Stock Market Futures Ticked Lower To Start The Week
Stock market futures were lower during early morning trading on Monday. This came after the major indices posted their best week in months amid a stronger-than-expected start to earnings season. In addition to the strong earnings from banks, positive economic data also boosted stocks. Retail sales rose 0.7% in September according to the Census Bureau, beating expectations.
“Wall Street was expecting a slowdown in spending, but it turns out the U.S. consumer is not to be messed with … Back-to-back months of better-than-expected retail sales data shows the consumer looks strong heading into the holiday season,”- Edward Moya, senior market analyst at Oanda.
Even though the market seemed to be warming up, it appears that investors continue to grapple with worries. These include energy shortages and supply-chain disruptions which continue to hamper the progress of economic recovery. Adding pessimism to the stock market sentiment today is the disappointment from China’s third-quarter GDP. As of 6:49 a.m. ET, the Dow, S&P 500, and Nasdaq futures are falling by 0.29%, 0.34%, and 0.43% respectively.
Hertz (HTZZ) Plans Return To Nasdaq
Car-rental company Hertz Global (OTCMKTS: HTZZ) were among the first high-profile pandemic casualties in early 2020. But recently, the company has re-emerged as a new publicly traded company with much lesser debt. This is made possible by raising new capital in the bankruptcy process and selling down their fleet of vehicles into a strong used car market. And now, the company seeks to list its shares at Nasdaq, following its emergence from bankruptcy protection on June 30.
The company hinted its plans for initial public offering (IPO) in August when it reported its second-quarter financial results. As you may be aware, it reported revenue that was nearly back to pre-pandemic levels. Besides, its operating profit for the quarter was stronger than before the pandemic. Now, Hertz filed for an equity offering in what the car-rental company has called its “Re-IPO”. In a sign of Hertz’s financial strength, all the shares will be sold by existing shareholders.
Apart from that, the company also named former Ford (NYSE: F) CEO, Mark Fields, as the interim chief executive. The leadership change comes after the company emerges from bankruptcy under new ownership and amid strong demand for rental cars. WIth Mark’s extensive background in automotive and technology, he might just be the right person to overhaul the century-old company to make it more competitive.
Goldman Gets Approval To take Control Of China Venture
The good news keeps rolling in for Goldman Sachs (NYSE: GS). The premier investment bank topped analysts’ expectations with their third quarter fiscal, as investment banking revenue surged nearly 90%. More impressively, the bank reaped record fees from its equities financing unit. Overall, the bank’s profit surged 63% to $5.28 billion as revenue came in 26% higher to $13.61 billion. But that’s not all, Goldman has received regulatory approval to take full ownership of its securities joint venture in China. That marks a key step for the company to expand in China. That’s despite growing political tensions and government crackdown on certain sectors.
This “marks the start of a new chapter” for the China business and “will enable us to position our firm for long-term growth and success in this market under one wholly-owned entity,” the bank’s top executives, David Solomon, John Waldron, and Stephen Scherr, said in an internal memo.
Goldman is now the second Wall Street firm to gain full ownership of its onshore securities operations. With the green light from China, the bank now owns all its operations across Asia-Pacific. The approval came nearly a year after it signed an agreement with its partner, Gao Hua Securities to take full control.
Bitcoin (BTC) Nears $63K Ahead Of Bitcoin ETF Debut
This week is certainly a watershed moment for the cryptocurrency market. Even though Bitcoin tumbled over the weekend, the largest cryptocurrency hovered nearly $63,000 earlier today. The rally came in anticipation of the listing of the first futures-based Bitcoin exchange-traded funds (ETF) in the United States. Should there be no objection from the Securities and Exchange Commission (SEC), the ProShares Bitcoin Strategy ETF could begin trading as soon as Tuesday.
“The news of a suite of futures-tracking ETFs is not new to those following the space closely, and to many this is a step forward but not the game-changer that some are sensing … We’ve been excited by a spot ETF before, and this may need more work on the regulation front.“- said Chris Weston, head of research at Pepperstone in Melbourne, Australia.
A number of fund managers have applied to launch bitcoin ETFs in the U.S. Among them are the VanEck Bitcoin Trust, Invesco, Valkyrie and Galaxy Digital Funds. Meanwhile, the Central Bank of Brazil released a report showing that Brazillians have purchased over $4 billion worth of cryptocurrencies this year. The report, which shows cryptocurrencies as part of the commercial balance of goods, shows these imports have been holding over $350 million a month since January. Considering all this, it may not be a bad idea to keep a closer eye on this space.
Bank Earnings Continues To Dominate In The Stock Market Today
Third-quarter earnings will be kicking into high gear further this week. This comes after many of Wall Street’s biggest banks beat analysts’ expectations. Big banks from JPMorgan Chase (NYSE: JPM) to Bank of America (NYSE: BAC) have started off the earnings season with considerable momentum, helping fuel investor optimism that profits held up stronger than expected. But today’s stock market is also dominated by financial institutions.
If you are keen on the names before the opening bell, we have State Street (NYSE: STT), Albertsons (NYSE: ACI) and Philips (NYSE: PHG). There are also some other banks reporting after the closing bell today. They include ServisFirst Bancshares (NYSE: SFBS), FirstBank (NYSE: FBK) and Crossfirst Bankshares (NASDAQ: CFB). So, whether it is anticipating the cryptocurrency price movement, keeping up with the momentum of oil prices, or simply following the earnings report, there should be enough to keep you busy as we kick start the week.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.