Stock Market Update

The S&P 500 futures are down 29 points and are trading 0.5% below fair value, the Nasdaq 100 futures are down 134 points and are trading 0.5% below fair value, and the Dow Jones Industrial Average futures are down 180 points and are trading 0.4% below fair value.

There's a negative bias in early trading. Normal consolidation activity is still in play and some mega cap names show losses ahead of the open.

Earnings results since yesterday's close have garnered mixed responses. GE Aerospace (GE), Sherwin-Williams (SHW), and Dow component Verizon (VZ) are lower in pre-open action following their quarterly results. Other influential names received positive responses, including 3M (MMM) and RTX (RTX).

Another move up in rates has contributed to the premarket selling in equities. The 10-yr yield is up two basis points to 4.20% and the 2-yr yield is three basis points higher than yesterday at 4.05%.

There is no US economic data of note today. 

In corporate news:

• GE Aerospace (GE 186.02, -8.21, -4.2%): beats by $0.02, beats on revs; guides FY24 EPS in-line
• Danaher (DHR 276.00, +3.91, +1.4%): beats by $0.14, beats on revs
• General Motors (GM 49.48, +0.55, +1.1%): beats by $0.58, beats on revs; raises FY24 EPS above consensus
• 3M (MMM 141.40, +6.56, +4.9%): eats by $0.08, beats on revs; guides FY24 EPS in-line
• Verizon (VZ 43.03, -0.67, -1.5%): beats by $0.01, reports revs in-line; reaffirms FY24 guidance
• RTX (RTX 128.46, +2.56, +2.0%): beats by $0.11, beats on revs; guides FY24 EPS above consensus, revs in-line
• Sherwin-Williams (SHW 350.05, -31.75, -8.3%): misses by $0.18, reports revs in-line; guides Q4 revs in-line; reaffirms FY24 EPS guidance
• Lockheed Martin (LMT 609.00, -5.61, -0.9%): beats by $0.34, misses on revs; guides FY24 EPS above consensus, revs above consensus

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended Tuesday on a mixed note. Japan's Nikkei: -1.4%, Hong Kong's Hang Seng: +0.1%, China's Shanghai Composite: +0.5%, India's Sensex: -1.2%, South Korea's Kospi: -1.3%, Australia's ASX All Ordinaries: -1.6%.
  • In economic data:
    • Japan's August BoJ Core CPI 1.7% yr/yr (last 1.8%) o South Korea's September PPI -0.2% m/m (last -0.2%); 1.0% yr/yr (last 1.6%)
    • Hong Kong's September CPI 0.1% m/m (last 0.0%); 2.2% yr/yr (expected 2.4%; last 2.5%)
    • New Zealand's September trade deficit NZD2.11 bln (last deficit of NZD2.31 bln)
  • In news:
    • An adviser with China's Academy of Social Sciences speculated that the country's government could issue CNY12 trln of debt to stimulate the economy in 2025.
    • Chinese press reported that majority of companies listed in China saw positive profits in Q3 while press reports from Australia noted a record number of insolvencies in Q3, as they grew 10% qtr/qtr, which was up 46% yr/yr.
• Major European indices trade in the red while the euro is holding just above its lowest level since early August against the dollar. STOXX Europe 600: -0.8%, Germany's DAX: -0.3%, U.K.'s FTSE 100: -0.6%, France's CAC 40: -0.5%, Italy's FTSE MIB: -1.0%, Spain's IBEX 35: -1.0%.
  • In economic data:
    • U.K.'s September Public Sector Net Borrowing GBP16.61 bln (expected GBP17.4 bln; last GBP13.02 bln)
  • In news:
    • Shipping giant Maersk reported above-consensus preliminary results for Q3 and raised its guidance, including its container market outlook.
    • SAP and Logitech also beat expectations.
    • German Chancellor Scholz repeated his opposition to imposing new tariffs on electric vehicle imports from China.