- Reuters/Lucy Nicholson
Here is what you need to know.
It’s the 29th anniversary of Black Monday. On October 19, 1987, the Dow Jones Industrial Average crashed 508 points, or 22.6%. While the event was scary and wiped away a good deal of wealth, people often forget how resilient the US economy was in the event’s aftermath, as growth never turned negative.
China’s GDP was in line. The Chinese economy grew at a 6.7% year-over-year clip in the third quarter, causing some economists to suggest it’s a sign the Chinese economy is stabilizing as it’s the third straight quarter with 6.7% YoY growth.
Britain’s jobs report looked good. Data from the Office for National Statistics showed Britain’s unemployment rate held at 4.9% while those claiming benefits for the first time rose by just 700 from August to September, well shy of the 3,000 claimants that economists were expecting. The British pound is up 0.1% at 1.2308 versus the dollar.
Google hit an all-time high. Shares climbed to a record high of $801 on Tuesday after a slew of positive reviews for Google’s first smartphone, the Pixel. The company will report its quarterly results on October 27.
Yahoo’s sale is on track despite the massive security breach. That’s according to CEO Marissa Mayer, who said in a statement accompanying Yahoo’s third-quarter results: “We are busy preparing for integration with Verizon. We remain very confident, not only in the value of our business, but also in the value Yahoo products bring to our users’ lives.” As for the Yahoo’s earnings, core revenue tumbled 14%.
Intel missed on guidance. The chipmaker beat on both the top and bottom lines, earning $0.69 a share on revenue of $15.8 billion, but its fourth-quarter revenue guidance of $15.7 billion was below analyst estimates of $15.86 billion. The stock was down nearly 4% in after-hours trade.
Starbucks is planning a major push in China. The coffee giant named Belinda Wong CEO of Starbucks China and says it plans to more than double its presence in the country to 5,000 stores by 2021, Reuters reports.
Stock markets around the world trade mixed. Overnight, Hong Kong’s Hang Seng (-0.4%) lagged while Australia’s ASX (+0.5%) outperformed. In Europe, Germany’s DAX (-0.2%) trails the pack. S&P 500 futures are down 1.00 points at 2,131.00.
Earnings reporting is heavy. Halliburton and Morgan Stanley report ahead of the opening bell while American Express and eBay are among the names releasing their quarterly results after markets close.
US economic data is moderate. Housing starts will cross the wires at 8:30 a.m. ET before the Department of Energy’s energy inventories and the Fed’s Beige Book are released at 10:30 a.m. ET and 2 p.m. ET. The US 10-year yield is unchanged at 1.74%.