MARKET UPDATE
Equities are up marginally in the U.S. after being soft earlier this morning. We have DJIA futures up 15 points and S&P futures up 2 points. Asia: Nikkei +0.1%; Hang Seng +1.7%; Shanghai +1.9%; Europe: FTSE +1.1%; CAC +0.9%; DAX +0.9%. Crude is up marginally with NYMEX WTI Crude up $0.14 at $81.33.
ECONOMIC & MACRO EVENTS
These are today’s top economic data:
10:00 AM EST Existing Home Sales (Sept.)
Major earnings reports are due from ACPW, CHRT, DLA, FO, HON, MSFT, IR, POWI, SLB, SJR, WHR.
ANALYST UPGRADES & DOWNGRADES
Upgrades
Itron (ITRI) Raised to BUy at Deutsche Bank.
PNC Bank (PNC) Raised to Overweight at Wells Fargo.
Valero Energy (VLO) Raised to Overweight at Barclays.
Downgrades
GlaxoSmithKline (GSK) Cut to Hold at Jefferies.
Leap Wireless (LEAP) Started as Neutral at Credit Suisse.
BULLISH EVENTS
Amazon.com Inc. (NASDAQ: AMZN) posted $0.45 EPS on a 27% revenue gain of $5.45 billion, Thomson Reuters was at $0.33 EPS and $5.03B in revenues. The guidance was $8.12 to $9.12 billion vs. $8.12 billion estimates. Shares hit new 52-week highs last night.
Microsoft (MSFT) is on deck with earnings, although the software giant's numbers are not yet out. Calling this 'bullish' before the report is merely a positioning of where the stock has been because earnings can go either way.
Synaptics Inc. (NASDAQ: SYNA) is getting a relief rally after beating estimates. Earnings were $0.48 EPS and a 3% revenue gain to $119.6M vs. Thomson Reuters estimates of $0.42 EPS and $116.4 million in revenue. There was a 10% gain or more on a relief rally here.
Fortune Brands (FO) beat earniongs. The booze company posted Q3 EPS of $0.77 vs. $0.61 estimates. Revenues were down 10% but beat expectations at $1.72 billion vs. $1.63 billion estimates. Shares are up 2% ahead of the open.
Ingersoll-Rand (IR) posted Q3 EPS of $0.70 vs. $0.61 estimates. Revenue was down 19% at $3.48 billion versus estimates of $3.56 billion. The company sees 2010 EPS of $2.00 to $2.40 EPS vs. consensus of $1.98.
BEARISH EVENTS
Broadcom Corp. (NASDAQ: BRCM) posted earnings of $0.40 in non-GAAP EPS (was $0.16 in GAAP EPS) and a 20% revenue jump sequentially and 3.4% lower than a year ago to $1.254 billion. Thomson Reuters estimates were $0.33 non-GAAP EPS and $1.16 billion in revenues. It is guiding revenues flat sequentially. Shares fell sharply after the report.
Capital One Financial (NYSE: COF) posted net income of $425.6 million, or $0.94 EPS and income from operations of $1.03 EPS compared to estimates of $0.14 EPS. "We are successfully weathering the storm, but the storm is not over..." Shares were up over 7% on last look.
SunPower Corporation (NASDAQ: SPWRA) beat estimates with $0.42 EPS as revenues rose 56% to $466 million vs. Thomson Reuters estimates of $0.40 EPS and $420.1M revenue; Gross margin was down 1.9 percentage points at 20.7%. The problem is mixed guidance: $1.15 to $1.25 EPS for 2009 vs. $1.21 consensus on revenues of $1.425 to $1.50 billion (prior was $1.35 to 1.70 billion and estimate is $1.43 billion. Shares were down over 10% on last look.
Honeywell (HON) posted Q3 earnings that were down about 15% as sales struggle in all segments. The earnings did beat expectations with $0.76 EPS vs. $0.72 estimates. Revenue was down 17% at $7.7B vs. $7.88B.
Schlumberger Ltd. (SLB) said earnings were down 48% at $787 million, or $0.65 EPS vs $0.63 estimates. Revenue fell by 25% to $5.43 billion from $7.26 billion and missed estimates of $5.48 billion. The company said demand for oil and gas has gotten stronger, and it expects further improvement.
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