10 Things You Need To Know Before Friday’s Opening Bell

JPM opens bank earnings with a loss, foreign markets finished ahead

   

Good morning! Here’s what you need to know.

  • Markets were up around the world. The Nikkei climbed 1.48%. Hong Kong’s Australia’s S&P/ASX 200 was up 1.63%. London’s FTSE led Europe indices at 0.66%.
  • The rally came as the White House met with Republican leaders in what the New York Times called a “significant breakthrough” toward ending the government shutdown and raising the debt ceiling. “Even if Democrats found fault with the Republicans’ immediate proposal — for example, it would prevent the Treasury secretary from engaging in accounting maneuvers to stave off potential default — it was seen as an opening gambit in the legislative dance toward some resolution before the government is expected to breach its debt limit on Thursday.”
  • Still, day 11 of the shutdown begins today. Fortunately a hugely important indicator is unaffected and will be published today: the University of Michigan/Reuters’ consumer confidence index. Here’s Bill McBride’s preview:At 9:55 AM ET, the Reuters/University of Michigan’s Consumer sentiment index (preliminary for October). The consensus is for a reading of 75.0, down from 77.5 in September. Other sentiment indicators have shown a sharp decline.”
  • The New York Times’ reports business leaders have come to a startling conclusion: on the subject of the government shutdown and debt ceiling, they have no influence over Washington’s deliberations. “Their frustration has grown so intense in recent days that several trade association officials warned in interviews on Wednesday that they were considering helping wage primary campaigns against Republican lawmakers who had worked to engineer the political standoff in Washington.”
  • JPMorgan (JPM) posted its first quarterly loss in almost a decade as the bank took a $7.2 billion charge on legal expenses. That put them -$400 million in the red for Q3. But they still surpassed earnings expectations, and the stock is up more than 2.5% pre-market.
  • Wells Fargo (WFC) also reports earnings this morning, with a forecast of 97 cents per share on $20.97 billion, per Reuters.
  • The Euro zone wants to kick the IMF out of Europe, and the fund appears happy to oblige, the Wall Street Journal’s Matina Stevis reports. Everything broke down over Greece. “A big source of tension has been the IMF’s Debt Sustainability Analysis, which is heavily based on projections of the ratio of government debt to economic output. IMF rules prevent the fund from giving aid to states unable to repay their debts, so this analysis has been critical in ensuring the fund continues lending. But the analysis wasn’t well regarded by some officials. One IMF official called it ‘a joke,’ a commission official described it ‘a fairy tale to put children to sleep’ and a Greek finance ministry official said it was ‘scientifically ridiculous.’ “
  • Federal officials have begun discussions about overhauling how economically sensitive data gets releasedThe Wall Street Journal’s Brody Mullins and Colleen McCain Nelson report. There have been several reports this year finding evidence some outlets received the news early. “While the talks are preliminary, officials are driven by their growing concern about leaks and their unease that high-speed trading firms can trade on market-moving numbers before other investors, say people familiar with the discussions,” they write.
  • Amazon (AMZN) won a $600 million contract from the CIA to build a “private” cloud, which our Julie Bort calls a “game changer.” “…until this contract, [Amazon] only provided “public” cloud services, meaning its users shared Amazon’s data center. This CIA contract is for a “private” cloud, meaning Amazon will build a cloud in the CIA’s own data center that’s not shared with others.”
  • The Organization for the Prohibition of Chemical Weapons was announced as the 2013 Nobel Peace Prize recipient. “The conventions and the work of the OPCW have defined the use of chemical weapons as a taboo under international law,” the Nobel committee said per AP. “Recent events in Syria, where chemical weapons have again been put to use, have underlined the need to enhance the efforts to do away with such weapons.” 

Article printed from InvestorPlace Media, http://investorplace.com/2013/10/10-things-need-know-fridays-opening-bell/.

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