Stock futures are little changed as Wall Street braces for Big Tech earnings: Live updates

view original post

The Nasdaq Composite rose to a fresh record on Tuesday as investors readied for key corporate earnings releases, including reports from notable tech names.

The tech-heavy Nasdaq advanced 0.78% to a record close of 18,712.75. The S&P 500 added 0.16% to end at 5,832.92. Meanwhile, the Dow Jones Industrial Average underperformed, falling 154.52 points, or 0.36%, to close at 42,233.05.

Alphabet, Snap, Reddit, Chipotle and Advanced Micro Devices are all scheduled to post their quarterly results after the market closes. Tech juggernauts Meta Platforms and Microsoft are slated to report Wednesday, while Apple is up on Thursday.

Ahead of their earnings releases, shares of Meta jumped 2.6%, and Alphabet advanced 1.8% on Tuesday.

“It’s currently an expensive market, and so I think that investors need for earnings growth to accelerate in order to justify these higher PE ratios,” CFRA Research chief investment strategist Sam Stovall said.

This will mark the busiest week of the earnings season with more than 150 S&P 500 companies scheduled to have reported by Friday’s close.

Traders also continued to keep an eye out on Treasury yields, as the benchmark 10-year Treasury yield rose to its highest level since July.

BTIG’s chief market technician Jonathan Krinsky believes there is more near-term choppiness ahead for the market with just five trading days left before the U.S. presidential election.

“While we aren’t looking for a bear market, our conviction remains high that we are poised for some downside volatility over the coming weeks,” he wrote in a note.

The major averages are coming off a winning session. Notably, the blue-chip Dow broke a five-day losing streak, while the tech-heavy Nasdaq notched its eighth positive session of the last nine.

S&P 500, Nasdaq close higher Tuesday

The S&P 500 and Nasdaq Composite ended Tuesday’s trading session in the green.

The broad market index added 0.16%, while the tech-heavy Nasdaq rose 0.78%.

Meanwhile, the Dow Jones Industrial Average slipped 154.52 points, or 0.36%.

— Hakyung Kim

U.S. crude oil edges lowers after worst day in two years

U.S. crude oil edged lower on Tuesday, one day after posting the worst daily loss in two years.

The U.S. benchmark West Texas Intermediate contract fell 17 cents, or 0.25%, to $67.21 per barrel, while global benchmark Brent slipped 30 cents, or 0.42%, to $71.12 per barrel.

Energy traders breathed a sigh of relief this week after Israel’s long-anticipated retaliatory strikes on Iran last Friday spared the Islamic Republic’s oil and nuclear facilities. The benchmark U.S. crude oil contract sold off more than 6%, or $4.40, to $67.38 per barrel on Monday.

Oil prices have shed more than 6% so far this week.

— Spencer Kimball

VF Corp. shares head for best day on record following earnings beat

VF Corporation shares headed for their best day on record after the retailer exceeded Wall Street’s expectations for the second fiscal quarter and offered insight into improvements within the Vans brand.

Shares popped more than 23% in afternoon trading and hit highs not seen in more than a year. If that holds through session close, it would mark the biggest one-day gain going back to at least 1972.

Tuesday’s jump comes after the North Face parent posted adjusted earnings of 60 cents per share on revenue of $2.76 billion. That exceeded the consensus forecasts of 37 cents per share and $2.71 billion, respectively, from analysts polled by LSEG.

Executives emphasized the “turnaround” story for the Vans brand during Monday’s post-earnings call with analysts. The company said Vans sales were down 11% in the quarter from the same time last year, making up ground after declining 21% when comparing the prior three-month period on a year-over-year basis.

Shares are now up more than 10% in 2024. That would mark the stock’s first positive year since 2019.

— Alex Harring

The dollar’s value could wane under a Trump presidency, investor warns

Some investors believe that under a Trump presidency, higher interest rates and inflation could lead to a more expensive dollar. But Erik Knutzen, co-chief investment officer of Neuberger Berman’s Multi-Asset Strategies, says that the dollar could actually decline under a Trump administration.

“The dollar did rally through the end of the year after the surprise win of Trump in 2016, but the dollar declined in value for 2017 when Trump was enacting the policies that were supposedly going to be more inflationary and cause higher interest rates,” he said on CNBC’s “The Exchange” on Tuesday afternoon. “Trump and his cohort actually would like to see a weaker dollar to support the American economy. Yes, the dollar may have some short-term impetus, but frankly you could probably fade that trade if Trump is not elected.”

Knutzen added that the dollar will probably weaken in the near term in the scenario that Trump loses the November election.

— Lisa Kailai Han

Nasdaq’s higher. S&P 500 is higher. But most stocks are lower.

The Nasdaq Composite index touched its second all-time high in three days on Tuesday and the S&P 500 is higher for a second day, trading near its record close set just 11 days ago.

Yet most stocks traded in the U.S. are lower.

Nearly 68% of all the stocks traded on the New York Exchange are down in price, 1904 out of 2820. Fewer than 28% of stocks, or 780, are higher. The balance are unchanged. Measured by the number of shares traded on the NYSE, declining volume is swamping advancing voume, 62% to 34%.

On Nasdaq, more than 51% of all stocks are down, while fewer than 38% are rising in price. Advancing Nasdaq volume is doing better than on the NYSE, totaling more than 53% of all shares traded versus more than 46% of declining volume’s share.

— Scott Schnipper

Crocs on pace for worst day since 2020 after earnings

Shares of Crocs plunged more than 18% in afternoon trading despite the company posting better-than-expected quarterly results. If the stock closes around this level, that will mark its largest percentage decrease since March 18, 2020, when it fell more than 24%.

For the third quarter, Crocs earned $3.60 per share, excluding items, on $1.06 billion in revenue, surpassing the consensus estimate of $3.10 per share and revenue of $1.05 billion, per FactSet. That said, the company’s fourth-quarter outlook range came in below expectations, and it also tempered its sales growth forecast for the full year.

While the stock has risen more than 21% year to date, it’s also fallen more than 21% in the past one month.

— Sean Conlon

Stocks making the biggest moves midday

Check out some of the companies making headlines in midday trading:

• JetBlue Airways — The airline was lower by 17% after forecasting a larger-than-expected decline in revenue for 2024. JetBlue also expects fourth-quarter revenue to fall 3% to 7%, while analysts polled by LSEG forecast a drop of 1.4%.
• Trex — The deck material maker advanced 6% on stronger-than-expected results for the third quarter. Trex reported adjusted earnings of 37 cents per share on revenue of $233.7 million, while analysts surveyed by FactSet anticipated 32 cents per share in earnings and $225.4 million in revenue.
• Xerox — The printer manufacturer plummeted nearly 19% after third-quarter results missed the Street’s expectations on the top and bottom lines. The company also trimmed its full-year free cash flow guidance. Xerox said it also expects a 10% decline in full-year revenue.

Read the full list here.

— Brian Evans

Add to pullbacks, says Piper Sandler

With market volatility at elevated levels ahead of the U.S. Presidential election next week, Piper Sandler advises investors to add to their positions when pullbacks occur.

“Near-term pullbacks/profit-taking should be expected given the uncertainties around the upcoming U.S. Presidential election, geopolitical uncertainty, and Q3 earnings parade. At this juncture, the weight of the technical evidence remains constructive, and the primary trend of the major averages continues to be higher,,” chief market technician Craig Johnson wrote in a Tuesday note.

Johnson reiterated his year-end S&P 500 price target of 6,100.

— Hakyung Kim

Chipmakers rise Tuesday

Semiconductor stocks rose broadly on Tuesday.

The VanEck Semiconductor ETF rose 1.7% on the day. Nvidia advanced 0.7%, while Super Micro Computer and Taiwan Semiconductor Manufacturer gained 2.8% and 1.1%, respectively.

— Hakyung Kim

Capital expenditures, advertising among key focus areas this Big Tech earnings season

Earnings season for megacap technology stocks kicks into high gear after the bell with results from Alphabet, and some of the woes from last season remain top of mind for investors.

John Belton expects major attention on capital expenditure plans from technology behemoth as the AI buildout continues. Last quarter, investor sentiment soured around many of these stocks due to concerns that hefty investment in the trend isn’t showing.

“Each of these companies are going to continue to grow their capex next year, but I think this could be the first earnings cycle where the market is not overly surprised,” said the portfolio manager at Gabelli Funds.

The analyst expects updated 2025 capex figures from some of the behemoth, although the magnitude of the upward momentum may slow from the past.

Beyond capex, earnings from Amazon, Alphabet and Apple could offer up more insight into the state of the consumer and advertising environment, said Jay Woods, chief global strategist at Freedom Capital Markets.

— Samantha Subin

Communication services leads Tuesday

Communication services gained 1.1% Tuesday, leading the broader market’s gains.

Shares of News Corp advanced 2.8%, topping the sector’s gains. Take-Two Interactive and Meta Platforms both followed with advances of around 1.7% each.

Information and industrials were the only two other sectors in the green, rising 0.8% and 0.1%, respectively.

— Hakyung Kim

Leisure and Entertainment ETF reaches highest level since March 2022

The Invesco Leisure and Entertainment ETF rallied to its highest level in more than two and a half year on Tuesday.

The gains came as Royal Caribbean jumped 3% on earnings. Lions Gate Entertainment rose 2.5%, while Texas Roadhouse, Tripadvisor, Cinemark and Booking Holdings gained more than 1% each.

— Samantha Subin, Gina Francolla

Short term risks lingering in the market, says RBC

Although the market volatility posed by the upcoming U.S. Presidential election is at the forefront of investors’ minds, RBC Capital Markets warns that other indicators in the market point toward short term selloffs.

“The biggest risk we see to equity markets is the recent trend higher in interest rates and the U.S. dollar, and while we view both to be overbought in the short term with potential to peak shortly, additional upside above the key levels highlighted below is the most likely risk to the equity cycle, in our view,” technical strategist Robert Sluymer wrote in a Tuesday note.

The 10-year Treasury yield hit its highest level since July 2024 on Tuesday, while the Dollar index remains overbought in the short-term, said Sluymer.

— Hakyung Kim

Gold hits fresh record high

Gold futures scaled to a fresh intraday high on Tuesday, reaching $2,783.10 per ounce.

The precious metal has been on a tear recently, soaring more than 4% over the past month. Over the past three months, it’s up 17%.

— Fred Imbert

Investors face one of the most important week for markets, says Barclays

This week will serve as a key stretch for investors as technology earnings, the forthcoming jobs report and the overhang of the U.S. election converge, according to Barclays.

” Investors are confronted with one of the most pivotal weeks in markets this year, as a slew of micro (~45% of S&P report 3Q earnings), macro (October NFP [nonfarm payrolls], PMI & ISM manufacturing), and political (US elections) events will unfold,” Barclays equity derivatives strategist Stefano Pascale wrote on Tuesday.

“The very strong TSLA results last week has likely heightened earnings focus ahead of a crucial week, with an average implied move of 5.5% for companies reporting this week, one of the highest in recent history,” Pascale added.

— Brian Evans

Stocks open lower Tuesday

U.S. stocks began Tuesday’s trading session in the red.

The Dow Jones Industrial Average fell 161 points, or 0.4%.

The S&P 500 and Nasdaq Composite fell 0.3% each.

— Hakyung Kim

Brisk Trump Media trading volume tops other big stocks, such as McDonald’s, JPMorgan

Election Day is a week away, and the trading in Trump Media & Technology shares is growing even more robust. Nearly $5 billion worth of stock changed hands Monday. The dollar volume topped other big names, such as McDonald’s, JPMorgan, Eli Lilly and Broadcom, Strategas noted.

On Monday, nearly 99 million shares traded hands, compared with a 10-day average volume of 57.3 million shares. The stock, which closed Monday at $47.36, was already active before the market’s open on Tuesday. Shares were up more than 17% on volume of 18.6 million.

— Christina Cheddar Berk

VF Corp, Ford among the names making moves premarket

Some stocks are making big moves in the premarket:

• VF Corp – Shares soared nearly 20% following the North Face and JanSport parent’s better-than-expected quarterly results. For the fiscal second quarter, the company posted adjusted earnings of 60 cents per share on $2.76 billion in revenue. Analysts surveyed by LSEG were looking for 37 cents per share and $2.71 billion in revenue. VF Corporation also declared a quarterly dividend of 9 cents per share.
• Ford Motors – Shares of the automaker slid 7% after Ford guided to the low end of its previously announced full-year earnings guidance, even as it slightly exceeded analysts’ third-quarter expectations. Ford said it now expects its adjusted EBIT of about $10 billion. Ford has been grappling with softening demand, rising inventory and worries about its ability to achieve cost cuts this year.
• Cadence Design Systems – The stock jumped more than 5% after the electronic design company’s third-quarter earnings beat Wall Street estimates. Cadence Design earned $1.64 per share, excluding items, on revenue of $1.22 billion, above the consensus estimate of $1.44 per share and $1.18 billion in revenue, according to LSEG. The company also raised the midpoint of its non-GAAP earnings per share outlook for 2024.

Read the full list here.

— Sean Conlon

McDonald’s earnings and revenue beat expectations

McDonald’s reported third-quarter earnings and revenue that beat analyst expectations, with the company reversing a same-store sales decline from the previous quarter.

The fast-food chain earned an adjusted $3.23 per share on revenue of $6.87 billion. Analysts polled by LSEG anticipated a profit of $3.20 per share on revenue of $6.82 billion.

Still, shares were down more than 1% in the premarket.

— Fred Imbert

Mizuho lifts price target on Robinhood, expects ‘likely stellar’ third-quarter report

Mizuho is expecting a “likely stellar” quarterly print from Robinhood Markets when it reports results this week.

“We expect the continued heightened market activity and volatility to help HOOD show strong trading results when reporting on Wednesday,” wrote analyst Dan Dolev, lifting the firm’s third- and fourth-quarter estimates for the brokerage firm.

Given this setup and a track record of what Dolev called “excellent execution,” he lifted the firm’s price target to $29 from $24 a share. The new target reflects 4% upside from Monday’s close and puts Robinhood at eight times 2026 net revenue.

“We believe the premium is warranted given continued execution on growth, profitability, and business diversification,” he wrote.

Shares have rallied nearly 119% this year.

— Samantha Subin

Evercore ISI’s Mahaney lays out Amazon, Meta Platforms earnings expectations

Evercore ISI is offering up its outlook for some key megacap technology stocks as the busy earnings week for the sector kicks into high gear.

Analyst Mark Mahaney expects Meta Platforms to post a modest beat this quarter and signal a strong setup for internet advertising, while maintaining its capital expenditures and total expense expectations.

“We don’t expect META to provide FY25 Capex and Totex guides, [though] we understand there is growing anticipation that they will,” he said.

For Amazon, the firm anticipates an in-line quarter and risk to the e-commerce giant’s $17.5 billion fourth-quarter operating income estimate.

“We believe this Q4 OI risk has been well seasoned among investors, but the Street number still seems intrinsically aggressive, with or without material Kuiper launch costs,” Mahaney wrote.

Despite these near-term woes, he reiterated the stock as the firm’s top large-cap long pick as the company’s retail segment gains share and the AWS recovery continues.

Shares of Meta have rallied more than 63% this year, while Amazon is up 24%.

— Samantha Subin

European markets open higher

European markets opened higher Tuesday as traders in the region digested the latest slew of earnings reports.

The pan-European Stoxx 600 was up 0.38% in opening trade, with all major bourses and most sectors in the green. Banks added 0.77% while mining stocks dipped 0.4%.

The U.K.’s FTSE 100 index added 0.25% to 8,307, Germany’s DAX rose 0.47% to 19,621, France’s CAC rose 0.61% to 7,602 and Italy’s FTSE MIB rose 0.51% to 34,196.

— Karen Gilchrist

HSBC beats third-quarter earnings expectations, announces additional $3 billion share buyback

Europe’s largest lender HSBC on Tuesday reported third-quarter earnings that beat analysts’ expectations, boosted by strong revenue growth, as it embarks on a major restructuring to balance its operations in China and the West.

HSBC’s pre-tax profit rose 10% compared with the $7.7 billion posted a year ago. The company’s quarterly revenue grew 5% to $17 billion from the $16.2 billion that was reported a year ago, while after-tax profit gained $500 million from last year to $6.7 billion.

Shares of HSBC traded 2.24% higher.

—Anniek Bao, Lee Ying Shan

Japan’s unemployment rate comes in lower than expected

Japan’s jobless rate for the month of September came in at 2.4%, compared to 2.5% the month before.

The reading is also slightly lower than Reuters’ forecast of a 2.5% climb. The ratio of jobs to applicants climbed to 1.24 from 1.23 in August. Still, that’s “well below” the pre-pandemic average of 1.6, according to Moody’s Analytics.

“The lackluster domestic economy and weak external demand will likely keep employment conditions soft in the coming months,” Moody’s analysts wrote.

—Lee Ying Shan

Bitcoin briefly tops $70,000 for the first time since June

Bitcoin briefly climbed above $70,000 as investors braced themselves for MicroStrategy earnings and counted the days to the U.S. presidential election.

The price of bitcoin was last higher by about 3% at $69,925.00, according to Coin Metrics. At about 6:00 p.m. Eastern on Monday, it touched $70,207.02 and has been oscillating since. Stocks tied to the price of the cryptocurrency were little changed in extended trading.

The last time bitcoin touched $70,000 was in June. It has tested that level several times this year, after hitting a record in March of $73,797.68. Earlier forays above $70,000 have been mere blips.

Optimism is building ahead of the U.S. presidential election next week. Bitcoin has been confined to a tight range between $55,000 and $70,000. However, it may be poised for a breakout with stocks hitting new highs this month, Election Day on Nov. 5 and another Federal Reserve rate policy decision on Nov. 7.

For more, read our full story here.

— Tanaya Macheel

MicroStrategy notches its highest close since March 2000

MicroStrategy rose about 10% on one point Monday, ahead of its earnings report Wednesday as the stock looks to extend its win streak.

The software company, which trades as a high beta play on the price of bitcoin, ended the Monday trading session up nearly 9% to record its highest close since March 15, 2000.

Bitcoin climbed closer to the $70,000 level it has struggled to hold onto this year. It was last trading higher by more than 2% at $69,502.40.

A gain this week would be the eighth in a row for the stock, and its longest since rally since an 11-week streak that ended in late October 2010. MicroStrategy is up 125% in that period.

— Tanaya Macheel, Nick Wells

See the stocks moving after hours

These are some of the stocks making the biggest moves in extended trading:

• Cadence Design Systems — The electronic design stock jumped 5% after earnings for the third quarter beat analyst expectations on both lines.
• Ford — The automaker slipped about 5% as full-year guidance came in at the low end of the previously expected range.
• VF Corporation — The North Face parent surged 22% on earnings for the second fiscal quarter that exceeded Wall Street’s consensus forecasts.

See the full list here.

— Alex Harring

Stock futures are near flat

Futures tied to the Dow, S&P 500 and Nasdaq 100 were all little changed shortly after 6 p.m. ET.

— Alex Harring