Wall Street Opens Above Parity Driven by Above-Expected Earnings

This morning it was the turn of the quarterly reports of Johnson & Johnson and Procter & Gamble. Netflix accounts are highly anticipated. According to Factset, we are heading towards a profit growth of 30%. Ten-year T-Bond yield at 1.61%. Bitcoin on half-year highs above $ 63,000. European stock exchanges are in green. BTP-Bund spread at 105 basis points.

Opening above par for the Wall Street indices, with the indices driven by the good quarterly results of the main listed companies. The Dow Jones starts up 0.26% while the S&P 500 marks + 0.29% and the Nasdaq + 0.22%. Ten-year T-Bond yield up to 1.611%.

Looking at the major companies, Johnson & Johnson beat third quarter earnings expectations by 25 cents per share. Procter & Gamble also continued the uptrend with better-than-expected profits, despite having admitted the need to raise prices to cover the rising costs of freight and transportation.

As of this morning, according to FactSet, 82% of S&P 500 companies reporting earnings have exceeded expectations. Taking these ratios and estimates into account, third quarter earnings growth will come in at 30%, analysts added.

On the macro front, in September the number of construction sites started for the construction of new homes in the US fell by 1.6% on a monthly level to 1.555 million units (1.63 according to the consensus of economists). New building permits, also in September, fell 6% month on month to 1.589 million (1.72 the consensus).

The European markets are contrasted but tend to be above parity: the Ftse Mib gains 0.13%, the Dax 0.20%, the Stoxx 600 0.10%. On parity the Ftse 100 in London. Cac down by 0.26%. Oil retraces after the rally of the last few sessions: WTI is at 82.3 dollars a barrel, Brent is at 84.1. Gold up to $ 1,780 an ounce, bitcoin on half-year highs above $ 63,000. The euro strengthens against the dollar at a cross of 1.1644, the BTP-Bund spread up to 105 basis points. (All rights reserved)