Good morning traders!
The S&P 500 ($SPY) is trading below yesterday’s close. Let’s get into it…
Stock futures face a mixed day as concerns over the Middle East conflict and corporate earnings reports weigh on the market. One of the key highlights was the unexpected release of robust U.S. retail sales data for September, which surged by 0.7%, surpassing expectations of a 0.2% rise. This positive economic indicator raised questions about consumer spending trends.
Major companies, including Bank of America, Goldman Sachs, Johnson & Johnson, and Lockheed Martin, reported earnings. Bank of America’s shares rose 1%, but Goldman Sachs saw a 0.6% decline. Johnson & Johnson’s stock surged by 1.6%, while Lockheed Martin’s shares were down 1.5% before the market opened. Meanwhile, Tesla, the electric vehicle giant, faced a 0.5% drop as it initiated a recall of 54,676 Model X vehicles due to a potential issue related to the vehicle controller’s ability to detect low brake fluid. Tesla released a software update to address the problem.
Amid global economic developments, Asian markets posted gains, with Tokyo’s Nikkei 225 rising 1.2%, while concerns lingered over China’s economic growth, expected to dip below 5%. European markets showed mixed performance, with Germany’s DAX down 0.4%, and Britain’s FTSE 100 up by 0.2%. Investors remained cautious as they monitored the evolving Middle East conflict and its potential impact on markets. Oil prices exhibited stability around $87 a barrel, and Treasury yields on the 10-year U.S. Treasury bond inched higher to 4.76%, continuing Monday’s rebound. Over 50 S&P 500 companies were scheduled to report earnings, and the U.S. economy displayed resilience despite higher interest rates implemented to combat inflation.
Tuesday Economic Events:
Retail Sales 8:30am ET – High Volatility Expected
Redbook Sales 8:55am ET
Industrial Production 9:15am ET
Business Inventories 10:00am ET
Housing Market Index 10:00am ET
API Crude Oil Data 4:30pm ET
Fed Speaker Scheduled:
John Williams 8:00am ET
Michelle Bowman 9:20am ET
Thomas Barkin 10:45am ET
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