December S&P 500 E-Mini futures (ESZ25) are up +0.42%, and December Nasdaq 100 E-Mini futures (NQZ25) are up +0.57% this morning, pointing to further gains on Wall Street as strong tech earnings and easing U.S.-China trade tensions continued to buoy sentiment.
Investor attention this week is on a new wave of corporate earnings reports, with key releases from data analytics software developer Palantir and chipmaker Advanced Micro Devices, alongside remarks from Federal Reserve officials and U.S. private-sector economic data.
In Friday’s trading session, Wall Street’s major equity averages closed higher. Amazon.com (AMZN) surged over +9% and was the top percentage gainer on the Dow and Nasdaq 100 after the tech and online retailing giant posted upbeat Q3 results and issued solid Q4 revenue guidance. Also, Twilio (TWLO) soared more than +19% after the communications software provider reported better-than-expected Q3 results and gave above-consensus Q4 guidance. In addition, Brighthouse Financial (BHF) jumped over +24% after the Financial Times reported that Aquarian Holdings was in advanced talks to take the company private. On the bearish side, DexCom (DXCM) plunged more than -14% and was the top percentage loser on the S&P 500 and Nasdaq 100 after interim CEO Jake Leach said during the company’s Q3 earnings call that 2026 revenue growth could fall short of analysts’ expectations.
Economic data released on Friday showed that the U.S. Chicago PMI rose to 43.8 in October, stronger than expectations of 42.3.
Kansas City Fed President Jeff Schmid said on Friday that he voted against last Wednesday’s 25 basis point rate cut because he’s concerned that economic growth and investment could fuel upward pressure on inflation. “By my assessment, the labor market is largely in balance, the economy shows continued momentum, and inflation remains too high,” Schmid said in a statement. Also, Dallas Fed President Lorie Logan and Cleveland Fed President Beth Hammack said they would have preferred to keep interest rates unchanged. At the same time, Atlanta Fed President Raphael Bostic said he “eventually got behind” the decision to lower rates, noting that monetary policy remains “in restrictive territory” even after the cut.
U.S. rate futures have priced in a 69.3% probability of a 25 basis point rate cut and a 30.7% chance of no rate change at the conclusion of the Fed’s December meeting.
Third-quarter corporate earnings season continues in full flow, and investors await new reports from notable companies this week, including Advanced Micro Devices (AMD), Qualcomm (QCOM), Arm (ARM), Palantir (PLTR), Shopify (SHOP), Uber Technologies (UBER), Applovin (APP), McDonald’s (MCD), and Robinhood Markets (HOOD). 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 parse comments from a slew of Fed officials, following Chair Jerome Powell’s warning last Wednesday against assuming another rate cut in December. Fed Vice Chair Philip Jefferson, Fed Governor Lisa Cook, San Francisco Fed President Mary Daly, Fed Vice Chair for Supervision Michelle Bowman, Fed Governor Michael Barr, New York Fed President John Williams, Cleveland Fed President Beth Hammack, Fed Governor Christopher Waller, Philadelphia Fed President Anna Paulson, St. Louis Fed President Alberto Musalem, and Fed Governor Stephen Miran are scheduled to speak this week. Their views of the economy and labor market will be scrutinized closely, as official data releases remain delayed due to the month-long government shutdown.
The U.S. government shutdown has entered its 34th day. Democratic senators once again called on President Trump to personally step in to help end the government shutdown as the standoff entered a critical week, with the lapse on track to become the longest in history. If the shutdown continues, the publication of official U.S. economic data scheduled for this week, including the key U.S. jobs report for October, will be delayed. It would mark the second consecutive nonfarm payrolls report delayed due to the shutdown. This leaves investors focusing on private-sector data, with the ADP employment report being the highlight. The report will provide fresh insights into the health of the labor market. Other noteworthy private-sector data releases include the ISM survey on U.S. services sector activity and the University of Michigan’s preliminary Consumer Sentiment Index.
Today, investors will focus on the U.S. ISM Manufacturing PMI and the S&P Global Manufacturing PMI data, set to be released in a couple of hours. Economists expect the October ISM manufacturing index to be 49.4 and the S&P Global manufacturing PMI to be 52.2, compared to the previous values of 49.1 and 52.0, respectively.
In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.088%, down -0.34%.
The Euro Stoxx 50 Index is up +0.62% this morning, kicking off the new month on an upbeat note. Automobile stocks led the gains on Monday after Reuters reported that the White House plans to announce that Dutch chipmaker Nexperia’s China facilities will resume shipments, offering relief to automakers globally. Bank and energy stocks also advanced. At the same time, mining stocks underperformed. Meanwhile, a survey released on Monday showed that Eurozone manufacturing activity stagnated in October, as new orders stalled and employment declined, despite production rising for the eighth consecutive month. Investor focus this week is on the Bank of England’s monetary policy decision. The central bank is widely expected to keep its benchmark rate unchanged at 4.00%, especially ahead of the government’s budget announcement later this month. Sweden’s Riksbank and Norway’s Norges Bank are also set to announce their monetary policy decisions this week, with both central banks expected to hold rates. Investors will also focus on the Eurozone’s September retail sales data and remarks from European Central Bank officials, including President Christine Lagarde and Executive Board members Isabel Schnabel and Philip Lane. In corporate news, Gaztransport & Technigaz (GTT.FP) climbed over +5% after the French LNG containment system specialist raised its full-year guidance.
ECB policymaker Peter Kazimir said on Monday that inflation risks in the Eurozone are balanced and that the central bank should avoid fine-tuning its policy.
Eurozone’s Manufacturing PMI data was released today.
Eurozone’s October Manufacturing PMI came in at 50.0, in line with expectations.
China’s Shanghai Composite Index (SHCOMP) closed up +0.55%, while Japan’s financial markets were closed for a national holiday.
China’s Shanghai Composite Index closed higher today as investors continued to scoop up defensive stocks following last week’s trade agreement between Chinese President Xi Jinping and U.S. President Donald Trump. Energy, bank, and consumer stocks gained ground on Monday. At the same time, tech-related stocks extended their declines due to profit-taking. The White House announced over the weekend that China would lift new export controls on rare earths and drop investigations into U.S. semiconductor companies, in exchange for the U.S. pausing some tariffs and scrapping a planned 100% duty on Chinese exports. Meanwhile, a private-sector survey released on Monday showed that China’s manufacturing activity expanded at a slower pace in October, as both new orders and output declined amid tariff-related concerns, signaling softer growth momentum heading into the fourth quarter. In other news, China announced the removal of a long-standing gold tax incentive, posing a potential setback for consumers in one of the world’s largest bullion markets. In corporate news, XPeng and NIO climbed over +4% in Hong Kong after the electric vehicle makers reported strong October sales over the weekend. Investor focus this week is on China’s trade data for October. Barclays economists said in a note that the high base effect and the Golden Week holiday likely hurt China’s exports in October. Still, the economists anticipate that the tactical truce reached between China and the U.S. at last week’s APEC summit will help ease short-term uncertainties surrounding exports.
The Chinese October RatingDog Manufacturing PMI arrived at 50.6, weaker than expectations of 50.7.
Japan’s Nikkei 225 Stock Index was closed today for the Culture Day holiday. The markets will reopen on Tuesday.
Pre-Market U.S. Stock Movers
Berkshire Hathaway (BRK.B) rose over +1% in pre-market trading after Warren Buffett’s conglomerate posted a 34% jump in Q3 operating profit, driven mainly by strong insurance underwriting profits.
Netflix (NFLX) advanced more than +1% in pre-market trading after KGI Securities upgraded the stock to Outperform from Neutral with a $1,350 price target.
Boeing (BA) gained about +1% in pre-market trading after Freedom Capital upgraded the stock to Buy from Hold with a price target of $223.
Shares of data storage companies advanced in pre-market trading after DIGITIMES reported that Samsung delayed DDR5 contract pricing to mid-November. SanDisk (SNDK) is up over +5%. Also, Seagate Technology (STX) and Western Digital Corporation (WDC) are up more than +1%.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Monday - November 3rd
Palantir (PLTR), Vertex (VRTX), Williams (WMB), Simon Property (SPG), Realty Income (O), IDEXX Labs (IDXX), Diamondback (FANG), Public Service Enterprise (PEG), Franco-Nevada (FNV), Grab Holdings (GRAB), Loews (L), SBA Communications (SBAC), BWX Tech (BWXT), Coterra Energy (CTRA), Corebridge Financial (CRBG), Hologic (HOLX), Fabrinet (FN), Clorox (CLX), Viper Energy (VNOM), Unum (UNM), EXACT Sciences (EXAS), Sterling Construction (STRL), TIM Participacoes (TIMB), The Ensign (ENSG), Hims Hers Health (HIMS), Lattice (LSCC), Qorvo Inc (QRVO), Vornado (VNO), Primoris (PRIM), Halozyme (HALO), Cipher Mining (CIFR), Sanmina (SANM), Air Lease (AL), Hess Midstream Partners (HESM), Eastman Chemical (EMN), Axsome Therapeutics Inc (AXSM), JBTMarel (JBTM), Ormat (ORA), Krystal Biotech (KRYS), Comstock Resources (CRK), Ryman Hospitality Properties (RHP), Fubotv (FUBO), One Gas Inc (OGS), Kontoor Brands (KTB), CNO Financial (CNO), National Storage Affiliates Trust (NSA), Solaris Oilfield (SEI), Vertex (VERX), Cabot Corp (CBT), ZoomInfo (GTM), Paymentus (PAY), Otter Tail (OTTR), Xenon Pharmaceuticals (XENE), PotlatchDeltic (PCH), Navitas Semiconductor (NVTS), Black Stone Minerals (BSM), Ringcentral Inc (RNG), Apple Hospitality REIT (APLE), Boise Cascad Llc (BCC), IAC/InterActiveCorp (IAC), Freshpet Inc (FRPT), Sarepta (SRPT), Crescent Energy (CRGY), Inspire Medical Systems (INSP), Addus (ADUS), Upwork (UPWK), Liquidia Technologies (LQDA), Ameresco (AMRC), Goodyear Tire & Rubber Co (GT).
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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