What to watch today: Futures mixed as bank earnings kick off Q3 reporting

U.S. stock futures were mixed Tuesday as banks began reporting quarterly earnings. The Nasdaq was tracking for strong gains at Wall Street's open, adding to a four-session winning streak that brought the tech-heavy index within 1.5% of its Sept. 2 record closing high. Shares of Apple (AAPL) and Amazon (AMZN) rose in the premarket after seeing strong advances Monday. Apple releases new iPhones at an event Tuesday. Amazon launched its two-day Prime Day sales event Tuesday morning. (CNBC)

* CEO of world’s biggest money manager sees ‘more to go on the upside’ for the stock market (CNBC)
* IMF revises its global GDP forecast higher, but warns the economy ‘remains prone to setbacks’ (CNBC)
* U.S. consumer prices up for a fourth straight month though pace slowing (Reuters)

The Dow Jones Industrial Average and S&P 500 were pacing for some losses Tuesday after each logged a fourth straight session of gains. Heading into the new trading day, the Dow was 2.4% away from its Feb. 12 record closing high. The S&P 500 was 1.3% away from its Sept. 2 record closing high. (CNBC)

Dow-30 stock JPMorgan Chase (JPM) rose more than 1% in the premarket after the bank Tuesday morning posted quarterly results that beat estimates on the top and bottom lines. Rather than building reserves for loan losses, as it had done aggressively in the first half of the year, the bank actually reduced them by $569 million. (CNBC)

Shares of Citigroup (C) jumped 2.3% in premarket trading after the bank reported on Tuesday better-than-expected results for the third quarter as its credit costs from the pandemic stabilized. Citigroup is in the midst of a major management change, with longtime CEO Michael Corbat to be replaced by his deputy Jane Fraser in February. (CNBC)


Shares of Johnson & Johnson (JNJ), despite strong quarterly earnings, fell more than 1% in premarket trading after the drug giant's Covid-19 vaccine was put on a pause, not a more serious hold, due to an unexplained illness. On Tuesday morning, J&J reported third-quarter earnings and revenue that beat Wall Street's expectations, led by higher sales in its medical-device unit and higher demand for some of its drugs. (Reuters & CNBC)

* J&J's CFO says the pause will allow data and safety monitoring board to thoroughly investigate (CNBC)

Delta Air Lines (DAL) booked a $5.4 billion net loss for the third quarter after the pandemic roiled what is usually the peak travel period of the year. Shares were down about 3% in the premarket. Delta reported a larger-than-expected adjusted loss on revenue that fell short of estimates. (CNBC)

One day after returning to the campaign trail with a Florida rally, President Donald Trump on Tuesday goes to Pennsylvania. With three weeks until Election Day on Nov. 3, Trump's robust schedule also brings him to Iowa, North Carolina, Georgia and Wisconsin in the coming days. The president, himself recovering from Covid-19, defended his response to the pandemic before supporters gathered in Sanford on Monday. (AP)

* Fauci says he won’t walk away from ‘this outbreak no matter who’s the president’ (CNBC)
* Fauci says U.S. faces ‘a whole lot of trouble’ as coronavirus cases rise heading into winter (CNBC)

Trump's decision to so quickly return to campaigning drew criticism from rival Joe Biden and other Democrats. "Trump comes to Sanford today bringing nothing but reckless behavior, divisive rhetoric, and fear mongering," Biden said in a statement. The Democratic president nominee made two campaign stops Monday in Ohio. (AP)

Judge Amy Coney Barrett's confirmation hearing is set to enter into their next phase on Tuesday, with the 48-year-old nominee to the Supreme Court due to answer questions from the Senate Judiciary Committee in person. Confirmation of Barrett, picked by Trump to replace the late longtime liberal Justice Ruth Bader Ginsburg, would solidify the court's conservative majority at 6-3. (CNBC)


Disney (DIS), which saw its theatrical business crippled during the pandemic as customers opted to watch movies at home, has decided to restructure its media and entertainment divisions to further accelerate and prioritize its direct-to-consumer streaming video strategy. Dow-stock Disney rose more than 4% in Tuesday's premarket trading.

Furniture retailer Ethan Allen (ETH) expects to report a fiscal first-quarter profit, compared to analyst expectations of a quarterly loss, as well as revenue above Street forecasts. The company said it was seeing significant growth both In its physical locations and in online sales. Ethan Allen is scheduled to report on Oct. 29. Shares jumped 13% in premarket trading.

Royal Caribbean (RCL) announced an offering of $500 million in common stock as well as $500 million in senior convertible notes, as it raises cash to fund its operations while its cruise ships remain sidelined due to the pandemic.

Tesla (TSLA) cut the price of its Model S "Long Range" sedan by 4% in the United States, to $71,990 from $74,990.

Exelon (EXC) is considering a breakup that would separate its non-utility assets, according to a Bloomberg report. Those include nuclear reactors as well as solar, wind and natural gas generating assets.

After rising nearly 6% on an analyst upgrade at Benchmark on Monday, Ford is the subject of a short-term "Catalyst Call" buy recommendation at Deutsche Bank. As Benchmark did, Deutsche Bank is praising the new management team as well as expecting upbeat third-quarter results.

Foot Locker (FL) saw its stock receive a double upgrade at BofA Securities, to "buy" from "underperform", with the priced target raised to $50 per share from $20. The firm notes a significant positive momentum improvement during September and October, thanks to back-to-school sales and strong performance by Nike (NKE).

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