Mega-cap earnings reports in focus for traders, corporate reviews

Stock market news

• Earnings data will be front and center on Tuesday, especially as markets largely tread water as a week of huge event risk approaches. Five of the mega-cap tech stocks dubbed the “Magnificent Seven” — responsible for Wall Street’s record highs this year — report results over the next three days, starting with Google parent Alphabet today. Meta and Microsoft follow on Wednesday, with Amazon and Apple a day later.

• Tesla set the tone last week with bold sales forecasts that sent shares up 22% in their biggest rally in a decade. But analysts are wary of Elon Musk’s penchant for overpromising. AI stalwart Nvidia, which has been vying with Apple in recent days to be the world’s most valuable company, won’t report results until late November. But on that front, results from chipmakers in the coming days will provide a glimpse of how hot the AI ​​frenzy is still. AMD reports today, followed by Intel on Thursday.

• Banks are in the spotlight in Europe, with HSBC today announcing a further $3 billion in share buybacks and a 10% rise in profit that beat expectations. The lender made headlines last week with a major restructuring and a streamlined executive committee. Santander is also due to report on Tuesday, except for its UK unit, which has delayed results while it assesses the impact of the ruling on car loan boards. UBS is due on Wednesday.

 • Election jitters: While the banking sector is healthier than at any time since the global financial crisis, investors need reassurance that they can count on long-term gains as the European Central Bank leads its major global peers in cutting rates. By contrast, the Federal Reserve may be slow to ease policy after a slew of solid economic data, particularly on employment.

• With the labor market at the center of the Fed's attention, it's no surprise that dollar and Treasury yields are at three-month highs ahead of today's JOLTS job openings data, a measure the central bank is backing. Key monthly payrolls data are due Friday, setting the stage for a policy decision on Nov. 7. There will be no hint from Fed officials, who are already in a blackout.

• In anticipation of the upcoming turbulent information week, trading was calm on Monday. Only oil fell by 5-6%. Bitcoin rose above $71 thousand. The market is confident in Trump's victory. GOOG, V, AMD, NVS, MCD, PFE, SYK, CB, AMT and many other companies will report today.

• Volkswagen plans to close at least three of its 10 factories in Germany. Massive layoffs are also planned at other VW plants. The company also plans to cut wages by 10% and not raise them for the next two years.

• The US dollar's share of global settlements reached 49% - a 12-year high - SWIFT. Over the past two years, the dollar's share of international payment transactions has grown by 9%. At the same time, the euro's share fell from 39% to 21% - a decade low. At the same time, the use of the Chinese yuan has grown from 2% in 2023 to 5% today.

• As the 2024 US presidential election approaches, market volatility is expected to remain high (VIX), but should moderate once the election results are known.

• Boeing BA is launching a $14 billion stock sale and $5 billion in preferred shares at 6% per annum. This is necessary to raise cash and avoid getting its bonds a junk rating. BA shares fell 3% yesterday - investors do not like capital dilution.

• Crypto exchange Coinbase has received its own AI agent, “Based Agent”. Which allows you to create and configure your own AI agent with a crypto wallet “in less than 3 minutes”. The service will allow you to perform various operations in the blockchain, from trading and exchange to staking - in automatic mode.

• Indonesia has blocked sales of Apple's latest smartphones. The ban does not apply to other Apple products because the American company failed to meet investment requirements in the country - WSJ. Apple must invest $108.7 million to obtain a license to sell the iPhone 16 in the country.

• Meta is developing an AI-powered search engine to reduce dependence on Google and Microsoft.

• Philips shares tumbled 17% after a downgrade in sales forecast and weak demand in China. Philips expects sales to grow 1.5% in 2024, below its previous forecast of 5%. Order intake fell 2% in the third quarter due to the slowdown in China.

• DJT shares soar. Shares of Trump Media & Technology Group extended their five-week rally on Monday as investors bet on the former president's victory in the U.S. election.

• Apple is releasing a free software update that will introduce the first dose of artificial intelligence to the iPhone 16 line.

• JPMorgan says AI power demand is draining US water supplies, potentially hurting the world's largest economy and eating into corporate spending.

• Musk's bold 2025 Tesla sales forecast has met with skepticism on Wall Street. "There's hardly an analyst in the world who would agree with 20% growth next year," one analyst said.

• The growing capitalization of the USDT stablecoin is fully backed by reserves that meet all regulatory requirements, - Tether CEO. BTC-ETFs are showing record performance, accumulating 938,000 Bitcoin worth $63.3 billion in the first year of trading.
This is 4.5% of the total amount of BTC in circulation.

• Shares of VFC (owner of Vans and North Face) are up 23% premarket after the report. Shares of Ford (F) are down 6% premarket. The company beat expectations, but posted an EV loss of $1.2 billion and gave poor guidance.

• Volkswagen union boss sounds alarm over mass layoffs and closure of three plants in Germany.

• Volkswagen Law: The unique structure behind the German carmaker's labor dispute.

• Brazil's Azul has reached an agreement with bondholders on additional financing.

• McDonald's E. coli outbreak could worsen short-term sales slump.

• Boeing to raise up to $19 billion in stock to strengthen finances.

• The commercial real estate industry is concerned about tax increases ahead of the election.

• Microsoft's demand for AI is under close scrutiny from investors looking to make money.

• Pfizer executives seek to demonstrate change as Starboard approaches

• Futures rise as markets look ahead to mega-cap earnings and US elections.

• Morning trading: Oil and yen fall on Middle East restraint and Japanese indecision.

• Italy's Cariverona will consider buying Poste shares in a planned Treasury share sale.

• UniCredit's Italian shareholder Cariverona confirms support for Commerzbank's move.

• Regional US banks operating in Florida are preparing for the aftermath of the hurricane.

• Robinhood launches contracts for betting on the US presidential election.

• Türkiye will return the capitalization rate of state banks to its previous level.

• Britain's financial regulator has fined Wise's chief executive for "sloppy" tax disclosures.

• VTB Bank in Russia is preparing for record profits in 2024.

• Bank of England to continue working on digital currency in case banks fail, Bailey says

• China-led AIIB chief criticizes developed countries for trade barriers

• India's ICICI Bank beat second-quarter profit forecast on healthy loan demand, margins narrowed.

• The Federal Communications Commission is launching an investigation into restrictions on broadband Internet use.

• AT&T Announces $1 Billion Fiber Optic Deal with Corning

• Universal Music Group partners with KLAY to develop ethical AI technology.

• US lawmakers call for reconsideration of China's photonic technology threat.

• Cyber ​​company Armis Security raised $200 million at a valuation of $4.3 billion.

• India's Tata Technologies reports third straight profit decline as demand for electric vehicles declines.

• AI startup Read announces new funding at $450 million valuation.

• Microsoft's demand for AI is under close scrutiny from investors looking for returns.

• Robinhood launches contracts for betting on the US presidential election.

• Alphabet's third-quarter revenue growth is likely to slow due to competitive pressure from search and YouTube.

Key events that could impact markets on Tuesday:
- HSBC and Santander earnings in Europe
- Alphabet and AMD earnings in the US
- US JOLTS (September), consumer confidence (October)

Fundamental news

• The U.S. presidential election on Nov. 5 will be the biggest risk event for global markets this year. Opinion polls are still too close to final, but markets and some betting platforms are increasingly optimistic for a Republican victory. The race has created a lot of uncertainty for businesses, as one survey of factories showed. “The results of our election will be a long time coming,” the Dallas Federal Reserve said in a manufacturing report released yesterday.

• NATO officially confirms participation of DPRK troops in war against Ukraine - Rutte. The Pentagon stated that the DPRK sent about 10,000 soldiers to Russia, presumably for the war against Ukraine. Is this already World War III or not yet?

• Pro-Western coalition leads in Bulgarian elections - exit polls. The center-right coalition of the parties Citizens for European Development of Bulgaria and the Union of Democratic Forces (GERB - SDS) is gaining more than 26% of the votes. These are the exit polls published after the polling stations closed for the parliamentary elections.

• Elon Musk has promised to cut $2 trillion in US spending if Trump wins. "I think about $2 trillion. All that double spending is taxes, whether it's direct or indirect, your money is wasted. We're going to get the government off your neck and out of your pocket."