U.S. index futures rose in pre-market trading Thursday, buoyed by strong third-quarter earnings. This follows three straight days of declines for the Dow and S&P 500, pressured by the recent surge in 10-year Treasury yields.
At 05:15 AM, Dow Jones futures fell 29 points, or 0.07%. S&P 500 futures gained 0.45%, and Nasdaq-100 futures rose 0.80%. The 10-year Treasury yield stood at 4.198%.
In commodities, oil futures rebounded, recovering some earlier losses, driven by tensions in the Middle East and strong distillate demand expectations for Q4. The increase followed intense clashes between Israel and Hezbollah, raising concerns about oil supply.
West Texas Intermediate crude for December rose 1.71% to $71.98 per barrel, while Brent for December climbed 1.60% to $76.18 per barrel.
Zinc prices reached a 20-month high, hitting $3,260.50 per ton, driven by signs of global market strength. The rise was fueled by mine disruptions limiting supply, pushing prices up for the third consecutive day.
In the U.S. economic calendar, initial jobless claims for October 19 are due at 8:30 AM, with forecasts of 250,000, higher than the previous 241,000. At 8:45 AM, Cleveland Fed President Beth Hammack will give opening remarks. At 09:45 AM, the U.S. preliminary services and manufacturing PMI will be released, followed at 10:00 AM by the September new home sales report, expected to reach 720,000 units, slightly above the prior 716,000.
In Asia-Pacific markets, South Korea’s Kospi fell 0.72%, and the Kosdaq dropped 1.42%. Japan’s Nikkei 225 rose 0.1%, while the Topix lost 0.05%. In Australia, the S&P/ASX 200 declined 0.12%. Hong Kong’s Hang Seng dropped 1.35% in late trading, while China’s CSI 300 closed down 1.12%.
South Korea avoided a technical recession, with GDP growing 0.1% in Q3, below Reuters’ forecast of 0.5%. Annual growth was 1.5%, slower than the expected 2%.
Horizon Robotics shares surged 28.3% in their debut, after raising $696 million in Hong Kong’s largest IPO of the year. The company sold shares at HK$3.99, starting trading at HK$5.12. The IPO exceeded China Resources Beverage’s offer and is the largest tech IPO since 2021.
WiseTech Global (ASX:WTC) announced that CEO Richard White will step down, just two days after a legal filing revealed a settlement tied to personal allegations against the billionaire. White, the company’s founder and largest shareholder, will take on a consultancy role.
Seven & i Holdings unveiled a growth plan focused on 7-Eleven stores, without mentioning the $47 billion takeover bid from Canada’s Couche-Tard. The company aims to double sales by 2030, expanding into markets like Vietnam and Australia, but faces criticism over its slow supermarket performance.
Bank of Japan Governor Kazuo Ueda said reaching the 2% inflation target will take time, signaling caution on raising interest rates. He also warned that speculation could hurt the yen if the increase is too slow, emphasizing the need to balance global uncertainties.
Japan’s Finance Minister Katsunobu Kato expressed concern over currency speculation, highlighting the impact of rapid fluctuations that are weakening the yen. He stressed the importance of a stable exchange rate and that the government is closely monitoring the market, especially after the dollar crossed 153 yen.
In India, economic activity accelerated in October, driven by growth in manufacturing and services, according to an HSBC survey. The manufacturing index rose to 57.4, and the services index to 57.9, both indicating expansion. Demand increased, but manufacturers’ margins remain pressured by input inflation.
European markets are trading higher as various companies report strong earnings. Among sectors, travel and leisure are performing best, while retail stocks lag behind.
Dassault Systèmes (EU:DSY) cut its 2024 revenue growth forecast for the second time, now expecting a 5% to 7% increase, down from the previous 6% to 8%, due to a slowdown in the global automotive industry.
Unilever (LSE:ULVR) and Danone (EU:BN) exceeded third-quarter sales expectations by lowering price increases and investing in innovations to attract consumers who had switched to cheaper brands due to inflation. Unilever saw 4.5% sales growth, and Danone, 4.2%, highlighting a recovery in sales volumes.
London Stock Exchange Group (LSE:LSEG) reported a 9.5% revenue increase in the third quarter, reaching £2.12 billion, beating expectations. Growth was driven by a 6% rise in annual subscription value (ASV).
Anglo American (LSE:LSEG) reported third-quarter declines of 13% in copper production and 25% in diamonds, but maintained its 2024 production forecast.
Kering (EU:KER) said its 2024 operating revenue will fall by nearly half due to weak demand in China. Revenue dropped 16% in the third quarter.
Hermès (EU:RMS) reported €3.7 billion in third-quarter 2024 revenue, an 11.3% increase at constant exchange rates, beating estimates. The company maintained its revenue growth forecast, citing strong demand for luxury bags supporting overall performance.
Michelin (EU:ML) cut its annual forecast, citing lower demand due to high interest rates. The tire maker now expects a 4% to 6% drop in sales volumes for 2024 and reduced its operating profit forecast to around €3.4 billion.
Renault (EU:RNO) surprised with a third-quarter revenue increase, driven by strong demand for its high-end models.
Atos SE (EU:ATO) received approval from the Nanterre Commercial Court for its accelerated restructuring plan. The restructuring will occur between November 2024 and January 2025, involving capital increases and debt issuance.
Siemens AG (TG:SIE) is in talks to potentially acquire software maker Altair Engineering (TG:8A2) in one of the German group’s largest acquisitions. Altair, valued at $9.1 billion, is exploring a sale. Altair’s shares have risen 27% this year, and other bidders may emerge.
London’s IPO market has struggled, but Applied Nutrition Plc‘s (LSE:APN) offering provided a boost with its debut on the London Stock Exchange. Shares opened at 150 pence, above the IPO price of 140 pence.
On Wednesday, the Dow Jones fell 1.0%, the Nasdaq dropped 1.6%, and the S&P 500 lost 0.9%, with the Dow and S&P extending their losses to three days. Weakness was driven by rising Treasury yields and concerns over Fed interest rate policy. CME Group’s FedWatch tool suggested the odds of the Fed leaving rates unchanged in December jumped from just 13.9% to 30.2% last week.
U.S. existing home sales hit a 14-year low in September due to rising mortgage rates and high prices. Economists believe residential investment will continue to fall. Despite higher supply, affordable homes remain scarce, making it difficult for first-time buyers.
U.S. existing home sales fell 1.0% in September to a seasonally adjusted annual rate of 3.84 million units, and the median home price rose 3.0% year-over-year to $404,500.
In the earnings front, reports are expected from American Airlines (NASDAQ:AAL), UPS (NYSE:UPS), Southwest Airlines (NYSE:LUV), LKQ (NASDAQ:LKQ), Nasdaq (NASDAQ:NDAQ), Carrier (NYSE:CARR), OSI Systems (NASDAQ:OSIS), Tri Pointe Homes (NYSE:TPH), Tractor Supply Co. (NASDAQ:TSCO) and Union Pacific (NYSE:UNP) before the opening bell.
After the close, earnings are expected from Dexcom (NASDAQ:DXCM), Deckers Brands (NYSE:DECK), Western Digital (NASDAQ:WDC), Skechers (NYSE:SKX), Edwards Lifesciences (NYSE:EW), Boyd Gaming (NYSE:BYD), Coursera (NYSE:COUR), Texas Roadhouse (NASDAQ:TXRH), AppFolio (NASDAQ:APPF) and Kinsale Capital Group (NYSE:KNSL).