Good morning. Here’s what you need to know.
- After yesterday’s sell-off and a slowdown in Chinese GDP, Asian markets were down in overnight trading, with the Hang Seng plummeting 4.23%. Europe is selling-off amid Moody’s warning on France, and U.S. futures are moderately higher.
- Chinese Q3 GDP grew 9.1% year-over-year, from 9.5% the previous quarter, and missing expectations of 9.3% growth. Meanwhile, retail sales surged 17.7% and industrial output grew 13.8%. Check out 7 reasons why Chinese stocks could fall another 15% >
- U.K. consumer price inflation rose 0.6% month-over-month in September, and 5.2% year-over-year, against expectations of a 4.9% increase. Unemployment hit a 17-year high at 8.1%.
- IBM posted Q3 net income of $3.8 billion, up 7% from a year ago, on revenue of $26.2 billion. Revenue growth slowed in its software, hardware and services businesses. Footwear maker Crocs announced weaker-than-expected guidance, with management projecting revenue of $273 million – $275 million and earnings of $0.31 – $0.33 per share. The company’s product line in America has experienced ‘some softness’. Now check out the epic collapse of 10 once-loved momentum stocks >
- General Electric paid $3.3 billion to buyback preferred stock sold to Warren Buffett’s Berkshire Hathaway in 2008. Share repurchases have become a priority for CEO Jeffrey Immelt who is also looking to increase GE’s dividend.
- In more earnings news, Bank of America posted Q3 net income of $6.2 billion, but that was inflated by all kinds of gains and the stock is falling. Fixed income, currency, and commodities sales and trading revenues declined by $3.2 billion from a year ago. Goldman Sachs just posted a wider-than-expected loss of $0.84 a share. Analysts were looking for losses of $0.11 a share. Meanwhile, Apple is expected to announce earnings of $7.23 per share today. Here are the nine questions we desperately want answered during earnings season >
- Boeing said it expects more cancellations for orders of its Dreamliner 787, a day after China Eastern cancelled 24 orders, but said total orders for the long-haul jet are strong. The 787s are three years behind schedule and analysts expect other Chinese airlines to scrap their orders for 787s as well.
- September PPI came in way higher than expected rising 0.8% month-over-month. The housing market index for October will be released at 10 AM ET, consensus is for housing market index level of 15. Follow the release at Money Game >
- German investor confidence fell to -48.3 in October, from -43.3 the previous month, the lowest figure in nearly three years. Investor confidence declined for the eighth straight month. Now here are the 15 most bizarre economic indicators >
- Moody’s reiterated France’s Aaa rating but warned that its government debt metrics were among the weakest of the Aaa countries. The ratings agency said this was adding pressure to the stable outlook of the government’s debt rating. Meanwhile, the French finance minister said the country’s 1.75% growth target was too high and would have to be revised down. Now here is Citi’s economic outlook for the entire world >
- BONUS – Jessica Alba and her daughter honour were spotted at the Mr. bones pumpkin patch in West Hollywood.