Before the Open (Nov 4)

Good morning. Happy Wednesday.
The Asian/Pacific markets closed mostly up. China gained more than 4%, Hong Kong more than 2%, Indonesia, Taiwan, Japan and Singapore more than 1%. Europe is currently mostly up. London, France, Austria, Netherlands, Norway, Sweden, Denmark, Finland, Hungary and Spain are up more than 1%. Futures here in the States point towards an up open for the cash market.
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The dollar is up. Oil and copper are up. Gold and silver are up. Bonds are up.
Heading into yesterday I wanted to see if the small caps could follow through and if crude could catch up to the underlying stocks. Both happened, although the small caps closed off their intraday highs.
There isn’t much to dislike about the market. The trend is up and fairly strong. The indicators are expanding and supporting the strength, although the AD line and AD volume line have been diverging from the price action, we’ve gotten good leadership from big cap tech stocks, now oil is starting to participate, the small caps are catching up some, earnings season has been decent, China has neutralized, the time of year provides a little support. Overall there isn’t much to complain about. I could argue a rest is needed in the near term to allow the AD line divergence to work itself out, but other than that I expect the market to do well into 2016 and to make new highs.
Don’t over-analyze things. The market is doing well, and even if it takes a break in the near term, the strength is likely to continue. More after the open.
Stock headlines from barchart.com…
Tesla (TSLA -2.54%) soared 8% in after-hours trading after it reported a Q3 adjusted loss of -58 cents, a bigger loss than consensus of -56 cents, but said it will deliver 17,000 to 19,000 vehicles in Q4, more than the 16,820 vehicles needed to reach its full-year target of 50,000 to 52,000 vehicles.
Allergan Plc (AGN -1.78%) reported Q3 EPS of $3.48, better than consensus of $3.18.
Becton Dickson (BDX +1.26%) reported Q4 EPS of $1.94, higher than consensus of $1.90.
Groupon (GRPN +5.22%) plunged over 25% in pre-market trading after it reported Q3 adjusted EPS of 5 cents, more than double consensus of 2 cents, but then lowered guidance on Q4 revenue to $815 million-$865 million, well below consensus of $956.3 million.
Nortek (NTK +1.13%) lowered guidance on fiscal 2015 net sales to $2.500 billion-$2.515 billion from an earlier estimate of $2.500 billion-$2.575 billion, below consensus of $2.560 billion.
U.S. Steel (X +0.94%) slumped over 10% in after-hours trading after it reported a Q3 EPS loss of -70 cents, a much wider loss than consensus of -20 cents and said it sees “significantly” lower shipments and average realized prices than previously projected for 2015.
Diplomat Pharmac (DPLO +1.88%) surged over 10% in after-hours trading after it reported Q3 adjusted EPS of 26 cents, well above consensus of 16 cents, and then raised guidance on fiscal 2015 EPS to 69 cents-73 cents from 56 cents-60 cents, above consensus of 59 cents.
Zendesk (ZEN +1.30%) jumped over 9% in after-hours trading after it reported Q3 adjusted EPS loss of -5 cents, a smaller loss than consensus of -9 cents.
MasTec (MTZ -0.81%) reported Q3 adjusted EPS of 26 cents, below consensus of 34 cents, and then lowered guidance on fiscal 2015 revenue to $4.1 billion-$4.15 billion, less than consensus of $4.27 billion.
Papa John’s (PZZA -5.80%) slid over 7% in after-hours trading after it reported Q3 adjusted EPS of 45 cents, right on consensus, but reported Q3 revenue of $389.3 million, below consensus of $398.4 million.
Zillow (Z +3.65%) fell over 8% in after-hours trading after it reported an unexpected Q3 EPS profit of 7 cents, better than consensus for a -3 cent loss, but lowered guidance on Q4 revenue to $165 million-$170 million, below consensus of $179.1 million.
Parker Drilling (PKD -0.33%) reported a Q3 adjusted loss of -10 cents, a smaller loss than consensus of -13 cents.
Earnings and Economic Numbers from seekingalpha.com…
Today’s Economic Calendar
7:00 MBA Mortgage Applications
8:15 ADP Jobs Report
8:30 International Trade
8:30 Gallup U.S. Job Creation Index
8:30 Treasury Refunding Quarterly Announcement
9:45 PMI Services Index
10:00 ISM Non-Manufacturing Index
10:00 Yellen testify before House Financial Services
10:30 EIA Petroleum Inventories
1:00 PM Results of $26B, 2-Year Note Auction
Today’s Earnings here
Other…
today’s upgrades/downgrades from briefing.com
this week’s Earnings
this week’s Economic Numbers