NYSE Morning Update:
Ahead of the Bell: Dow futures are trading down 94 points and S&P futures are trading down 10 points on disappointing economic data from the euro zone and weaker than expected quarterly results from tech giant, Apple and online retailer, Amazon. German consumer confidence was the lone bright spot, as it rose more than expectation. Apple reported a second straight quarter of lower than forecasted earnings as a result of falling iPad sales. Amazon also reported a quarterly loss due to higher expenses and a slowdown in the global economy.
On the economic calendar today, the Commerce Department will release a first reading on 3rd quarter GDP before the market opens, a reading of 1.9% is expected compared with 1.3% for the previous quarter. The Reuter’s/University of Michigan’s consumer sentiment index for October will be out after the market opens and it is forecasted to be 83.1 versus the same reading for September.
The dollar is up against the major currencies. Gold is trading at $1,702. Crude oil is currently trading at $85 a barrel.
Yesterday, stock finished positive, after a selloff earlier in the week on better than expected weekly jobless claims data and upbeat existing homes figures. Investors were encouraged that Japan will add to its stimulus policies.
On CNBC today, Byron Wein of Blackstone Advisory Partners, talked about the markets bumpy ride. Wein said the events of the last month are worrying him, as third quarter earnings have not been great, although he expects the 4th quarter to come in better. He said the fiscal cliff is weighing on growth, and he believes whoever wins the elections will ultimately defer parts of the fiscal cliff to 2013. Wein said we have to bring the political parties together and compromise with spending cuts and tax revenues and he believes firmly that we cant tweak the tax code, we have to revise it.
The GDP came in at 2%.