US Stock Futures Rise as Investors Prepare for Busy Earnings Week (2 Nov)
- S&P 500 futures rose 0.5% on Monday morning.
- Investors are bracing for a busy week of corporate earnings, including reports from Apple and AMD.
- Oil prices dropped over 4% as diplomatic progress in U.S.-Iran negotiations eased supply concerns.
- Major AI and chip stocks have lost approximately $5 trillion in market value since October 6.
- The U.S. midterm elections are scheduled for Tuesday, November 3.
United States stock futures rose Monday morning as investors attempted to recover from a difficult week on Wall Street. S&P 500 futures gained 0.46% to 7,614 points, Nasdaq 100 futures increased 0.75% to 28,753 points, and Dow Jones Industrial Average futures grew 0.28% to 52,075 points. Stocktwits reported that S&P 500 futures rose 0.5%, Nasdaq-100 futures climbed 0.83%, and Dow Jones Industrial Average futures increased 0.5%.
A recovery in technology stocks across Asian markets helped improve sentiment for US equity futures.
Investors monitor corporate earnings and trending tickers
Investors are preparing for a busy week of corporate earnings reports. Apple, Palantir Technologies, Roku, and ON Semiconductor report results after the market closes on Monday.
Apple shares slipped 0.52% in premarket trading Monday ahead of fiscal fourth-quarter results, which mark the first report under new CEO John Ternus.
Amgen stock fell 0.04% in premarket trading ahead of its earnings report due after the market closes Tuesday.
Investors are awaiting updates on the Amgen obesity drug, MariTide. The drug is in a Phase 3 Maritime program testing efficacy for weight management, cardiovascular disease, heart failure, and sleep apnea.
Trending tickers on Stocktwits include Oracle, Wendy’s Co., and ServiceNow. Advanced Micro Devices is also scheduled to report earnings on Tuesday.
Big Tech and AI stocks face volatility
AI and chip stocks lost approximately $5 trillion in market value since October 6. During the same period, 625 other large US stocks gained about $1.3 trillion.
Alphabet shares rose 1.33% in premarket trading on Monday. This follows a 12.6% decline last week, the stock's sharpest weekly drop since 2008.
Dan Niles of Niles Investment Management described recent Big Tech earnings as "more trick than treat for technology investors". Niles noted that Alphabet's search revenue has missed estimates for two consecutive quarters. He also cited risks posed by AI to the sector.
Intel reported third-quarter revenue climbed 21% to $16.5 billion with adjusted earnings of $0.52 per share.
Oil prices drop on Iran diplomatic progress
Oil prices dropped more than 4% on Monday as diplomatic progress in U.S.-Iran negotiations eased concerns about potential supply disruptions. ET. U.S.
West Texas Intermediate crude opened lower on Sunday after closing at over $104 a barrel on Friday. That Friday price marked the highest close since mid-September. OPEC+ kept its December output targets steady on Sunday. The Strait of Hormuz remains closed during the ninth month of the Iran war.
Bitcoin and Ether show resilience in crypto markets
Bitcoin traded near $78,000 on Monday, showing resilience despite a $6 billion Binance hack.
Ether rebounded to approximately $2,287 after falling to its lowest level in two months. Willy Woo stated that Bitcoin outperformed gold last week.
Michaël van de Poppe said the market is at the "end stage of the correction," though Bitcoin "might still see another sweep of the low" in the coming weeks. Van de Poppe maintains a bullish outlook for the final two months of the year, arguing that the current "extremely bearish" crypto sentiment is not warranted. Ted Pillows remarked that "we are only in the first correction of this bull run".
Markets prepare for midterm elections and jobs report
- Market participants are preparing for the elections on Tuesday and the release of the October jobs report on Friday.
Michaël van de Poppe stated that Tuesday's U.S. midterm elections were "already priced into the markets and were going to be a non-event".
Frequently Asked Questions
- US Stock Futures Rise Ahead of Apple Earnings as Binance Hack, Oil Prices and Midterm Elections Take Focus: Dow Jones, S&P, Nasdaq, Wall Street (finance.yahoo.com)
- Stock futures open a monster week after a $5 trillion AI wipeout - AOL (aol.com)
- S&P 500, Nasdaq Futures Rise Premarket After October Selloff: AAPL, PLTR, GOOGL, INTC, TGTX In Focus (stocktwits.com)
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