U.S. equity index futures are slightly lower this morning despite a series of encouraging fourth quarter earnings reports. S&P 500 futures slipped 1 point in pre-opening trade. Futures moved lower after the weekly jobless claims report came in worse than expected. Jobless claims rose 36,000. Consensus was a small decline.
A parade of stronger than expected fourth quarter earnings reports was released overnight. Companies reporting higher than consensus earnings included Xerox, United Healthcare, Fifth Third, Fairchild Semiconductor, Southwest Airlines, eBay and Starbucks.
Goldman Sachs was notable on the list of companies reporting higher than expected fourth quarter earnings. Consensus estimate was $5.20 per share. Actual was $8.20. Goldman also announced plans to make a charitable donation valued at $500 million.
U.S. equity markets were jittery prior to an announcement this morning by President Obama about greater regulation of the banking industry.
China’s growth in the fourth quarter accelerated. China’s economy grew at a 10.7% annual rate.
Not all fourth quarter earnings report exceeded expectations. Vitera reported a larger than expected loss in the quarter.
Citigroup downgraded selected coal stocks. Arch Coal and Massey Energy were downgraded from Hold to Sell.
RBC Capital Markets downgraded Telus from Outperform to Sector Perform. Target is $42.
Raymond James downgraded Taseko Mines from Outperform to Market Perform.
Goldman Sachs upgraded Colgate from Buy to Conviction Buy.
Don Vialoux, chartered market technician, is the author of a free daily
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