Futures Flat After McDonald’s Miss, Brexit Votes Expected Today, Trade Hopes Fuel Optimism

Global markets tread water as earnings season ramps up to full gear. Trade hopes help support stocks but earnings have so far been underwhelming.
Thomas Hughes
Wall St.

The U.S. Futures Are Flat, McDonald’s Misses Estimates

The U.S. futures are trading flat in the early Tuesday session. Trade hopes are fueling optimism but weaker than expected earnings from McDonald’s are capping gains. The Dow Jones Industrial Average is down slightly while the S&P 500 and NASDAQ Composite are just above break-even. McDonald’s reported revenue and eps below consensus on weaker than expected comps in the U.S. Comps in the U.S. rose nearly 5% but missed estimates by nearly 100 bps. Shares of MCD are down more than 3.0% in early trading.

Lockheed Martin and the Travelers Companies also reported before the bell. Lockheed Martin beat consensus top and bottom line and updated guidance to the high end of the previous range. Shares of that stock are down -2.33%. The Travelers Companies reported a top and bottom-line miss citing “challenging conditions” and sent its shares down more than -4.0%.

European Markets Are Slightly Higher At Midday

European indices are flat to slightly higher in early Tuesday trading as trade hopes and Brexit dominate the headlines. In trade news, Presidents Trump and Xi are expected to sign a limited trade deal in mid-November. Comments from Economic Advisor Larry Kudlow suggest the talks are advancing. According to him, there is a possibility the December tariffs will be canceled.

In Brexit news, MPs are expected to vote on a number of items over the next two days. On the list is approval for Boris Johnson’s deal to progress, changes to customs legislation, and a possible 2nd referendum. The FTSE is in the lead with a gain of 0.45% while the DAX and CAC trail with advances closer to 0.10%.

In stock news, shares of Just Eat are up nearly 25% after the company received a competing bid for acquisition. Shares of UBS are moving higher after it reported a 16% decline in YOY earnings. The bank cites “challenging conditions” but was able to beat consensus. Pharma giant Novartis is trading flat after beating consensus and raising guidance. Shares of Husqvarna are moving lower after it reported weak earnings.

Asia Moves Higher On Trade Hope

Asian markets closed higher at the end of Tuesday’s session. The Korean Kospi led with a gain of 1.16% on strength in tech and chips. The mainland China Shanghai Composite is runner up with a gain of 0.50% while the Hang Seng and Australian ASX trail with gains near 0.25%. The Japanese Nikkei is closed for a holiday.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.