What Does Goldman's Funds Tracker Say About Fourth-Quarter Earnings?

A team of Goldman Sachs analysts said their capital flows tracker showed that U.S. domestic equity mutual funds saw a net outflow in the past week of about $3.8 billion. Simply put, investors have been pulling out of U.S. stock funds. "While still about a week to go, our early read on flows for October is considerably worse for most firms as well, putting pressure on 4Q estimates," the note said. Another warning sign: flows out of high-yield bond funds. The bulk of the $4.9 billion that flowed out of U.S. bond funds was in high-yield funds. When investors move away from those bonds, it means they're worried about credit. The Federal Reserve is hiking rates, and fears of a slower economy are starting to show up financial markets.
 
The third quarter has been a bad one for stocks, and the fourth quarter may be dreary as well. LPL Financial, however, said it believes there's more juice left in the economy. 

General Motors Beats on Both the Top and Bottom Lines 

General Motors Co.  ( GM - Get Report)  beat third-quarter estimates on Wednesday, posting a profit of $1.87 a share on revenue of $35.79 billion, compared with estimates of $1.25 and $34.85 billion, respectively. GM, a closely watched automaker for U.S. investors, has had to raise prices because of an increased cost of production as trade wars have made it more costly to put each vehicle together. It was those higher car prices that helped see the company through. Car deliveries fell almost 10% in the quarter, but a rise in average transaction price helped boost margins by 10.2%. The stock rose 7% in premarket trading. 

More to Come on Semiconductor Stocks

NXP Semicoductors NV ( NXPI - Get Report)  is scheduled to report earnings after the markets close on Wednesday. Chip stocks have gotten hit hard of late, as fears of tariffs on semiconductor equipment coming in from China added onto those already in place.  Semiconductor stocks rebounded on Tuesday. NXP, the $26 billion chipmaker, rose almost 7% so it seems expectations for a solid earnings report are high.