-PIMCO (Gross): QE not leading to investment
-Oppenheimer downgrades Netflix to neutral
Dow Jones Industrial: 0.99%
Nasdaq Composite: 1.28%
S&P 500: 0.94%
The main US equity benchmarks have begun the month of November with a large rise, following the release of what appear to be various mostly better than expected economic indicators and ahead of tomorrow´s monthly employment report.
To be had in account as well, no less than 42 S&P 500
components were scheduled to release their latest quarterly results today.
Also of interest, ConEdison announced that it sees power being restored to all of Manhattan by Saturday, Bloomberg is reporting.
As an aside, and as regards Sandy, Credit Suisse today told clients that: "While the event is certainly traumatic for those living through it, we think the overall impact on economic activity is likely to be small. After Katrina, which was a much bigger disaster, the stock market actually rose by 2% in the two weeks after the event. US reinsurers have typically outperformed in the 12-month period after major natural disasters on the back of improvements in pricing - however, given that natural catastrophe losses overall this year have been mild, this might not happen this time."
All of the above ahead of tomorrow´s all important monthly employment report. Ironically, if Sandy does have an effect on the recollection of data for the same it should not be evident until the following month -and after the elections- some are saying.
Better than expected data, it seems
The October ISM manufacturing sector purchasing managers index (PMI) has comes in at 51.7 points, versus the 51 expected by the consensus. The new orders sub-index rose to 54.2 from 52.3. Even so, the Chair of the relevant survey Committee, Bradley J.Holcomb, has said that the rise seen in new orders is deceitful.
The Conference Board´s consumer confidence index for the month of October has come in at 72.2, below the 73 forecast. However, the previous month´s estimate has been revised down to 68.4 from 70.3. Worth noting as well, the bulk of the rise came from the current situation sub-index, which is a moderately negative aspect of the report.
The ADP employment report showed 158,000 jobs were created in October (Consensus: 135,000).
Markit´s US manufacturing sector purchasing managers´ index (PMI) has come in at 51 for October, after 51.3 for the month before (Consensus: 51.3). This release is not to be confused with the much better known PMI from the Institute for Supply Management (PMI).
Initial weekly unemployment claims fell by 9,000 to 363,000 (Consensus: 370,000). Nevertheless, and as a possible note of caution, data from New Jersey and Washington DC had to be estimated due to Sandy.
The number of job cut announcements reached 47,724 in October, versus 33,800 for the month before, according to consultancy Challenger.
Unit labour costs dropped by 0.1% in the third quarter (Consensus: 0.8%).
Construction spending increased by 0.6% month-on-month (Consensus: 0.7%) in September, while the previous month´s reading has been revised notably higher.
Large rise in crude futures as well
Front month West Texas crude futures are now rising by 1.04% to the 87.14 dollar
mark on the NYMEX.
10 year US Treasuries are falling by 11/32 dollars, with yields at 1.73%.