Stock Market Update

The S&P 500 futures are up two points and are trading in-line with fair value, the Nasdaq 100 futures are up 20 points and are trading 0.1% above fair value, and the Dow Jones Industrial Average futures are down 95 points and are trading 0.2% below fair value.

Contracts tied to the Dow industrials are lower while futures linked to the S&P 500 and Nasdaq 100 are higher.

A sharp pre-open gain in shares of Alphabet (GOOG) following strong quarterly results has boosted the broader equity market. Dow component Visa (V) is another premarket winner following pleasing earnings results and a dividend increase.

Shares of AMD (AMD) are sharply lower ahead of the open, weighing down the semiconductor space. 

The weekly MBA Mortgage Applications Index (SOX) showed a 0.1% drop versus last week's 6.7% slide. Other data today include:

• 8:15 ET: October ADP Employment Change (Briefing.com consensus 105,000; prior 143,000)
• 8:30 ET: Advance Q3 GDP (Briefing.com consensus 3.0%; prior 3.0%) and advance Q3 GDP Chain Deflator (Briefing.com consensus 2.3%; prior 2.5%)
• 10:00 ET: September Pending Home Sales (Briefing.com consensus 2.5%; prior 0.6%)
• 10:30 ET: Weekly crude oil inventories (prior +5.47 mln)

In corporate news:

• Alphabet (GOOG 183.29, +12.15, +7.1%): beats by $0.28, beats on revs, Google Advertising revenue up 10.4%, Google Cloud revenue up 35%; Investments in AI beginning to pay off, while Cloud is experiencing real momentum
• AMD (AMD 152.55, -13.70, -8.2%): reports EPS in-line, beats on revs; guides Q4 revs in-line; Expect FY24 data center GPU revenue to exceed $5 billion in 2024, up from $4.5 billion
• Visa (V 287.66, +5.78, +2.1%): beats by $0.13, beats on revs; increases dividend
• Eli Lilly (LLY 822.89, -80.69, -8.9%): misses by $0.27, misses on revs; guides FY24 EPS in-line, revs below consensus
• Chipotle Mexican Grill (CMG 56.95, -3.54, -5.9%): beats by $0.02, reports revs in-line; comps +6.0%; reaffirms FY24 comp guidance; CEO Scott Boatwright on CNBC says still seeing growth from all consumer income levels; traffic gains continuing in October; looking at ways to leverage AI
• Kraft Hienz (KHC 34.00, -0.80, -2.3%): beats by $0.01, reports revs in-line; guides FY24 EPS in-line
• Mondelez (MDLZ 68.59, -0.56, -0.8%): beats by $0.14, reports revs in-line

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended the midweek session on a mostly lower note while Japan's Nikkei (+1.0%) outperformed despite ongoing political uncertainty. Japan's Nikkei: +1.0%, Hong Kong's Hang Seng: -1.6%, China's Shanghai Composite: -0.6%, India's Sensex: -0.5%, South Korea's Kospi: -0.9%, Australia's ASX All Ordinaries: -0.8%
  • In economic data:
    • Japan's October Household Confidence 36.2 (expected 36.7; last 36.9)
    • Australia's Q3 CPI 0.2% qtr/qtr (expected 0.3%; last 1.0%); 2.8% yr/yr (expected 2.3%; last 3.8%)
    • Singapore's September Bank Lending SGD808.8 bln (last SGD800.0 bln). Q3 Business Expectations 10.0 (last 23.0)
  • In news:
    • China's National People's Congress is expected to approve next week the issuance of more than CNY10 trln of extra debt over the next few years.
    • The EU announced new tariffs on electric vehicle imports from China.
• Major European indices trade in the red. STOXX Europe 600: -1.1%, Germany's DAX: -0.9%, U.K.'s FTSE 100: -0.4%, France's CAC 40: -1.4%, Italy's FTSE MIB: -1.2%, Spain's IBEX 35: -0.8%
  • In economic data:
    • Eurozone's Q3 GDP 0.4% qtr/qtr (expected 0.2%; last 0.2%); 0.9% yr/yr (expected 0.8%; last 0.6%). October Business and Consumer Survey 95.6 (expected 96.3; last 96.3)
    • Germany's Q3 GDP 0.2% qtr/qtr (expected -0.1%; last -0.1%); -0.2% yr/yr (expected -0.3%; last 0.0%). October Unemployment Change 27,000 (expected 15,000; last 17,000) and Unemployment Rate 6.1%, as expected (last 6.0%)
    • France's Q3 GDP 0.4% qtr/qtr (expected 0.3%; last 0.2%); 1.3% yr/yr (last 1.0%). September Consumer Spending 0.1% m/m (expected 0.1%; last 0.4%)
    • Italy's Q3 GDP 0.0% qtr/qtr (expected 0.2%; last 0.2%); 0.4% yr/yr (expected 0.7%; last 0.6%)
    • Spain's October CPI 0.6% m/m (expected 0.5%; last -0.6%); 1.8% yr/yr (expected 1.7%; last 1.5%). October Core CPI 2.5% yr/yr (last 2.4%). Q3 GDP 0.8% qtr/qtr (expected 0.6%; last 0.8%); 3.4% yr/yr (expected 3.0%; last 3.2%)
    • Swiss October KOF Leading Indicators 99.5 (expected 105.1; last 104.5). October ZEW Expectations -7.7 (last -8.8)
  • In news:
    • The EU announced new tariffs on electric vehicle imports from China.
    • Germany's flash GDP for Q4 showed slight unexpected growth while regional CPI readings accelerated in October. The full CPI report will be released at 9:00 ET and is expected to show an acceleration to 1.8% from 1.6% in the yr/yr CPI rate.
    • The U.K.'s Autumn Budget Statement, which is expected to include tax hikes, will take place at 8:30 ET.
    • There is growing speculation that Germany's ruling coalition will not survive a full term, resulting in elections in early 2025.