Stock futures continue to point to a modest bounce after the major
averages recorded a daily and weekly decline on Friday. But sustainable
gains may be in jeopardy as reaction to this morning's earnings reports
is mixed. Earnings news has been mostly positive, yet gains have been
fleeting. Verizon (VZ) was an early modest gainer, but reversed its
initial advance that followed a beat. Stock futures also pared gains
after a Chicago Fed National Activity index fell slightly in September.
There are no additional economic reports on the slate for Monday,
though the Treasury will sell $7 billion in 5-year notes. Crude slips
and gold is flat.
Earnings news is mostly positive, but the broader market is less
likely to extend gains in reaction to those results, which are mostly
priced into the market. Stocks have traded in choppy fashion since
hitting fresh 2009 highs around mid-month.
As for individual movers, Verizon Communications (
VZ) reports Q3
EPS of $0.60 vs $0.66 a year earlier and just topping the Thomson
Reuters mean analyst estimate for $0.59. Verizon's total operating
revenues grew 10.2% to $27.3 billion. The Street looked for $27.1
billion.
Corning (
GLW) is also an early decliner despite its mostly positive
results. The company reports Q3 EPS ex-items of $0.42 vs $0.46 a year
earlier but topping the Thomson Reuters mean analyst estimate for
$0.39. Sales of $1.5 billion, were down from $1.6 billion a year
earlier. The Street looked for $1.42 billion.
BioCryst Pharmaceuticals (
BCRX) announced that the U.S. Food and
Drug Administration (FDA), in response to a request from the U.S.
Centers for Disease Control and Prevention (CDC), has issued an
emergency use authorization(EUA) for the investigational anti-viral
drug intravenous (i.v.) peramivir in certain adult and pediatric
patients with confirmed or suspected 2009 H1N1 influenza infection who
are admitted to a hospital.
U.S. PRE-MARKET INDICATORS
-Dow Industrial futures up 14 points.
-S&P 500 futures up 1 points.
-Nasdaq 100 futures up 6 points.
-Nasdaq-100 Pre-Market Indicator up 3.28 at 1756.91.
GLOBAL SENTIMENT
Nikkei up 0.8%
Hang Seng up 1.7%
FTSE-100 up 0.2%
PRE-MARKET SECTOR WATCH
(+,-) Large cap tech: mixed
(+) Chip stocks: firmer
(+,-) Drug stocks: mixed
(+) Software stocks: firmer
(+,-) Internet stocks: mixed
(+,-) Financial stocks: mixed
(-,+) Auto stocks: mixed
(-) Airline stocks: lower
(+,-) Retail stocks: mixed
UPSIDE MOVERS
(+) CVM (+7.6%) says new facility signals long-awaited Phase III trial is imminent.
(+) IO (+16%) inks JV pact with BGP for land seismic equipment that includes $175 mln cash proceeds from BGP.
(+) NVE (+6.4%) beats with Q3 results.
(+) RSH (+4.4%) beats with revenue.
(+) BCRX (+10.1%) says emergency use authorization granted for Peramivir.
(+) ARNA (+8.3%) reports positive study for weight management trial.
(+) MRVL (+4%) raises revenue view.
DOWNSIDE MOVERS
(+) VZ (-0.4%) turns lower despite earnings beat.
(-,+) GLW (flat) shifting between slim gain and loss; earnings beat.
(-) ING (-8%) splitting insurance and banking business.
(-) CYOU (-9.6%) issues mixed Q4 guidance.
(-) SOHU (-6.8%) reports Q3 profit on record sales but guides for Q4 miss.
(-) PVTB (-14%) loss widens, issuing stock.
