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We have a solid slate of reports this morning, both of the earnings variety and regarding economic growth. Pre-market indexes continue marching into the green: the Dow +23 points, the Nasdaq +119 (on the continued AI outlook once again viewed favorably) and the S&P 500 +18 points. The small-cap Russell 2000 is currently up 1 point.
The AI trade — ahead of key hyperscalers reporting Q3 earnings this afternoon: Alphabet (GOOGL - Free Report) and Microsoft (MSFT - Free Report) — has usurped high oil price fears for the time being. Spot oil prices are now $102 per barrel (/bbl) on West Texas Intermediate (WTI) and $115/bbl on London-based Brent crude following a refinery attack in Saudi Arabia by the Iran-backed Houthi rebels of Yemen.
September Trade & Inventories Spell Economic Health
Ahead of today’s open, the latest Advanced Trade Balance for September is out, dipping deeper into deficit territory to -$134.9 billion, from a slightly improved revision to -$132.1 billion the prior month. Both Imports and Exports were up roughly 2 1/2%, to $344.1 billion and $209.2 billion, respectively. Imports are coming in far ahead based largely on supplies for the grand AI buildout: computers, chips, etc.
Wholesale Inventories for September gained +0.6% month over month, 10 basis points (bps) higher than expected but -10 bps from the prior month’s +0.7%. Year over year Wholesale Inventories are up +7.4% to $1.01 trillion this morning. Meanwhile, Retail Inventories came in at the prior month’s level: +0.3%. Year over year, Retail Inventories are +4.8% to $885.3 billion.
Q3 Earnings at a Glance: ETSY, BIIB, PSX & More
Etsy (ETSY - Free Report) is enjoying its best performance in recent memory of late, with Q3 earnings outperforming estimates by +15.67% to $1.55 per share. Revenues cruised to a beat of their own: $692.47 million, which is +3.5% ahead of the Zacks consensus and the year-ago $678 million reported. Shares had already gained +58% year to date, and are up another +6% in pre-market trading.
Biotech giant Biogen (BIIB - Free Report) posted even more impressive numbers ahead of today’s open, with earnings of $2.62 per share versus expectations of $2.06, for a +27.2% positive surprise. Revenues of $2.88 billion outpaced estimates by +8%. The drugmaker also raised guidance, but shares are flat pre-market. BIIB shares have gained +43% year to date.
Speaking as we were about oil prices, Zacks Rank #1 (Strong Buy)-rated oil refiner Phillips 66 (PSX - Free Report) reported earnings of $14.08 per share, solidly ahead of the $11.97 per share expected. Revenues absolutely destroyed estimates in Q3: $51.51 billion versus the Zacks consensus forecast of $33.72 billion. Shares are up modestly ahead of the opening bell, but have gained +108% year to date.
Apparel brand company V.F. Corp. (VFC - Free Report) also posted strong results in its fiscal Q2 report this morning, with earnings of $0.70 per share storming past expectations by +29.63%. Revenues also beat, but by a much more tame +0.07% to $2.70 billion in the quarter. The company did not raise earnings guidance, however, on weakness in its Vans brand. Shares are down -3% in early trading.
What to Expect from the Stock Market Today
At 2pm ET this afternoon, we’ll hear the latest monetary policy decision from the Federal Open Market Committee (FOMC), which is expected to remain unchanged in the +3.75-4.00% range, after a 25 bps hike during the last meeting. Odds for another 25 bps hike increase for the next and final meeting of the FOMC in 2026 on December 9th. Don’t expect much being telegraphed ahead of time by Fed Chair Kevin Warsh; he doesn’t believe in offering guidance on future rate policy.
After the close, Google and YouTube parent Alphabet is expected to have growth +2.44% on earnings year over year, with revenues up +27.82%. Microsoft’s hyperscaling efforts are expected to be pronounced in fiscal Q1: +14% on earnings growth and +16.6% on revenues. ServiceNow (NOW - Free Report) in anticipated to have advanced +6.25% in year-over-year earnings, +19.96% on revenues. Meanwhile, Ford F is seen as generating negative growth on both earnings and sales: -13.33% and -3.21%, respectively, in is Q3 report after today’s close.
View the Zacks #1 Rank List
Image: Bigstock
All Eyes on Fed's FOMC Meeting Outcome
We have a solid slate of reports this morning, both of the earnings variety and regarding economic growth. Pre-market indexes continue marching into the green: the Dow +23 points, the Nasdaq +119 (on the continued AI outlook once again viewed favorably) and the S&P 500 +18 points. The small-cap Russell 2000 is currently up 1 point.
The AI trade — ahead of key hyperscalers reporting Q3 earnings this afternoon: Alphabet (GOOGL - Free Report) and Microsoft (MSFT - Free Report) — has usurped high oil price fears for the time being. Spot oil prices are now $102 per barrel (/bbl) on West Texas Intermediate (WTI) and $115/bbl on London-based Brent crude following a refinery attack in Saudi Arabia by the Iran-backed Houthi rebels of Yemen.
September Trade & Inventories Spell Economic Health
Ahead of today’s open, the latest Advanced Trade Balance for September is out, dipping deeper into deficit territory to -$134.9 billion, from a slightly improved revision to -$132.1 billion the prior month. Both Imports and Exports were up roughly 2 1/2%, to $344.1 billion and $209.2 billion, respectively. Imports are coming in far ahead based largely on supplies for the grand AI buildout: computers, chips, etc.
Wholesale Inventories for September gained +0.6% month over month, 10 basis points (bps) higher than expected but -10 bps from the prior month’s +0.7%. Year over year Wholesale Inventories are up +7.4% to $1.01 trillion this morning. Meanwhile, Retail Inventories came in at the prior month’s level: +0.3%. Year over year, Retail Inventories are +4.8% to $885.3 billion.
Q3 Earnings at a Glance: ETSY, BIIB, PSX & More
Etsy (ETSY - Free Report) is enjoying its best performance in recent memory of late, with Q3 earnings outperforming estimates by +15.67% to $1.55 per share. Revenues cruised to a beat of their own: $692.47 million, which is +3.5% ahead of the Zacks consensus and the year-ago $678 million reported. Shares had already gained +58% year to date, and are up another +6% in pre-market trading.
Biotech giant Biogen (BIIB - Free Report) posted even more impressive numbers ahead of today’s open, with earnings of $2.62 per share versus expectations of $2.06, for a +27.2% positive surprise. Revenues of $2.88 billion outpaced estimates by +8%. The drugmaker also raised guidance, but shares are flat pre-market. BIIB shares have gained +43% year to date.
Speaking as we were about oil prices, Zacks Rank #1 (Strong Buy)-rated oil refiner Phillips 66 (PSX - Free Report) reported earnings of $14.08 per share, solidly ahead of the $11.97 per share expected. Revenues absolutely destroyed estimates in Q3: $51.51 billion versus the Zacks consensus forecast of $33.72 billion. Shares are up modestly ahead of the opening bell, but have gained +108% year to date.
Apparel brand company V.F. Corp. (VFC - Free Report) also posted strong results in its fiscal Q2 report this morning, with earnings of $0.70 per share storming past expectations by +29.63%. Revenues also beat, but by a much more tame +0.07% to $2.70 billion in the quarter. The company did not raise earnings guidance, however, on weakness in its Vans brand. Shares are down -3% in early trading.
What to Expect from the Stock Market Today
At 2pm ET this afternoon, we’ll hear the latest monetary policy decision from the Federal Open Market Committee (FOMC), which is expected to remain unchanged in the +3.75-4.00% range, after a 25 bps hike during the last meeting. Odds for another 25 bps hike increase for the next and final meeting of the FOMC in 2026 on December 9th. Don’t expect much being telegraphed ahead of time by Fed Chair Kevin Warsh; he doesn’t believe in offering guidance on future rate policy.
After the close, Google and YouTube parent Alphabet is expected to have growth +2.44% on earnings year over year, with revenues up +27.82%. Microsoft’s hyperscaling efforts are expected to be pronounced in fiscal Q1: +14% on earnings growth and +16.6% on revenues. ServiceNow (NOW - Free Report) in anticipated to have advanced +6.25% in year-over-year earnings, +19.96% on revenues. Meanwhile, Ford F is seen as generating negative growth on both earnings and sales: -13.33% and -3.21%, respectively, in is Q3 report after today’s close.