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Pre-market gains reflect a couple things this morning: five straight sessions lower on the S&P 500 is bringing some value buyers to market, and Q3 earnings results from several companies trading down year to date were better than expected. The Dow is +165 points at this hour, the S&P is +25 and the Nasdaq is +100 points currently.
Bond yields between 2-year and 10-year remain inverted; the 10-year, which had crossed the 5% rubicon over the past couple days is once again decidedly below it: 4.85%. The 2-year, while off its recent highs, is still carrying a 5-handle: 5.08%. The yield curve inversion, which has been with us a year and a half, does not look quite ready to unfold yet; we’d be happier if it did so lower than 5%, although these high yields are helping the Fed mute equity exuberance among market participants.
General Motors (GM - Free Report) beat earnings estimates this morning by a strong +23.9%, posting earnings of $2.28 per share which outpaced the $1.84 in the Zacks consensus. This is even better than the year-ago figure, by 3 cents per share. Revenues of $44.93 billion outperformed estimates by +1.93% in Q3. Guidance has been removed due to the ongoing United Autoworkers (UAW) strike. This company is trading down -13% year to date, below the +9.8% on the S&P, but is only flat on the earnings news.
3M (MMM - Free Report) also surpassed expectations in its Q3 earnings ahead of today’s opening bell, posting $2.68 per share, as compared to the $2.34 analysts were expecting. Still down a penny from the year-ago quarter, 3M easily swooped past revenue estimates when it put up $8.312 billion in quarterly sales, for a top-line beat of +4.5%. Shares of the industrial conglomerate are up +5% on the news, but still down roughly -25% year to date.
Archer Daniels Midland (ADM - Free Report) also took out estimates in its Q3 report this morning, putting up earnings of $1.63 per share versus $1.50 expected for a positive surprise of +8.67% in the quarter. Revenues of $21.7 billion improved over consensus by +6.56% (though were still below the $24.68 billion reported a year ago). Shares of the agriculture giant are up marginally on the news, but still down more than -20% year to date.
And Coca-Cola (KO - Free Report) , limping into earnings season with a Zacks Rank #4 (Sell), turned some heads with its outperformance on the bottom line: 74 cents per share versus expectations of 69 cents. Revenues of $11.95 billion also outpaced estimates by +4.4% in the company’s Q3. Shares are up +3.3% in pre-market activity on this earnings report; Coke shares had been down -15% year to date.
Later this morning, we’ll get a look at S&P flash PMI in Services and Manufacturing numbers. Both headlines are expected to come down somewhat month over month, to 49.9 in Services and 49.0 on Manufacturing, from 50.1 and 49.8 in the prior months’, respectively. Services have been ratcheting down from May near-term highs in Services, while Manufacturing has been a mixed bag over the past year, from highs over 50 to lows down near 46.
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Pre-Markets Green on Strong Earnings Numbers
Pre-market gains reflect a couple things this morning: five straight sessions lower on the S&P 500 is bringing some value buyers to market, and Q3 earnings results from several companies trading down year to date were better than expected. The Dow is +165 points at this hour, the S&P is +25 and the Nasdaq is +100 points currently.
Bond yields between 2-year and 10-year remain inverted; the 10-year, which had crossed the 5% rubicon over the past couple days is once again decidedly below it: 4.85%. The 2-year, while off its recent highs, is still carrying a 5-handle: 5.08%. The yield curve inversion, which has been with us a year and a half, does not look quite ready to unfold yet; we’d be happier if it did so lower than 5%, although these high yields are helping the Fed mute equity exuberance among market participants.
General Motors (GM - Free Report) beat earnings estimates this morning by a strong +23.9%, posting earnings of $2.28 per share which outpaced the $1.84 in the Zacks consensus. This is even better than the year-ago figure, by 3 cents per share. Revenues of $44.93 billion outperformed estimates by +1.93% in Q3. Guidance has been removed due to the ongoing United Autoworkers (UAW) strike. This company is trading down -13% year to date, below the +9.8% on the S&P, but is only flat on the earnings news.
3M (MMM - Free Report) also surpassed expectations in its Q3 earnings ahead of today’s opening bell, posting $2.68 per share, as compared to the $2.34 analysts were expecting. Still down a penny from the year-ago quarter, 3M easily swooped past revenue estimates when it put up $8.312 billion in quarterly sales, for a top-line beat of +4.5%. Shares of the industrial conglomerate are up +5% on the news, but still down roughly -25% year to date.
Archer Daniels Midland (ADM - Free Report) also took out estimates in its Q3 report this morning, putting up earnings of $1.63 per share versus $1.50 expected for a positive surprise of +8.67% in the quarter. Revenues of $21.7 billion improved over consensus by +6.56% (though were still below the $24.68 billion reported a year ago). Shares of the agriculture giant are up marginally on the news, but still down more than -20% year to date.
And Coca-Cola (KO - Free Report) , limping into earnings season with a Zacks Rank #4 (Sell), turned some heads with its outperformance on the bottom line: 74 cents per share versus expectations of 69 cents. Revenues of $11.95 billion also outpaced estimates by +4.4% in the company’s Q3. Shares are up +3.3% in pre-market activity on this earnings report; Coke shares had been down -15% year to date.
Later this morning, we’ll get a look at S&P flash PMI in Services and Manufacturing numbers. Both headlines are expected to come down somewhat month over month, to 49.9 in Services and 49.0 on Manufacturing, from 50.1 and 49.8 in the prior months’, respectively. Services have been ratcheting down from May near-term highs in Services, while Manufacturing has been a mixed bag over the past year, from highs over 50 to lows down near 46.