Here are five things you must know for Tuesday, Oct. 16:
1. -- Stocks Rise as Investors Eye Developments in Saudi Arabia
U.S. stock futures rose on Tuesday, Oct. 16, and global stocks edged mostly higher even as investors continued to eye developments in Saudi Arabia linked to the disappearance of prominent journalist Jamal Khashoggi and fretted over further signals of a trade war-related slowdown in China.
Contracts tied to the Dow Jones Industrial Average were up 141 points, futures for the S&P 500 rose 14.25 points, and Nasdaq futures gained 52.50 points. U.S. stocks finished lower on Monday, Oct. 15, as tech shares tumbled.
U.S. Secretary of State Mike Pompeo arrived in Riyadh, Saudi Arabia, earlier Tuesday and will meet King Salman to discuss the Khashoggi case amid speculation that the kingdom is preparing a report that will admit the journalist's death but pin the responsibility on interrogators working at the Saudi consulate in Istanbul, where Khashoggi was last seen on Sept. 28.
Khashoggi's disappearance, and presumed murder, has cast a dark shadow over both a planned investment conference later this month in Riyadh, which had been expected to include some of the biggest names in U.S. business, as well as broader global market sentiment given the potential fallout between the U.S. and a critical security ally in the Gulf region.
Market sentiment also was blunted by persistent signals of slowing growth in China, the world's second-largest economy, linked to the impact of its ongoing trade war with the United States.
2. -- Goldman Sachs, Netflix and IBM Highlight Tuesday's Earnings Calendar
UnitedHealth Group Inc. (UNH) posted third-quarter earnings of $3.41 a share vs. estimates of $3.29. Revenue was $56.6 billion, slightly higher than forecasts of $56.34 billion. The health insurer also raised its full-year earnings outlook. The stock gained 1.8% in premarket trading.
Johnson & Johnson (JNJ) reported third-quarter adjusted earnings of $2.05 a share, 2 cents above analysts' estimates. Quarterly revenue of $20.3 billion topped forecasts that called for sales of $20.1 billion. The company lifted its earnings outlook for the year.
Morgan Stanley (MS) reported third-quarter profit of $1.17 a share, handily beating analysts' expectations of $1.01. Shares rose 2.7% in premarket trading.
Goldman Sachs Group Inc. (GS) earned $6.28 a share in the third quarter, beating Wall Street forecasts of $5.38. Third-quarter revenue of $8.65 billion came in above forecasts of $8.35 billion. Shares rose 1.1%.
- Netflix Reports Q3 Earnings on Tuesday: 7 Key Things to Watch For
- Netflix's Growth Could Slow Due to Interest Rates: Analysts
The economic calendar in the U.S. on Tuesday includes Industrial Production for September at 9:15 a.m. ET, the National Association of Home Builders Housing Market Index for October at 10 a.m., and the Job Openings and Labor Turnover Survey for August at 10 a.m.
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3. -- Google CEO Defends Plans for Censored Search Engine in China
Google CEO Sundar Pichai said internal tests to develop a censored search engine in China have been very promising.
"It turns out we'll be able to serve well over 99% of the queries" that users request, Pichai said at the Wired 25 Summit.
The CEO defended Google's plan to build a censored search engine in China. He said the search engine, codenamed Project Dragonfly, had the potential to expose the world to more information and was guiding Google's push into China.
"We are compelled by our mission [to] provide information to everyone, and [China is] 20% of the world's population," the CEO said, Wired reported.
4. -- Microsoft Co-Founder Paul Allen Dies
Microsoft Corp. (MSFT) co-founder Paul Allen died on Monday in Seattle from complications of non-Hodgkin's lymphoma.
The news was announced in a statement from his investment fund, Vulcan Inc. Allen, the owner of the NFL's Seattle Seahawks, was one of the wealthiest people in the world, with an estimated net worth of $26.1 billion.
He co-founded software giant Microsoft along with Bill Gates in 1965.
"I am heartbroken by the passing of one of my oldest and dearest friends, Paul Allen," said Gates. "From our early days together at Lakeside School, through our partnership in the creation of Microsoft, to some of our joint philanthropic projects over the years, Paul was a true partner and dear friend. Personal computing would not have existed without him."here.
5. -- Ford Unveils 'Territory' SUV in China
Ford Motor Co. (F) revealed its latest sport utility vehicle in China as part of its renewed effort to turn around sales in the world's biggest car market.
Ford said its new "Territory" SUV will be manufactured with its domestic partner, Jiangling Motors Corp. Ltd. It will hit the Chinese market early next year as part of an effort to launch or refine 50 vehicles in China over the next seven years as the automaker attempts to arrest a serious decline in overall sales thanks to slowing activity in China.
Ford's car sales in China fell 43% in September and have declined about 30% over the first nine months of the year as China growth slows in part because of the impact of trade tensions between Washington and Beijing.
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