Facebook results; Airbus delivery issues; Samsung warning

1. Facebook results: Investors appear to be shrugging off disappointing revenue and user gr...

Posted: Oct 31, 2018 9:36 AM
Updated: Oct 31, 2018 9:36 AM

1. Facebook results: Investors appear to be shrugging off disappointing revenue and user growth numbers from Facebook (FB).

The social media company reported Tuesday that third quarter revenue jumped 33% to $13.73 billion, less than expected. User growth figures also missed estimates.

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But it wasn't all bad news: Earnings per share of $1.76 topped Wall Street's estimates, and Facebook stock was up 4% before the bell on Wednesday.

Facebook estimated that over 2.6 billion people now use Facebook, WhatsApp, Instagram or Messenger each month. More than 2 billion people use at least one of these Facebook-owned apps each day on average.

2. Airbus falling short? Airbus acknowledged Wednesday that meeting its 2018 delivery target will be "a greater stretch" following engine shortages and "internal industrial challenges."

"Even though we delivered more aircraft than a year earlier, we still have a lot to do to meet our commitments," said outgoing CEO Tom Enders.

Enders will hand over to Guillaume Faury, the head of the company's Commercial Aircraft division, in April next year.

Net income jumped sharply to €957 million ($1.1 billion) in the third quarter. Shares in Airbus (EADSF) were 1.4% higher on Wednesday.

Watch CNNMoney's 'Markets Now' today at 12:45 p.m. ET

3. Samsung warning: Samsung reported bumper profits on Wednesday, but struck a cautious note about the future.

The South Korean conglomerate made 17.6 trillion won ($15.6 billion) in operating profit for the three months ended in September. That's a jump of 20.9% from the same period last year and Samsung's highest quarterly earnings ever.

But it said it doesn't expect the party to last.

"Looking ahead to the fourth quarter, Samsung expects overall earnings across the company to decline as it enters a period of weak seasonality for the semiconductor market," it said in the statement.

Shares in Samsung (SSNLF) were flat.

4. Global market overview: US stock futures were pointing higher.

European markets opened up, following a positive session in Asia.

The Dow closed 1.8% higher on Tuesday. The S&P 500 and the Nasdaq gained 1.6%.

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5. Earnings and economics: Anthem (ANTM), Clorox (CLX), Estee Lauder (EL), Garmin (GRMN), General Motors (GM), GNC Holdings (GNC), Kellogg (K), Sprint (S) and Yum! Brands (YUM) will release earnings before the open.

Allstate (ALL), Churchill Downs (CHDN), Express Scripts (ESRX), Extended Stay America (STAY), Fitbit (FIT), Pilgrim's Pride (PPC), Sturm Ruger (RGR) and Zynga (ZNGA) will follow after the close.

A report on US crude inventories will be released at 10:30 a.m. ET.

Ford (F) and Baidu (BIDU) announced Wednesday that they plan to start testing autonomous vehicles together on Beijing roads by the end of the year.

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6. Coming this week:

Wednesday — Allstate (ALL), Anthem (ANTM), Yum! Brands (YUM), Dine Brands (DIN), Express Scripts (ESRX), Clorox (CLX), General Motors (GM), Fitbit (FIT) earnings
Thursday — Apple (AAPL), AMC Networks (AMC), Progressive (PGR), CBS Corp. (CBS), Cigna (CI), Starbucks (SBUX), Shake Shack (SHAK), Kraft Heinz (KHC), GoPro (GPRO), Wayfair (W), IHeartMedia (IHRTQ), and Spotify (SPOT) earnings
Friday — Chevron (CVX), Exxon (XOM), Newell Brands (NWL), United States Steel Corp (X), MSG Networks (MSGN), and Seagate Technology (STX) earnings; Jobs report

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