December Nasdaq 100 E-Mini futures (NQZ23) are trending up +0.86% this morning as upbeat earnings results from Amazon and Intel boosted sentiment, while investors braced for a reading on the Federal Reserve’s preferred inflation gauge. (AMZN) climbed over +5% in pre-market trading after the retailing behemoth reported better-than-expected Q3 results. Also, Intel Corporation (INTC) soared more than +7% in pre-market trading after the semiconductor giant posted upbeat Q3 results and provided above-consensus Q4 guidance.

In Thursday’s trading session, Wall Street’s major averages closed in the red. Meta Platforms (META) slumped over -3% after the social media giant posted better-than-expected Q3 results but warned that its advertising business depends heavily on the macroeconomic environment for spending. Also, United Parcel Service Inc (UPS) slid more than -5% after the company slashed its full-year outlook, citing global macroeconomic uncertainty. In addition, Mastercard Inc (MA) plunged over -5% after the card payment network posted weaker-than-expected Q3 gross dollar volume and provided a below-consensus Q4 revenue growth forecast. On the bullish side, International Business Machines (IBM) climbed more than +4% after the IT tech giant reported stronger-than-expected Q3 results and lifted its annual free cash flow guidance.

The Commerce Department’s preliminary reading on Thursday showed the U.S. economy grew at a +4.9% annualized rate in the third quarter, stronger than expectations of +4.3%, driven by a surge in consumer spending. Also, U.S. September pending home sales unexpectedly rose +1.1% m/m, stronger than expectations of -1.8% m/m. In addition, U.S. durable goods orders rose +4.7% m/m in September, significantly higher than the anticipated number of +1.7% m/m. Finally, the number of Americans filing for jobless claims the past week rose +10K to 210K, higher than the expected figure of 208K. 

Meanwhile, U.S. rate futures have priced in a 99.5% probability of no hike at the November meeting and a 19.5% chance of a 25 basis point rate increase at December’s monetary policy meeting.

Third-quarter earnings season continues, with investors awaiting new reports from notable companies today, including Exxon Mobil (XOM), Chevron (CVX), AbbVie (ABBV), Charter Communications (CHTR), Aon (AON), and Colgate-Palmolive (CL).

In other news, crude oil rose over +2% following the U.S. strikes on facilities in Syria associated with Iran.

Today, all eyes are focused on the U.S. core personal consumption expenditures (PCE) price index, the Fed’s preferred inflation gauge, in a couple of hours. Economists, on average, forecast that the core PCE price index will come in at +0.3% m/m and +3.7% y/y in September, compared to the previous values of +0.1% m/m and +3.9% y/y.

U.S. Michigan Consumer Sentiment will be reported today. Economists foresee this figure to stand at 63.0 in October, compared to September’s value of 68.1.

U.S. Personal Spending data will also be closely watched today. Economists forecast Personal Spending to be at +0.5% m/m in September, compared to the previous figure of +0.4% m/m.

In the bond markets, United States 10-year rates are at 4.871%, up +0.52%.

The Euro Stoxx 50 futures are up +0.15% this morning. Gains in energy stocks are leading the overall market higher. Meanwhile, the European Central Bank left interest rates unchanged as expected on Thursday, ending an unprecedented streak of 10 consecutive increases in borrowing costs. During a press conference, ECB President Christine Lagarde stated that she wouldn’t dismiss the possibility of another rate increase, emphasizing that it was “totally premature” to discuss a potential cut. In corporate news, Natwest Group Plc (NWG.LN) plunged over -9% after the British lender slashed its full-year profit outlook. Also, Universal Music Group (UMG.NA) slumped more than -5% after the world’s largest record label missed profit estimates. On the plus side, Signify NV (LIGHT.NA) soared over +9% after reporting upbeat quarterly core earnings.

France’s Consumer Confidence, Spain’s GDP (preliminary), and Italy’s Consumer Confidence data were released today.

The French October Consumer Confidence stood at 84, stronger than expectations of 83.

The Spanish GDP has been reported at +0.3% q/q and +1.8% y/y in the third quarter, stronger than expectations of +0.2% q/q and +1.6% y/y.

The Italian October Consumer Confidence came in at 101.6, weaker than expectations of 105.2.

Asian stock markets today settled in the green. China’s Shanghai Composite Index (SHCOMP) closed up +0.99%, and Japan’s Nikkei 225 Stock Index (NIK) closed up +1.27%.

China’s Shanghai Composite today closed higher after data showed profits at the country’s industrial firms extended gains in September, while policy measures also bolstered sentiment. Data from the National Bureau of Statistics showed on Friday that profits at China’s industrial firms increased for a second consecutive month in September, with a year-on-year rise of 11.9%, adding to signs of a stabilizing economy due to a series of supportive policy measures introduced by authorities. Meanwhile, over 30 Chinese publicly traded companies pledged to repurchase their shares or raise their ownership stakes in the companies late Thursday, with state media Securities Times reporting that firms spent over 10 billion yuan on buybacks in October. New energy stocks outperformed on Friday, with electric vehicle battery maker Contemporary Amperex Technology rising over +3% following Chairman Robin Zeng’s proposal to repurchase shares worth 2 billion to 3 billion yuan. Mainland property developers and tech giants listed in Hong Kong also surged on Friday.

“There tend to be a lot of buybacks when the market is near the bottom, and the market had fully priced in various pessimistic scenarios,” said Yang Delong, chief economist at First Seafront Fund Management.

Japan’s Nikkei 225 Stock Index closed higher today following its worst decline in three weeks in the previous session. Heavyweight tech stocks led the recovery on Friday, with chip-making equipment maker Tokyo Electron Ltd rising over +1%, chip-testing equipment maker Advantest Corp gaining nearly +1%, and technology start-up investor SoftBank Group climbing more than +1%. Data showed on Friday that core consumer inflation in Japan’s capital, Tokyo, grew more than expected in October, accelerating from the previous month in a sign of broadening price pressures. Meanwhile, the Bank of Japan is expected to encounter increasing pressure at its upcoming policy meeting to shift further away from its controversial bond yield control amid rising global bond yields and persistent inflation. In corporate news, Takeda Pharmaceutical plunged over -6% after the country’s biggest drugmaker cut its annual profit forecast by 36%. Also, Canon fell more than -4% after the camera maker lowered its full-year sales guidance. The Nikkei Volatility, which takes into account the implied volatility of Nikkei 225 options, closed down -5.84% to 22.59.

“Investors bought back stocks as the Nikkei approached its lowest level so far this month. The shares have fallen to a level which we consider cheap,” said Ikuo Mitsui, fund manager at Aizawa Securities.

The Japanese October Tokyo Core CPI arrived at +2.7% y/y, stronger than expectations of +2.5% y/y.

Pre-Market U.S. Stock Movers (AMZN) climbed over +5% in pre-market trading after the retailing behemoth reported better-than-expected Q3 results.

Intel Corporation (INTC) soared more than +7% in pre-market trading after the semiconductor giant posted upbeat Q3 results and provided above-consensus Q4 guidance.

Enphase Energy Inc (ENPH) tumbled over -21% in pre-market trading after reporting weaker-than-expected Q3 revenue and issuing downbeat Q4 guidance.

Rivian Automotive Inc (RIVN) rose more than +2% in pre-market trading after Cantor Fitzgerald upgraded the stock to Overweight from Neutral with a price target of $29.00.

Ford Motor Company (F) fell over -2% in pre-market trading after the carmaker posted downbeat Q3 results and withdrew its full-year guidance due to the pending ratification of its tentative agreement with the United Auto Workers.

Masimo Corporation (MASI) surged about +12% in pre-market trading following the company’s victory in a dispute with Apple at the U.S. International Trade Commission related to the Apple Watch.

Merck & Company Inc (MRK) gained more than +1% in pre-market trading after BMO Capital upgraded the stock to Outperform from Market Perform.

You can see more pre-market stock movers here

Today’s U.S. Earnings Spotlight: Friday – October 27th

Exxon Mobil (XOM), Chevron (CVX), AbbVie (ABBV), Charter Communications (CHTR), Aon (AON), Colgate-Palmolive (CL), Phillips 66 (PSX), Natwest Group (NWG), Fomento Economico Mexicano (FMX), Xcel Energy (XEL), Imperial Oil (IMO), LyondellBasell Industries (LYB), T Rowe (TROW), Fortis Inc (FTS), Booz Allen Hamilton (BAH), AerCap Holdings NV (AER), Avantor (AVTR), Stanley Black Decker (SWK), Saia (SAIA), Lincoln Electrics (LECO), nVent Electric (NVT), Gentex (GNTX), AutoNation (AN), Portland General Electric (POR), Balchem (BCPC), PNM Resources (PNM), Newell Brands (NWL), Alliance Resource (ARLP), Arbor (ABR), Carter’s (CRI), First Hawaiian (FHB), ArcBest Corp (ARCB), Piper Sandler (PIPR), Dana (DAN), Barnes (B), Virtus (VRTS), WisdomTree (WT), Standard Motor Products (SMP), Oil States (OIS), Civeo (CVEO), Civista Bancshares (CIVB).

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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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