Breaking News
Investing Pro 0
🚨 Our Pro Data Reveals the True Winner of Earnings Season Access Data

Day Ahead : Top 3 Things to Watch

Stock Markets Oct 15, 2019 05:21PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
C
-1.49%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
BAC
+0.83%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DIS
-2.21%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
GS
+0.13%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
JPM
+1.55%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
AAPL
+2.44%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

Investing.com - Here's a preview of the top 3 things that could rock markets tomorrow.

1. Netflix and IBM Get Big Tech Earnings Underway

Netflix (NASDAQ:NFLX) and IBM (NYSE:IBM) roll out earnings tomorrow after the closing bell.

With the streaming wars gathering pace, analysts are keen to get a sense of whether Netflix can revive its subscriber growth following weaker-than-expected numbers in the second quarter.

For the third quarter, Netflix said it expected to add 7 million subscribers, above the 6.1 million reported a year earlier, with 800,000 net new subscribers in the U.S.

Netflix is expected to report earnings of $1.03 per share on revenue of $5.25 billion.

As well as earnings and subscriber numbers, guidance will also come under added scrutiny, with Apple (NASDAQ:AAPL) and Walt Disney (NYSE:DIS) set to release their streaming services next month.

Against the backdrop of rising competition, Wedbush said it expects upside to total subscriber guidance “appears likely given the solid slate of new content that debuted in Q3, which should help dampen domestic churn.”

The competition question has definitely hurt the stock. It was up 33.2% in the first quarter but lost almost all of that gain a big third-quarter slump. It's now up 6.2% on the year.

IBM (NYSE:IBM) is expected to report earnings of $2.67 a share on revenue of $18.23 billion.

To step up its shift into the higher-margined cloud computing sector, IBM acquired open-source software giant Red Hat in July. Many on Wall Street are now eagerly awaiting the report to gauge the impact of the acquisition.

The aggressive M&A activity, however, has kept a lid on free cash flow and profit growth and will likely continue to do so, according to Wedbush.

"We believe IBM’s results will continue to be impacted by structural headwinds taking place at the company’s services and software segments, as well as by weak free cash flow generation and profitability given the company’s aggressive M&A activity," Wedbush said in a note.

IBM shares are up nearly 26% this year, with most of the gain coming in the first quarter as stocks recovered from 2018 end-of-year slump.

2. Bank of America Earnings Due

Before the bell on Wednesday, Bank of America (NYSE:BAC) brings the curtain down on earnings for big Wall Street banks following reports from JPMorgan Chase (NYSE:JPM), Goldman Sachs (NYSE:GS), Citigroup (NYSE:C) and Wells Fargo (NYSE:WFC).

Like that of its peers, Bank of America’s earnings will likely reflect the bittersweet impact of Fed rate cuts, which has tended to hurt interest income growth while boosting loan growth.

Bank of America is expected to report earnings of 55 cents on revenue of $22.6 billion. Shares are up 20.7% this year.

3. Retail Sales, Beige Book Eyed

Retail sales data will give traders another opportunity to gauge the strength of the U.S. consumer, one of key drivers keeping the U.S economy from succumbing to the slowdown in global growth.

The Commerce Department will release the numbers for September at 8:30 AM ET (12:30 GMT).

Economists expect that retail sales rose 0.3% last month, down from a 0.4% rise the month before, while core retail sales, which exclude automobile sales, rose 0.2% from flat the previous month.

Meanwhile, the Federal Reserve’s Beige Book report, due at 2:00 PM ET (18:00 GMT), will also come under the spotlight ahead of the Federal Open Market Committee's two-day rate meeting at the end of the month.

The report is an anecdotal description of the state of the domestic economy compiled by staffs at the 12 Federal Reserve Banks.

Day Ahead : Top 3 Things to Watch
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Adamo Nals
Adamo Nals Oct 15, 2019 6:36PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The market is very due for a correction. The market is priced for perfection. With none of the headwinds priced in at all. That’s a scary thing. I expect 2900 tomorrow and the next couple of days
John Richardson
John Richardson Oct 15, 2019 6:36PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
People have been screaming correction for ages. If I follow your logic why did we not drop to 2900 today, or yesterday, or last week? While I agree with the sentiment that stocks are overpriced, don't short anything hoping a correction HAS to happen soon. Buy something more stable and accept that if there is a correction you won't get hit so hard.
Kent Beason
Kent Beason Oct 15, 2019 6:36PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Last 18 months consolidation suggests launch base. Could certainly be wrong! /NQ taking lead. For now.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email