December Nasdaq 100 E-Mini futures (NQZ24) are trending up +0.28% this morning as strong quarterly results from Alphabet boosted sentiment, while investors also awaited a fresh batch of U.S. economic data and earnings reports from “Magnificent Seven” companies Microsoft and Meta.
Alphabet (GOOGL) climbed over +5% in pre-market trading after the Google parent reported stronger-than-expected Q3 results.
In yesterday’s trading session, Wall Street’s main stock indexes closed mixed. Cadence Design Systems (CDNS) surged over +12% and was the top percentage gainer on the S&P 500 and Nasdaq 100 after the company posted upbeat Q3 results and raised its full-year EPS guidance. Also, chip stocks gained ground, with Arm (ARM) and Broadcom (AVGO) climbing more than +4%. In addition, V.F. Corporation (VFC) soared over +27% after the company reported stronger-than-expected FQ2 results. On the bearish side, Ford (F) plunged more than -8% after the carmaker lowered its full-year adjusted EBIT guidance. Also, PayPal (PYPL) slid about -4% and was the top percentage loser on the Nasdaq 100 after the payment technology firm reported weaker-than-expected Q3 revenue and offered a soft Q4 revenue forecast.
A Labor Department report released on Tuesday showed that the U.S. JOLTs job openings fell to a 3-3/4 year low of 7.443M in September, weaker than expectations of 7.980M. Also, the U.S. Conference Board’s consumer confidence index jumped to a 9-month high of 108.7 in October, easily beating the 99.5 consensus. In addition, the U.S. August S&P/CS HPI Composite - 20 n.s.a. eased to +5.2% y/y from +5.9% y/y in July, stronger than expectations of +4.9% y/y.
“The labor market no longer poses a threat to the price stability side of the Fed’s dual mandate,” Wells Fargo economists said.
Meanwhile, U.S. rate futures have priced in a 99.7% chance of a 25 basis point rate cut at the November FOMC meeting.
Third-quarter corporate earnings season rolls on, with investors looking forward to fresh reports today from major companies such as Microsoft (MSFT), Meta Platforms (META), Eli Lilly (LLY), AbbVie (ABBV), Caterpillar (CAT), Booking (BKNG), KLA Corp. (KLAC), and Doordash (DASH). According to Bloomberg Intelligence, companies in the S&P 500 are expected to post an average +4.3% increase in quarterly earnings for Q3 compared to the previous year, down from +7.9% growth projected in mid-July.
On the economic data front, all eyes are focused on the first estimate of U.S. third-quarter gross domestic product, due later in the day. Economists, on average, forecast that U.S. GDP will stand at +3.0% q/q, matching the second quarter’s figure.
Also, investors will focus on the U.S. ADP Nonfarm Employment Change data, which came in at 143K in September. Economists foresee the October figure to be 110K.
U.S. Pending Home Sales data will come in today. Economists expect the September figure to be +1.9% m/m, compared to the previous figure of +0.6% m/m.
U.S. Crude Oil Inventories data will be reported today as well. Economists estimate this figure to be 1.500M, compared to last week’s value of 5.474M.
In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.235%, down -0.94%.
The Euro Stoxx 50 futures are down -0.77% this morning as investors digested a fresh batch of corporate earnings reports and regional growth data while also awaiting the U.K. government’s Budget announcement. Technology stocks led the declines on Wednesday. Flash figures released by the European Union’s statistics agency on Wednesday showed that the Eurozone’s economy grew more strongly than expected in the third quarter, bolstering hopes for a soft landing for the bloc. Separately, preliminary data from the National Statistics Institute showed that Spain’s annual inflation rate rose to 1.8% in October from a 3-1/2-year low of 1.5% in September. Meanwhile, the U.K. budget and preliminary German inflation data, scheduled for later in the day, will also be on investors’ radar. In corporate news, Gsk Plc (GSK.LN) fell over -3% after the drugmaker posted lower-than-expected Q3 sales for two blockbuster vaccines and warned that its vaccine sales would fall this year. Also, Nexans (NEX.FP) plunged more than -11% after the company reported weaker-than-expected Q3 revenue. At the same time, UBS Group Ag (UBSG.Z.IX) gained over +1% after the Swiss lender reported a much stronger-than-expected Q3 profit.
Spain’s CPI (preliminary), Germany’s Unemployment Rate, Eurozone’s GDP (preliminary), and Eurozone’s Consumer Confidence data were released today.
The Spanish October CPI came in at +0.6% m/m and +1.8% y/y, stronger than expectations of +0.5% m/m and +1.7% y/y.
The German October Unemployment Rate was at 6.1%, in line with expectations.
Eurozone GDP has been reported at +0.4% q/q and +0.9% y/y in the third quarter, stronger than expectations of +0.2% q/q and +0.8% y/y.
Eurozone October Consumer Confidence stood at -12.5, in line with expectations.
Asian stock markets today settled mixed. China’s Shanghai Composite Index (SHCOMP) closed down -0.61% and Japan’s Nikkei 225 Stock Index (NIK) closed up +0.96%.
China’s Shanghai Composite Index ended lower today as investors exercised caution ahead of the nation’s fresh PMI data and a top leadership meeting. Insurance and bank stocks slumped on Wednesday, while property stocks outperformed. Market participants are bracing for a meeting of the National People’s Congress Standing Committee scheduled to take place from November 4th to 8th. Meanwhile, Reuters reported on Tuesday that authorities were considering the approval of 10 trillion yuan ($1.4 trillion) in additional borrowing over the coming years to support the economy and address local government debt risks. The package comprises 6 trillion yuan in debt to be issued over three years, including 2024, aimed at assisting local authorities in settling off-balance-sheet debt, and 4 trillion yuan in bonds designated for regional governments to buy idle land and properties over the next five years, the report said. However, the potential package did little to impress the markets, with analysts noting that its size aligns with expectations while support for consumption remains modest. Investors are also awaiting the latest PMI reports from the country, scheduled for Thursday and Friday, to evaluate the effects of recent stimulus measures. In corporate news, China Merchants Bank slid over -3% in Hong Kong after the country’s largest retail lender reported a 0.6% year-over-year drop in net income for the first nine months of 2024. Also, Haier Smart Home fell more than -2% in Hong Kong after the home appliances maker posted weaker-than-expected Q3 profit.
Japan’s Nikkei 225 Stock Index closed higher and hit a 2-week high today, propelled by the yen’s recent weakness and gains in the tech sector. Technology stocks led the advance on Wednesday, following the Nasdaq’s record close overnight. Automobile and financial stocks also gained ground. Data released on Wednesday showed that Japan’s consumer confidence index dropped to a 5-month low in October as household sentiment weakened across all components. Meanwhile, policy uncertainties cast a shadow over the market following the ruling Liberal Democratic Party’s loss of its parliamentary majority in the recent election. Yuichiro Tamaki, leader of the opposition Democratic Party for the People, stated on Tuesday that the Bank of Japan should refrain from overhauling its ultra-loose monetary policy at this time. In corporate news, Hino Motors tumbled over -13% after the truck maker reported an extraordinary loss of 230 billion yen ($1.5 billion) and projected a full-year net loss. Investors now await the BOJ’s policy decision on Thursday, with the central bank widely expected to keep its policy interest rate unchanged. The Nikkei Volatility, which takes into account the implied volatility of Nikkei 225 options, closed down -11.79% to 25.97.
The Japanese October Household Confidence arrived at 36.2, weaker than expectations of 36.7.
Pre-Market U.S. Stock Movers
Alphabet (GOOGL) climbed over +5% in pre-market trading after the Google parent reported stronger-than-expected Q3 results.
Advanced Micro Devices (AMD) slumped more than -8% in pre-market trading after the semiconductor giant provided a weak Q4 revenue forecast.
Reddit (RDDT) soared over +23% in pre-market trading after the company posted upbeat Q3 results and issued strong Q4 guidance.
Snap (SNAP) surged more than +11% in pre-market trading after reporting better-than-expected Q3 results.
Chipotle Mexican Grill (CMG) slumped over -6% in pre-market trading after the restaurant chain reported weaker-than-expected Q3 sales.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Wednesday - October 30th
Microsoft (MSFT), Meta Platforms (META), Eli Lilly (LLY), AbbVie (ABBV), Caterpillar (CAT), Amgen (AMGN), Booking (BKNG), ADP (ADP), KLA Corp (KLAC), Trane Technologies (TT), Equinix (EQIX), Illinois Tool Works (ITW), DoorDash (DASH), Aflac (AFL), Public Storage (PSA), MetLife (MET), Coinbase Global (COIN), MicroStrategy (MSTR), Allstate (ALL), TE Connectivity (TEL), Monolithic (MPWR), Prudential Financial (PRU), Agnico Eagle Mines (AEM), Carvana (CVNA), Kraft Heinz (KHC), Hess (HES), Otis Worldwide (OTIS), Exelon (EXC), Arch Capital (ACGL), Verisk (VRSK), Cognizant (CTSH), Martin Marietta Materials (MLM), Vulcan Materials (VMC), Garmin (GRMN), Tradeweb Markets (TW), Humana (HUM), eBay (EBAY), CDW Corp (CDW), Equity Residential (EQR), Ventas (VTR), Biogen (BIIB), American Water Works (AWK), Fortive (FTV), Global Payments (GPN), Robinhood Markets (HOOD), Smurfit Westrock (SW), Godaddy Inc (GDDY), Zimmer Biomet (ZBH), Invitation Homes (INVH), LPL Financial (LPLA), Clorox (CLX), Ryan Specialty Group Holdings (RYAN), Mid-America Apartment (MAA), Gen Digital (GEN), Everest (EG), UDR (UDR), NiSource (NI), United Therapeutics (UTHR), CF Industries (CF), FTAI Aviation (FTAI), Clean Harbors (CLH), XPO (XPO), Flex (FLEX), Ares Capital (ARCC), Curtiss-Wright (CW), CH Robinson (CHRW), MGM (MGM), Bunge (BG), Sprouts Farmers (SFM), Aurora Innovation (AUR), Neurocrine (NBIX), Houlihan Lokey Inc (HLI), Twilio (TWLO), Pilgrims Pride (PPC), Parsons (PSN), Roku (ROKU), Omega Healthcare (OHI), Wingstop Inc (WING), Floor & Decor (FND), Dayforce (DAY), Universal Display (OLED), Paylocity Holdng (PCTY), Federal Realty (FRT), Paycom Soft (PAYC), Procore Technologies (PCOR), Bio-Rad Labs (BIO), Altair Engineering (ALTR), Antero Resources Corp (AR), Penumbra Inc (PEN), Informatica (INFA), Summit Materials Inc (SUM), Axalta Coating Systems (AXTA), Hess Midstream Partners (HESM), Confluent (CFLT), WillScot (WSC), SPX Corp (SPXC), Bausch + Lomb (BLCO), Kirby (KEX), Antero Midstream (AM), Oshkosh (OSK), Cognex (CGNX), Axis Capital (AXS), Healthcare RT (HR), Watts Water Technologies (WTS), Siteone Landscape Supply (SITE), Casella (CWST), Reynolds (REYN), CSW Industrials Inc (CSWI), Kite Realty (KRG), OneMain Holdings (OMF), Beacon Roofing (BECN), Merit (MMSI), Credit Acceptance (CACC), Etsy Inc (ETSY), Silgans (SLGN), The Hanover Insurance (THG), Clearway Energy (CWEN), Option Care Health (OPCH), Corcept (CORT), Magnolia Oil (MGY), Tenable (TENB), Shake Shack (SHAK), National Storage Affiliates Trust (NSA), Acadia Healthcare (ACHC), Avnet (AVT), Nextracker (NXT), Gates Industrial Corp (GTES), Arcosa (ACA), Independence Realty Trust Inc (IRT), Cactus (WHD), Matson (MATX), Columbia Sportswear (COLM), Blackbaud (BLKB), Riot Platforms (RIOT).
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