Here are the most important things to know about US Friday markets, when US wake up.
1. Earnings off to a strong start: Will it continue?
Earnings season kicked off with a bang this week, and a host of companies are set to report quarterly results Friday including American Express and Coca-Cola.
For Coke, analysts are expecting the company to report EPS of $0.56 and $9.43 billion in revenue. Following a rough start to the year, shares are up 14% for 2019, but they’re trailing Pepsi’s 24% rise. Last quarter the company topped estimates and gave upbeat guidance for the remainder of the year.
Bank earnings got off to a strong start this week with JPMorgan, Citi, Bank of America, Morgan Stanley, Bank of New York Mellon, and U.S. Bancorp all beating estimates. Goldman Sachs and Wells Fargo did, however, come up short.
Sixty-three S&P 500 companies have now reported results for the quarter, and according to Refinitiv, 83% of them have topped EPS estimates.
2. A first for Apple
In a first for the tech giant, Apple is releasing a film on the silver screen.
Documentary “The Elephant Queen” will open in select theaters tomorrow before being available to stream starting on November 1. The tech giant has two more theatrical releases planned. “Hala” will be released on November 22, followed by “The Banker” on December 6.
Apple’s content push comes as the streaming wars heat up with the major players in the space all vying for eyeballs. Disney, like Apple, is launching its own streaming platform this year, while NBC and WarnerMedia’s platforms Peacock and HBO Max, respectively are set to be rolled out next April.
These new platforms are putting pressure on shares of Netflix, which have shed 18% in the last three months. Following a lackluster second quarter report, Netflix did manage to beat EPS estimates for the third quarter, although revenue and subscriber additions missed estimates.
Add to the mix Amazon’s burgeoning film studio, and you might say the field is pretty crowded.
Major events (all times ET):
10 a.m. Fed’s George
10 a.m. Fed’s Kaplan
10:30 a.m. Fed’s Kashkari
11:30 a.m. Fed’s Clarida
1:00 p.m. Baker Hughes oil rig count
5:10 p.m. Fed’s Kaplan
American Express (before the bell)
Coca-Cola (before the bell)