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News

Morning earnings mixed with Apple results and API inventories due later

WTI crude oil is up 0.4% as it bounces up off $50.00. CAD has started to follow oil upward suggesting last week’s bearishness on weak Canada data has started to blow over.  USD is up slightly as traders continue to anticipate a December rate hike following a flurry of Fed speakers just before the blackout period begins ahead of next week's decision.

In the UK, focus has been on the Heathrow Airport expansion announcement while in the US, corporate reports are in the spotlight. Earnings reports to date had been ‎positive overall but today's numbers are very mixed with General Motors, DuPont and Merck posting big beats while Eli Lilly and Whirlpool have missed badly. Caterpillar was mixed with big profits offset by a cut to guidance. This has me wondering if this could become a quarter of extremes with large positive and negative surprises.

Tonight brings Apple's ‎earnings report, one of the main events of earnings season. Traders are likely to focus on the success of the iPhone 7 launch and if it was big enough to maintain Apple's status as an unlimited  growth company or indicate apple may be maturing. Traders may also look for signs or comments on whether Samsung's product problems have benefitted Apple.

The weekly API crude oil inventory report is also due this afternoon. Surprise drawdown the last two weeks have provided fundamental support to a market being rocked by on again off again speculation on an OPEC deal with the big meeting still over a month away.

Corporate News

General Motors    $1.72 vs street $1.48, sales $42.8B vs street $39.02B, guides 2016 EPS to high end of existing $5.50-$6.00 range

Caterpillar    $0.85 vs street $0.76, cuts 2016 guidance to $3.25 from $3.50, costs higher, cautious about first half of 2017. 

DuPont            $0.34 vs street $0.21, raises 2016 EPS guidance to $3.25 from $3.15-$3.20

Merck            $1.07 vs street $0.99, raises revenue guidance

Baxter            $0.56 vs street $0.45

United Technologies    $1.76 vs street $1.66

Procter & Gamble    $1.03 vs street $0.98

 

Eli Lilly            $0.88 vs street $0.96

Whirlpool    $3.66 vs street $3.86, cuts 2016 EPS guidance to $14.00--$14.25 from $14.25-$14.75.

Visa            $0.78 vs street $0.73


Economic News


Germany IFO business climate        110.5 vs street 109.6
Germany IFO current assessment    115.0 vs street 114.9
Germany IFO expectations        106.1 vs street 104 5


Upcoming significant economic announcements include:

10:00 am EDT        US consumer confidence        street 101.5
10:00 am EDT        US Richmond Fed            street (4) 

11:30 am EDT        ECB Draghi speaking
1:00 pm EDT        FOMC Lockhart speaking

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Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.