Reply #35: pre-opening blather [View All]

[UpInArms]

9:01AM: S&P futures vs fair value: -5.5. Nasdaq futures vs fair value: -9.5. Still headed for a lower start, the market's early sentiment has not been helped by rising crude oil ($63.45/bbl) and gasoline prices. Traders await the EIA's latest energy inventory report, which will be released at 10:30 ET. In terms of the session's economic calendar, the Fed's Beige Book is the last item featured, and is slated for 2:00 PM.

8:33AM: S&P futures vs fair value: -5.2. Nasdaq futures vs fair value: -9.0. Futures trade has held steady and continues to set the stage for a lower open today. Although traders' focus rests upon Intel's relatively disappointing Q4 sales outlook, a host of upside Q3 earnings reports may serve as a measure of support today. Early earnings-induced rises in Yahoo (YHOO), Motorola (MOT), EMC Corp. (EMC), and Teradyne (TER) may help counter Intel's effect within the Tech sector, while upside reports from the likes of Altria (MO), Bank of America (BAC), Honywell (HON), and JP Morgan (JPM) could help support the broader market. Separately, housing starts in Sept. checked in at 2108K (consensus 1975K), while building permits came in at 2189K (consensus 2075K).

8:01AM: S&P futures vs fair value: -5.6. Nasdaq futures vs fair value: -9.5. The cash market is set to start the day on the downside. While Intel beat third quarter EPS estimates by a penny, the Q4 guidance it issued after yesterday's close has agitated traders and extended yesterday's bearish sentiment. Next quarter, the world's largest chip maker estimates revenues between $10.2 and $10.8 bln, which translates to sequential revenue growth of 3.0-9.1%; analysts expect sales of $10.65 bln.