Pre-Market Brief: Stocks Mixed Ahead of Key U.S. GDP Data and ECB Decision

December S&P 500 futures (ESZ22) are trending up +0.25% this morning after the S&P 500 and NASDAQ Composite benchmark indices snapped 3 session win streaks as disappointing earnings and gloomy guidance from major tech companies weighed on risk appetite, fueling fears of a global economic slowdown. The NASDAQ Composite and S&P 500 indexes were weighted down primarily by losses in the Technology, Consumer Services, and Utilities sectors, while the Dow Jones Industrial Average index ended in the green mainly due to gains in the Oil & Gas, Healthcare, and Basic Materials sectors.

“Management’s Q4 outlook for overall advertising business to continue to be impacted by difficult YoY comps and continuous headwinds within certain ad verticals & formats,” Goldman Sachs said in a note.

Sales of newly constructed U.S. homes slipped in September while mortgage rates hit their highest level in over two decades, indicating softening economic conditions.

At the same time, the Bank of Canada's smaller-than-expected interest rate hike of 50 bps to 3.75% boosted hopes that the Fed might consider easing the size of its rate hikes after the November meeting. Meanwhile, U.S. rate futures have priced in a 7.0% chance of a 50 basis point rate increase and a 93.0% chance of a 75 basis point hike at November's monetary policy meeting.

"Today, the market is catching up with the move upward over the last week or so. There are still two Fed meetings ahead of us this year," said Matthew Keator, a managing partner in the Keator Group, a wealth management firm in Lenox, Massachusetts.

Today, all eyes are focused on the U.S. Gross Domestic Product (GDP) preliminary data in a couple of hours. Economists, on average, forecast that third-quarter GDP will grow +2.4% q/q compared to the previous value of -0.6% q/q.

Also, investors are likely to focus on the U.S. September Core Durable Goods Orders data, which was at +0.2% m/m in August. Economists foresee the new figure to be +0.2% m/m.

The U.S. Initial Jobless Claims data will be reported today as well. Economists estimate this figure to come in at 220K, compared to last week's figure of 214K.

In the bond markets, United States 10-Year rates are at 4.059%, up +1.10%.

The Euro Stoxx 50 futures are down -0.42% this morning as market participants digested a substantial quarterly loss by Credit Suisse ahead of a crucial policy-setting meeting by the European Central Bank. Switzerland's second-biggest bank reported a worse-than-expected loss of 4 billion Swiss francs and announced plans to raise 4 billion Swiss francs by issuing new shares. At the same time, the ECB is widely expected to hike rates by 75 bps as it tries to cool off Eurozone inflation running at almost 10% compared to its 2% target.

Germany's GfK Consumer Climate, Spain's Unemployment Rate, Italy's Business Confidence, and Italy's Consumer Confidence data were released today. 

The German November GfK Consumer Climate Index stood at -41.9, in line with expectations.

The Spanish Unemployment Rate has been reported at 12.67% in Q3, stronger than expectations of 13.00%.

The Italian October Business Confidence came in at 100.4, stronger than expectations of 100.0.

The Italian October Consumer Confidence was at 90.1, weaker than expectations of 93.8.

Asian stock markets today closed mixed. China’s Shanghai Composite Index (SHCOMP) closed down -0.55%, and Japan’s Nikkei 225 Stock Index (NIK) closed down -0.32%.

China’s Shanghai Composite closed in the red today, dragged by weak third-quarter earnings reports. The data on Wednesday showed that Chinese industrial profit decreased -2.3% YTD in September, suggesting more languid trends for the economy. Also, the overall outlook for the Chinese economy remains uncertain amid growing concerns over the country’s political climate.

At the same time, Japan’s Nikkei 225 Stock Index closed lower today, weighed down by losses in the Chemical, Petroleum & Plastic, Railway & Bus, and Shipbuilding sectors. The Nikkei Volatility, which takes into account the implied volatility of Nikkei 225 options, closed down 1.80% to 23.44.

Pre-Market U.S. Stock Movers

Meta Platforms Inc (META) plunged over -19% in pre-market trading after the company reported mixed Q3 results and provided soft Q4 guidance. 

NVIDIA Corporation (NVDA) gained about +3% in pre-market trading, and Advanced Micro Devices Inc (AMD) advanced over +1% in pre-market trading on higher Meta CAPEX for this year and next.

Align Technology Inc (ALGN) slid over -17% in pre-market trading after the company reported downbeat Q3 earnings results.

Wolfspeed Inc (WOLF) tumbled over -23% in pre-market trading after the company delivered upbeat Q1 results but provided a weak Q2 outlook.

Teladoc Inc (TDOC) gained about +10% in pre-market trading after the company reported upbeat Q3 earnings results.

You can see more pre-market stock movers here

Today’s U.S. Earnings Spotlight: Thursday - October 27th

Apple (AAPL), Amazon.com (AMZN), Mastercard (MA), Merck&Co (MRK), ANZ Banking Group ADR (ANZBY), Shell ADR (SHEL), McDonald’s (MCD), Linde PLC (LIN), Comcast (CMCSA), TotalEnergies SE ADR (TTE), Unilever ADR (UL), Honeywell (HON), Intel (INTC), Caterpillar (CAT), S&P Global (SPGI), Anheuser Busch ADR (BUD), Ping An Insurance Company of China (PNGAY), American Tower (AMT), Gilead (GILD), British American Tobacco ADR (BTI), Altria (MO), Northrop Grumman (NOC), Southern (SO), Fiserv (FISV), Vale ADR (VALE), Keurig Dr Pepper (KDP), Edwards Lifesciences (EW), L3Harris Technologies (LHX), American Electric Power (AEP), Electricite de France SA (ECIFY), Ambev SA (ABEV), Republic Services (RSG), Takeda Pharma ADR (TAK), DexCom (DXCM), Capital One Financial (COF), Anglo American ADR (NGLOY), Arthur J Gallagher (AJG), Shopify Inc (SHOP), Hoya Corp (HOCPY), Newmont Goldcorp (NEM), Neste (NTOIY), ResMed (RMD), Resmed DRC (RSMDF), Xcel Energy (XEL), Lloyds Banking ADR (LYG), STMicroelectronics ADR (STM), Warner Bros Discovery (WBD), Carrier Global (CARR), PG E (PCG), VICI Properties (VICI), Capgemini ADR (CGEMY), Baidu (BIDU), Baxter (BAX), Hexagon ADR (HXGBY), Citic ADR (CTPCY), Fanuc Corporation (FANUY), T Rowe (TROW), Alnylam (ALNY), SwissCom AG (SCMWY), Seagen (SGEN), Hyundai Motor DRC (HYMTF), Hyundai Motor ADR (HYMLY), Willis Towers Watson (WTW), Beiersdorf ADR (BDRFY), Weyerhaeuser (WY), CBRE A (CBRE), Fujitsu ADR (FJTSY), Hartford (HIG), argenx ADR (ARGX), Compagnie Saint-Gobain ADR (CODYY), Ares Management (ARES), FirstEnergy (FE), Laboratory America (LH), Southwest Airlines (LUV), Principal Financial (PFG), Carlsberg AS (CABGY), LPL Financial (LPLA), VeriSign (VRSN), Repsol SA (REPYY), Teck Resources B (TECK), West Pharmaceutical Services (WST), Swedbank AB (SWDBY), CMS Energy (CMS), Monolithic (MPWR), LKQ (LKQ), Check Point Software (CHKP), Carlisle (CSL), EQT (EQT), First Solar (FSLR), Textron (TXT), First Citizens BancShares (FCNCA), Shaw B (SJR), Shinhan (SHG), Kimco (KIM), Suzano Papel ADR (SUZ), Tradeweb Markets (TW), Credit Suisse ADR (CS), SS&Cs (SSNC), SS&Cs (SSNC), KB Financial (KB), Camden Property (CPT), Erie Indemnity (ERIE), POSCO (PKX), ABIOMED (ABMD), International Paper (IP), Entegris (ENTG), China Coal Energy ADR (CCOZY), Stanley Black Decker (SWK), Reliance Steel&Aluminum (RS), Bio-Rad Labs (BIO), Bio-Rad Labs B (BIOb), Western Digital (WDC), Cameco (CCJ), Magellan (MMP), Eastman Chemical (EMN), Nov (NOV), TFI Intl (TFII), BorgWarner (BWA), Allegion PLC (ALLE), Lennox (LII), AO Smith (AOS), Lincoln Electrics (LECO), Santander Mexico B ADR (BSMX), Orkla ASA ADR (ORKLY), Novocure Ltd (NVCR), Hertz Global Holdings (HTZ), Texas Roadhouse (TXRH), AptarGroup (ATR), Option Care Health (OPCH), Mohawk Industries (MHK), Kinsale Capital (KNSL), FTI Consulting (FCN), ExlServices (EXLS), STAG Industrial (STAG), Brunswick (BC), National Instruments (NATI), First American (FAF), Columbia Sportswear (COLM), Exponent (EXPO), Yamana Gold (AUY), Applied Industrial Technologies (AIT), Banco de Sabadell ADR (BNDSY), Klabin Sa A (KLBAY), Red Rock Resorts (RRR), Casella (CWST), Schneider National (SNDR), Euronav (EURN), Janus Henderson (JHG), Cousins Properties (CUZ), Ameris (ABCB), CNX Resources (CNX), Eastern Bankshares (EBC), Travel + Leisure Co (TNL), Onto Innovation (ONTO), CTEEP ADR (CTPTY), California Water Service (CWT), Essential Properties (EPRT), Corporate Office Properties (OFC), Federated Investors B (FHI), Grand Canyon Education (LOPE), Ermenegildo Zegna NV (ZGN), Perficient (PRFT), MDC (MDC), Axos Financial (AX), Pebblebrook Hotel (PEB), McGrath (MGRC), Extreme (EXTR), Dana (DAN), Integer Hld (ITGR), Millicom DRC (MICCF), Millicom (TIGO), Minerals Technologies (MTX), Seacoast Banking Florida (SBCF), Carpenter Technology (CRS), Buenaventura Mining ADR (BVN), Sonic Automotive (SAH), TRI Pointe Homes (TPH), Elme (ELME), LTC Properties (LTC), National Bank Holdings (NBHC), TriMas (TRS), Knowles Cor (KN), Schneider Electric SA (SBGSY), Polymetal (POYYF), Lakeland Bancorp (LBAI).

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