Here are five things you should know for Monday, October 17:
1. – Stock futures rise as bond market volatility decreases
US stock futures rose strongly on Monday, while the dollar slipped against its global peers, as investors looked to ease bond market turmoil ahead of another busy week of earnings releases on Wall Street.
Britain’s financial markets, which have recently caused a global stir amid new Prime Minister Liz Truss’ plans to boost borrowing to pay tax cuts, stabilized on Monday after the appointment of a new finance minister who promised to shred up several of its key fiscal targets. .
The move left Gears dangling by a political thread, but it supported British bond markets with lower yields and firmness in the pound, which rose to 1.1259 against the US dollar. The UK 10-year government bond yield posted a 27 basis point drop at 4.06%, helping the US 10-year bond yield slip to around 3.957% in overnight trading.
Market volatility is likely to remain a staple for investors this week, however, with the Vix Index, the CBOE Group’s main volatility measure, up 1.7% overnight to 32.49 points. This movement indicates a daily fluctuation of about 72 pips over the next 30 days for the largest US benchmark.
Investors will also closely follow moves in the Fed Funds futures market, as traders are betting on a 93.4% chance of a 75 basis point rate hike from the Fed next month, after a hotter-than-expected September inflation reading of 8.2. %, with bets on the fifth consecutive move in December rising to 63.3%.
However, the US dollar, which tracks the greenback against a basket of its global peers and is usually seen as an indicator of broader risk appetite, was down 0.33% in European trading at 112.94 each, indicating a firmer optimism in Wall Street. Trading start.
Futures linked to the S&P 500 are priced up 40 points at the opening bell, while those linked to the Dow Jones Industrial Average are priced nearly 305 points higher. The technology-focused Nasdaq is priced at a profit of 136 points.
Shares in Europe were also higher, with London’s FTSE 100 up 0.4% and the region-wide Stoxx 600 rising 0.45%. Overnight in Asia, Japan’s Nikkei 225 finished 1.16% lower as the yen fell to a 24-year low of 148.65 against the dollar, while the ex-MSCI Japan index added 0.55% in recent trading hours.
2. – Next week: Earnings and housing data in focus
Earnings and housing data will likely keep Wall Street focused this week as investors look to the broad impact of the Fed’s relentless policy over the final months of the year.
Three massive Fed rate hikes, as well as the slow selling of bonds from the central bank’s $8 trillion balance sheet, have taken their biggest losses in the US housing market, where mortgage rates are now near 7%, the highest since 2006, causing Significantly appeared. Falling housing prices and halting new construction projects.
Homebuilders and building permits data for September will be released at 8:30 a.m. ET Wednesday, booked by the monthly update of the National Association of Home Builders on Tuesday and existing home sales data from the National Association of Realtors on Thursday, both at 10:00 a.m. ET.
About 66 companies on the S&P 500 are expected to report September quarter earnings this week, including Tesla (TSLA) johnson & johnson (JNJ) Netflix (NFLX) AT&T (T) American Airlines (AAL) and American Express (AXP) .
The S&P 500 collective profit for the third quarter is expected to rise 3.6% from a year ago to about $46.1 billion, according to data from Refinitiv, with a 5% growth rate forecast for the final three months of the year.
3. News Corp shares LEAP in reintegration plans with Fox
News Corp (NWSA) Shares rose strongly in pre-market trading after an update on Friday from billionaire Rupert Murdoch who suggested he could reintegrate his print media division with Fox Corp. (FOXA) After nearly a decade he chose to separate them.
Murdoch, 91, who with his son Lachlan has de facto control of Fox, said via a company statement that the two media groups had formed “two special committees” to “comprehensively assess the potential combination,” but said no deal could be presumed and presented. There is no time frame for making a decision.
Murdoch separated Fox from print company News Corp in 2013, then coordinated the sale of film and television assets to Disney. (dis) In 2019, about $71 billion.
Fox now mainly focuses on news and live sports rights, which are becoming increasingly expensive as big tech companies like Apple (AAPL) and amazon (AMZN) Continue expanding their media portfolio.
News Corp shares were up 6.15% in pre-market trading to indicate an opening bell price of $16.56 per share, while Fox Corp was down 0.48% to $31.40 per share.
4. – Bank of America stock rises before the third-quarter earnings update
American bank (buck) Shares rose in premarket trading before the lender’s third-quarter earnings update before the opening bell.
Bank of America is expected to follow its Wall Street rivals with net profit falling from last year about 10%, to 77 cents per share, with a slight rise in revenue of $23.57 billion. The net interest income gain, thanks in part to the large year-over-year increase in federal interest rates passed on to both consumers and commercial borrowers, is likely to offset the decline in investment banking fees and increased operating expenses.
Analysts will also look for any moves to allocate more capital to cover the possibility of bad loans as the domestic economy – and the global economy – weakens after JPMorgan. (JPM) Citigroup (c) Wells Fargo (WFC) The so-called collective credit reserve booked $1.563 billion on Friday.
Bank of America shares were up 1.6% in premarket trading to indicate an opening bell price of $32.20 per share.
5. – Splunk Stocks Jump as Starboard Activists Build Their Stakes
Splink (SPLK) Shares jumped higher in premarket trading after active investors in Starboard Value LP revealed a 5% stake in the data-focused cloud computing group.
Splunk, which lost chief financial officer Jason Child to British-based chipmaker Arm Holdings last month, has struggled to grow its cloud migration sales pipeline and may be ready for changes from Starboard, which is said to be planning to meet with company executives on Tuesday.
Shares of Splunk are down about 40% so far this year, giving the San Francisco-based group a market value of about $11 billion, about half of what Cisco Systems is worth. (CSCO) He is reportedly ready to pay for the set in February.
Splunk shares were marked 5.4% higher in premarket trading to indicate an opening bell price of $74.00 per share.