Apple shares slide 4.5% as US stock futures point to lower open (3 Nov)

Apple reports record revenue but warns of margin pressure

Apple reported record revenue of $114.5 billion for the September quarter, an increase from the $109.4 billion reported in its July 30 release. Earnings per share reached $2.10, beating Wall Street consensus estimates.

Despite these figures, the company reported fourth-quarter gross margins of 47.9%, a decrease from the previous quarter. Apple disclosed that its prior-quarter gross margin was 50.1%, which adjusts to roughly 48.1% when removing a tariff-refund benefit.

Apple projects gross margins of 45% to 46% for the next quarter, missing the 47% projection due to expenses for the Siri artificial-intelligence assistant rollout and an unprecedented jump in memory chip prices. The company warned that memory chip costs are expected to continue rising.

Apple projects services revenue growth of 8% to 9% for the current quarter, falling short of the 12% growth expected by analysts.

The company also reported that iPad sales missed Wall Street estimates and revenue in the wearables, home, and accessories segment was lower than expected. Amit Daryanani and his team at Evercore ISI wrote in a Monday note that they expect a choppy gross margin environment until memory prices stabilize or fall and there is evidence that Siri AI can be monetized.

Erik Woodring and his team at Morgan Stanley indicated that the slowdown in the services segment could extend into the March quarter.

Broader economic data shows that Eurozone GDP grew 0.4% quarter-on-quarter, exceeding the 0.2% forecast, while the European Central Bank kept the deposit rate at 2.5%. Meanwhile, Amazon maintained its 2026 capital expenditure forecast at $220 billion, though its advertising revenue missed expectations at $19.64 billion compared to the $20.89 billion forecast.

Global market sentiment is also influenced by oil prices, which are rising on Friday.

Tech sector earnings weigh on Nasdaq 100

The Nasdaq 100 index is projected to open 1.4% lower on November 3, 2026, as disappointing results from Amazon and Intel weigh on the market. Amazon shares are down 7% pre-market after the company reported negative free cash flow for the second consecutive quarter. The company missed third-quarter estimates, reporting $1.89 earnings per share against a forecast of $1.96 and $201.94 billion in revenue compared to the expected $202.31 billion.

Intel shares are down 25% pre-market following weak guidance and ongoing softness in the PC market. The company reported third-quarter earnings per share of 52 cents against 40 cents expected and revenue of $16.51 billion against $16.5 billion expected. Its Computing and Physical AI group revenue fell 5% year-on-year.

Palantir shares fell 3% in extended trading as investors reacted to concerns regarding slower growth in new U.S. business contracts and moderating sequential revenue growth. This decline occurred despite the company raising its revenue forecast.

Meanwhile, Marvell shares fell 12.7% and Lumentum shares dropped 18.6% following Marvell's announcement of an all-stock acquisition of Lumentum valued at $115 billion.

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Broader economic indicators and market sentiment

U.S. core PCE inflation rose to 3.1% year-on-year in September, up from 3.0% in August, while Q3 GDP grew 3.4% annualised, compared to 2.2% in the previous period. Treasury rose to 4.91%. The Federal Reserve kept interest rates unchanged this week, and the market is currently pricing in a 74% probability of a rate hike.

Alphabet shares lost over $500 billion in market value on Thursday, as investors expressed concerns regarding heavy AI investment plans and slowing search advertising growth. Bitcoin has plunged to $77,000. Binance is set for a lower open following a $6.3 billion hack, which has led the exchange to suspend deposits and withdrawals while promising to cover losses.

Indian markets record gains on November 3

The BSE Sensex rose 1.62%, or 1,225.07 points, to close at 76,917 on November 3, following a close of 75,692.78 in the previous session. The NSE Nifty 50 index increased by 1.58%, or 370.05 points, to end at 23,810, compared to its previous close of 23,440.80. The Nifty 50 has finished in the green for four consecutive days, recording a gain of more than 1.5% on November 3.

Top gainers on the 30-share BSE Sensex included HUL, Bharti Airtel, and HDFC Bank, while Power Grid, SBI, and Infosys were the primary laggards. Broader market indices also saw gains, with the Nifty Midcap 100 rising 0.80% and the Nifty Smallcap 100 increasing by 0.60%. Sectoral performance was mixed, as the Nifty FMCG and Realty sectors rose up to 3.6%, while PSU bank and Metal sectors acted as the primary drags on the market.

Global market performance and oil price fluctuations

EST on November 3, amid tensions following a U.S. strike on Iran's Qeshm Island. On Monday, the international benchmark Brent crude settled at $104.77 per barrel, marking a 7.6% decline, while U.S.

European stocks opened lower on November 3, pressured by semiconductor stocks and corporate earnings reports. Asia-Pacific markets showed mixed results, with South Korea's Kospi falling 3.3%, the ASX 200 remaining flat, and New Zealand's NZX 50 inching slightly higher, while Japan's financial markets were closed for a public holiday. The Hang Seng Index gained 0.57%, the Shanghai Composite declined 0.82%, and the Shenzhen Component dropped 0.24%.

Upcoming corporate earnings reports

A total of 303 companies are scheduled to report their September quarter financial results on November 3.