Wednesday October 26th

26-10-2016

Wall Street takes its pick from earnings as Coca-Cola, GSK, Comcast, Tesla report

U.S. stock index futures pointed to a lower open on Wednesday, as investors got ready to wade through another downpour of corporate earnings, while keeping an eye on oil and data. Earnings season is in full swing this week, with some of the biggest U.S. companies reporting. On Wednesday, the Street will be on alert for news out from Tesla, VMWare and Cheesecake Factory, among others. Out of the raft of corporates reporting, investors also parsed through results from Coca-Cola Company, Boeing, GlaxoSmithKline, NBC Universal parent company Comcast and Biogen. Boeing shares jumped nearly 4 percent in the premarket, helping Dow futures ease some of their earlier losses. While earnings are expected to be the talk of the town, economic data releases could also move markets. On Wednesday, U.S. trade deficit numbers and Markit flash US services PMI are due out at 8:30 a.m. ET and 9:45 a.m. ET, respectively, while new home sales are expected at 10 a.m. ET. Mortgage Applications fell 4.1 percent last week. Meanwhile, the topic of oil remains on the table with prices falling on Wednesday, as concerns over a global supply glut continue to resurface. Around 7:36 a.m. ET, U.S. crude stood around $49.19 per barrel, while Brent hovered around $49.97. Moves in the U.S. dollar will also be watched by investors. The currency has been boosted recently, by hopes that the U.S. Federal Reserve will raise interest rates by the end of 2016; however the currency came under slight pressure late Tuesday and early Wednesday. European stocks traded lower, while Asia-Pacific indexes mostly ended in negative territory overnight. Among other Asia-Pacific markets, the Kospi slipped 23.28 points, or 1.14 percent, to 2,013.89 amid local reports that said travel agencies in mainland China were reportedly ordered by provincial governments to reduce the number of tourists visiting South Korea, according to the Nikkei business daily. In Japan, the Nikkei 225 bucked the generally negative regional trend to close up 26.59 points, or 0.15 percent, at 17,391.84. Hong Kong's Hang Seng index finished down 239.68 points, or 1.02 percent, at 23,325.43. Chinese mainland shares were also lower, with the Shanghai composite down 14.29 points, or 0.46 percent, at 3,117.64, while the Shenzhen composite fell 8.38 points, or 0.40 percent, to 2,069.36. Major indexes in India, Singapore and Thailand also traded down. In the previous session, U.S. markets also closed in the red. Gold prices stayed firm on Wednesday as stronger physical demand for the precious metal, ahead of India's late-October festival season, offset a steady U.S. dollar. Demand for bullion is expected to pick up ahead of festivals such as Dhanteras and Diwali, which is also a time when gold is traditionally given as a gift. Spot gold was down about 0.2 percent at $1,270.90 an ounce. In the previous session, it hit $1276.67, its highest since Oct. 5. U.S. gold futures was down 0.15 percent at $1,271.70 an ounce. Flows into exchange-traded funds and pick up in Asian demand were keeping the metal stable, said Dominic Schnider of UBS Wealth Management in Hong Kong.