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Pre-market futures are down again this morning, after the Dow clawed back into the green by yesterday’s close but the tech-heavy (read: AI-invested) Nasdaq fell nearly -700 points (-2.6%). The Dow is now taking the biggest tumble, -377 points, while the Nasdaq is -34 points, the S&P 500 -22 points and the small-cap Russell 2000 -15 points. When Meta PlatformsMETA reported earlier this week, they raised questions about AI infrastructure buildout viability, which spooked markets (here in Halloween season).
The doubt surrounding AI infrastructure investment is palpable, and now affecting the nuts-and-bolts companies listed on the Dow 30 — such as CaterpillarCAT, which is currently -4.9% in today’s pre-market. (The heavy equipment manufacturer reports Q3 earnings next Thursday.) Conversely, this has helped ease bond yields, which are down notably from their multi-decade highs a couple weeks ago. The 10-year is below +5% for the first time in a month.
Oil prices remain sticky, with the U.S. and Israel drawing up plans to attack facilities in Iran reportedly aimed at developing nuclear weaponry. We’ve seen over the past eight months (recall: the war was supposed to last 2-4 weeks) that retaliation from Iran routinely involves shuttering global oil supply. In anticipation of this new round of strikes (and the ongoing bombings at Saudi airport by Iran-backed Houthi rebels), the WTI spot oil price is back up over $100 per barrel (/bbl) while Brent crude is back to early May highs: $115/bbl.
Q3 Earnings at a Glance: AXP, SLB
We see two notable earnings beats on earnings in this morning’s Q3 reports. Starting with American ExpressAXP, earnings of $4.68 per share outpaced the Zacks consensus of $4.47 by +4.7%; it also easily surpasses the year-ago $4.14 per share reported. Revenues of $20.06 billion, on the other hand, missed expectations by -0.74%. Shares are off -12% year to date, and down another -1.9% in today’s pre-market. For more on AXP’s earnings, click here.
Oilfield management company SLB Corp.SLB, formerly known as Schlumberger, outpaced estimates by 2 cents to $0.64 per share on revenues of $9.45 billion, which beat the Zacks consensus by +1.72%. Shares are up +2% on the news ahead of the bell this morning, adding to the company’s +29% gains year to date. For more on SLB’s earnings, click here.
What to Expect from the Stock Market Today
Normally, in-session Friday trading does not need to deal with many economic metrics, but after the opening bell today we’ll see flash U.S. PMI on Manufacturing and Services for October. Estimates for both are expected to tick down month over month to 55.3 and 58, respectively, but still above the 50-level which determines growth from loss.
Also, the final University of Michigan Consumer Survey for October is expected to dip to 46.3 from the previous print of 48.1. Both of these numbers are below the 50-level, demonstrating the negative sentiment regarding the American consumer’s outlook from earlier this month. Questions or comments about this article and/or author" Click here>>
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Goldman’s focus on IB and trading businesses along with strong deal-making pipelines will likely support the top line. A solid capital position aids sustainable capital distribution activities.
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Diversified demand, scalable manufacturing, expanding data center content, embedded innovation and rising cash generation underpin sustained shareholder value creation prospects.
Florida reforms, disciplined expansion, lower reinsurance costs, healthier underwriting, rising investment income and growing book value support sustained shareholder returns.
Recurring subscriptions, wider IAM adoption, rising customer engagement, international reach and deeper integrations support Docusign’s revenue visibility and expansion potential.
Rivalry, broadband pricing, merger execution, acquisition financing, transaction costs and supply-chain exposure could impede returns despite the resilience of recurring service revenue.
Massive capital investments increase interest rate, dilution and FCF pressure, while regulatory dependence and trading volatility limit earnings visibility.
Competitive reinvestment, weaker premium visitation, volatile gaming outcomes, elevated costs and development commitments limit earnings visibility and overall capital flexibility.
Rising iron ore costs, softer Chinese demand, permitting uncertainty and ongoing reparation obligations constrain margins, cash flow and valuation support.
Merck faces several near-term challenges, including persistent challenges for Gardasil, potential competition for Keytruda, and rising competitive and generic pressure on some of its drugs
Streaming profitability, ESPN monetization, franchise reach, Experiences growth and disciplined capital returns support Disney's long-term earnings outlook and competitive position.
Diversified brands, consistent execution, restaurant expansion, menu innovation and disciplined capital allocation support competitive positioning, earnings durability and shareholder returns.
Global malocclusion opportunity, portfolio expansion, international adoption, digital workflows, DSO relationships and financial flexibility support Align Technology’s long-term growth prospects.
Market leadership, disciplined pricing, profitable Chinese operations, expanding software revenue and sustained capital returns support long-term earnings and shareholder value.
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