Morning Minutes 10/16/2018

Can the Investment Industry Save the Stock Market?

October 16, 2018
9:00 am EDT

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Market Commentary By:
Colin Cieszynski, CFA, CMT
Chief Market Strategist
ccieszynski@siawm.com
+1 (647) 282-4428

So far the reaction to earnings reports, which have been dominated by big banks, has been pretty underwhelming. Today, the focus shifts to the investments sector with big asset managers and brokerages reporting. Results have been positive, so today should give a good indication if investors are looking for reasons to step up to the plate or for reasons to run to the sidelines this earnings season.

Highlights of today’s earnings reports include:

 

Blackrock                      EPS $7.52 above street $6.84 and year ago $5.90, assets under management up 8%

Goldman Sachs            EPS $6.28 above street $5.38, investment banking drove upside surprise, trading was a bit soft.

Morgan Stanley             EPS $1.17 above street $1.01, Revenues $9.87B above street $9.55B

Johnson & Johnson       EPS $2.05 above street $2.03, Sales $20.3B above street $20.05B

Netflix, Lam Research, IBM and railroad CSX report after the close this afternoon.

 

On these results, US indices are trading up 0.75% to 1.00% in premarket action, while the VIX has dropped back under 20. Gold is holding on to its recent gains holding above $1,230/oz. Crude oil and natural gas are down slightly as investors await this week’s inventory reports which run between this afternoon and Thursday morning.

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