Markets recap
Mixed week but strong month – The Nasdaq, S&P 500 and Dow pulled back late last week as tech earnings disappointed; on Thursday the Nasdaq slid 1.6%, the S&P 500 fell 1.0% and the Dow eased 0.2%. Despite the wobble, the S&P 500 still gained 2.3% in October—its sixth straight monthly rise—and is up ~16% year‑to‑date.
AI rally meets reality – Big‑tech earnings were mixed: Alphabet surged after topping $100 billion in quarterly revenue for the first time, while Meta and Microsoft fell on higher spending. The market’s focus has shifted to whether AI investments will generate returns.
Valuations stretched – The S&P 500’s forward P/E sits above 23, around dot‑...
Markets recap
Mixed week but strong month – The Nasdaq, S&P 500 and Dow pulled back late last week as tech earnings disappointed; on Thursday the Nasdaq slid 1.6%, the S&P 500 fell 1.0% and the Dow eased 0.2%. Despite the wobble, the S&P 500 still gained 2.3% in October—its sixth straight monthly rise—and is up ~16% year‑to‑date.
AI rally meets reality – Big‑tech earnings were mixed: Alphabet surged after topping $100 billion in quarterly revenue for the first time, while Meta and Microsoft fell on higher spending. The market’s focus has shifted to whether AI investments will generate returns.
Valuations stretched – The S&P 500’s forward P/E sits above 23, around dot‑com bubble levels. Strategists warn that earnings must now do the heavy lifting as investors grow wary of overexuberance.
Inflation & the Fed
Inflation remains around 3 %, and the Fed trimmed rates by 0.25 % in October but signalled that a December cut is “not a foregone conclusion”.
The government shutdown is delaying key data, so private reports like the ADP employment survey and ISM PMIs will carry extra weight this week
Investors hope another cut comes in December, but with the labour market showing cracks and inflation still above target, the Fed is walking a tightrope.
Top stories & themes
Earnings roller‑coaster – Meta and Microsoft slid post‑earnings, but Alphabet and Amazon rallied; Nvidia retreated after becoming the first $5 trillion company.
China‑US trade détente – President Trump’s meeting with Xi Jinping led to announcements of lower U.S. tariffs and Chinese purchases of U.S. soybeans.
M&A & sectors – Pharma is under pressure as Novo Nordisk, Pfizer and Amgen face White House calls for lower drug prices. Biotech M&A continues.
Government shutdown continues – With official data delayed, investors will lean on alternative indicators, heightening volatility.
Earnings to watch (Nov 3 – Nov 9)
Monday (Nov 3): Palantir (PLTR), Vertex (VRTX), Williams Companies (WMB), Simon Property (SPG).
- Tuesday (Nov 4): Advanced Micro Devices (AMD), Shopify (SHOP), Uber Technologies (UBER), Arista Networks (ANET), Amgen (AMGN), Eaton (ETN), Pfizer (PFE), Spotify (SPOT), Ferrari (RACE), BP.
- Wednesday (Nov 5): ADP employment report, ISM services PMI; earnings from Toyota (TM), Novo Nordisk (NVO), McDonald’s (MCD), Applovin (APP), Qualcomm (QCOM), Arm Holdings (ARM), Robinhood (HOOD), DoorDash (DASH).
- Thursday (Nov 6): Fed speakers (Philadelphia’s Paulson & St. Louis’s Musalem); Tesla shareholder meeting; earnings from AstraZeneca (AZN), ConocoPhillips (COP), Airbnb (ABNB), Vistra (VST).
- Friday (Nov 7): University of Michigan consumer sentiment; earnings from Constellation Energy (CEG), KKR, Enbridge (ENB), Duke Energy (DUK).
Upcoming IPOs (next two weeks)
Nov 4 – BETA Technologies (BETA): AI‑driven aviation company; pricing $27–$33; ~25 M shares.
Nov 5 – Exzeo Group (XZO): Cloud security firm; pricing $20–$22; 8 M shares.
Nov 6 – Aeromexico Group (AERO): Mexican airline; pricing $18–$20; 11.7 M shares.
Nov 6 – BillionToOne (BLLN): Prenatal diagnostics; pricing $49–$55; 3.8 M shares.
Nov 6 – Evommune (EVMN): Immunology biotech; pricing $15–$17; 9.4 M shares.
Nov 10 – WeShop Holdings (WSHP): Social commerce platform.
Nov 11 – DT House (DTDT): Chinese home‑furnishings brand; pricing $4–$5; 2 M shares.
Tickers on my radar
PLTR, AMD, QCOM, ARM – AI‑focused tech names reporting this week.
UBER, SHOP, ANET, AMGN, ETN, PFE – Earnings will show how consumer spending and supply chains are holding up.
AAPL & AMZN – Post‑earnings momentum; Apple set new highs and Amazon’s cloud growth impressed.
META & MSFT – Shares took a hit on higher AI spending; could be buys on weakness.
NVO, AZN – Drugmakers under pricing scrutiny but obesity‑drug demand remains strong.
BETA, XZO, BLLN, EVMN – Hot IPOs for speculative traders.
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Have a good week,
– IntheMoney Team