U.S. Stock Futures Are Higher with Better Than Expected Corporate Results #EarningsSeason #SP500 #Economy
U.S. stock futures are higher. Better than expected corporate results are driving futures higher this morning. Stronger earnings growth is counteracting inflation fears and fortifying investor’s positive sentiment. Additionally, how companies will manage with pending problems, such as supply chain issues, labor costs, and global reopening will be scrutinized by investors. According to FactSet, 80% of the S&P companies that have reported exceeded their respective EPS consensus. The 10y treasury yield is ticking up to a 1.60% level as inflation issues still linger. U.S housing starts fell 1.6% for September and yesterday’s industrial production declined by 1.3% from August, its sharpest decline since February. The reduction was due mainly to supply chain disruption issues. European markets are higher and Asian markets closed lower. The IMF downgraded its 2021 economic growth forecast for Asia to 6.5% from an earlier figure of 7.6%.