Has the much feared moment of reversal from the supersonic tops of the US Tech market perhaps arrived? What is happening in the last few hours makes us think so. Magnificent Seven which have already shown quarterly results, have indicated strong revenues and profits, but also rising costs for artificial intelligence. This means that the profits could become thinner in the future, which investors don't like very much and so the enthusiasm for megacaps is slowing down. Added to this are the fears for the outcome of the US elections, the possibility of an increase in tensions in Middle East, the decision of the Fed, with the key data today on employment: all factors that push investors to take home profits and sit back and wait. Nasdaq lost 2,8%, dragging the Nikkei down with it Tokyo. In Europe, however, futures indicate a slight increase in opening.
On Wall Street Nasdaq and tech in sharp decline. Amazon in positive after the data
All three US stock indexes closed lower yesterday, recording the worst session in over a month, after that Microsoft e MetaPlatforms have highlighted, along with growing revenues and profits, an increase in expenses related to artificial intelligence. The shares of MetaPlatforms, owner of Facebook, are dropped by 4,1% e Microsoft by 6% despite both companies posting better-than-expected quarterly figures in the previous session after the close of trading.
Among other so-called Magnificent Seven, large-cap technology companies, Amazon.com e Apple reported quarterly results yesterday after the market close. Amazon beat revenue estimates, boosted by strong growth in its cloud services unit. Apple also beat revenue and profit expectations, as iPhone sales surged. In the after hours Amazon it bounced by +6%, Apple lost -2%. The shares of A fell by 1,9%.
The industrial average of Dow Jones fell 0,90% to 41.763,46. TheS & P 500 lost 1,86% to 5.705,45 and the Nasdaq Composite is dropped by 2,76%, 18.095,15.
In the spotlight yesterday, also the economic data: new claims for unemployment benefits fell to their lowest since May (216.000), PCE inflation was in line with expectations (+2,1% year-on-year), consumer spending, the Federal Reserve's preferred inflation measure, showed a higher-than-expected +0,5%, labor costs (+0,8%) in the third quarter were slightly below estimates. Today awaiting the report on theOctober occupation.
To report Estee Lauder which posted its worst day ever yesterday, falling 20,9% after the cosmetics company withdrew its full-year forecast for 2025. Uber Technologies fell 9,3% after the ride-hailing company forecast that fourth-quarter gross bookings would be lower than expected. Intel reported post-closing profits weighed down by impairment and restructuring charges. The stock Ford lost 1,1% after the automaker announced it will pause production of the electric F-150 Lightning from mid-November to early 2025, for a total of seven weeks. The move was made to clear inventory and reduce losses from the pickup, whose sales are falling short of expectations. Peloton Interactive shares gained nearly 7% after a better-than-expected quarterly report and the appointment of Peter Stern as CEO, effective January 28.
Il VIX, Wall Street's “fear gauge,” rose as investors braced for a higher volatility in the coming weeks, following corporate results and the US presidential election on November 5, followed by the Fed's policy-setting meeting on November 6-7 where traders are betting on a 25 basis point rate cut.
Oil Rises on Reports of Iran Preparing Attack on Israel
The prices of Petroleum extended their gains today, rising more than $1 a barrel and paring weekly losses as Geopolitical tensions are rising in the Middle East following reports that Iran he is reportedly preparing a retaliatory attack against Israel from Iraq in the coming days. Crude Oil Futures Brent, which switched to the January contract, rose $1,41, or 2%, to $74,22 a barrel this morning. U.S. crude futures West Texas Intermediate rose $1,46, or 2,1%, to $70,72 a barrel, after closing up 0,95% in the previous session.
As reported yesterday by Axios, Israeli intelligence suggests that Iran is preparing to attack Israel from Iraqi territory in the coming days, possibly before the November 5 US presidential election, citing two unidentified Israeli sources. The attack is expected to be carried out from Iraq using a large number of drones and ballistic missiles, the Axios report said.
Oil prices are also supported by expectations that OPEC+ could delay its planned December increase in oil production by a month or more, four sources familiar with the matter told Reuters, citing concerns about weak oil demand and rising supply. A decision to delay the increase could come as early as next week, two of the sources said.
Their is trading at $2.755 an ounce, up slightly from Thursday's -1,6%. October was the fourth consecutive positive month with a gain of around +4%.Euro dollar is almost stationary at 1,087, while it closes the month of October with a drop of -2,5%, the best month since May for the US dollar.
Government bonds: the 3,65-year BTP at 125%, the highest level in two months, with the spread at 2,39 basis points. German Bund at 4,27%. Treasury Note at XNUMX%. Bitcoin down 0,5% at the opening, from -4% on Thursday, the worst session in a month. However, the balance for October was positive by almost +10%.
Tokyo in deep red as Nasdaq follows, while Chinese stocks rise after data
In China, manufacturing activity returned to growth in October, a private sector survey showed on Thursday, echoing an official survey on Thursday that showed manufacturing activity rose in October for the first time in six months. Both surveys suggest that the Stimulus measures are having an effect. The expansion of the new orders has led to a resumption of growth in the production, signaling an improvement in the sector at the start of the latest quarter. The Caixin/S&P Global Manufacturing PMI rose to 50,3 in October from 49,3 the previous month, beating analysts' forecasts of 49,7 in a Reuters poll. Beijing aims to bring economic growth back to about 5% this year. The index Hang Seng Hong Kong shares rose 1,57% to 20.635,73. Shanghai shares fell 0,24% to close at 3.272,01 points.
A session to forget for Tokyo, down 2,80% at 07:20. The main Japanese stock index is trading at 37.987,28 points. The Tokyo Stock Exchange is taking home profits ahead of the long weekend holiday that includes Monday's holiday, weighed down by the correction of the Nasdaq technology index in New York, while investors are anxiously watching the outcome of the presidential vote in the United States. On the exchange front, the yen stops the devaluation process against the dollar, penalizing the export sector, trading at 152,50, and against the euro at 165,80. The manufacturing PMI in October fell to 49,2 points, from the previous 49,7 points (the forecast was 49 points)
European stocks seen rising, rain of positive ratings for Italian banks
Le European stock exchanges are expected to rise slightly (+0,12% the future on the Eurostoxx50) at the start of the session in the wake of the positive US futures (+0,16% on the Dow Jones and +0,21% on the S&P500)
Unicredit: Fitch has upgraded the Long-Term Issuer Default Rating (IDR) and the Senior Preferred Rating to 'BBB+'. The rating is now one notch above the Italian sovereign rating
believe. Fitch upgraded the outlook to positive from stable while maintaining the BBB rating.
Intesa Sanpaolo has improved its 2025 profit estimate to around 9 billion euros, after closing the third quarter with a better-than-expected net profit. The bank has promised to propose a “significant” buyback at the end of the year. Fitch Ratings has upgraded the outlook on the long-term rating to Positive from Stable and affirmed the Long-Term IDR at 'BBB' and Viability Rating (VR) at 'bbb'. .
Fincantieri closed Thursday with a gain of +3,3%, its highest since early August, ahead of the quarterly results.
MFE, the Berlusconi family group, estimates that a possible merger with the German subsidiary ProSiebenSat.1 could generate synergies of over 200 million euros per year on operating profit. This was reported to Reuters a source familiar with the situation.
Passed and failed. Moncler: Stifel cut its target price from 62 to 60 euros. stellantis: Bernstein reduced the target price from 12,50 to 12,10 euros. STM: Jefferies, Deutsche Bank Goldman Sachs, Barclays have cut their target price.
