U.S. index futures rose slightly in Wednesday’s pre-market as traders assessed Alphabet (NASDAQ:GOOGL)’s strong quarterly results released post-close, while AMD (NASDAQ:AMD) shares dropped significantly after a disappointing revenue forecast. Investors await additional tech earnings reports and economic growth data.
At 5:46 AM ET, Dow Jones futures (DOWI:DJI) remained stable at 42,446.00 points. S&P 500 futures gained 0.17%, and Nasdaq-100 futures rose 0.16%. The 10-year Treasury yield stood at 4.224%.
In commodities, December West Texas Intermediate crude rose 0.70% to $67.68 per barrel, and December Brent increased by 0.66% to $71.59 per barrel.
Oil prices climbed, influenced by the potential Israel-Hezbollah ceasefire and increased OPEC+ supply. A peace deal could reduce Middle Eastern conflict risks. However, prices remain near monthly lows after two consecutive declines.
Standard Chartered warned that oil markets underestimated Middle Eastern risks, projecting potential price spikes if tensions reemerge between Israel and Iran post-U.S. elections. The bank estimates Brent at $89 and WTI at $86 in early 2025.
Global gold demand rose 5% in Q3, reaching a record over $100 billion, driven by strong Western investments, including high-net-worth investors, offsetting weaker Asian demand. Record-high gold prices were supported by investment flows and central bank purchases.
Copper (CCOM:COPPER) rose, alongside other industrial metals, amid rumors of a potential $1.4 trillion stimulus from China in November, boosting metal markets. Investors are also awaiting the Fed’s meeting next week, which may signal 2025 rate cuts.
Today’s U.S. economic calendar includes the ADP employment report for October at 8:15 AM ET, forecasted to show 113,000 new jobs, down from 143,000. The Q3 GDP report at 8:30 AM is expected to show 3.2% growth, up from the prior 3.0%.
Simultaneously, September’s advanced trade balance in goods, last at -$94.2 billion, will be released, along with retail and wholesale inventory estimates, respectively at 0.5% and 0.1%. Pending home sales data for September, projected to drop 0.2% after a 0.6% gain, will be out at 10 AM.
Asia-Pacific markets mostly closed lower. Australia’s S&P/ASX 200 fell 0.83%, Hong Kong’s Hang Seng lost 1.65% in final trading, and China’s CSI 300 dropped 0.90%. In South Korea, Kospi and Kosdaq declined 0.92% and 0.80%, while Japan’s Nikkei 225 rose 0.96%.
In Australia, consumer inflation hit a three-and-a-half-year low in Q3, aided by electricity subsidies and lower gasoline prices. CPI rose 0.2%, below the forecast of 0.3%, dropping to 2.8% annually, within the central bank’s 2-3% target. Electricity prices fell 17.3%, and gasoline 6.2%. Core inflation rose 0.8% quarterly to 3.5% annually. With core inflation still high, the Reserve Bank of Australia is expected to hold rates steady until 2024, with potential cuts in April.
The Bank of Japan is expected to maintain stable rates following its two-day meeting concluding Thursday, per Reuters, with inflation near 2% and political uncertainties. While markets anticipate hints of future hikes, the bank may exercise caution due to global economic conditions and domestic politics. Analysts foresee potential rate hikes only in 2025, contingent on wage growth and economic stability.
President Xi Jinping reaffirmed the importance of achieving China’s approximate 5% annual growth target, especially ahead of the legislative meeting likely to approve additional fiscal support. The government is considering measures including issuing up to 10 trillion yuan in bonds to refinance local debts and fund government purchases, aiming to stabilize the economy amid a slowdown and real estate crisis.
The European Union set tariffs of up to 45.3% on Chinese electric vehicles, including 7.8% for Tesla and 35.3% for SAIC, to counter perceived unfair subsidies, according to Reuters. Beijing criticized the measure and launched investigations into European imports.
European markets are trading lower as investors examine corporate results and await EU and eurozone growth data. The UK government presents its budget to Parliament. Among sectors, food and beverage led losses.
In France, Q3 2024 GDP grew by 0.4%, surpassing economists’ 0.3% forecast, driven by consumer spending from the Paris Olympics tourism boost. INSEE had adjusted its growth forecast to 0.4% in September.
Among individual stocks, Roche (LSE:0TDF) adjusted its clinical trial after a patient death in testing its experimental Alzheimer’s drug, trontinemab.
Volkswagen (TG:VOW3) reported a 42% decline in Q3 operating profit, impacted by weak auto division performance and high restructuring costs. Its main unit’s operating margin fell to 2%, highlighting urgency to cut costs. Amid tense negotiations with IG Metall, VW is considering wage cuts and factory closures to balance finances.
Standard Chartered (LSE:STAN) surpassed Q3 profit expectations with $1.72 billion, well above the $1.49 billion forecast. The bank plans to double its wealth management business and reduce retail operations to boost returns, aiming to distribute $8 billion to shareholders between 2024 and 2026.
Aston Martin (LSE:AML) posted a Q3 adjusted loss of £10.3 million, lower than analysts’ £92 million loss forecast. The automaker maintained its full-year outlook, noting proactive management of supply chain disruptions.
U.S. stock indexes showed mixed performance on Tuesday. The Nasdaq rose 0.8%, supported by semiconductors and networks, while the S&P 500 gained 0.2%, though the Dow fell 0.4% due to losses in Home Depot (NYSE:HD) and Coca-Cola (NYSE:KO). U.S. consumer confidence increased to 108.7 in October, while job openings dropped to 7.44 million in September from a downwardly revised 7.86 million in August.
Upcoming quarterly reports include Eli Lilly (NYSE:LLY), Caterpillar (NYSE:CAT), Humana (NYSE:HUM), Global Payments (NYSE:GPN), Trinity Capital (NASDAQ:TRIN), Biogen (NASDAQ:BIIB), Brinker International (NYSE:EAT), ADP (NASDAQ:ADP), Jinko Solar (NYSE:JKS) and Santander (NYSE:SAN) before the open.
Post-close reports are expected from Microsoft (NASDAQ:MSFT), Meta (NASDAQ:META), Coinbase (NASDAQ:COIN), Robinhood (NASDAQ:HOOD), Sunnova (NYSE:NOVA), Etsy (NASDAQ:ETSY), Riot Platforms (NASDAQ:RIOT), Roku (NASDAQ:ROKU), Carvana (NYSE:CVNA) and Starbucks (NASDAQ:SBUX), and more.