Stocks Muted Before the Open With Earnings Season in Focus

December S&P 500 E-Mini futures (ESZ25) are up +0.01%, and December Nasdaq 100 E-Mini futures (NQZ25) are down -0.03% this morning, steadying after yesterday’s gains as investors shift their focus to the third-quarter earnings season.

Soda and snack maker PepsiCo (PEP) and carrier Delta Air Lines (DAL) are among the companies starting the U.S. third-quarter reporting period today, with major Wall Street banks such as Goldman Sachs (GS) and Citigroup (C) set to report next week. Tesla (TSLA) will be the first of the Magnificent Seven group to report on October 22nd, followed by Alphabet (GOOGL), Microsoft (MSFT), and Meta Platforms (META) on October 29th.

In yesterday’s trading session, Wall Street’s major indexes ended mostly higher, with the S&P 500 and Nasdaq 100 notching new record highs. Most members of the Magnificent Seven stocks advanced, with Nvidia (NVDA) rising over +2% and Amazon.com (AMZN) gaining more than +1%. Also, Advanced Micro Devices (AMD) surged over +11% and was the top percentage gainer on the S&P 500 and Nasdaq 100 after DZ Bank upgraded the stock to Buy from Hold with a $250 price target. In addition, Confluent (CFLT) climbed more than +7% after Reuters reported that the company was exploring a sale. On the bearish side, Fair Isaac (FICO) slumped over -9% and was the top percentage loser on the S&P 500 after rival Equifax announced it was “responding to FICO’s monopoly-like doubling of their mortgage credit score prices to $10 in 2026” by cutting VantageScore 4.0 mortgage credit scores by more than 50% from Fair Isaac’s 2026 prices to $4.50 through the end of 2027.

“With price-to-earnings ratios for today’s tech giants still well below those of the tech firms at the peak of the dotcom bubble, we think the bull market remains intact,” said Mark Haefele at UBS Global Wealth Management.

The minutes of the Federal Open Market Committee’s September 16-17 meeting, released on Wednesday, showed that policymakers were open to further interest rate cuts this year, though many voiced caution over still-elevated inflation. “Most judged that it likely would be appropriate to ease policy further over the remainder of this year,” according to the FOMC minutes. At the same time, the minutes showed “a majority of participants emphasized upside risks to their outlooks for inflation.” While policymakers acknowledged that labor market risks had increased, many also believed a sharp decline in employment was unlikely. Officials reiterated that they would weigh risks to both inflation and employment when determining their next policy move. “Participants stressed the importance of taking a balanced approach in promoting the committee’s employment and inflation goals,” the minutes said.

New York Fed President John Williams said in an interview with The New York Times published on Thursday that he supports more rate cuts this year to help safeguard the labor market.

U.S. rate futures have priced in a 94.6% probability of a 25 basis point rate cut and a 5.4% chance of no rate change at the next FOMC meeting in October.

Meanwhile, the U.S. government shutdown has entered its ninth day, with no resolution in sight. On Wednesday, lawmakers once again failed to pass a bill to reopen the government, with no lawmakers changing their positions. Republicans still push for a continuing resolution that maintains current spending levels through November 21st, while Democrats are demanding the inclusion of an extension for healthcare subsidies set to expire at year-end.

In geopolitical news, President Trump said Israel and Hamas have agreed to a deal that would release all Israeli hostages held in the Gaza Strip, marking a major step toward peace after two years of conflict in the Palestinian territory.

Today, Fed Chair Jerome Powell will deliver pre-recorded welcoming remarks at a Fed Community Bank Conference. Treasury Secretary Scott Bessent and Fed Vice Chair for Supervision Michelle Bowman are set to participate in a “fireside chat” at the event. Fed Governor Michael Barr and San Francisco Fed President Mary Daly will also speak today.

In light of the government shutdown, the publication of weekly jobless claims and final August wholesale inventories data, originally set for today, will likely be delayed.

In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.138%, up +0.10%.

The Euro Stoxx 50 Index is down -0.18% this morning, retreating from a record. Bank stocks underperformed on Thursday, with HSBC Holdings Plc (HSBA.LN) sliding over -6% after it announced plans to take one of its banking units private. Also, Lloyds Banking Group Plc (LLOY.LN) fell more than -3% after cautioning that it might need to allocate additional provisions for mis-sold car loans. Limiting losses, industrial and mining stocks advanced. Data released on Thursday showed that Germany’s exports unexpectedly fell in August, weighed down by weaker trade with other European countries and uncertainty stemming from U.S. tariffs during the summer. Meanwhile, investors are keeping an eye on political developments in France, with President Emmanuel Macron seeking to avoid the immediate risk of snap elections by pledging to name a new prime minister by Friday. Investors are also awaiting the release of the accounts of the European Central Bank’s September meeting due later in the session. In other corporate news, Gerresheimer AG (GXI.D.DX) plunged over -13% after the packaging and medical equipment maker cut its full-year guidance.

Germany’s Exports and Imports data were released today.

The German August Exports unexpectedly fell -0.5% m/m, weaker than expectations of +0.3% m/m.

The German August Imports fell -1.3% m/m, weaker than expectations of -0.5% m/m.

Asian stock markets today settled in the green. China’s Shanghai Composite Index (SHCOMP) closed up +1.32%, and Japan’s Nikkei 225 Stock Index (NIK) closed up +1.77%.

China’s Shanghai Composite Index closed higher and hit a 10-year high today as trading resumed after the Golden Week holiday. Gold mining stocks rallied on Thursday, catching up with gains in their Hong Kong-listed peers after spot gold surpassed $4,000 a troy ounce amid heightened global political uncertainty. Also, rare earth stocks surged after China imposed new export controls requiring foreign companies to secure government approval before re-exporting products containing Chinese-origin rare earth materials to other nations. Still, ING Chief China Economist Lynn Song said the move is likely to have only a limited impact on the actual flow of the material’s exports. In addition, semiconductor stocks climbed after U.S. lawmakers called for wider restrictions on chipmaking equipment sales to China, boosting expectations of higher demand for domestic alternatives. Renewed optimism for AI also boosted chip stocks. Meanwhile, holiday spending data indicated that households remained cautious. Spending was subdued, as lower-cost road trips replaced air travel and box office revenues fell short of expectations. In corporate news, Hang Seng Bank soared over +25% in Hong Kong after HSBC Holdings announced plans to take the lender private. Investors are awaiting the Fourth Plenum, set for October 20th-23rd, which will lay out China’s economic, political, and social priorities as well as its development plans for the next five years. The Trump-Xi meeting at the APEC summit in South Korea could provide another catalyst if discussions on tariffs resume.

Japan’s Nikkei 225 Stock Index closed higher today, hitting a new record high. Technology stocks led the gains on Thursday, with SoftBank Group surging over +11% following its $5.4 billion deal to acquire ABB’s industrial-robotics business and a rebound in U.S. tech stocks overnight. The deal advanced the Japanese startup investor’s strategy to merge the potential of AI with robotics. At the same time, automobile stocks extended their declines due to profit-taking. Meanwhile, the yen weakened further on Thursday, with analysts noting that Japan’s stock rally, dubbed the “Takaichi trades” following Sanae Takaichi’s election as LDP leader, is likely to continue as long as the yen remains weak. Takuji Aida, an economist advising Takaichi’s policy team, said the yen’s current weakness benefits the economy and that the impact on households from higher import costs can be mitigated through aggressive fiscal spending. In other news, foreign investors bought a record 2.48 trillion yen ($16.3 billion) worth of Japanese stocks on a net basis last week, even as expectations for a win by pro-stimulus candidate Sanae Takaichi faded ahead of the ruling party’s election, according to data from the finance ministry. The inflow followed three consecutive weeks of heavy selling, continuing a pattern in which investors offload cash equities in March and September before repurchasing them in April and October. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed up +4.69% to 30.13.

Pre-Market U.S. Stock Movers

Nvidia (NVDA) advanced over +1% in pre-market trading after the U.S. approved several billion dollars’ worth of its chip exports to the United Arab Emirates.

Delta Air Lines (DAL) climbed over +5% in pre-market trading after the carrier posted upbeat FQ3 results and firmed up its annual earnings guidance.

Akero Therapeutics (AKRO) jumped more than +19% in pre-market trading after the company agreed to be acquired by Novo Nordisk for up to $5.2 billion in cash.

Oklo (OKLO) rose over +2% in pre-market trading after Canaccord initiated coverage of the stock with a Buy rating and $175 price target.

Tractor Supply Company (TSCO) gained more than +2% in pre-market trading after Citi upgraded the stock to Buy from Neutral with a price target of $62.

You can see more pre-market stock movers here

Today’s U.S. Earnings Spotlight: Thursday - October 9th

PepsiCo (PEP), Delta Air Lines (DAL), Levi Strauss (LEVI), Tilray (TLRY), Neogen (NEOG), Apogee (APOG), Helen of Troy Ltd (HELE), Park Aerospace (PKE), Educational Development (EDUC).