Buoyed by robust earnings from Alphabet, traders are gearing up for more reports from major tech companies and a crucial update on U.S. economic growth. Meta Platforms and Microsoft are set to release their earnings on Wednesday, followed by Apple and Amazon on Thursday. Investors are also keenly awaiting the preliminary reading of the gross domestic product (GDP), expected to reveal a 3.1% annualized growth rate for the third quarter, according to the Dow Jones consensus forecast. This anticipation is driving significant market activity as stakeholders assess the broader economic landscape.

European markets saw a decline as investors evaluated a new wave of corporate earnings and regional growth data, while also anticipating the upcoming U.K. government budget announcement. The day was marked by a flurry of earnings reports and business updates from numerous companies. Despite the market downturn, the euro zone economy showed resilience, recording a 0.4% growth in the third quarter of 2024.

Asia-Pacific markets experienced a mixed performance as traders digested consumer price data from Australia, which showed a 2.8% year-on-year increase in headline inflation for the September quarter. Amidst this backdrop, China is contemplating the approval of over 10 trillion yuan in additional debt next week to boost its economy. The market reactions were varied: Australia’s S&P/ASX 200 declined by 0.83%, Hong Kong’s Hang Seng index dropped by 1.65%, and South Korea’s Kospi fell by 0.92%. In contrast, Japan’s Nikkei 225 bucked the trend, rising by 0.96%.

Economic Calendar

Earnings Calendar

Notable reports for Wednesday before the bell include ABBV, AER, AFCG, ALE, ARVN, ADP, AVNS, AVT, AXTA, BLCO, BHC, BIIB, BLKB, EAT, BG, CAT, CDW, CHEF, CLH, CWEN, CMCO, CURB, DAN, LLY, EXC, EXTR, FVRR, FLEX, FTV, GRMN, GTES, GEHC, THRM, ROCK, GSK, GPN, GPI, HR, HES, HESM, HUM, ITW, IMAX, INMD, ITCI, JKS, KEX, KHC, DRS, LIVN, MLM, MTRN, MNRO, NAVI, NBIX, NI, NVCR, OIS, OMCL, OMF, OSW, OPCH, OSK, OTIS, PSN, PUMP, REYN, SHAK, SLGN, SITE, SCL, TEX, COCO, TW, TT, TTMI, UTHR, VRSK, VMC, WING, XPO, & ZBH.

After the bell reports include ACHC, AEIS, AFL, AIN, ALKT, ALGT, ALL, ATEC, ALTR, AWK, AMGN, AM, AR, ACGL, ACA, AXS, AX, BECN, BHE, BIO, BKNG, CHRW, WHD, CVNA, CWST, CF, CLX, CGNX, CTSH, COIN, COLM, CODI, CRK, CFLT, CNMD, CORT, CACC, DWST, STOS, DASH, EBAY, EIG, ERII, NVST, EPR, EQIX, EQR, ETD, ETSY, EG, FRT, FND, FORM, FCPT, FTAI, GEN, GDDY, GRBK, THG, HLF, HTGC, HLI, HUBG, IRT, INFA, INVH, IRTC, KLAC, LMND, LPLA, MGY, MTW, MATX, MAX, MET, META, MGM, MSFT, MSTR, MAA, MCW, MPWR, MUSA, MYRG, NSA, NTGR, NMFC, NXT, NVEE, OIH, PGRE, PAYC, PCTY, PEN, PPC, PSMT, PCOR, PRU, PSMT, RELY, RIOT, HOOD, ROKU, ROOT, RUSHA, RSI, RYAN, SIMO, SNBR, SFM, SPXC, STAA, SBUX, STEM, RGR, SUM, NOVA, TNK, TDOC, TENB, TRUP, TWLO, UDR, OLED, VTR, HCC, WTS, & WSC.

News & Technicals’

The euro area economy expanded by 0.4% in the third quarter, surpassing the anticipated 0.2% growth. Spain and Ireland led the way with the highest growth rates, while Germany, Europe’s largest economy, managed to avoid a recession. These positive readings come as the European Central Bank is expected to implement four interest rate cuts this year, aiming to further stimulate economic activity across the region.

Advanced Micro Devices (AMD) reported its third-quarter results on Tuesday, meeting earnings forecasts and slightly surpassing revenue expectations. The company highlighted a significant achievement in its data center business, which saw sales double for the second consecutive quarter. Despite this impressive growth, AMD’s overall revenue guidance for the fourth quarter remains aligned with consensus expectations, indicating steady performance in the upcoming period.

Volkswagen reported a decline in operating profit to 2.86 billion euros ($3.1 billion) for the third quarter, with sales revenues slipping 0.5% year-on-year to approximately 78.5 billion euros. These results follow the company’s decision last month to cut its 2024 annual outlook for the second time in a few months. Volkswagen has faced significant challenges recently, including warnings of potential plant closures in Germany and the cancellation of several labor agreements with local workers in September.

In a Tuesday interview with CNBC’s Jim Cramer, Pfizer CEO Albert Bourla expressed a positive outlook regarding activist investor Starboard Value, acknowledging some of its criticisms while affirming that the company is on a promising path. Bourla emphasized Pfizer’s openness to good ideas from Starboard or any other source, highlighting the company’s ongoing changes. On the financial front, Pfizer reported an earnings beat and raised its full-year outlook, driven by strong sales of its Covid vaccine and antiviral pill, Paxlovid.

With the market gearing up for more reports from the tech giants META and MSFT after the bell today traders will also need to digest GDP and ADP jobs data along with a huge slate of earnings. Bond yields have moderated slightly but the dollar is still amazingly strong and precious metals rising at the same time continue to show the overall uncertainty in the market.  Expect considerable price volatility and watch for the possibility of big morning gaps with all the earnings results coming after the bell today.

Trade Wisely,

Doug