Michael Haddad By Ben Levisohn Updated Sept. 28, 2018 9:22 a.m. ET
Oh Italy. The Dow was lower in early Friday trading, as September comes to an end with Italian politics rattling the market. Still, the S&P 500 looks set to end higher for a sixth consecutive month. The Securities and Exchange Commission has officially accused Tesla CEO Elon Musk of fraud. In today’s Morning Movers, we…
•…wonder if earnings can continue to lift the market;
•…highlight an upgrade to Zynga;
•…and review BlackBerry’s earnings.
Italy Today, Earnings Tomorrow?
Earnings, it is said, have helped lift the market despite turmoil over trade and politics. But what happens when earnings start to disappoint?
That’s not the issue today, though the market is trading lower Friday morning. S&P 500futures have declined 0.3%, while Dow Jones Industrial Averagefutures have fallen 101 points, or 0.4%. Nasdaq Compositefutures have dropped 0.4%.
The ostensible reason for today’s drop is the turmoil in Italy. The government was supposed to bring a budget that kept the deficit under 2%. Instead, it’s set to rise to 2.4%. Italy’s FTSE MIB Index has dropped 4.1%, and while yields on its bonds have jumped higher. “Just when we thought today would be about asset reallocations and the voting on the Kavanaugh nomination, the Italians took the title as market bad boy again,” writes NatAlliance Securities’ Andrew Brenner.
The declines in the U.S., however, are modest, as most have been recently. If a trade war can’t knock U.S. market down, why should Italy? Strong corporate earnings are credited for helping support the market, Tigress