Following a significant market rally spurred by the decisive presidential election, stock futures saw a slight gain. Bitcoin, the U.S. dollar, and bank stocks all surged in Wednesday’s post-election trading. Conversely, several international funds and solar stocks faced declines as investors anticipated negative impacts from the President-elect’s policies. On Thursday, market participants are keenly awaiting the Federal Reserve’s interest rate decision and Chair Jerome Powell’s press conference. Additionally, quarterly earnings reports are expected from Moderna and Warner Bros. Discovery before the market opens, with Block, Pinterest, and Rivian set to report in the afternoon.

European markets saw an uptick on Thursday morning, buoyed by investor anticipation of rate cuts from both the U.S. Federal Reserve and the Bank of England. The trading session was marked by a flurry of earnings reports from major European companies. Among the notable movements, Adyen’s shares plummeted by 10%, making it the day’s worst performer. In contrast, GN Store Nord, a Danish manufacturer, emerged as the top performer, with its shares surging over 10% following the release of its latest financial results.

Asia-Pacific markets experienced a mixed trading session on Thursday, with most indices showing gains despite some volatility. The yen, which had weakened to an intraday low of 154.7 against the dollar on Wednesday, reached its weakest point since July 30, rebounding slightly to 153.81 on Thursday. Leading the gains in the region, China’s CSI 300 index surged by 3.02%, while Japan’s Nikkei 225 was the only major index to close in the red, falling by 0.43%. In other news, Chinese state media reported that the National People’s Congress Standing Committee had reviewed a plan to increase local government debt, following initial discussions earlier in the week.

Economic Calendar

Earnings Calendar

Notable reports for Thursday before the bell include ACIW, ACMR, GOLF, APD, AGI, AQN, ALMS, COLD, APPN, MT, ATS, BCE, BDX, BSY, BRY, BIGC, CCJ, GOOS, CG, CARS, CEVA, CGON, YOU, CCOI, COMM, DDOG, XRAY, DNOW, DCO, DUK, DT, EPC, EDR, EPAM, EVRG, RACE, AG, FWRG, GERN, GDRX, HAE, HAIN, HAL, HBI, HSY, HGV, INBX, IBP, INSW, ORWD, KELYA, KVUE, KRP, DNUT, CLII, LFST, LGND, LSPD, MTSI, MFC, MRX, MDU, MPW, MRNA, TAP, ML, MUR, NABL, VYX, NXST, NVMI, OLPX, OSCR, PZZA, PENN, PCG, PLNT, PBH, PRMW, PRVA, RL, ROK, RXO, SCSC, SEE, STGW, SHOO, STRA, TBLA, TPR, TRP, TGLS, TGNA, TU, TPX, THR, THRY, TDG, TPB, UAA, PRKS, USFD, VCEL, VTRS, VITL, WD, WRBY, WBD, KLG, WWW, XPEL, & YETI.

After the bell reports include DKNG, ATEN, AAON, ACVA, ADPT, ADMA, AFRM, AGL, AL, ABNB, AKAM, ALRM, ALLO, AMRC, AMN, AMPL, AAOI, ALTM, ANET, ARLO, ARRY, ASTH, AVPT, AXON, BILL, BLNK, SQ, BE, BHF, CABO, CPRG, CPK, CIVI, CLFD, NET, COLL, CPAY, CYRX, DH, DRH, DIOD, DOCS, DBX, DXC, ENV, EOG, ESTA, EVH, EXPI, EXPE, FIGS, FIVN, FLYW, FTNT, FNKO, G, GETY, SPRO, GDOT, HRB, INDI, INGN, PODD, JAMF, FROG, KTOS, KURA, LGF.A, LITE, MGNI, MRVI, MLNK, MTUS, MTD, MNST, MSI, MP, MYGN, NWSA, LASR, NUS, NVEE, OLO, OS, LPRO, OPEN, OPK, OEC, OVV, PACB, PEB, PINS, PBI, PRA, PTCT, QDEL, RRR, RDFN, REZI, RNG, RIVN, RXST, SVV, SOLV, SPT, STEP, RUN, SG, SYNA, TEM, TTD, TOST, U, UPST, VCTR, WTI, WEST, WPM, XPOF, & ZD.

News & Technicals’

Moderna reported a surprising profit for the third quarter on Thursday, significantly exceeding Wall Street expectations. This positive outcome was driven by effective cost-cutting measures and higher-than-anticipated sales of its Covid vaccine. The company highlighted that its latest Covid vaccine benefited from receiving U.S. approval three weeks earlier than the previous version did in 2023. Additionally, this quarter marked the first time sales of Moderna’s vaccine against respiratory syncytial virus (RSV) were included, representing the company’s second commercially available product.

As the Federal Reserve concludes its meeting on Thursday, it is expected to implement another interest rate cut. Market participants will be keenly focused on Chair Jerome Powell’s remarks regarding future monetary policy directions. Historically, Fed policymakers have aimed to remain apolitical, so Powell is likely to steer clear of making direct comments about the anticipated policies of President-elect Donald Trump. Instead, his focus will likely be on the economic outlook and the Fed’s strategy moving forward.

Qualcomm announced impressive fourth-quarter earnings on Wednesday, surpassing Wall Street’s expectations for both earnings and revenue. The company also provided a strong outlook for the December quarter, which contributed to a surge in its stock during extended trading. Additionally, Qualcomm’s board approved a substantial $15 billion in additional share repurchases, signaling confidence in the company’s future performance and commitment to returning value to shareholders.

After yesterday’s significant market rally the question will be follow-through?  We have a big day of earnings and economic reports including a trade decision from the FOMC.  Though premarket activity suggests another gap up open be watchful for any clues of profit taking that could pull the market back with big point moves.  That said, it is also possible that the election celebration continues through the end of the week so just be prepared to protect your profits. 

Trade Wisely,

Doug