Indices
- Dow 47,562, +355 or +0.75%.
- Nasdaq 23,724,+520 or +2.24%.
- S&P 6,840, +49 or +0.72%.
- MSCI EAFE 2795.34, -15.54 or -0.55%.
- USD10Y 4.101%, +10.4bp or +2.60%.
- WTI Crude $60.98/bbl, -$0.46 or -0.75%.
Great Earnings but Powell Spreads Doubt
The technology giants reported last week — and did not disappoint. Alphabet (GOOG) exceeded expectations on the strength of its cloud computing and YouTube advertising businesses. Microsoft (MSFT) beat estimates, driven by strong Azure (their cloud computing unit) performance. Meta (META) easily surpassed earnings projections, while Amazon (AMZN) posted a solid quarter with 20% growth in its cloud division. Apple (AAPL) topped forecasts and raised guidance for the December quarter.
Despite the strong results, investor enthusiasm was tempered. The Street reacted negatively to Meta’s plans for higher spending next year and Microsoft’s announcement of increased capital expenditures for the current fiscal year.
As expected, the Federal Reserve cut the discount rate by 25 basis points. However, Fed Chair Jerome Powell introduced uncertainty during his press conference, stating that another rate cut at the Fed’s final meeting in December was “not a foregone conclusion.”
Looking Ahead: November 3–7
It was expected to be a big week for government economic data, but with the shutdown now in its sixth week, most reports are likely to remain delayed. Earnings season continues, though without the marquee names of last week. Data analytics firm Palantir (PLTR) reports Monday. McDonald’s (MCD) and several gig-economy companies release results Wednesday, followed by Airbnb (ABNB) and Expedia (EXPE) on Thursday. The week wraps up Friday with Constellation Energy (CEG), the nation’s largest nuclear power operator.
Economic Calendar
- Monday – October Final S&P Manufacturing PMI, October ISM Manufacturing Survey. Earnings: Palantir (PLTR).
- Tuesday – September Job Openings and Labor Turnover Survey*. Earnings: Ferrari (RACE), Uber (UBER), Advanced Micro Devices (AMD), Super Micro Computer (SMCI).
- Wednesday – October ADP Private Payrolls, October Final U.S. Services PMI, October ISM Services Survey. Earnings: McDonald’s (MCD), Robinhood (HOOD), DoorDash (DASH), Lyft (LYFT).
- Thursday – Initial Jobless Claims*. Earnings: Airbnb (ABNB), Expedia (EXPE).
- Friday – October U.S. Non-Farm Payrolls*, October U.S. Unemployment Rate*, October U.S. Hourly Wages*, U.S. Hourly Wages YoY*, Preliminary November U.S. Consumer Sentiment. Earnings: Constellation Energy (CEG).
*Pending the end of the government shutdown
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