Delta Air Lines posted its first earnings miss in two years, ending a seven-quarter streak of beats, with Q3 earnings of $1.72 per share falling 8 cents or 4.44% short of the Zacks consensus and revenue of $17.59 billion coming in 0.89% below estimates. The company's press release pointed to fuel costs as the problem, up 62% year over year and about $500 million more than the company guided back in July, with those costs now expected to continue into next quarter's numbers and forward estimates moving lower. Ahead of the open, pre-market futures were higher, with the Nasdaq up 210 points, the Dow up 59 points, the S&P 500 up 25 points and the small-cap Russell 2000 up 6 points, while bond yields sat at 5.26% on the 10-year, 4.79% on the 2-year and 5.265% on the 30-year. Oil prices were down modestly despite Iran-backed Houthi rebels in Yemen attacking Saudi Arabia's Riyadh airport and killing three, with WTI trading around $91 per barrel and Brent crude at $103 per barrel, off recent highs but plateauing at four-year highs. At 10 am ET, the preliminary University of Michigan Consumer Survey for October is expected to tick up slightly to 48 from 47.8, still below the 50 threshold that indicates negative consumer sentiment. Next week brings September CPI and PPI data, after last month's year-over-year CPI of 3.4% and PPI of 5.4%, along with the start of big-bank earnings on Tuesday, when JPMorgan is seen gaining 17% on earnings and 12% on revenues, Citigroup 18.75% on earnings and 7% on revenues, and Wells Fargo 7% on earnings and 3% on revenues.
Citigroup Inc.
JPMorgan Chase & CoDelta Air Lines IncDelta posted its first earnings miss in two years, with Q3 EPS and revenue below estimates as fuel costs surged 62%.
Wells Fargo & Company
