Stock Market Update

The S&P 500 futures are up 23 points and are trading 0.4% above fair value, the Nasdaq 100 futures are up 90 points and are trading 0.4% above fair value, and the Dow Jones Industrial Average futures are up 177 points and are trading 0.5% above fair value.

Early trading features a positive bias after yesterday's tech-led slide in equities. Large cap tech is still top of mind for investors after Apple (AAPL), Amazon.com (AMZN), and Intel (INTC) reported earnings. Apple shares are down ahead of the open after its growth forecast was lower than the market hoped. Amazon.com is higher in pre-open action after reporting solid demand for AWS's AI business. Intel missed earnings estimates by a big margin, but shares are up premarket due to above-consensus guidance.

Market participants are waiting on the October Employment Situation report at 8:30 ET, which could impact the market's rate cut expectations. Treasury yields are slightly higher than yesterday ahead of the report. The 10-yr yield is up one basis point to 4.29% and the 2-yr yield is up three basis points to 4.19%.

In corporate news:

• Apple (AAPL 221.62, -4.29, -1.9%): beats by $0.04, reports revs in-line; iPhones top estimates; Q1 (Dec) revenue to grow low to mid single digits (Q1 FactSet consensus calls for +6.8% growth)
• Amazon.com (AMZN 200.08, +13.68, +7.3%): beats by $0.29, beats on revs; guides Q4 revs in-line; AWS's AI business continues to grow at a triple digit year over year percentage
• Intel (INTC 22.73, +1.21, +5.6%): misses by $0.44, beats on revs, non-GAAP gross margin down 27.8 ppts; guides Q4 EPS above consensus, revs in-line
• Chevron (CVX 151.92, +3.10, +2.1%): beats by $0.05, beats on revs
• Exxon Mobil (XOM 119.06, +2.28, +2.0%): beats by $0.04, misses on revs; raises dividend
• Boeing (BA 152.79, +3.48, +2.3%): union is endorsing and recommending the latest IAM/Boeing Contract Proposal; vote will take place Monday

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended the week on a lower note while India's Sensex was closed for Diwali. Japan's Nikkei: -2.6% (+0.4% for the week), Hong Kong's Hang Seng: +0.9% (-0.4% for the week), China's Shanghai Composite: -0.2% (-0.8% for the week), India's Sensex: HOLIDAY (UNCH for the week), South Korea's Kospi: -0.5% (-1.6% for the week), Australia's ASX All Ordinaries: -0.5% (-1.0% for the week).
  • In economic data:
    • China's October Caixin Manufacturing PMI 50.3 (expected 49.7; last 49.3)
    • Japan's October Manufacturing PMI 49.2 (expected 49.0; last 49.7)
    • South Korea's October trade surplus $3.17 bln (expected surplus of $4.23 bln; last surplus of $6.66 bln). October Imports 1.7% yr/yr (expected 2.0%; last 2.2%) and Exports 4.6% yr/yr (expected 6.9%; last 7.5%). October Manufacturing PMI 48.3 (last 48.3)
    • Hong Kong's September Retail Sales -6.9% yr/yr (last -10.1%) o Australia's October Manufacturing PMI 47.3 (expected 46.6; last 46.7). Q3 PPI 0.9% qtr/qtr (expected 0.7%; last 1.0%); 3.9% yr/yr (last 4.8%). October Commodity Prices -7.8% yr/yr (last -10.8%). September Home Loans 0.1% m/m (last 2.4%) and Invest Housing Finance -1.0% m/m (last 1.8%)
    • New Zealand's September Building Consents 2.6% m/m (last -5.2%)
  • In news:
    • Bank of Japan Governor Ueda said that the timing of the next rate hike has not been determined and that the market is regaining stability despite ongoing uncertainties.
    • China's Caixin Manufacturing PMI (50.3; prior 49.3) returned to expansion in the October reading while South Korea's Manufacturing PMI (48.3; prior 48.3) remained in contraction for the second consecutive month.
    • China's National People's Congress will be held next week.
• Major European indices are seeking a higher finish to a down week, though volume is on the light side due to the observance of All Saints' Day. STOXX Europe 600: +0.8% (-1.8% week-to-date), Germany's DAX: +0.7% (-1.4% week-to-date), U.K.'s FTSE 100: +0.8% (-0.9% week-to-date), France's CAC 40: +0.7% (-1.3% week-to-date), Italy's FTSE MIB: +1.0% (-1.2% week-to-date), Spain's IBEX 35: +0.9% (-0.3% week-to-date).
  • In economic data:
    • U.K.'s October Nationwide HPI 0.1% m/m (expected 0.3%; last 0.6%); 2.4% yr/yr (expected 2.8%; last 3.2%). October Manufacturing PMI 49.9 (expected 50.3; last 51.5)
    • Swiss October CPI -0.1% m/m (expected 0.0%; last -0.3%); 0.6% yr/yr (expected 0.8%; last 0.8%). September Retail Sales 2.2% yr/yr (expected 2.5%; last 2.7%). October procure.ch PMI 49.9 (expected 49.5; last 49.9)
  • In news:
    • British gilt yields remain at their highest levels of the year following the Autumn Budget address, which called for GBP40 bln of additional revenue from taxes.