U.S. stock futures trended lower on Thursday morning as investors braced for the release of PCE inflation data and results from big tech companies such as Apple (AAPL) and Amazon (AMZN). Futures on the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) were down 1.04%, 0.75%, and 0.41%, respectively, at 4:00 a.m. EST, October 31.
In regular trading on Wednesday, the Dow Jones declined 0.22%, the SPX lost 0.33%, and the Nasdaq Composite fell by 0.56%. Traders dragged down Meta Platforms’ (META) shares in extended trading yesterday despite the social media giant reporting a Q3 beat. Investors seem to be unhappy with Meta’s user growth, which came in below expectations.
Moreover, Microsoft (MSFT) shares fell 3.7% in extended trading despite a top and bottom line beat as revenue guidance came in below analysts’ consensus. Also, AI player Super Micro Computer (SMCI) declined 32.7% yesterday after chief auditor Ernst & Young LLC resigned.
In earnings news, more big tech companies are expected to report today. These include Apple, Amazon, Uber Technologies (UBER), Intel Corp. (INTC), Mastercard (MA), and Li Auto (LI), among others.
Turning to economic data, traders are keenly awaiting today’s release of the PCE (personal consumption expenditure) price index, which is also the Federal Reserve’s preferred inflation gauge. Experts predict that PCE increased by 0.20% in September on a sequential basis and by 2.1% compared to the prior year. Moreover, the weekly jobless claims are due this morning.
The Federal Open Market Committee (FOMC) meeting due November 7 will be based on the PCE reading for September and the October payroll report due for release this Friday.
Meanwhile, the U.S. 10-year treasury yield is trending higher at the time of writing, floating near 4.28%. At the same time, WTI crude oil futures trended higher, hovering near $68.95 per barrel as of the last check.
Elsewhere, European markets opened lower today as investors braced for the euro zone inflation data. The reading will guide the European Central Bank’s (ECB) interest rate decisions, due soon. Investors will also watch key European corporate earnings from Shell (SHEL), Stellantis (STLA), and Anheuser-Busch Inbev SA (BUD), among others.
Asia-Pacific Markets Traded Mixed on Thursday
Asia-Pacific indices traded mixed today as Japan’s central bank held interest rates steady, while China’s factory activity showed signs of expansion after months of contraction.
China’s manufacturing purchasing managers index (PMI) for October stood at 50.1 against the expectation of a 49.9 (contraction), sending stocks higher. Hong Kong’s Hang Seng index and China’s Shanghai Composite and Shenzhen Component indices rose 0.16%, 0.42%, and 1.25%, respectively, as of the last check.
Meanwhile, the Bank of Japan kept rates unchanged at 0.25% and gave no indication of any future rate hikes. Japan’s major indices, including the Nikkei and Topix, fell 0.50% and 0.30%, respectively, in reaction.
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