Before the bell: Futures suggest a lower open despite positive earnings reports.[M]
S&P futures vs fair value: -1.00. Nasdaq futures vs fair value: -10.80.
Several widely held companies continue to post better-than-expected third quarter earnings results, including Altria Group (MO), Bristol-Myers (BMY), and UPS (UPS),
but fear of a recession has market participants focusing on the latest
unemployment data for clues regarding the health of the economy. Initial jobless claims
for the week ending October 18 totaled 478,000, which exceeded the
consensus estimate of 468,000 claims. Initial claims were up 15,000
from the prior week. The initial claims data follows word from The
Wall Street Journal that Goldman Sachs (GS) will be cutting 10% of its workforce and word from Dow Jones that General Motors
(GM) will also be making layoffs. Futures have held relatively steady
at more recent levels, but continue to indicate stocks will open the
session to the downside.
