U.S Futures slightly up - Watch DIS, CSCO, AMAT, LYFT


The S&P 500 Futures are posting a rebound after they closed lower yesterday as investors' risk appetite declined

Trading floor 3

The S&P 500 Futures are posting a rebound after they closed lower yesterday as investors' risk appetite declined.

Later today, the U.S. Labor Department will release October PPI (+0.4% on year expected). The University of Michigan will publish its Consumer Sentiment Index for November (82.0 expected).

European indices are on the upside. The European Commission has reported 3Q GDP at +12.7% (vs -11.8% in 2Q) and September trade balance at 24 billion euros surplus (vs 22.5 billion euros surplus expected). France's INSEE has posted final readings of October CPI at +0.0%, vs -0.5% the previous month.

Asian indices all closed in the red. The Trump administration issued an Executive order to prohibit U.S. investment in Chinese firms that are linked to militaries.

WTI Crude Oil is turning down. The International Energy Agency warned that "vaccines are unlikely to significantly boost demand until well into next year." The U.S. Energy Information Administration (EIA) reported that crude oil inventories increased 0.43 million barrels in the week ending November 6 (-0.87 million barrels expected).

U.S indices closed down on Thursday, pressured by the Energy (-3.39%), Automobiles & Components (-2.59%) and Materials (-2.17%) sectors.

Approximately 85% of stocks in the S&P 500 Index were trading above their 200-day moving average and 85% were trading above their 20-day moving average. The VIX Index jumped 1.82pt (+7.76%) to 25.27 and WTI Crude Oil fell $0.4 (-0.97%) to $41.05 at the close.

On the US economic data front, the Consumer Price Index was unchanged on month in October (+0.1% expected), compared to +0.2% in September. Initial Jobless Claims fell to 709K for the week ending November 7th (731K expected), from a revised 757K in the prior week. Continuing Claims declined to 6,786K for the week ending October 31st (6,825K expected), from a revised 7,222K a week earlier. Finally, the Monthly Budget Deficit grew to 284.1 billion dollars on month in October (275.0 billion dollars expected), from 134.5 billion dollars in September.  

Gold rebounds while the U.S dollar consolidates on virus woes.

Gold rose 2.93 dollars (+0.16%) to 1879.76 dollars.

The dollar index fell 0.1pt to 92.865.

U.S. Equity Snapshot

Walt Disney (DIS), the entertainment and media giant, popped after hours after reporting fourth quarter adjusted LPS of 0.20 dollar, beating estimates, vs an EPS of 1.07 dollar a year ago, on revenue of 14.7 billion dollars, exceeding the consensus, down from 19.1 billion dollars last year. The Co also reported fourth quarter Disney+ subscribers at 73.7 million, above forecasts.  

Source: TradingView, GAIN Capital

Cisco Systems (CSCO), a leading global supplier of network hardware and software, surged post market after announcing first quarter adjusted EPS of 0.76 dollar, beating forecasts, down from 0.84 dollar a year ago on revenue of 11.9 billion dollars, as expected, down from 13.2 billion dollars in the previous year. Also, current quarter earnings guidance was better than expected.

Applied Materials (AMAT), the global leader in materials engineering solutions for the semiconductor industry, unveiled fourth quarter adjusted EPS of 1.25 dollar, above estimates, up from 0.80 dollar a year ago on net sales of 4.7 billion dollars, better than expected, up from 3.8 billion dollars a year earlier. 

Lyft's (LYFT), the ridesharing company, price target was raised to 38 dollars from 30 dollars at Daiwa Capital Markets.

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