revenue growth and core constant currency earnings per share growth to be in line with the company’s long-term objectives.

Source: https://www.cnbc.com/2021/10/05/pepsico-pep-q3-2021-earnings-.html

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