U.S. stock futures were fluctuating on Wednesday after Tuesday’s lower close. Futures of major benchmark indices were mixed.
Investors interpreted the latest batch of corporate earnings as solid but not spectacular, offering a convenient excuse to take profits after strong year-to-date rallies.
Palantir Technologies Inc. (NASDAQ:PLTR), one of the poster children of this year’s AI-fueled rally, slumped around 8% despite easily beating Wall Street estimates and raising its full-year guidance.
President Donald Trump‘s legal authority to impose his most sweeping duties faces a key test at the Supreme Court today. Justices will hear arguments in a case whose decision could have significant reverberations for the global economy.
The 10-year Treasury bond yielded 4.08% and the two-year bond was at 3.58%. The CME Group’s FedWatch tool‘s projections show markets pricing a 70.1% likelihood of the Federal Reserve cutting the current interest rates during its December meeting.
Futures
Change (+/-)
Dow Jones
0.06%
S&P 500
-0.10%
Nasdaq 100
-0.22%
Russell 2000
0.11%
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, fell in premarket on Wednesday. The SPY was down 0.16% at $674.13, while the QQQ declined 0.34% to $617.15, according to Benzinga Pro data.
Stocks In Focus
Advanced Micro Devices
Advanced Micro Devices Inc. (NASDAQ:AMD) fell 2.81% in premarket on Wednesday despite better-than-expected financial results for the third quarter. It said it expects fourth-quarter revenue of approximately $9.6 billion, plus or minus $300 million.
Benzinga’s Edge Stock Rankings indicate that AMD maintains a stronger price trend over the short, medium, and long terms, with a poor value ranking. Additional performance details are available here.
Qualcomm
Qualcomm Inc. (NASDAQ:QCOM) was 0.42% lower ahead of its earnings scheduled to be released after the closing bell. Analysts expect it to report earnings of $2.87 per share on revenue of $10.77 billion.
QCOM maintained a stronger price trend over the short, medium, and long terms, with a solid growth ranking. Additional performance details, as per Benzinga’s Edge Stock Rankings, are available here.
Robinhood Markets
Robinhood Markets Inc. (NASDAQ:HOOD) was 0.66% higher as analysts expect it to report earnings of $0.53 per share on the revenue of $1.21 billion after the closing bell.
It maintained a stronger price trend over the long, short, and medium terms, with a poor value ranking. Additional performance details, as per Benzinga’s Edge Stock Rankings, are available here.
Pinterest
Pinterest Inc. (NYSE:PINS) tumbled 18.90% as it posted downbeat earnings for the third quarter with revenue of $1.05 billion, in line with analysts’ estimates. The idea discovery platform company’s adjusted earnings of 38 cents per share missed analyst estimates of 42 cents per share.
PINS maintains a weaker price trend over the short, medium and long term, with a poor quality ranking. Additional information is available here.
McDonald’s
McDonald’s Corp. (NYSE:MCD) slipped 0.36% before it is expected to report earnings of $3.33 per share on revenue of $7.09 billion before the opening bell.
MCD maintained a weaker price trend over short, medium, and long terms, with a strong growth ranking. Additional performance details, as per Benzinga’s Edge Stock Rankings, are available here.
Cues From Last Session
Sectors posting the biggest losses on Tuesday included communication services, consumer discretionary, and information technology, leading most S&P 500 sectors to close on a negative note.
Index
Performance (+/-)
Value
Nasdaq Composite
-2.04%
23,348.64
S&P 500
-1.17%
6,771.55
Dow Jones
-0.53%
47,085.24
Russell 2000
-1.78%
2,427.34
Insights From Analysts
BlackRock maintains a positive, overweight outlook on U.S. stocks, identifying the artificial intelligence theme as a powerful market driver. The firm’s “Weekly commentary” highlights that recent “solid tech earnings” show “how the AI buildout remains a key equity driver.”
This is evidenced by mega-cap tech firms like Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL), Microsoft Corp. (NASDAQ:META), and Meta Platforms Inc. (NASDAQ:META) significantly upping their capex spending on AI infrastructure, a trend BlackRock expects to continue.
This optimistic equity stance is “supported by Federal Reserve rate cuts.” While the Fed signaled a pause, BlackRock’s view is, “we think it will likely cut again,” likely in December. The rationale is that a “softening labor market gives the Fed space to cut.”
Economically, BlackRock anticipates “a notable slowing of activity without recession,” a scenario that it believes should support U.S. stocks. While acknowledging that “policy-driven volatility and supply-side constraints are pressuring growth,” the firm ultimately believes the powerful AI mega-force will continue to support corporate earnings.
BlackRock’s tactical view concludes that U.S. valuations are backed by “stronger earnings and profitability relative to other developed markets.”
Here’s what investors will be keeping an eye on Wednesday;
October’s ADP employment data will be out by 8:15 a.m., S&P final U.S. services PMI by 9:45 a.m., and October’s ISM services data by 10:00 a.m. ET.
Commodities, Gold, Crypto, And Global Equity Markets
Crude oil futures were trading higher in the early New York session by 0.18% to hover around $60.67 per barrel.
Gold Spot US Dollar rose 1.31% to hover around $3,983.52 per ounce. Its last record high stood at $4,381.6 per ounce. The U.S. Dollar Index spot was 0.09% lower at the 100.1370 level.
Meanwhile, Bitcoin (CRYPTO: BTC) was trading 1.92% lower at $101,947.22 per coin.
Asian markets closed lower on Wednesday, except China’s CSI 300 index. South Korea’s Kospi, Japan’s Nikkei 225, Australia’s ASX 200, Hong Kong’s Hang Seng, and India’s NIFTY 50 indices fell. European markets were also lower in early trade.
