U.S. PRE-MARKET INDICATORS
-Dow Industrial futures down 220 points
-S&P 500 futures down 27 points
-Nasdaq futures down 14 points
-Nasdaq-100 Pre-Market Indicator up 8.44 at 1291.87.
GLOBAL SENTIMENT
Nikkei down 6.8%
Hang Seng down 5.2%
FTSE down 3%
PRE-MARKET SECTOR WATCH
(+,-) Large cap tech: mixed
(-) Chip stocks: lower
(+,-) Small cap stocks: mixed
(+,-)Drug stocks: mixed
(-) Software stocks: lower
(+,-) Internet stocks: mostly firmer
(-) Financial stocks: mostly lower
(+) Airline stocks: firmer
DOWNSIDE MOVERS
(-) GM down as FT report says company looking for capital infusion as alternative to Chrysler deal.
(-) COP earnings top year-ago levels but stock declines.
(-) MDCO guides for sales below Street.
(-) SNDK hitting extended-hours lows in response to pulled Samsung bid.
(-) R misses with earnings, guides below Street.
(-) KMB just beats with Q3, guides for FY below Street view.
(-) BA results decline vs year ago.
(-) T meets with revenue, misses with earnings.
(-) MRK beats, announces job cuts.
(-) GSK reports drop in profit, suspends buybacks.
UPSIDE MOVERS
(+) MCD reports jump in sales, beats Street estimates.
(+) EMC tops year-ago levels.
(+) DTG issues liquidity update.
(+) NOC tops with Q3 results, raises FY view.
(+) GD beats with Q3 EPS, revs just shy.
(+) VMW continues sharp upside after results.
(+) YHOO firmer but within evening range after results, job cuts announced.
MARKET DIRECTION
Futures are flashing deep losses for the major stock indexes at today's open as recession fears grip global markets and oil drops below $70 a barrel. The Nasdaq is indicating a slightly better beginning, at least relative to the other indexes.
Gold futures fell, at one point dropping to below $750 an ounce for the first time in more than a month, as the U.S. dollar continued strengthening. Gold prices have dropped nine out of the ten trading days since Oct. 8.
The earnings story is mixed but overall decent Q3 results look to give way to Q4 guidance largely below the current Street view.
Leading, active-volume decliners include:
Merck & Co. (MRK) reports Q3 non-GAAP EPS of $0.80 vs $0.75 a year earlier and just topping the Thomson Reuters mean analyst estimate for $0.79 Sales were down 2% from the year earlier, to $5.9 billion, in line with the Street.
The company expects full year non-GAAP EPS of $3.28 to $3.32. The Street is at $3.28.
Boeing (BA) reports Q3 EPS of $0.96 per share, down 33%. Revenue was down 7% to $15.3 bln. The Street view for the quarter was $0.98 per share in earnings on revenue of $14.6 bln. The company noted that the results reflect an ongoing machinists' strike and supplier production challenges on customer-furnished galleys for certain wide-body airplanes.
Notable gainers this morning, however, are McDonald's (MCD) and Apple (AAPL).
MCD pared its gain closer to the bell. McDonald's (MCD) Q3 EPS was $1.05 per share, up 27% over the year ago quarter and ahead of expectations of $0.98 per share. Revenue was $6.26 bln, up from $5.9 bln a year ago and better than estimates of $6.18 bln.
Apple (AAPL) reports Q4 revs of $7.9 bln, below the Wall Street analyst view of $8.0 bln. EPS was $1.26 per share, better than expectations of $1.11 per share. The year ago results were $6.22 bln in revenue and earnings of $1.01 per share.
For Q1, the company is guiding for revenue in the range of $9 to $10 bln and EPS between $1.06 and $1.35 per share. The analyst mean on Thomson Reuters is $10.57 bln in revenue and earnings of $1.65 per share.
Earnings releases remain brisk in today's extended-hours session. Scheduled to report: AMZN, AMGN, ANAD, BIDU, CTXS, JBLU, NVEC, STX, SCSS, MTSN, LRCX, LVLT, IRBT.
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