Reply #34: pre-opening blather [View All]

[UpInArms]

9:02AM: S&P futures vs fair value: -2.6. Nasdaq futures vs fair value: -3.0. Equities continue to head towards a moderately lower open. Traders await a pair of economic items - Sept. leading indicators data (consensus -0.5%) at 10:00 ET and the Oct. Philadelphia Fed Index (consensus 10.0) at noon - and may remain somewhat cautious ahead of a triple dose of Fed-speak. Officials speaking today include St. Louis' Poole at 9:45 at an economic policy conference, Atlanta's Guynn on the economic outlook at 13:30, and Richmond's Lacker on rate policy "After Greenspan" at 19:00. In addition, investors eye a heavy post-close earnings docket, which includes Google's (GOOG) Q3 report.

8:33AM: S&P futures vs fair value: -2.4. Nasdaq futures vs fair value: -2.0. The stage remains set for a flat to slightly lower start for stocks. The market's attention continues to rest upon the influx of third quarter earnings reports, but relatively disappointing Q4 and FY05 EPS guidance from eBay (EBAY) has stolen some of the spotlight. In early trading, EBAY shares have plunged 6.1%, despite the company's better than expected Q3 EPS ($0.28 vs. $0.27 consensus) announced last night. Separately, initial claims fell to 355K (consensus 365K) - reflecting a healthy drop from the prior week's 390K.

8:02AM: S&P futures vs fair value: -2.2. Nasdaq futures vs fair value: -1.5. Versus fair value, futures trade is currently flat to modestly lower as traders sift through a fresh heap of Q3 earnings reports. Thus far, about two-thirds of the morning reporters have exceeded expectations - inlcuding Coca-Cola (KO), SBC Communications (SBC), Eli Lilly (LLY), Southwest Airlines (LUV), Jet Blue (JBLU), XTO Energy (XTO), and Whirlpool (WHR). While Pfizer (PFE) makes the list, its downside FY05 guidance and withdrawn FY06 and FY07 forecasts have weighed upon early sentiment. Last night, Amgen (AMGN), E*Trade (ET), Juniper Networks (JNPR), and QLogic (QLGC) beat respective consensus estimates, but in-line FY05 guidance from Amgen has further helped keep early buying activity in check.