This is the web version of the Bull Sheet, Fortune's daily No-BS newsletter in the markets. Sign up here to get it in your inbox.
Good Morning. Global stocks and US futures were down all morning as COVID concerns frightened investors. Everything else seems secondary, including a series of profit blows that investors largely ignore and in some cases penalize.
Let's see what moves the markets.
- The mayor Asia indices are mostly lower in afternoon trading with that Hang Seng almost down 0.6%.
- Jack Ma’s Ant group hopes to increase roughly $ 34.5 billion in his upcoming record initial public offering. The fintech giant expects to start trading next week in Shanghai and Hong Kong, and this fundraiser will make Ma the eleventh richest person in the world.
- Some promising news on the Covid vaccination Front… CanSino Biologics Co-founder Yu Xuefeng reiterated that the Chinese vaccine company will complete its single-dose Phase III COVID vaccine studies in January 2022. He made the remarks on Tuesday at the Fortune Global Forum.
- The European stock exchanges are in the red with the Europe Stoxx 600 almost down 0.30% Investors resent the impact of tighter COVID restrictions across the continent. As we've seen the entire winning season, decent Corporate results are drowned out by virus messages.
- There are a few notable exceptions. HSBC's shares rose as much as 5.3% in Hong Kong this morning after the bank reported a drop in earnings and, more importantly, suggested resuming dividend payments.
- BP posted a modest third quarter operating profit this morning, which is based on a mammoth blow for big oil these days. But the end result is incredible 96% below the same quarter of the previous year. The stocks rose 1.7% outdoors, before climbing.
- US futures trading sideways this morning. That's after all three exchanges were bombed on Monday worst drop in a month. The Dow's Monday losses were enough to push the benchmark index into the red for October.
- BlackRock is short of the dollar going to vote. The world's greatest money manager believes that Greenback has to keep falling regardless of which party is in the White House next year.
- Which companies are on the Reporting calendar today? Microsoft, Pfizer, Eli Lilly, 3M, and AMD, to name a few.
- gold is down, trade around $ 1,900 / ounce.
- The dollar is flat.
- Raw is on, with Brent Trade at tick above $ 41 / barrel.
Eat your beats
As I discovered at this point last week, the sacred “beat” no longer moves investors.
There are exceptions, especially at BP and HSBC today. (The latter is supported by the announcement of a dividend, however.) However, it is no longer a given that stocks jump when companies beat the consensus estimate in either the upper or lower range.
As my colleague Anne Sraders reported yesterday, this trend has now become extreme. She cited BofA Securities, who wrote in an investor note on Monday: “So far, companies that have beaten both profit and profit have outperformed the S&P 500 by 5 basis points the day after (worst in history) and the peak performance missed by 60 basis points in history. "
There are some precedents for this bizzarro phenomenon – the Tech Bubble Days of 2000, which was "the only winning season in history where surprises were more perverse than intuitive – beats were not rewarded and failures were not penalized. "
This up-down response comes from the fact that companies have had an impressive quarter. Sraders collapses, how impressive.
The real test of that trend comes this week as the companies reporting those five days account for nearly 40% of the combined profit of the S&P 500.
In other words, if the trend continues around this time next week, keep watching for the quarters to come as well.
I wish everyone a pleasant day. I'll see you here tomorrow.
As always, you can write to email@example.com or reply to this email with suggestions and feedback.