Here is what you need to know.
A tentative budget deal has been reached. The White House and Congressional leaders have agreed to a tentative budget deal that would set government spending levels for the next two years and raise the debt ceiling until March 2017. NBC News says, some specifics of the bill include providing $US80 billion of sequester relief and making sure Medicare Part B premiums don’t increase for millions of Americans. “I think that we could move forward with this, it averts a shutdown, it puts any of these problems into two years from now, so I think it’s the best deal we can get,” Sen. John McCain (R-Arizona), told reporters.
According to NBC, The deal could be voted on as soon as Wednesday in the House of Representatives, and will likely need Democratic support to pass.
China’s industrial profits weren’t as bad as last month. Industrial profits for large firms in China slipped 0.1% versus last year, far better than the 8.8% year-over-year drop registered in August. “Even though the rate of industrial losses narrowed in September, given that downward pressure on the industrial economy continues, the industrial profit outlook is still not optimistic,” China’s National Bureau of Statistics said in a statement on its website.
UK GDP missed. The British economy expanded at a 0.5% clip in the third quarter, missing the 0.6% estimate. Manufacturing and construction were drags, falling 0.3% and 2.2%, respectively. On the other hand, the services sector remained the driving force, expanding 0.7%. The British pound is down 0.1% at 1.5342.
Marvell’s auditor resigned and the stock is getting crushed. In a filing with the SEC, Marvell acknowledged its auditor, PricewaterhouseCoopers resigned on October 20. PwC resigned on its own accord, and suggested Marvell expand the scope of its audits in 2016. The stock was down as much as 16% in after-hours trade.
Cannon trimmed its forecast because of weakness in China. The camera and printer maker sees full-year operating profit ending in December of ¥365 billion ($US3.02 billion), down from its previous estimate of ¥380 billion as a result of slowing demand in China and Southeast Asia, according to a statement released by the company. Cannon also revised its full-year revenue forecast down to ¥3.8 trillion from ¥3.9 trillion. In addition, sluggish sales caused the company to revise its compact camera sales forecast down to 6.5 million units from 7 million units and its interchanged lens cameras sales down to 5.5 million units from 5.8 million units. The stock lost 2.9% in Tokyo trade.
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Volkswagen is no longer the world’s largest automaker. The German automaker sold a whopping 7.43 million cars through the nine months ended September, but it wasn’t enough to remain the world’s top automaker as Toyota sold 7.49 million. Volkswagen has seen soft sales in emerging markets such as Brazil, where sales are down more than 30% so far this year. Sales in the US and UK are up 7.3% and 3.8%, respectively, but the emissions scandal was just two weeks old before the end of September. Shares of Volkswagen are down 1.3% in German trade.
JPMorgan Chase is going to compete with Apple Pay. Reuters reports, JPMorgan is entering the mobile payment business to compete with Apple Pay. The bank’s mobile app, “Chase Pay” has already received a commitment from the Merchant Customer Exchange, which includes retailers like Best Buy and Walmart. According to the report, the app will be available on both Apple and Android operating systems.
Stock markets around the globe are lower. Japan’s Nikkei (-0.9%) lagged in Asia and Spain’s IBEX (-0.8%) paces the decline in Europe. S&P 500 futures are down 1 point at 2061.25.
Economic data is moderate. Durable orders will be released at 8:30 a.m. ET before the Case-Schiller 20-City Index crosses the wires at 9 a.m. ET and consumer confidence is announced at 10 a.m. ET. The US 10-year yield is lower by 1 basis point at 2.05%.
Earnings reporting is heavy. BP, Coach, Comcast, Cummins, DuPont, Ford Motor, Merck, Pfizer, T-Mobile US and UPS highlight the names set to report ahead of the opening bell. Apple, CH Robinson, Gilead Sciences, Panera Bread and Twitter are among the companies scheduled to report after the market closes.