US index futures are declining this Wednesday in pre-market trading as investors await new quarterly financial reports and assess recent information on inflation in Europe and economic performance in China. Additionally, developments in the conflict between Israel and Hamas are under the market’s scrutiny.

At 07:02, Dow Jones futures (DOWI:DJI) dropped by 93 points, or 0.27%. S&P 500 futures fell by 0.41% and Nasdaq-100 futures declined by 0.57%. The 10-year Treasury yield stood at 4.824%.

In the commodities market, West Texas Intermediate crude oil for November rose by 2.82%, reaching $89.10 per barrel. Brent crude for December increased by 2.68%, nearing $92.31 per barrel. Iron ore with a 62% concentration traded on the Dalian exchange fell by 0.40%, priced at $117.66 per ton.

On Wednesday’s U.S. economic calendar, investors await mortgage data from the previous week at 07:00 AM, while at 8:30 AM, new home construction figures are anticipated. At 10:30 AM, the Department of Energy will release last week’s oil stockpiles. The main event on the macroeconomic calendar is the release of the Beige Book at 14:00 PM. At 16:00 PM, the monthly capital inflow and foreign securities investment will be disclosed.

Throughout the day, speeches from Fed members are scheduled. At 12:00 PM, a speech from Fed Director Christopher Waller is expected, followed by New York Fed President John Williams at 12:30 PM. At 13:00 PM, Fed Governor Michelle Bowman will speak, and at 15:15 PM, Philadelphia Fed President Patrick Harker will address.

In the Middle East, tensions between Israel and Hamas escalated following an attack on a hospital in Gaza, leading to mutual blame for casualties. U.S. President Joe Biden is visiting Israel to meet with Prime Minister Benjamin Netanyahu.

In Asian markets, results were mixed. Hong Kong’s HSI index declined by 0.23%, while the Shanghai Composite dropped by 0.80%. Tokyo’s Nikkei 225 index remained stable. Economic indicators from China surpassed expectations, highlighting GDP growth and industrial production.

Chinese investors are closely watching real estate companies Country Garden and Evergrande. Country Garden recently missed a payment, and Evergrande, heavily indebted, faces a trial concerning asset liquidation later this month.

In Europe, despite inflation data in line with expectations in the UK and the Eurozone, stock markets are down.

At Tuesday’s close, stock markets closed mixed as more robust economic data was released and US Treasury bond yields rose, strengthening the case for the Federal Reserve to keep interest rates high for an extended period. Meanwhile, the corporate earnings season continued, with many companies reporting positive performance, although Goldman Sachs (NYSE:GS) stood out for disappointing market expectations with a drop in earnings. Furthermore, the ongoing conflict in the Middle East was being closely watched, with Israel’s attacks gaining intensity. United States President Joe Biden is scheduled to visit the country today.

The Dow Jones closed up 13.11 points or 0.04% at 33,997.65 points. The S&P 500 fell 0.01% to 4,373.20 points, while the Nasdaq closed down 34.24 points or 0.25% to 13,533.75 points.

US economic data released on Tuesday relating to retail sales and industrial production exceeded expectations. Retail sales rose 0.7% in September, more than double what was expected, especially retail sales excluding automobiles, which increased significantly by 0.6%, in contrast to the expectation of just 0.1%. Meanwhile, despite the market forecast of stable industrial production, the numbers showed an increase of 0.3% in September.

On the corporate earnings front on Wednesday, investors will be watching before the market opens for reports from ASML (NASDAQ:ASML), P&G (NYSE:PG), Morgan Stanley (NYSE:MS), Abbott (NYSE:ABT), US Bancorp (NYSE:UBS), Nasdaq (NASDAQ:NDAQ), Ally Financial (NYSE:ALLY), Elevance Health (NYSE:ELV). After the closing, earnings from Tesla (NASDAQ:TSLA), Netflix (NASDAQ:NFLX), Lam Research (NASDAQ:LRCX), Las Vegas Sands (NYSE:LVS), among others, are expected.

Wall Street Corporate Highlights for Today

Nvidia (NASDAQ:NVDA) – New US rules deprive China of AI chips and affect Nvidia, Intel (NASDAQ:INTC) and AMD (NASDAQ:AMD). The rules aim to stop Chinese supercomputers and keep the focus on military capabilities. Authorities seek “tamper-proof” way to limit AI chip interconnections. Restrictions also harm Chinese competitors, while Nvidia can adapt. Nvidia considers transferring operations to avoid restrictions. New rules restrict exports of deep immersion ultraviolet (DUV) lithography machines and affect China in the long term. In other news, Foxconn (USOTC:FXCOF) and Nvidia will collaborate on AI data centers for applications including autonomous vehicles. The partnership aims to use Nvidia chips and software.

Meta Platforms (NASDAQ:META) – Chris Cox, chief product officer at Meta Platforms, emphasizes that AI chatbots are evolving as high-value tools for advertisers and not just for attracting users. Meta seeks to monetize this technology after launching it on Instagram and WhatsApp, aiming to meet business demand for AI solutions. In other news, financial companies are considering monitoring and retaining employee video calls to ensure compliance with strict regulations. This comes as regulators such as the US SEC focus on unregistered business-related communications on unauthorized platforms such as WhatsApp. Expanded recording requirements for video calls could become a reality, prompting companies to take preventative measures.

Microsoft  (NASDAQ:MSFT),  Amazon  (NASDAQ:AMZN) – Microsoft is set to acquire Amazon as a customer for its cloud productivity tools in a deal worth more than $1 billion, according to Reuters. Amazon has committed to acquiring more than one million Microsoft 365 licenses over five years.

Amazon (NASDAQ:AMZN) – Amazon announced that it currently has 10,000 Rivian (NASDAQ:RIVN)  electric delivery vehicles in operation in the United States and Europe. The partnership between Amazon and Rivian aims to reach at least 100,000 electric delivery vans by 2030. Rivian recently increased its production forecast to 52,000 vehicles in 2023 and has already completed 150,000 deliveries with its vans. Additionally, Amazon is collaborating with Volvo (USOTC:VLVLY) to add heavy-duty electric trucks to its delivery fleet. In other news, Amazon has announced that it will launch its online shopping service in South Africa in 2024, making it only the second African country after Egypt to have a dedicated local website. The South African economy is seen as a base for Amazon’s expansion on the continent. Amazon will have to comply with local competition rules when setting up its platform.

Lucid Group (NASDAQ:LCID) – Lucid Group reported a nearly 30% drop in third-quarter production and a marginal increase in deliveries, raising concerns about competition, pricing pressures, and demand for its luxury electric vehicles.

Tesla (NASDAQ:TSLA) – Tesla has urged Biden administration to adopt stricter fuel economy standards through 2032 than those proposed by the NHTSA. The company is seeking a 6% annual increase in average fuel efficiency for cars and 8% for trucks and SUVs. This led to disagreement with other automakers.

General Motors (NYSE:GM) – General Motors will delay production of electric pickup trucks in Michigan for a year due to reduced demand for electric vehicles. The production plan has moved from 2024 to 2025, but GM maintains its EV production goals.

Stellantis (NYSE:STLA) – Stellantis plans to use a fifth low-cost platform for seven models, including the Citroen e-C3, to compete with affordable Chinese electric cars in Europe. This platform, called “Smart Car,” will be used primarily for EVs, but will also allow for internal combustion versions. Other Stellantis brands will also launch vehicles based on this platform from 2024, aiming for competitive prices, taking advantage of low-cost suppliers and Chinese battery technology. Additionally, Stellantis is canceling its participation in CES 2024 due to the ongoing strike by the United Auto Workers (UAW) in the US. Rising costs resulting from the UAW’s actions led to the decision to cancel the planned exhibit at the fair.

AutoNation (NYSE:AN) – AutoNation announced on Tuesday that it will not submit a bid for Pendragon (LSE:PDG), following the withdrawal of Hedin Mobility and PAG International, the British automotive retailer’s main shareholders, who also withdrew from the bid partnership.

Ryanair (NASDAQ:RYAAY),  Wizz Air (LSE:WIZZ) – Ryanair plans to expand its business in Poland and across Eastern Europe, facing competition from Wizz Air. Poland is seen as a growth market due to increasing disposable income, making an attractive prospect as Western European markets mature. Both airlines plan to add more planes to the region to meet growing demand.

Chevron (NYSE:CVX) – Workers at Chevron natural gas facilities in Australia have suspended industrial action after endorsing pay and conditions agreements. The dispute affected energy markets, representing 7% of global supply. Chevron is now awaiting an employee vote for approval.

TotalEnergies SE (NYSE:TTE) – Bruno Le Maire, French Minister of Finance, announced that TotalEnergies will extend the limit of 1.99 euros per liter for diesel and gasoline at French service stations until 2024. Le Maire emphasized the importance of this measure for protect the country’s citizens and economy.

Thermo Fisher Scientific (NYSE:TMO) – Thermo Fisher Scientific plans to acquire Olink Holding AB in a $3.1 billion deal to strengthen its life sciences portfolio. Sweden-based Olink provides products for advanced protein analysis, driving drug research. Thermo Fisher faces decreased demand for its life sciences offerings and expects to complete the deal in mid-2024.

Ardelyx (NASDAQ:ARDX) – Ardelyx won FDA approval for tenapanor, marketed as Xphozah, as a treatment for controlling serum phosphorus in patients with chronic kidney disease on dialysis, ending an approval battle. The approval marks a remarkable comeback, following a previous rejection in 2021. More than 550,000 patients in the US can benefit from Xphozah, which offers a more convenient alternative to traditional phosphate binders.

Viking Therapeutics (NASDAQ:VKTX) – Viking posted an 11.9% increase in premarket after releasing promising data from the Phase 1 trial of its weight loss treatment, called VK2735.

Rite Aid (NYSE:RAD),  McKesson Corp (NYSE:MCK) – Rite Aid resolved a dispute with McKesson Corp, ensuring continued drug supply during its bankruptcy. Rite Aid had filed for bankruptcy and sued McKesson to avoid ending a drug supply agreement. Now, they have agreed to continue supply during the bankruptcy process while they negotiate a long-term solution.

Wyndham Hotels and Resorts  (NYSE:WH) – Wyndham Hotels and Resorts rejected Choice Hotels’ $7.8 billion acquisition offer, citing regulatory risks and calling it “disappointing.” The potential merger would have created a hotel giant, but would face regulatory scrutiny due to its size.

Hasbro (NASDAQ:HAS) – Baldur’s Gate 3, a video game based on Dungeons & Dragons, is attracting players and expanding the D&D audience. Hasbro, owner of the franchise, expects a positive financial impact from the game.

Goldman Sachs (NYSE:GS) – Goldman Sachs warns that growing geopolitical uncertainty, including the ongoing conflict between Israel and Hamas, could threaten the stock market rally. This could impact oil supplies and raise concerns about monetary policy and bond yields. Strategists believe any relief will be short-lived, although markets have remained relatively stable so far. Other analysts have also expressed concerns about geopolitical tensions affecting risky assets and economic activity.

JPMorgan Chase (NYSE:JPM) – JPMorgan and Nomura (TSX:2083) revised upward their economic growth forecasts for China after the economy posted better-than-expected performance in the third quarter. JPMorgan now forecasts GDP growth of 5.2% in 2023, while Nomura raised its forecast to 5.1% from 4.8%. China’s economic growth in the third quarter exceeded expectations, but economists still warn of challenges such as private investment and the correction in the property market.

Bank of America (NYSE:BAC) – Bank of America reported unrealized losses of $131.6 billion on securities in the third quarter, although it believes these losses will not result in real long-term losses. These losses are mainly on government-backed bonds. The bank plans to hold these bonds until maturity to avoid losses in the market. However, holdings in low-yielding assets have limited their ability to earn higher profits.

UBS (NYSE:UBS) – The Monetary Authority of Singapore (MAS) plans to inspect Credit Suisse’s local unit to assess its monitoring of wealthy clients following a client’s money laundering accusation. The investigation will involve interviews and review of documents at several banks. In August, Singapore police detained 10 foreigners in a major money laundering case, seizing 2.8 billion Singapore dollars in assets.

Charles Schwab (NYSE:SCHW) – Financial advisor John Robinson planned to transfer his clients’ funds from TD Ameritrade to Charles Schwab over Labor Day weekend, but ran into problems. One account worth $1.7 million was misattributed to him, and three client accounts totaling more than $4 million were misattributed to another advisor. The experience left Robinson discouraged, and Schwab could lose his business. The migration of TD Ameritrade clients to Schwab faced several obstacles, including technical issues and dissatisfaction from some advisors. Schwab saw a drop in shares, bank deposits and net new assets, putting pressure on its profits. The company is facing challenges, but many analysts remain optimistic due to its scale and leadership position. Schwab plans to cut costs, expand services and attract younger investors to drive growth.

Earnings

ASML Holding NV (NASDAQ:ASML) – ASML reported lower-than-expected orders and warned of flat sales next year due to economic uncertainty. The company considers the semiconductor industry to be in decline, with customers cautious due to uncertainty, expecting a transition year in 2024. ASML predicts little immediate financial impact from the new US guidelines on exports to China. However, it anticipates regional impact in the medium and long term, but does not expect it to affect its financial outlook for 2023. China has become its largest market, accounting for 46% of sales, surpassing Taiwan, which represented 24%. The company reported net profit of US$2.01 billion for the three months ended September 30, in line with analysts’ expectations.

United Airlines Holdings (NASDAQ:UAL) – United Airlines forecasts weaker fourth-quarter earnings due to higher costs, resulting in a more than 4.7% drop in its shares in premarket trading. The Chicago company estimated adjusted earnings of between $1.50 and $1.80 per share, below analysts’ expectations. Rising fuel prices and the suspension of flights to Israel negatively impacted costs. The company also noted a slowdown in domestic travel demand. However, passenger revenue increased in the third quarter and business travel bookings are improving. Third-quarter adjusted earnings were $3.65 per share, higher than the $3.35 estimated by Wall Street analysts.

Interactive Brokers Group (NASDAQ:IBKR) – Interactive Brokers Group recorded a 2.8% drop in pre-market trading. The electronic brokerage reported third-quarter results with adjusted profits and revenue that exceeded expectations, as well as a 21% increase in customer accounts, reaching 2.43 million.

Omnicom Group (NYSE:OMC) – The marketing company released a slightly better quarterly report than analysts expected. Omnicom announced third-quarter earnings of $1.86 per share on revenue of $3.58 billion, beating FactSet estimates of $1.84 per share on revenue of $3.55 billion.

Procter & Gamble (NYSE:PG) – P&G reported quarterly earnings of $1.83 per share and revenues of $21.87 billion, surpassing forecasts. Shares rose 1.2% in pre-market trading. Net profit increased and sales grew by 6%. Earnings per share were expected to be between $1.72 (FactSet) and $1.74 (Estimize) and revenue between $21.580 billion (FactSet) and $21.761 billion (Estimize). P&G also widened its outlook for fiscal 2024 revenue as it anticipates that foreign exchange rates could be a larger drag than previously expected.

Morgan Stanley (NYSE:MS) – Morgan Stanley is poised to release results with lower earnings expectations on Wednesday, the last of the major U.S. banks to do so. FactSet analysts project earnings of $1.28 per share, down from $1.47 a year ago, while Estimize’s estimate is $1.37. Expected revenue is $13.22 billion (FactSet) or $13.327 billion (Estimize). Morgan Stanley shares fell 4.4% in the third quarter and the performance of its wealth management unit is of interest, especially during the leadership transition.

Tesla (NASDAQ:TSLA) – Tesla is about to release its third-quarter results, raising concerns about margins and demand due to recent price cuts. Investors are cautious about future profits, with the next year seen as volatile. Analysts expect adjusted earnings of 73 cents per share on sales of $24.3 billion, compared with $1.05 per share on $21.5 billion in sales in the same period a year ago. Tesla shares are up 114% this year.

Netflix (NASDAQ:NFLX) – Netflix is ​​in transition, focusing on maximizing profits through price increases, advertising and combating account sharing as it prepares to report third-quarter results. Margins and competition are worrying investors, despite the boost during the pandemic. Analysts expect earnings per share of $3.49 and revenue of $8.54 billion.

JB Hunt Transport Services  (NASDAQ:JBHT) – JB Hunt Transport Services reported third-quarter results below Wall Street expectations, reflecting the continued decline in demand for shipping. The company reported net income of $187.4 million, or $1.80 per share, compared with $269.4 million, or $2.57 per share, in the same quarter a year ago. Revenue fell to $3.16 billion, compared with $3.84 billion in the year-ago quarter. Company executives have signaled that they are seeing signs of recovery despite ongoing challenges in the sector.

Johnson & Johnson  (NYSE:JNJ) – Johnson & Johnson announced a two-year restructuring program for its orthopedics business due to lower-than-expected sales in the third quarter. The company plans to exit certain markets and discontinue the sale of some orthopedic products. Meanwhile, the focus on the pharmaceutical business aims to achieve its drug sales target of $57 billion by 2025. J&J raised its annual profit forecast and, excluding the consumer health unit, now expects 2023 adjusted profit of $10.07 to $10.13 per share.

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