December Nasdaq 100 E-Mini futures (NQZ25) are trending up +1.15% this morning as strong quarterly results and guidance from Amazon and Apple boosted sentiment.
Amazon.com (AMZN) jumped over +12% in pre-market trading after the tech and online retailing giant posted the strongest growth rate in nearly three years in its cloud unit in the third quarter and issued solid Q4 revenue guidance. Also, Apple (AAPL) rose more than +1% in pre-market trading after the iPhone maker reported better-than-expected FQ4 results and provided an upbeat sales forecast for the holiday quarter.
In yesterday’s trading session, Wall Street’s major indices ended in the red. Meta Platforms (META) plunged over -11% and was the top percentage loser on the Nasdaq 100 after the maker of Facebook and Instagram reported weaker-than-expected Q3 EPS and raised its full-year total expense forecast. Also, Microsoft (MSFT) fell nearly -3% after the technology behemoth reported FQ1 revenue growth in its Azure cloud-computing unit that failed to meet the highest expectations. In addition, Chipotle Mexican Grill (CMG) tumbled over -18% and was the top percentage loser on the S&P 500 after the burrito chain cut its full-year comparable restaurant sales guidance. On the bullish side, C.H. Robinson Worldwide (CHRW) soared more than +19% and was the top percentage gainer on the S&P 500 after the freight and logistics company posted better-than-expected Q3 adjusted EPS and raised its 2026 operating income guidance.
Third-quarter corporate earnings season continues, and investors await reports today from notable companies such as Exxon Mobil (XOM), AbbVie (ABBV), Chevron (CVX), and Colgate-Palmolive (CL). According to Bloomberg Intelligence, companies in the S&P 500 are expected to post an average +7.2% increase in quarterly earnings for Q3 compared to the previous year, marking the smallest rise in two years.
Market participants will also hear perspectives from Dallas Fed President Lorie Logan, Atlanta Fed President Raphael Bostic, and Cleveland Fed President Beth Hammack throughout the day.
Meanwhile, the U.S. government shutdown has entered its 31st day, with no clear resolution in sight. In light of the government shutdown, the publication of the September core PCE price index, Personal Spending and Personal Income data, as well as the third-quarter Employment Cost Index, originally set for today, will be delayed. Still, the U.S. Chicago PMI will be released today. Economists forecast the October figure at 42.3, compared to the previous value of 40.6.
The Congressional Budget Office stated earlier this week that the four-week government shutdown will trim real annualized GDP growth by 1 percentage point this quarter, with the impact intensifying the longer it continues.
U.S. rate futures have priced in a 68.8% chance of a 25 basis point rate cut and a 31.2% chance of no rate change at the December FOMC meeting. Notably, a move in December was almost fully priced in before this week’s FOMC meeting. Fed Chair Jerome Powell on Wednesday threw some cold water on market expectations of another rate cut in December when he said, “A further reduction in the policy rate at our December meeting is not a foregone conclusion—far from it. Policy is not on a preset course.”
“With uncertainty around Fed policy going forward and the ongoing government shutdown, there is the potential for volatility,” said Chris Fasciano at Commonwealth Financial Network. “But companies across a large swath of the economy continue to report solid earnings. On top of that, we’ve seen good news on trade policy, particularly with China. These should provide decent tailwinds for investors.”
In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.111%, up +0.34%.
The Euro Stoxx 50 Index is down -0.37% this morning amid some profit-taking, while investors digest fresh corporate earnings reports and key inflation data from the region. Technology stocks retreated on Friday. The benchmark index is on track to end the week little changed. Preliminary data from Eurostat released on Friday showed that the Eurozone’s annual inflation rate cooled in October, reinforcing the European Central Bank’s stance to keep interest rates steady well into next year. Separately, data showed that Germany’s monthly retail sales rebounded slightly in September. Meanwhile, the European Central Bank kept its deposit rate unchanged at 2.00% for the third consecutive meeting on Thursday, with President Christine Lagarde stating that she and her colleagues “will do whatever is needed to make sure that we stay in a good place.” ECB Governing Council member Martin Kocher said on Friday that recent economic data have shown slight improvement and that inflation is expected to stay near 2% over the next two years. In corporate news, Puig Brands SA (PUIG.E.DX) climbed over +8% after the Spanish beauty company posted better-than-expected Q3 net sales and raised its full-year guidance. Also, Danske Bank A/S (DANSK.C.DX) rose more than +2% after Denmark’s biggest lender posted slightly better-than-expected Q3 net profit. At the same time, Scor Se (SCR.FP) slid over -6% after the French reinsurer reported weaker third-quarter margins and a lower solvency ratio.
Germany’s Retail Sales, France’s CPI (preliminary), Italy’s CPI (preliminary), Eurozone’s CPI (preliminary), and Eurozone’s Core CPI (preliminary) data were released today.
The German September Retail Sales rose +0.2% m/m, in line with expectations.
The French October CPI rose +0.1% m/m and +1.0% y/y, compared to expectations of +0.1% m/m and +1.1% y/y.
The Italian October CPI fell -0.3% m/m and rose +1.2% y/y, weaker than expectations of no change m/m and +1.6% y/y.
Eurozone’s October CPI rose +2.1% y/y, in line with expectations.
Eurozone’s October Core CPI rose +2.4% y/y, stronger than expectations of +2.3% y/y.
Asian stock markets today closed mixed. China’s Shanghai Composite Index (SHCOMP) closed down -0.81%, and Japan’s Nikkei 225 Stock Index (NIK) closed up +2.12%.
China’s Shanghai Composite Index ended lower today as investors continued to take profits following the U.S.-China trade truce and turned their attention to the country’s weakening economy. Semiconductor stocks slumped on Friday. Eugene Hsiao, head of China equity strategy at Macquarie Capital, said that easing U.S.-China trade tensions may have reduced the urgency for critical semiconductor substitution. At the same time, battery maker stocks climbed after the country scrapped planned export controls on battery materials as part of the U.S.-China trade truce. The benchmark index ended the week little changed. In the latest sign of a slowing economy, data released on Friday showed that an official gauge of China’s factory activity contracted for the seventh consecutive month in October, weighed down by a drop in new export orders, spurring renewed calls for stronger policy support even as the country reached a trade truce with the U.S. ING’s Lynn Song said it will be worth watching whether China’s tariff deal with the U.S. helps support a rebound in new export orders in next month’s PMI release. Meanwhile, China’s non-manufacturing PMI, which covers services and construction, returned to expansion in October. In contrast to the manufacturing sector, the services sector likely benefited from the eight-day National Day holiday period. In corporate news, BYD fell over -3% in Hong Kong after the automaker posted lower Q3 profit and revenue, missing analyst expectations.
The Chinese October Manufacturing PMI stood at 49.0, weaker than expectations of 49.6.
The Chinese October Non-Manufacturing PMI came in at 50.1, in line with expectations.
Japan’s Nikkei 225 Stock Index closed sharply higher today and hit a new record high amid a strong rally in technology stocks. The advance came on the back of strong earnings from domestic companies such as Hitachi and Konami Group, as well as gains in U.S. equity futures following upbeat earnings from Amazon and Apple. Japanese equities were also underpinned by a weaker yen. The currency weakened by more than 1% against the dollar overnight after the Bank of Japan left interest rates unchanged and offered few signals regarding its next policy move. Meanwhile, the benchmark index notched a strong weekly gain. Investors also digested a raft of economic data from the country that pointed to some signs of improvement in the nation’s economy. Government data released on Friday showed that core inflation in Japan’s capital accelerated more than expected in October, remaining above the BOJ’s 2% target. The pickup in inflation aligns with the BOJ’s projections as it continues to assess the appropriate timing to resume monetary tightening. Separate data showed that consumer spending recovered in September despite persistent inflation, while industrial production also rebounded, signaling resilience in the sector. Capital Economics’ Marcel Thieliant said the latest activity data suggest that Japan’s third-quarter GDP data may show a smaller-than-expected contraction. “The economy should return to growth this quarter,” he added. In corporate news, Hitachi Ltd. surged over +7% after reporting stronger-than-expected Q2 income, fueled primarily by its AI-related business. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed down -3.85% to 28.22.
The Japanese October Tokyo Core CPI rose +2.8% y/y, stronger than expectations of +2.6% y/y.
The Japanese September Industrial Production (preliminary) rose +2.2% m/m, stronger than expectations of +1.5% m/m.
The Japanese September Retail Sales rose +0.5% y/y, weaker than expectations of +0.8% y/y.
The Japanese September Unemployment Rate was 2.6%, weaker than expectations of 2.5%.
Pre-Market U.S. Stock Movers
Amazon.com (AMZN) jumped over +12% in pre-market trading after the tech and online retailing giant posted the strongest growth rate in nearly three years in its cloud unit in the third quarter and issued solid Q4 revenue guidance.
Apple (AAPL) rose more than +1% in pre-market trading after the iPhone maker reported better-than-expected FQ4 results and provided an upbeat sales forecast for the holiday quarter.
Netflix (NFLX) gained over +2% in pre-market trading after Reuters reported that the streaming giant was actively exploring a bid for Warner Bros Discovery’s studio and streaming business.
Western Digital (WDC) surged more than +10% in pre-market trading after the data-storage company posted upbeat FQ1 results and issued strong FQ2 guidance.
Reddit (RDDT) climbed over +10% in pre-market trading after the social media company reported stronger-than-expected Q3 results and provided above-consensus Q4 revenue guidance.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Friday - October 31st
Exxon Mobil (XOM), AbbVie (ABBV), Chevron (CVX), Aon (AON), Colgate-Palmolive (CL), Canadian National Railway (CNI), Dominion Energy (D), Imperial Oil (IMO), WW Grainger (GWW), Charter Communications (CHTR), Cboe Global (CBOE), T Rowe (TROW), Church&Dwight (CHD), nVent Electric (NVT), LyondellBasell Industries (LYB), RBC Bearings (RBC), Magna Intl (MGA), Federal Realty (FRT), AGCO (AGCO), OneMain Holdings (OMF), Piper Sandler (PIPR), Lear (LEA), Madison Square Garden Sports (MSGS), Portland General Electric (POR), Allete (ALE), Sensient Technologies (SXT), Arbor (ABR), Newell Brands (NWL), WisdomTree (WT), Interface (TILE), Xenia Hotels & Resorts Inc (XHR), Proto Labs (PRLB), Middlesex Water (MSEX).
On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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