Futures are on the rise, nearing another all-time high, with Tech leading the way. NVDA is up +2.5% pre-market as TSMC reported strong upside on margin, along with comments on “extremely robust AI related demand”. As of 8:00am, S&P futures rose 0.4% to 5,910, just shy of the 5,918 all time high; Nasdaq 100 futures climbed 0.9%, led by an advance in chip stocks after TSMC posted a better-than-projected 54% rise in quarterly earnings. This helped reverse the impact of ASML Holding NV’s lowered 2025 guidance, which halted a rally that had pushed US-traded shares to a three-month high. Europe's Stoxx 600 index gained 0.7% ahead of the ECB's second consecutive rate cut. China stocks extended their post-euphoria slump and erased gains on disappointment over the outcome of a joint ministry press briefing about the property market which again lacked critical details on the stimulus package. Iron ore tumbled to a three-week low ahead of data on Friday which is expected to show the economy grew at its weakest pace in six quarters. Bond yields are higher and USD is lower; 10-year yields are 2bp higher to 4.03%. Commodities are mixed: Oil and base metals are higher, while precious metals are lower.
In premarket trading, chip giant Taiwan Semiconductor jumped 8.5% after it gave a strong forecast and touted the sustainability of AI hardware demand as strong sales of Nvidia AI chips offset a sagging mobile industry. Margins were seen as a highlight, and the report helped to ease recent concerns about the chip space that followed ASML’s results. The company also raised its target for 2024 revenue growth. US chip were broadly higher on the report. Expedia shares jumped 6.7% after the Financial Times reported that Uber Technologies explored a possible bid for the online travel-booking company. Analysts were positive about a deal noting that Dara Khosrowshahi led Expedia for 12 years before taking the helm at Uber in 2017. CSX shares dropped 3.9% after the freight-transportation company reported third-quarter earnings per share and revenue that missed consensus estimates. Analysts flagged the impact of hurricane activity on the results. Here are some other notable premarket movers:
Alcoa (AA) rises 5.9% premarket after the aluminum producer reported better-than-expected adjusted Ebitda for the third quarter. Results were aided by surging alumina prices, analysts said.
Elevance (EXPE) shares tumble 13% after the health insurer slashed its forecast for adjusted full-year EPS as the firm reported third-quarter profits that fell short of expectations. The company also reported higher-than-expected medical expenses for the quarter.
Fortinet Inc. (FTNT) shares fall 3.7% after Mizuho Securities downgraded the security software company to underperform from neutral.
Lithium Americas (LAC) shares jump 7.9% in New York after the miner was upgraded to outperform from sector perform at National Bank Financial following the announcement of a joint venture with General Motors.
Sealed Air (SEE) shares advance 3.1% after Raymond James upgraded the packaging company to strong buy from market perform.
SolarEdge Technologies (SEDG) shares fall 3.3% after Guggenheim analyst Joseph Osha downgrades the solar company to sell from neutral.
Topgolf Callaway Brands (MODG) shares fall 2.2% after B. Riley Securities downgraded the golf company to neutral from buy. Analyst Eric Wold expects weak trends at its namesake chain of high-tech driving ranges will weigh on the stock until the firm’s planned separation, anticipated in the second half of 2025.
“TSMC earnings were clearly a positive and that has allayed some of the worries around the chip sector after that dismal report from ASML,” said Michael Brown, strategist at Pepperstone Group Ltd. “The outlook for risk remains very positive particularly as central banks across both developed markets continue to remove policy restriction at a pretty rapid pace.”
The European Central Bank’s policy decision is due later, where it’s expected to cut its benchmark rate by another quarter-point to 3.25%. Shortly after, the market will turn its attention to US retail sales and jobless figures for further evidence that the US consumer and labor market remain healthy, as investors seek confirmation of soft-landing bets. Traders also await results from tech bellwether Netflix which is set to report its third-quarter earnings after the close amid some concern its breakneck rally may be running out of steam.
In Europe, major markets
Futures are on the rise, nearing another all-time high, with Tech leading the way. NVDA is up +2.5% pre-market as TSMC reported strong upside on margin, along with comments on “extremely robust AI related demand”. As of 8:00am, S&P futures rose 0.4% to 5,910, just shy of the 5,918 all time high; Nasdaq 100 futures climbed 0.9%, led by an advance in chip stocks after TSMC posted a better-than-projected 54% rise in quarterly earnings. This helped reverse the impact of ASML Holding NV’s lowered 2025 guidance, which halted a rally that had pushed US-traded shares to a three-month high. Europe's Stoxx 600 index gained 0.7% ahead of the ECB's second consecutive rate cut. China stocks extended their post-euphoria slump and erased gains on disappointment over the outcome of a joint ministry press briefing about the property market which again lacked critical details on the stimulus package. Iron ore tumbled to a three-week low ahead of data on Friday which is expected to show the economy grew at its weakest pace in six quarters. Bond yields are higher and USD is lower; 10-year yields are 2bp higher to 4.03%. Commodities are mixed: Oil and base metals are higher, while precious metals are lower.
In premarket trading, chip giant Taiwan Semiconductor jumped 8.5% after it gave a strong forecast and touted the sustainability of AI hardware demand as strong sales of Nvidia AI chips offset a sagging mobile industry. Margins were seen as a highlight, and the report helped to ease recent concerns about the chip space that followed ASML’s results. The company also raised its target for 2024 revenue growth. US chip were broadly higher on the report. Expedia shares jumped 6.7% after the Financial Times reported that Uber Technologies explored a possible bid for the online travel-booking company. Analysts were positive about a deal noting that Dara Khosrowshahi led Expedia for 12 years before taking the helm at Uber in 2017. CSX shares dropped 3.9% after the freight-transportation company reported third-quarter earnings per share and revenue that missed consensus estimates. Analysts flagged the impact of hurricane activity on the results. Here are some other notable premarket movers:
Alcoa (AA) rises 5.9% premarket after the aluminum producer reported better-than-expected adjusted Ebitda for the third quarter. Results were aided by surging alumina prices, analysts said.
Elevance (EXPE) shares tumble 13% after the health insurer slashed its forecast for adjusted full-year EPS as the firm reported third-quarter profits that fell short of expectations. The company also reported higher-than-expected medical expenses for the quarter.
Fortinet Inc. (FTNT) shares fall 3.7% after Mizuho Securities downgraded the security software company to underperform from neutral.
Lithium Americas (LAC) shares jump 7.9% in New York after the miner was upgraded to outperform from sector perform at National Bank Financial following the announcement of a joint venture with General Motors.
Sealed Air (SEE) shares advance 3.1% after Raymond James upgraded the packaging company to strong buy from market perform.
SolarEdge Technologies (SEDG) shares fall 3.3% after Guggenheim analyst Joseph Osha downgrades the solar company to sell from neutral.
Topgolf Callaway Brands (MODG) shares fall 2.2% after B. Riley Securities downgraded the golf company to neutral from buy. Analyst Eric Wold expects weak trends at its namesake chain of high-tech driving ranges will weigh on the stock until the firm’s planned separation, anticipated in the second half of 2025.
“TSMC earnings were clearly a positive and that has allayed some of the worries around the chip sector after that dismal report from ASML,” said Michael Brown, strategist at Pepperstone Group Ltd. “The outlook for risk remains very positive particularly as central banks across both developed markets continue to remove policy restriction at a pretty rapid pace.”
The European Central Bank’s policy decision is due later, where it’s expected to cut its benchmark rate by another quarter-point to 3.25%. Shortly after, the market will turn its attention to US retail sales and jobless figures for further evidence that the US consumer and labor market remain healthy, as investors seek confirmation of soft-landing bets. Traders also await results from tech bellwether Netflix which is set to report its third-quarter earnings after the close amid some concern its breakneck rally may be running out of steam.
In Europe, major markets
