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Holding Pattern Continues; CNC, BAH Post Big Beats

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Friday, October 25, 2024

Pre-market futures are up after a couple mixed days this week. We appear to be on something of a different trajectory this week — or likely a holding pattern — after a robust early autumn that saw a good start to October after an unseasonably profitable September. 

But until the General Election on November 5th — and, let’s face it, that whole trading week will likely pass before we know who wins the presidency — we don’t expect much directional impetus in the stock market. Currently, the Dow is +99 points, the Nasdaq +80 and the S&P 500 +19.
 

Durable Goods Orders Moderate in September


Before Friday’s opening bell, we saw the latest report on Durable Goods Orders for the month of September. These are preliminary figures, so they are very likely prone to at least a little tweaking on subsequent updates.

Headline Durable Goods of -0.8% was better than the -1.0% estimate, and equal to the big downward revision (0.0% reported) a month ago. Ex-transportation, this springs back to life: +0.4%, though down from the upwardly revised +0.6% the previous month. Non-Defense, ex-aircraft (a proxy for “regular” business spending) reached +0.5% last month. Steady as she goes. Shipments was the only real scuff mark: -0.3%, down 20 basis points (bps) from the August’s -0.1%.
 

Centene Posts Big Q3 Upside Surprise


Managed healthcare provider Centene (CNC - Free Report) posted Q3 earnings of $1.62 per share this morning, up +16.5% from the $1.39 expected. Revenues of $42.02 billion outpaced expectations by more than +10% for the quarter, up from $38.04 billion in the year-ago quarter.

Shares of Centene have gained +13% so far this morning on the news. The stock had been down -17% year to-date (so it’s still officially underwater this morning), but this bounce-back is nice to see after Centene’s earnings miss the prior quarter. For more on CNC’s earnings, click here.

Check out the updated Zacks Earnings Calendar here.
 

Booz Allen Hamilton Demonstrates Strength in Q2


Military intelligence services firm Booz Allen Hamilton (BAH - Free Report) also reported earnings this morning, for fiscal Q2 in BAH’s case, with strong beats on both top and bottom lines. Earnings of $1.81 per share was nicely above the $1.48 in the Zacks consensus, for a +22% positive surprise in the quarter. Revenues of $3.15 billion outpaced estimates by +6.5%. For more on BAH’s earnings, click here.
 

What to Expect for Friday in the Stock Market


After the opening bell, the latest Consumer Sentiment survey from the University of Michigan puts out its final print for October, expected to come in at 69. Also, Boston Fed President Susan Collins will make an appearance later this morning.

But we all know the election results are what we’re waiting on to send markets higher (or lower, depending what happens). Before that, next week’s PCE report and Jobs Week together will help inform the Fed’s interest rate decision, which comes out two days after the election. Until then, no one is expected to make any sudden moves that change the overall balance of trading.

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