EmailThe S&P futures are down two points this morning, yet that is a pretty meaningless indication given the thin trading conditions and the realization that the cash market will be closed today.
The two-day closure of the NYSE due to weather is the first of its kind since 1888, which speaks to the once-in-a-lifetime (we hope) experience known as Hurricane Sandy.
As expected, Sandy produced a huge storm surge that has led to extensive flooding on the eastern seaboard. Early estimates peg economic losses at roughly $20 bln. That is outside the top five loss events in U.S. hurricane history and is just over 0.1% of nominal GDP.
Parts of New York City's subways are flooded and no specific timeframe has been established for when they will be operational again. Transit in the world's financial capital will be a mess in the near term, yet reports this morning suggest officials are actively planning to allow for trading on Wednesday, which is pivotal given that it is month end.
The weather disruption prompted many companies to delay the release of their earnings results for the September quarter.
Ford (F) headlines the companies that did report today. The auto maker beat the S&P Capital IQ consensus estimate of $0.30 by ten cents. True to the general reporting form of late, Ford's automotive revenue of $30.2 bln was below the $31.2 bln consensus estimate and represented a 2.9% decline from the year-ago period.
Johnson Controls (JCI) beat by two cents on a 3.7% decline in revenues; Archer Daniels (ADM) beat by two cents on a 0.4% decline in revenues; and Cardinal Health (CAH) beat by a penny on a 3.4% decline in revenue.
In other corporate news, there has been a management shakeup at Apple (AAPL). The heads of Apple's mobile software products group and retail operations will both be leaving the company.
Looking abroad, foreign markets were mostly higher on Tuesday, although gains have been generally less than 1.0%.
Japan was an exception. The Nikkei fell 1.0% after the Bank of Japan increased its asset purchase plan from 80 tln yen to 91 tln yen. The first impression then is that it appears the law of diminishing return is being enforced by investors in Japan.
Not the case in Europe where major bourses are all trading higher. Call it a relief bid, with reports suggesting a 0.3% decline in Spain's Q3 GDP was better than feared while Italy conducted a successful auction of 5-year and 10-year debt.
Bubbling beneath the eurozone surface, though, is Greece and the negotiating saga over whether to grant it additional financial aid. Nothing has been settled here, which means it has the potential to become an unsettling event in the days ahead.
The Consumer Confidence report, scheduled for today, has been postponed, but the Case-Shiller Home Price Index for August (Briefing.com consensus +1.7%; prior +1.2%) will be released as scheduled at 9:00 a.m. ET.
