Stock Market Update

The S&P 500 futures are up 27 points and are trading 0.5% above fair value, the Nasdaq 100 futures are up 192 points and are trading 1.0% above fair value, and the Dow Jones Industrial Average futures are down 40 points and are trading 0.1% below fair value.

Contracts tied to the S&P 500 and Nasdaq 100 are higher. Tesla (TSLA) shares show a sharp pre-open gain after better-than-expected earnings results, which has contributed to the early bias. Futures linked to the Dow industrials are lower due to a premarket loss in shares of IBM (IBM) after reporting quarterly results. Fellow DJIA component Dow Inc. (DOW) garnered a positive response to its earnings results.

UPS (UPS) and T-Mobile US (TMUS) are also among the names moving higher after reporting quarterly results. American Airlines (AAL) and ServiceNow (NOW) are among the pre-open decliners after reporting earnings. 

Today's economic calendar features the weekly jobless claims report at 8:30 ET, the preliminary October S&P Global US Manufacturing and Services PMIs at 9:45 ET, and the September New Home Sales report at 10:00 ET.

In corporate news:

• Tesla (TSLA 242.33, +28.67, +13.4%): beats by $0.12, misses on revs, gross margin up 195 bps; Plans for new vehicles, including more affordable models, remain on track for start of production in 1H25
• T-Mobile US (TMUS 226.23, +5.28, +2.4%): beats by $0.18, reports revs in-line; raises guidance
• IBM (IBM 221.59, -11.16, -4.8%): beats by $0.08, reports revs in-line, guides Q4 CC revenue growth being consistent with Q3, reaffirms FY24 FCF outlook; Consulting market remains dynamic, with significant opportunity as clients prepare for AI
• UPS (UPS 141.00, +9.59, +7.3%): beats by $0.13, reports revs in-line; guides FY24 revs below consensus
• American Airlines (AAL 12.48, -0.51, -3.2%): beats by $0.14, beats on revs; guides Q4 EPS in-line
• Dow (DOW 52.50, +1.01, +2.0%): beats by $0.01, beats on revs
• Northrop Grumman (NOC 522.25, +5.85, +1.1%): beats by $0.92, misses on revs; guides FY24 EPS above consensus, reaffirms FY24 revs guidance
• Whirlpool (WHR 103.07, +3.79, +3.8%): beats by $0.23, misses on revs; reaffirms FY24 EPS guidance, revs guidance
• Lam Research (LRCX 77.50, +4.64, +6.4%): beats by $0.05, beats on revs; guides Q2 EPS in-line, revs in-line
• Mattel (MAT 18.56, +0.78, +4.4%): beats by $0.19, reports revs in-line; reaffirms FY24 EPS guidance
• ServiceNow (NOW 903.10, -4.58, -0.5%): beats by $0.27, beats on revs; announces a series of partnerships with NVDA, SNOW, RMNI, DataBricks, Pearson; also introduces workflow data fabric
• Boeing (BA 151.01, -6.05, -3.9%): Frontline Boeing workers voted 64% against accepting the latest contract proposal put forth by their employer

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended Thursday on a mostly lower note. Japan's Nikkei: +0.1%, Hong Kong's Hang Seng: -1.3%, China's Shanghai Composite: -0.7%
  India's Sensex: UNCH, South Korea's Kospi: -0.7%, Australia's ASX All Ordinaries: -0.3%.
  • In economic data:
    • Japan's flash October Manufacturing PMI 49.0 (expected 49.9; last 49.7) and flash Services PMI 49.3 (last 53.1)
    • South Korea's Q3 GDP 0.1% qtr/qtr (expected 0.5%; last -0.2%); 1.5% yr/yr (expected 2.0%; last 2.3%)
    • India's flash October Manufacturing PMI 57.4 (last 56.5) and flash Services PMI 57.9 (last 57.7)
    • Australia's flash October Manufacturing PMI 46.6 (last 46.7) and flash Services PMI 50.6 (last 50.5)
  • In news:
    • Japan saw its fourth consecutive month of contracting activity while Australia's activity remained in contraction for the ninth consecutive month, according to flash Manufacturing PMI readings for October.
    • South Korean chipmaker SK Hynix reported a record profit for the quarter while Hyundai missed Q3 profit expectations.
    • South Korea's Q3 GDP growth missed expectations due to slowing technology exports.
• Major European indices trade in the green. STOXX Europe 600: +0.6%, Germany's DAX: +0.7%, U.K.'s FTSE 100: +0.4%, France's CAC 40: +0.7%, Italy's FTSE MIB: +0.6%, Spain's IBEX 35: +0.1%.
  • In economic data:
    • Eurozone's flash October Manufacturing PMI 45.9 (expected 45.1; last 45.0) and flash Services PMI 51.2 (expected 51.5; last 51.4)
    • Germany's flash October Manufacturing PMI 42.6 (expected 40.7; last 40.6) and flash Services PMI 51.4 (expected 50.6; last 50.6)
    • U.K.'s flash October Manufacturing PMI 50.3 (expected 51.5; last 51.5) and flash Services PMI 51.8 (expected 52.3; last 52.4). October CBI Industrial Trends Orders -27 (expected -28; last -35)
    • France's flash October Manufacturing PMI 44.5 (expected 44.9; last 44.6) and flash Services PMI 48.3 (expected 49.8; last 49.6). October Business Survey 92 (expected 98; last 99)
  • In news:
    • Flash Manufacturing and Services PMI readings from France and the U.K. missed expectations while activity in Germany decreased at a pace that was slightly slower than expected. As a result, expectations for a 50-basis point December rate cut from the European Central Bank are increasing.
    • ECB policymaker Centeno said that the central bank is behind the curve when it comes to its easing efforts.
    • Unilever reported good results for Q3 and affirmed its guidance while Barclays increased its net interest income guidance for its British unit.
    • Renault reported solid Q3 results and affirmed its outlook.