Market Overview

Stocks Try To Extend Win Streak Amid Upbeat Earnings, Cooling Hiring Data

Share:
Stocks Try To Extend Win Streak Amid Upbeat Earnings, Cooling Hiring Data

Stocks bend higher in early action Wednesday, setting up the major averages for what could be a third straight day for gains, and so far largely untouched by a report showing slower private-sector job growth. Asian and European equity gains lend support after an uptick for energy shares yesterday and today helped elevate broader global stock market measures.

Stock traders continue to monitor the earnings situation, which includes a lighter round of mostly upside surprises and Facebook (NASDAQ: FB) still due to report in the after-hours session.

The Federal Reserve policy guessing game remains in play, too. Several Fed officials will speak throughout the day, although the key event is perhaps testimony by the central bank’s chief Janet Yellen to the House Financial Services panel on bank regulation at 10 a.m. Eastern. New York Fed President William Dudley will give a press briefing on research on income inequality at 2:30 p.m. Eastern, but may take questions on the near-term economy, while Fed Vice Chairman Stanley Fischer will speak to the National Economists Club at 6 p.m. Eastern.

As Fed members prepare to speak, short-term Fed funds futures market traders have priced in a 56% chance that the Fed activates the first interest rate hike since 2006 when it meets in December. That’s according to pricing calculations provided on the CME Group’s FedWatch Tool. That’s up from the 35% odds priced in right after the Fed took a pass on an October rate change but issued a statement entertaining the thought of a December hike. Traders in this market see a 64% chance for a hike in January and a 76% chance in March.

capture.jpg
ADP: Slightly Slower Pace. Private-sector employment gains continued in September at a slightly slower pace than in the prior month. Payroll processing firm ADP counted 182,000 new jobs across the private sector last month. ADP revised August's gain down slightly to 190,000 from a prior estimate of 200,000. Wall Street economists use ADP's data as a first read on what could show up in the Labor Department's broader employment report; the next one is due out Friday morning. Economists polled by MarketWatch expect the government's report to show that nonfarm payroll rose by a 177,000 jobs last month, up from the gain of 142,000 in August.

Tesla Shares Roar. Tesla Motors (NASDAQ: TSLA) stock was up sharply late Tuesday and early Wednesday. The luxury electric car maker issued a wider loss than a year-ago comparable. But it stuck to sales goals for the year and that was enough to cheer the bulls immediately after the report’s release. Tesla said it lost an adjusted $75 million, or $0.58 per share, compared with an adjusted loss of $0.48 a share in the year-ago period. Adjusted revenue hit $1.24 billion, up 33% from a year ago. Results were largely in line with Street expectations. Tesla said it expects to build 17,000 to 19,000 vehicles in Q4, bringing the total for 2015 to 50,000 to 52,000 vehicles. That's a slight tweak from a previous company forecast of 50,000 to 55,000 vehicles for the year.

Also in Earnings News Lumber Liquidators (NYSE: LL) issues a quarterly loss and names a new CEO; Time Warner (NYSE: TWX) profit and revenue beat Street expectations; Wendy’s (NASDAQ: WEN) stock is a strong early gainer after execs say its shift to a largely franchise model has boosted results; Michael Kors (NYSE: KORS) gains after its profit and revenue top industry analysts’ expectations.

Inclusion of specific security names in this commentary does not constitute a recommendation from TD Ameritrade to buy, sell, or hold.

Market volatility, volume, and system availability may delay account access and trade executions.

Past performance of a security or strategy does not guarantee future results or success.

Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. Options trading subject to TD Ameritrade review and approval. Please read Characteristics and Risks of Standardized Options before investing in options.

Supporting documentation for any claims, comparisons, statistics, or other technical data will be supplied upon request.

The information is not intended to be investment advice or construed as a recommendation or endorsement of any particular investment or investment strategy, and is for illustrative purposes only. Be sure to understand all risks involved with each strategy, including commission costs, before attempting to place any trade. Clients must consider all relevant risk factors, including their own personal financial situations, before trading.

TD Ameritrade, Inc., member FINRA/SIPC. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank. © 2015 TD Ameritrade IP Company, Inc. All rights reserved. Used with permission.

Posted-In: Earnings News Federal Reserve Movers Best of Benzinga

 

Related Articles (KORS + FB)

View Comments and Join the Discussion!

Johnson & Johnson to Acquire Novira Therapeutics; Financial Terms Not Dislcosed

Disney Acting Goofy After Time Warner Lowers Guidance