| | The major U.S. index futures are pointing to a higher opening on Thursday, with stocks likely to regain ground following the sell-off seen in the previous session.
Bargain hunting may contribute to initial strength on Wall Street, with traders picking up stocks at reduced levels after the major averages ended Wednesday?s trading at multi-month closing lows.
A positive reaction to earnings news from big-name companies such as Microsoft (MSFT) and Twitter (TWTR) may also generate buying interest after disappointing earnings news weighed on the markets in the previous session.
Traders may be somewhat reluctant to get back into the markets following recent volatility, however, with lingering concerns about geopolitical tensions and global economic growth leading to continued uneasiness.
Following Tuesday?s attempted recovery from an early sell-off, stocks showed a substantial move back to the downside during trading on Wednesday. The Dow dropped to its lowest closing level in over three-months, while the Nasdaq and the S&P 500 tumbled to five-month closing lows.
The major averages saw further downside going into the close, ending the day just off their lows of the session. The Dow plunged 608.01 points or 2.4 percent to 24,583.42, the Nasdaq nosedived 329.14 points or 4.4 percent to 7,108.40 and the S&P 500 plummeted 84.59 points or 3.1 percent to 2,656.10.
The renewed selling pressure on Wall Street largely reflected another negative reaction to the latest batch of earnings news from several big-name companies.
Shares of AT&T (T) moved substantially lower after the telecom giant reported third quarter earnings that came in below analyst estimates.
Delivery giant UPS (UPS) also fell sharply after reporting third quarter earnings that matched estimates but weaker than expected revenues.
On the other hand, shares of Boeing (BA) moved to the upside after the aerospace giant reported better than expected third quarter results and raised its full-year guidance.
Negative sentiment was also generated by the release of a report from the Commerce Department showing a steep drop in new home sales in the month of September.
The report said new home sales plunged by 5.5 percent to an annual rate of 553,000 from the revised August rate of 585,000.
Economists had expected new home sales to edge down to a rate of 625,000 from the 629,000 originally reported for the previous month.
With the substantial decrease, new home sales fell to their lowest level since hitting a rate of 546,000 in December of 2016.
News explosive devices were sent to several prominent Democratic figures, including former President Barack Obama and Hillary Clinton, as well as CNN may also have led to some uneasiness on Wall Street.
Biotechnology stocks turned in some of the market's worst performances on the day, dragging the NYSE Arca Biotechnology Index down by 7.2 percent to its lowest closing level in well over five months.
Within the biotech sector, Alexion Pharmaceuticals (ALXN) posted a steep loss despite reporting better than expected third quarter earnings and raising its full-year guidance.
Substantial weakness was also visible among semiconductor stocks, as reflected by the 6.6 percent slump by the Philadelphia Semiconductor Index. The index tumbled to its lowest closing level in a year.
Texas Instruments (TXN) led the semiconductor sector lower after the chipmaker reported weaker than expected third quarter revenues and provided disappointing fourth quarter guidance.
Energy stocks also saw considerable weakness despite an increase by the price of crude oil, moving notably lower along steel, software, and computer hardware stocks.
Meanwhile, interest rate-sensitive utilities stocks were among the few groups to buck the downtrend, resulting in a 2.3 percent jump by the Dow Jones Utility Average. The average reached a ten-month closing high.
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New orders for U.S. manufactured durable goods unexpectedly increased in the month of September, according to a report released by the Commerce Department.
The report said durable goods orders climbed by 0.8 percent in September after surging up by 4.6 percent in August. Economists had expected orders to drop by 0.9 percent.
The unexpected increase in durable goods orders was largely due to a jump in orders for transportation equipment, which shot up by 1.9 percent in September after spiking by 13.2 percent in August.
Excluding orders for transportation equipment, durable goods orders inched up by just 0.1 percent in September after rising by 0.3 percent in August. Economists had expected a 0.3 percent increase.
Meanwhile, a separate report from the Labor Department showed a modest rebound in initial jobless claims in the week ended October 20th.
The Labor Department said initial jobless claims crept up to 215,000, an increase of 5,000 from the previous week?s unrevised level of 210,000. Economists had expected jobless claims to inch up to 214,000.
At 10 am ET, the National Association of Realtors is scheduled to release its report on pending home sales in the month of September. Pending home sales are expected to edge down by 0.1 percent in September after tumbling by 1.8 percent in August.
A pending home sale is one in which a contract was signed but not yet closed. Normally, it takes four to six weeks to close a contracted sale.
Federal Reserve Vice Chairman Richard Clarida is due to give a speech on the outlook for the U.S. economy and monetary policy at a Peterson Institute for International Economics luncheon in Washington, D.C., at 12:15 pm ET.
At 1 pm ET, the Treasury Department is scheduled to announce the results of its auction of $31 billion worth of seven-year notes.
Cleveland Fed President Loretta Mester is due to speak at a Money Marketeers of New York University event in New York at 5:30 pm ET.
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Shares of Twitter (TWTR) are moving sharply higher in pre-market trading after the social media giant reported third quarter results that exceeded analyst estimates on both the top and bottom lines.
Software giant Microsoft (MSFT) is also likely to see initial strength after reporting better than expected third quarter results.
Shares of Comcast (CMCSA) are also likely to move to the upside after the cable provider reported third quarter results that beat expectations.
On the other hand, shares of Advanced Micro Devices (AMD) are seeing significant pre-market weakness after the chipmaker reported weaker than expected third quarter revenues and provided disappointing fourth quarter guidance.
Medical device company Align Technology (ALGN) is also likely to come under pressure after reporting third quarter results that beat estimates but forecasting weaker than expected fourth quarter results.
Shares of Stanley Black & Decker (SWK) may also move to the downside after the tool company reported third quarter earnings that exceeded expectations but revenues that came in below estimates. | | | | | Become a Shareholder in High Times The Original Voice of Cannabis. Join our investor community and help shape the emerging cannabis industry.
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European stocks have rebounded on Thursday as a semblance of stability returned to the markets after a global rout.
The French CAC 40 Index has jumped by 1.2 percent and the German DAX Index is up by 0.2 percent, although the U.K.?s FTSE 100 Index has bucked the uptrend and edged down by 0.1 percent.
The European Central Bank signaled determination in winding up its massive asset purchase program, which was implemented in 2015 to support the economy, at the end of this year.
As announced in June, the ECB halved its monthly bond purchases to 15 billion euros this month, and said it will continue to d so till the end of December.
UBS has advanced after the Swiss bank reaffirmed its strategy and ambitions after reporting stronger than expected third quarter results.
German sportswear firm Puma has also soared after lifting its full-year sales and operating profit outlook.
Automaker Daimler has also moved higher on news the company is reviewing its product footprint to cope with a challenging environment in the industry.
Schneider Electric has also jumped in Paris. The electrical equipment manufacturer lifted its full-year guidance after posting better than expected third-quarter revenues.
On the other hand, chemicals and biotechnology firm Lonza Group has fallen despite the company confirming its 2018 outlook and mid-term guidance.
AB InBev is posting a steep loss as the Belgian brewing giant halved its dividend after reporting a drop in third quarter net profits.
WPP shares have also plunged in London. The advertising group cut its outlook for sales and profit margin this year, citing a slowdown in client spending and structural changes in the industry.
In economic news, German business sentiment weakened for the second straight month in October, survey data from Ifo Institute showed.
The business climate index fell more than expected to 102.8 in October from 103.7 in September. The expected score was 103.2.
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Asian stocks fell sharply on Thursday after U.S. shares plunged overnight on the back of disappointing corporate earnings and weak economic data.
Lingering concerns about global economic growth, worries about the U.S.-China trade war and rising geopolitical tensions also dented investor sentiment.
Mainland Chinese shares bucked the global downtrend to end little changed after recent heavy losses. The benchmark Shanghai Composite index finished marginally higher at 2,603.80, although Hong Kong's Hang Seng Index tumbled 255.32 points or 1 percent to 24,994.46.
Japanese shares closed near seven-month lows, with chip-related stocks taking a heavy beating after a steep drop on Wall Street pulled the Nasdaq into correction territory.
The Nikkei 225 Index plunged 822.45 points or 3.7 percent to 21,268.73, the lowest closing level since March 29th. The broader Topix Index plummeted 3.1 percent to 1,600.92, a fresh one-year low.
Semiconductor maker Tokyo Electron tumbled 2.3 percent, Advantest lost 9.8 percent and Screen Holdings plunged 7 percent.
Exporters Canon, Toyota Motor, Honda Motor and Sony also fell 3-5 percent as the yen and the Swiss franc rose against the dollar. Sharp Corp nosedived 9 percent after cutting its April-September sales estimate.
Australian stocks tumbled heavily to wipe out all the gains over the past 12 months and dive into a technical correction. The benchmark S&P/ASX 200 Index fell 164.90 points or 2.8 percent to 5,664.10, marking its worst performance since February. The broader All Ordinaries Index ended down 167 points or 2.8 percent at 5,759.50.
BHP Billiton, Rio Tinto, Fortescue Metals Group, South32 and Whitehaven Coal lost 4-7 percent after base metal prices fell across the board.
The big four banks also fell more than 2 percent, while wealth manager AMP plunged 24.5 percent. Investment bank Macquarie Group dropped 3.2 percent and insurer Suncorp gave up 2 percent.
In the healthcare sector, Bellamy's Australia slumped 6 percent to extend losses from the previous session on brokerage downgrades.
Meanwhile, gold miners Evolution and Newcrest eked out modest gains as gold prices climbed towards a more than three-month high on safe-haven demand.
South Korean stocks tumbled to a 21-month low on concerns about weak U.S. earnings, the U.S.-China trade war and mounting geopolitical tensions.
The benchmark Kospi slumped 34.28 points or 1.6 percent to 2,063.30, extending losses for a third straight session. Automaker Hyundai Motor plunged 6 percent after its third quarter net profit fell 67 percent from last year. Its affiliate Kia Motors also ended down about 6 percent.
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Crude oil futures are climbing $0.45 to $67.27 a barrel after rising $0.39 to $66.82 a barrel on Wednesday. Meanwhile, an ounce of gold is trading at $1,234.90, up $3.80 compared to the previous session?s close of $1,231.10. On Wednesday, gold fell $5.70.
On the currency front, the U.S. dollar is trading at 112.38 yen compared to the 112.26 yen it fetched at the close of New York trading on Wednesday. Against the euro, the dollar is valued at $1.1418 compared to yesterday?s $1.1392.
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