It has been a spooky Halloween morning for equity investors so far. US index futures are down 0.5% to 0.7% with NASDAQ futures leading the way downward following a negative market reaction to technology sector earnings. European markets are also down across the board including declines of 0.5% for the Dax, 0.7% for the FTSE and 0.9% for the CAC.
Commodities are up this morning with US Crude Oil and Copper climbing 1.0% and 0.3% respectively. Precious metals are backsliding a bit with Gold and Silver down 0.5% and 1.2% respectively.
Several stocks are sliding this morning after reporting earnings including Microsoft ($3.30 vs street $3.10, down 3.4% premarket, MetLife ($1.95 vs street 2.17, down 4.1% premarket) and Meta Platforms ($6.03 vs street $5.22, down 1.8% premarket). Chipmaker Super Micro Computer is down 4.2% premarket adding to yesterday’s 32.7% loss. Other notable companies reporting this morning include Booking Holdings ($83.89 vs street $77.20, up 6.9% premarket), Merck ($1.57 vs street $1.48, down 2.1% premarket), and Mastercard ($3.89 vs street $3.74). Uber is down 9.3% premarket after beating the street on earnings but disappointing on sales. Gold producer Agnico-Eagle* beat expectations ($1.59 vs street $1.41). Apple*, and Amazon report after the close today, followed by Exxon Mobil and Chevron tomorrow morning.
China posted Manufacturing PMI and Non-Manufacturing PMI reports which came in just above 50 in expansion territory and slightly improved from last month. US Chicago PMI (street 47.0) comes out at 9:45 am EDT, followed by Manufacturing PMI reports and US construction spending when the new month starts tomorrow.
Heading toward the next week’s US election, inflation and employment numbers are in focus. US Core PCE inflation, the Fed’s favorite measure was slightly worse than expected (2.7% vs street 2.6%). Challenger layoffs (55.6K vs previous 72.8K) and weekly initial jobless claims (216K vs street 230K) added to a series of positive job reports which started with yesterday’s ADP payrolls. Tomorrow morning US nonfarm payrolls (street 115K vs previous 254K) and average hourly earnings (street 4.0% unchanged) are due at 8:30 am EDT.
*Shares of Apple and Agnico-Eagle are held in portfolios managed by SIA Wealth Management.