Before the bell: What you need to know before the US market open

Billy Bambrough
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Google's recently announced Pixel phone has push Alphabet shares to an all time high
Google's recently announced Pixel phone has pushed Alphabet shares to an all time high (Source: Getty)

The global economic picture is looking rosier as the UK labour market holds up in the face of the shock vote to quit the European Union and the Chinese economy is showing signs of stabilising.

Here's what you need to know before the US market open at 2:30pm London time.

US futures are mixed ahead of the open. The S&P is 0.04 per cent higher, though the Nasdaq is 0.09 per cent down. The Dow is up by 0.06 per cent. The US 10-year yield is unchanged at 1.74 per cent.

European markets have had a lukewarm start to the day after a mixed Asian session where investors were unmoved by the latest strong Chinese GDP growth numbers.

Any minute now...

The experts think it's only a matter of time before wages come under pressure and jobs stutter in the aftermath of the Brexit vote, though not just yet.

The latest numbers out this morning suggest the UK labour market is holding up well in the face of the shock vote to leave the EU.

Employment and pay growth managed to beat expectations in figures published by the Office for National Statistics (ONS) this morning, although the number of people out of work crept up and there were other early signs of simmering uncertainty.

Red rising...

Is the Chinese economy over the worst of it? Some economists think so after the country pulled in a more-than-healthy growth rate of 6.7 per cent year-over-year in the third quarter.

It's the country's third straight quarter with 6.7 per cent growth and the first time on record that the year-on-year rate was unchanged for three consecutive quarters.

Stocks to watch

Shares in search giant Google have hit an all time high, climbing to $801 per share yesterday after the embargo lifted on reviews for its new phone.

The phone is seen as a direct competitor to Apple's flagship product, the iPhone, but Samsung's recent disaster with its Note 7 means Google is well placed to pick up significant market share from unhappy users.

Google's latest quarterly results are out on 27 October.

Yahoo beat Wall Street earnings estimates in its third quarter earnings, which was a welcome bit of good news for Marissa Mayer’s firm. The company said it earned 20 cents per share on an adjusted basis, above analyst predictions of 14 cents and reported a 6.5 per cent rise in quarterly revenue.

It has been a turbulent time for the firm of late and analysts had been predicting more bad news for Yahoo as the firm released results amid a takeover bid on shaky standings. In July, Verizon announced plans to purchase Yahoo for $4.83bn, but since then there has been increasing speculation that the bid was under threat.

Two months after the announcement Yahoo revealed that at least 500m of its users had been hacked. Mayer didn't divulge much more on the breach, but said: "We take deep responsibility in protecting our users and the security of their information."

Companies reporting

Morgan Stanley and US Bancorp have reported ahead of the open, maintaining Wall Street's winning streak this week.

After the closing bell we'll hear from consumer credit firm American Express and ecommerce site eBay.

In economic news

US housing starts are out ahead of the open and are followed by the Department of Energy's latest inventories an hour after. The Fed's Beige Book is out this evening at 7pm London time.

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