“On Friday, U.S. stock market futures saw a spike due to positive estimates from Intel and Amazon.com as well as a dip in Treasury yields. Investors were eagerly anticipating important inflation data later in the day.
Amazon.com’s premarket trading showed a 5.4% increase, with the company reporting that its cloud business is stabilizing due to new deals. However, it also cautioned that customers are still cautious about their spending as the holiday season approaches.
Intel’s premarket performance was even more impressive, with a 7.9% gain. The chipmaker predicted fourth-quarter revenue and margins that exceeded expectations. Intel’s optimism stems from expectations of a rebound in personal computer sales, a stronger data center business, and increased demand for manufacturing services.
In the semiconductor sector, Advanced Micro Devices (AMD) saw a 2.1% increase, while Nvidia (NVDA) added 1.6% to its value.”
The stocks of well-known IT companies, including Tesla, Microsoft, Meta Platforms, and Alphabet, increased by 0.7% to 2.1%. This happened as U.S. Treasury yields went down following data on U.S. inflation and disposable income that came in weaker than expected on Thursday.
Investors are closely watching the personal consumption expenditure report for September, which is the Federal Reserve’s preferred way to measure inflation. It’s set to be released at 8:30 a.m. ET, and it should give us a better idea of what the Federal Reserve might do with monetary policy.
According to a poll by Reuters, the U.S. Commerce Department’s report is expected to show a 0.3% increase in the monthly headline figures and the core figures (which exclude volatile energy and food prices). On an annual basis, these figures are expected to rise by 3.4% and 3.7%, respectively.”
“Traders have already taken into account the likelihood that the Federal Reserve would maintain a stable interest rate at their November 1 policy announcement. They also see an 80% probability of no rate change in December, according to CME’s FedWatch tool.
It’s interesting to note that a few months ago, in May and June, there was a 32% chance of a 25-basis-point rate cut, but that sentiment has shifted.
As we look at the stock market, all three major indexes are on track for weekly and monthly losses. Investors are closely watching earnings reports and economic data to understand how strong the economy is.
At 5:03 a.m. ET, Dow e-minis were up by 114 points (0.35%), S&P 500 e-minis were up by 26.25 points (0.63%), and Nasdaq 100 e-minis were up by 141.5 points (1%).
In addition to market trends, investors will also be keeping an eye on the quarterly earnings reports from companies like Chevron, Exxon Mobil, and Colgate-Palmolive today.”
Ford Motor’s stock dropped by 2.7% after they decided not to provide a full-year forecast due to uncertainty related to their deal with the United Auto Workers union. They also expressed concerns about ongoing challenges with electric vehicles.
Additionally, investors are keeping an eye on the tensions in the Middle East, where two U.S. fighter jets targeted weapons and ammunition facilities in Syria in response to attacks on U.S. forces by Iranian-backed militia, raising worries about the potential spread of conflict in the region.
