Stocks Mixed in a Busy Day Full of Earnings Reports

U.S. stocks are trading mixed in pre-market action. The markets are digesting a host of corporate results and the appointment of the new U.K. prime minister. Earnings reports are giving varied results, as Dow member Coca-Cola beat earnings estimates and raised its guidance, while Dow member 3M also announced a positive earnings surprise, but lowered its full-year outlook. Additionally, General Electric missed earnings expectations and lowered guidance. In economic news, home prices declined more than expected in August. After the opening bell, we will get a read on the Conference Board’s consumer confidence report, and data from the Richmond Fed Manufacturing Index. Treasury yields are lower, and the U.S. dollar is declining along with crude oil and gold prices. Markets in Asia finished mixed as economic uncertainty continues to weigh on conviction, while European stocks are diverging following economic reports and the political situation in the U.K.

As of 9:05 a.m. ET, the December S&P 500 Index future is 4 points below fair value, and the DJIA future is 192 points south of fair value, while the Nasdaq Index future is 18 points above fair value. WTI crude oil is decreasing $0.37 to $84.21 per barrel, and Brent crude oil is down $0.33 to $90.88 per barrel. The gold spot price is declining $8.40 to $1,645.70 per ounce. Elsewhere, the Dollar Index is 0.1% lower to 111.93.

Dow member Coca-Cola Company (KO $58) posted Q3 earnings-per-share (EPS) of $0.69, versus the $0.64 FactSet estimate, as net revenues grew 10% year-over-year (y/y) to $11.1 billion, north of the expected $10.5 billion. The multinational beverage company discussed the resiliency of its business in the face of a dynamic operating and macroeconomic environment, but did note that its financials were negatively impacted by currency headwinds. In terms of guidance, KO expects Q4 comparably EPS growth to include a 9% currency headwind based on the current rates, which will also include the impact of hedged positions. The company raised its full-year outlook.

Dow member 3M Company (MMM $118) announced adjusted Q3 EPS of $2.69, north of the anticipated $2.60, as revenues declined 4% y/y to $8.60 billion, versus the $8.71 billion estimate. The decline in revenues included negative impacts from divestitures and foreign currency translation. MMM discussed the highly uncertain environment, and said, “We delivered sequential and year-over-year margin expansion, amidst macroeconomic challenges and the strengthening U.S. dollar.” The multinational conglomerate—operates in fields of industry, worker safety, U.S. health care, and consumer goods—lowered its full-year guidance.

General Electric Company (GE $73) reported adjusted Q3 EPS of $0.35, well below the $0.47 estimate, as revenues rose 7% y/y to $18.44 billion, roughly in line with estimates. Chairman and CEO H Lawrence Culp Jr. said, “Our team is delivering, with strong Aerospace performance in the third quarter, fueled by the improving commercial backdrop and our progress managing operations and the supply chain environment.” He went on to discuss how recent U.S. legislation, and the energy crisis in the Europe, were catalysts that led to increased investment in new decarbonization technologies. The conglomerate, which operates in the aerospace, energy, and healthcare sectors, lowered its full-year guidance.