What to watch today: Wall Street on track for a winning week on strong earnings
BY THE NUMBERS
Dow futures rose sharply Friday, one day after the 30-stock benchmark broke a four-session losing streak with a surge of 534 points, or nearly 1.6%. Dow stock Goldman Sachs rose more than 2% in Friday's premarket after reporting quarterly earnings and revenue that crushed estimates. Strong investment banking and trading results boosted the numbers. Bank earnings this week have been strong. (CNBC)
While the Dow on Thursday had its best day since July, the S&P 500's 1.7% increase was its best day since March. The Nasdaq rose more than 1.7% for its best day since May. The three stock benchmarks were headed for weekly gains. U.S. oil prices rose to a fresh seven-year high, topping $82 per barrel. The 10-year Treasury yield ticked higher to about 1.54%. (CNBC)
Following two key inflation reports this week that showed sticky price pressures on the wholesale and consumer levels, the government on Friday said September retail sales rose 0.7%. Economists polled by Dow Jones had expected a 0.2% decline. Retail sales, excluding autos, gained 0.8% last month, also stronger than forecasts. (CNBC)
Bitcoin on Friday continued its march higher in six-month high territory, inching toward $60,000 overnight, on growing hopes that U.S. regulators won't stand in the way of the first bitcoin futures exchange-traded fund. The fund is set to begin trading Tuesday. The SEC can object to the filing until midnight Monday. However, many crypto watchers believe the odds are in favor of the ETF beginning trading as scheduled. (CNBC)
IN THE NEWS TODAY
The FDA's vaccine advisory committee is set to meet Friday to consider a booster shot of Johnson & Johnson's one-dose Covid vaccine and data on mixing and matching shots. The panel on Thursday unanimously recommended giving a booster of Moderna's two-dose Covid vaccine to people 65 and older and other vulnerable adults. The nonbinding decision would bring guidelines for Moderna in line with a third shot of Pfizer's vaccine. (CNBC)
Alaska is in the thick of a surge of Covid cases that devastated the continental U.S. over the summer. State officials activated "crisis standards of care" on Oct. 2 across 20 hospitals. That gives facilities there some legal protection if they have to choose who will get a bed or ventilator. (CNBC)
The Biden administration unveiled Friday a government-wide plan to address the systemic threat climate change poses to all sectors of the economy. The roadmap is part of the White House's longer-term agenda to slash domestic greenhouse gas emissions nearly in half by 2030 and transition to a net-zero emissions economy by mid-century. (CNBC)
* Biden commission’s draft materials on Supreme Court reform show split over adding justices (CNBC)
Virgin Galactic is delaying the launch of its commercial space tourism service until the fourth quarter of 2022. Shares of Richard Branson's space company plunged 20% in the premarket. Virgin Galactic will start this month refurbishing and improving its spacecraft and carrier aircraft, rather than carry out its next spaceflight test. (CNBC)
* Prince William chides billionaire space race after Blue Origin's Shatner flight (CNBC)
A federal grand jury in Texas indicted a former Boeing pilot, alleging that he deceived air-safety regulators about a flight-control system later blamed for sending two 737 Max jets into fatal nosedives. Mark A. Forkner, 49, was charged with six counts of fraud. (WSJ)
Sunil Dhawan, a dermatologist who became Theranos' lab director in 2014, took the stand Thursday, about halfway through Elizabeth Holmes' criminal trial. Dhawan said Ramesh "Sunny" Balwani, who was the company's president at the time, insisted the job required "minimal" commitment. (CNBC)
Former President Bill Clinton was hospitalized Tuesday evening to receive treatment for a non-Covid related infection, according to his spokesman. Clinton's spokesman Angel Urena said late Tuesday that the former president was admitted to UC Irvine Medical Center in California. (CNBC)
STOCKS TO WATCH
Truist Financial (TFC) beat estimates by 21 cents with adjusted quarterly earnings of $1.42 per share and revenue also above estimates. Truist's results were helped by stronger fee income as well as loan and deposit growth. Shares fell modestly.
PNC Financial (PNC) reported adjusted better-than-expected quarterly earnings of $3.75 per share. Revenue also topped forecasts. PNC benefited from the recapture of credit loss provisions as well as the integration of BBVA USA, a deal that closed last October. PNC rose 1.3% in premarket trading.
Pearson (PSO) tumbled 12.2% in premarket trading after the educational materials company said higher education sales have fallen 7% so far this year, even though the firm maintained its full-year guidance. Pearson said enrollments at community colleges in the U.S. appear to have been hit by the delta Covid variant.
Corsair Gaming (CRSR) slid roughly 6% in the premarket after the maker of video game-related peripheral products said supply chain issues were hurting sales. Corsair said 2021 will still be a "strong growth year."
23andMe (ME) surged 9% in premarket trading, following a positive mention by EMJ Capital founder and portfolio manager Eric Jackson on CNBC's "Closing Bell" on Thursday. Jackson said the consumer genetics company should be more properly thought of as a therapeutics firm in addition to being a subscription service.
Alcoa (AA) reported an adjusted quarterly profit of $2.05 per share, beating the consensus estimate of $1.80. The aluminum producer's revenue topped estimates as well on higher aluminum prices. Alcoa jumped nearly 7% in the premarket.
fuboTV's (FUBO) Sportsbook unit struck a deal with Nascar to become the racing circuit's authorized gaming operator. fuboTV shares added 2% in premarket trading.
Del Taco (TACO) reported adjusted quarterly earnings of 11 cents per share, a penny above estimates, with revenue essentially in line with forecasts. However, comparable sales rose 1.8%, short of the 2.1% estimate from analysts surveyed by FactSet. Shares slid 3.5% in the premarket.
WATERCOOLER
A work by British street artist Banksy that sensationally self-shredded just after it sold at auction three years ago fetched $25.4 million Thursday, a record for the artist, and close to 20 times its pre-shredded price. Banksy, who has never confirmed his full identity, began his career spray-painting buildings in Bristol, England. (AP)