S&P 500 futures gain a few points on a better-than-expected
durable goods orders report: S&P futures vs fair value: +3.50.
Nasdaq futures vs fair value: +6.80.
September durable goods orders rose 0.8%, better than the
expected decline of 1.1%. Excluding transportation, durable goods
orders fell 1.1%, which was better than the expected decline of 1.5%.
Meanwhile, crude prices are rallying, up 5.8% to $66.41 per barrel. Kellogg (K) posted better than expected third quarter earnings and issued in-line guidance for fiscal year 2008.
In earnings news, Procter & Gamble (PG) earned $1.03 in its fiscal third quarter, a 14% year-over-year increase, which was $0.05 better than expectations. Comcast (CMCSA), Kraft (JFT) and Newmont Mining (NEM) also topped expectations. Corning (GLW) and Garmin (GRMN) and Moody's (MCO) beat for their latest quarter, but issued downside guidance. Office Depot (ODP) and Qwest (Q) reported worse-than-expected earnings. In overseas trading, Japan's Nikkei rose 7.7% on continued reports that the Bank of Japan will cut its benchmark rate by 25 basis points. The Euro Stoxx 600
is up 5.1% with banks leading the way. Fed funds futures fully price in
a 50 basis point rate cut, and suggest a 42% chance of a 75 basis point
cut.
