What to watch today: Wall Street looks to avoid a four-session losing streak
U.S. stock futures were slightly higher Wednesday after Dow stock JPMorgan Chase reported better-than-expected quarterly earnings and revenue and ahead of key inflation data. Shares of JPMorgan rose modestly in the premarket as third-quarter results from the bank were supported by a $1.5 billion boost from better-than-expected loan losses. (CNBC)
The Dow Jones Industrial Average, the S&P 500 and the Nasdaq all dropped Tuesday for the third straight session. The modest losses indicated that investors were in a wait-and-see mode ahead of earnings season really kicking into high gear. (CNBC)
Shares of Delta Air Lines dipped in the premarket after the carrier on Wednesday reported that third-quarter earnings and revenue topped expectations. It was Delta's first quarterly profit without taking federal aid into account since the start of the pandemic. However, it was still below 2019 pre-Covid levels.
* House approves debt limit increase that will last through part of December, sends bill to Biden (CNBC)
Supply chain issues, labor shortages and higher energy prices are making this a very difficult quarter to model. As of Tuesday, 22 companies that are early reporters beat estimates by 11%, according to Nick Raich, CEO of The Earnings Scout. While this is above the traditional beat of 3% to 5%, it's far below the average of prior quarters this year, including the roughly 18% beat for the second quarter. (CNBC)
The 10-year Treasury yield dipped to 1.57% on Wednesday ahead of what's expected to be another elevated inflation report. The government at 8:30 a.m. ET releases the September consumer price index. Economists expect headline CPI and core CPI, which excludes the food and energy sectors, to be around the prior month's year-over-year increases of 5.3% and 4%, respectively. (CNBC)
The Federal Reserve at 2 p.m. ET releases minutes from its policy meeting in September when central bankers indicated they expect to begin reducing monthly asset purchases "soon," but did not say when. (CNBC)
* Fed’s Bullard says bond purchases should be tapered quickly in case rate hikes are needed (CNBC)
IN THE NEWS TODAY
President Joe Biden will unveil a plan Wednesday to try to ease West Coast port backlogs by expanding round-the-clock operations. The Port of Los Angeles is expected to announce a shift to 24/7 operations, following a similar transition by the Port of Long Beach in California last month. Together, the ports account for about 40% of the shipping containers entering the United States. (CNBC)
The U.S. said Wednesday it will reopen its land borders to nonessential travel next month, ending a 19-month freeze due to Covid as the nation moves to require all international visitors to be vaccinated. Vehicle, rail and ferry travel between the U.S. and Canada and Mexico has been largely restricted to essential travel since the earliest days of the pandemic. (AP)
* Boeing says employees must show proof of Covid vaccination by Dec. 8 under federal contractor rules (CNBC)
The FDA will allow a unit of British American Tobacco to (BTI) keep selling its Vuse Solo e-cigarettes in the United States. The decision is part of the agency's broader review of the vaping industry, following years of pressure from politicians and public health groups to regulate the segment as strictly as other tobacco products. (CNBC)
The U.S. will be holding two days of virtual cybersecurity strategy discussions, starting Wednesday, with 30 countries. Russia won't be among them. Washington accuses Moscow, unwittingly or not, of hosting many of the criminal syndicates behind ransomware attacks. However, the U.S. has used a "dedicated channel" to address cybersecurity with Russia, a senior Biden administration official said. (AP)
The U.S. is now the No. 1 destination for bitcoin miners, eclipsing China for the first time ever. While it was already trending in that direction, new data from Cambridge University released early Wednesday makes it official. Beijing's crypto crackdown in the spring took half the world's bitcoin miners offline practically overnight. (CNBC)
"Squid Game" has attracted 111 million viewers globally since its Sept. 17 release, making the South Korean drama Netflix's (NFLX) biggest series launch of all time. The series easily smashed the previous record from "Bridgerton," which was watched by 82 million households in the first 28 days. (CNBC)
STOCKS TO WATCH
BlackRock (BLK) earned an adjusted $10.95 per share for the third quarter, beating expectations. Revenue beat estimates as well, despite the implementation of some fee waivers during the quarter. Asset under management grew, although less than analysts had anticipated. BlackRock rose 2.6% in the premarket.
SAP (SAP) rallied 5.3% in premarket trading after the German business software company raised its full-year outlook for a third time. The upgrade comes as more customers shift operations to the cloud.
Hydrogen fuel cell maker Plug Power (PLUG) jumped 7% in the premarket after announcing a partnership with Airbus to decarbonize air travel and airport operations, with plans to select a U.S. airport as the first "hydrogen hub" pilot airport.
Hasbro (HAS) CEO Brian Goldner has died at age 58, just days after taking a medical leave. The toymaker did not announce a cause of death, but Goldner had been diagnosed with prostate cancer in 2014. Hasbro shares fell 1% in premarket action.
Qualcomm (QCOM) announced a $10 billion share buyback program. The chipmaker's newly announced buyback is in addition to $900 million still remaining from a buyback program instituted in July 2018. The stock gained 1.8% in the premarket.
Apple (AAPL) is likely to cut iPhone 13 production by as many as 10 million units due to the global chip shortage, according to people familiar with the matter who spoke to Bloomberg. That would represent a cut of about 11% from current plans.
Vimeo (VMEO) said its total revenue in September jumped by 33% over a year ago, with the video software company's subscriber numbers up 14% and average revenue per user up 16%. Vimeo gained 3.6% in premarket trading.
Sun Country Airlines (SNCY) slumped 5.7% in the premarket after the company announced an 8 million-share stock offering. The shares are being sold by existing stockholders and the company will not receive any proceeds from the offering.
Sarepta Therapeutics (SRPT) slid 5.8% in premarket trading after issuing guidance that was below analyst forecasts, as well as announcing a $500 million stock offering. The biotech company's shares fell 8.1% Monday despite upbeat drug trial results, but they rebounded 4.1% Tuesday.
William Shatner counted down Wednesday to his wildest role yet: riding a rocket into space, courtesy of "Star Trek" fan Jeff Bezos. Best known for his role as Captain Kirk, the 90-year-old Shatner joined three other passengers for the planned launch from West Texas. (AP)
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