If you are a Baidu.com (BIDU, $432.97) shareholder this morning then hopefully you are prepared to pay the barber $85 for the haircut you’re about to get. The company announced earnings before the bell and easily beat Wall Street estimates by reporting profits of $2.16 a share which was 35 cents better than expectations. However, the company gave a cautious outlook for the upcoming quarter, saying it expects $174 to $180 million versus estimates of $203 million. In pre-market trading the stock is down $84 to $349. Ouch!
We have a couple of economic reports due out this morning. Consumer Confidence numbers are out at 10am and are expected to show a slight pop in October compared with the previous month. Wall Street expects the confidence index will rise to 53.5, from 53.1 in September. Consumer strength is considered vital to a recovery because consumer spending accounts for more than two-thirds of all economic activity and the holiday season is right around the corner.
The S&P/Case-Shiller Home Price Index, which measures changes in home prices in 20 of the nation’s largest metropolitan markets, is also due out this morning.
As we head to press, Dow futures are higher by 19. The S&P 500 futures are up 2 while the Nasdaq 100 futures are lower by 3. We have a lot to talk about with our current trades so let’s get to it…Current subscribers can check the Members Area for the updates…