STOCK NEWS

Facebook: WhatsApp added the ability to write, draw, and add emojis to pictures and videos. It also added a front facing flash, the ability to zoom while recording, and the ability to double tap to switch between the front and rear cameras. Facebook recently started testing out adding similar features Snapchat’s Stories has to its Messenger product. Not only is it copying Snapchat on Instagram, but it appears to be copying Snapchat by integrating these features on all of its products.

Delta: reported revenue passenger miles increased 1.4% in September to 17.5975 billion. Domestic revenue passenger miles were up 4.6%. Capacity is up 1.8% to 20.7964 billion available seat miles. Domestic available seat miles were up 4.1%. Consolidated passenger revenue per available seat mile fell 3.0% during September.

Darden: Q1 EPS of $0.88 beat estimates by 6 cents. Revenue of $1.71 billion were up 1.2% and missed estimates by $10 million. Same store sales increased 1.3% which is ahead of industry averages which were about flat. The following is the various brands’ same store sales metrics: Olive Garden was up 2.0%, Longhorn Steakhouse was up 0.6%, Capital Grille was down 1.2%, Yard House was flat, Eddie V’s was down 1.7%, Seasons 52 was up 0.7%, and Bahama Breeze was up 3.9%. Darden increased its 2017 EPS guidance from $3.80-$3.90 to $3.87-$3.97. 2017 same store sales growth is expected to be 1%-2%.

Statoil/Buckeye Partners: Hurricane Matthew is threatening to shut in 33 million barrels of oil storage the Bahamas. Statoil operates the 6.7 million barrel South Riding Point terminal on Grand Bahama Island. Buckeye Partners operates a 26.2 million barrel terminal on the same island.

ECONOMIC NEWS

There are 3 stories dominating the news today. The first is the vice presidential debate which is tonight. Tim Kaine and Mike Pence will square off. If any candidate has a major victory, it could swing the race, but that isn’t likely.

The second story is the IMF cutting U.S. 2016 GDP expectations from 2.2% in July to 1.6%. Technically the forecast is merely catching up with the consensus which is at about 1.5%, but it is still remarkable to see such a large decline while the market is at all-time highs.

The final story is hurricane Matthew which has wind speeds of 145 miles per hour making it a category 4 storm. Originally the storm was forecasted to go out to sea, but now it has the southeast of the U.S. in its projected path. The impacts will be felt this weekend.