Signage is displayed outside Morgan Stanley & Co. headquarters in the Times Square neighborhood of New York.
Michael Nagle | Bloomberg | Getty Images
Here are the most important things to know about Thursday before you hit the door.
1. Morgan Stanley earnings
We’ll get quarterly earnings from Morgan Stanley before the bell on Thursday. Morgan Stanley’s stock has had a volatile year, only up about 7% since January, lagging its peers. Goldman Sachs is up 24%, J.P. Morgan is up 22% and Wells Fargo is up 8% year to date.
Barclays expects Morgan Stanley to report earnings per share of $1.18, slightly below consensus of $1.19. Barclays said it expects lower net interest income, a profitability gauge, largely attributed to the current low interest rate environment.
While most banks have beaten Wall Street’s estimates for earnings, many bank executives have warned that low rates, with the potential of further rate cuts from the Federal Reserve, could hurt fourth-quarter margins.
2. Pile of economic data
We’ll get a slew of economic data on Thursday including weekly jobless claims, Philadelphia Fed manufacturing data and housing starts. Economist are estimating 215,000 Americans filed applications for unemployment benefits last week, according to Dow Jones. The forecast would be up from the previous week’s 210,000 jobless claims.
After U.S. homebuilding surged to more than a 12-year high in August, economists estimate 1.32 million housing starts in September. Strong homebuilding numbers suggests that lower mortgage rates are providing a boost to the struggling housing market. The Commerce Department releases the data at 8:30 a.m.
The Philadelphia Federal Reserve’s manufacturing gauge worsened in October, according to Dow Jones. Economists estimate a reading of 6.4, down from September’s read of 12, showing further signs of a manufacturing weakness in the economy.
3. Netflix earnings: make or break?
Streaming service Netflix reports third-quarter earnings after the bell on Wednesday. Bank of America analyst Nat Schindler called this a “make or break quarter for Netflix,” in the wake of a 25% sell-off since its disappointing second-quarter earnings.
Major events (all times ET):
8:30 a.m. Initial jobless claims
8:30 a.m. Housing starts
8:30 a.m. Philadelphia Fed manufacturing
8:30 a.m. Building permits
9:15 a.m. Industrial production
2 p.m. Fed Governor Michelle Bowman speaks
2 p.m. Chicago Fed’s Evans speaks
4:20 p.m. New York Fed President John Williams speaks
Morgan Stanley (before the bell)
Honeywell (before the bell)
Union Pacific (before the bell)
Taiwan Semiconductor (before the bell)
SunTrust (before the bell)
BB&T (before the bell)
E-Trade (after the bell)
Western Alliance Bancorp (after the bell)
Intuitive Surgical (after the bell)
—with reporting from CNBC’s Michael Bloom
View original Post