Alphabet Disappointment Weighs on US Futures as Q3 Growth Accelerates

A major earnings disappointment from Google parent Alphabet last night is weighing on US index futures in premarket trading this morning. Investors have taken stronger-than-expected US Q3 GDP growth and in-line Q3 inflation as neutral to positive, pushing US Treasury yields and the US Dollar down slightly.

US Q3 GDP grew 3.4%, ahead of the Street’s 3.2% estimate and up from 2.2% previously, showing economic growth accelerating more than expected. The Q3 Core PCE inflation component increased to 3.1%, in line with expectations and up from 3.0% previously.

Alphabet disappointed on earnings at $2.12 versus Street expectations of $3.02, with its shares down 11.2% premarket. Chipotle Mexican Grill reported $0.27 versus Street expectations of $0.29 and is up 8.3% premarket, while Canadian Pacific reported $0.90 versus Street expectations of $0.92. Microsoft beat expectations with $4.89 versus Street expectations of $4.72, FedEx reported $3.74 versus $3.34, and Ford Motor delivered $0.49 versus $0.41.

NASDAQ futures are down 1.2%, while Dow futures are down 0.3%. In Asia, the Nikkei gained 1.1% and the Hang Seng fell 0.6%. In Europe, the DAX is up 0.9% and the FTSE is up 0.4%.

Crude Oil is down 0.9%, trading above $100.00/bbl, while Brent Crude is down 0.8%, trading below $115.00/bbl. Gasoline is down 1.3%, trading below $3.15/gallon. Gold is down 0.4%, holding above $4,000/oz, while Copper is down 1.1%, slipping below $6.60/lb. Silver is down 2.0%.

The US 10-year Treasury note yield is steady near 5.00%, while the US 30-year Treasury note yield is steady near 5.30%. The USD Index is steady. The Euro is down 0.1%, while the Loonie is up 0.1%.

Looking ahead, earnings season continues this week. Headliners later today include Amazon.com, Intel, Starbucks, Teck Resources, Restaurant Brands and MasterCard. Tomorrow, reports are due from ExxonMobil, Chevron, Magna International and Canadian National Railway. The Bank of Japan is expected to maintain its benchmark interest rate at 1.25% when it meets on Friday.

Share:

Read More:

Terms and Conditions:


This information is for Investment Advisors only. The website is for informational purposes only and is not intended to provide a complete description of SIA Wealth Management’s products or services. Past performance is not indicative of future results. It should not be construed as investment advice or relied upon in making an investment decision. Products and services of SIA Wealth Management are only offered in jurisdictions where they may be lawfully offered for sale. The information contained in this Website does not constitute an offer or solicitation by anyone to buy or sell any investment fund or other product, service or information to anyone in any jurisdiction in which an offer or solicitation is not authorized or cannot be legally made or to any person to whom it is unlawful to make an offer of solicitation. All products and services are subject to the terms of each and every applicable agreement. It is important to note that not all products, services and information are available in all jurisdictions outside Canada.

SIA Wealth Management Inc. (SIAWM) specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investor’s investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, Advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIA Wealth Management Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.