Stock Market Update

Equity futures point to a higher open this morning in the wake of yesterday's tech-led rally that sent the major averages to fresh record highs. 

NVIDIA (NVDA 209.00, +7.97, +4.0%) was a key driver of the action, rising nearly 5.0% as investors reacted to a slate of announcements from the company's GPU Technology Conference. The stock is up another 4.0% in the pre-market. 

Microsoft (MSFT 544.73, +2.66, +0.5%), which reports its earnings after the close, was another solid performer. 

Several meg-cap names will report their earnings this afternoon. Investors are currently digesting another sizable batch of earnings reports before the open. 

The market also eagerly anticipates a decision from the FOMC at 2:00 p.m. ET, which is widely expected to result in another 25-basis point rate cut. 

The MBA Mortgage Applications Index for the week ended October 25 increased 7.1%, from a prior decrease of 0.3%. 

In corporate news:

• China makes its first purchase of U.S. soybeans this season, according to Bloomberg. 
• Boeing (BA 225.10, +1.77, +0.8%) missed EPS expectations by $2.31, beat revenue expectations, and delayed the 777-9 certification timeline, now expecting the first delivery to be in 2027.
• Caterpillar (CAT 547.50, +23.03, +4.4%) beat EPS expectations by $0.42 and beat revenue expectations. 
• Verizon (VZ 40.60, +1.28, +3.3%) beat EPS expectations by $0.02 and guided FY25 EPS in-line. 

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended Wednesday on a higher note while Hong Kong's Hang Seng was closed for a holiday. Japan's Nikkei: +2.2%, Hong Kong's Hang Seng: HOLIDAY, China's Shanghai Composite: +0.7%, India's Sensex: +0.4%, South Korea's Kospi: +1.8%, Australia's ASX All Ordinaries: -0.8%.

In news:

• President Trump arrived in South Korea for the APEC Summit, where he is expected to meet with China's President Xi tomorrow.
• A major food distributor in China has reportedly purchased a considerable amount of U.S. soybeans ahead of the meeting of the two leaders.
• Separately, The Wall Street Journal reported that the U.S. is likely to reduce the fentanyl-related tariff on imports from China.
• Expectations for a rate cut from the Reserve Bank of Australia collapsed after the release of hotter-than-expected CPI for Q3.

In economic data:

• Japan's October Household Confidence 35.8 (expected 35.5; last 35.3)
• Australia's Q3 CPI 1.3% qtr/qtr (expected 1.1%; last 0.7%); 3.2% yr/yr (expected 3.0%; last 2.1%). Q3 Trimmed Mean CPI 1.0% qtr/qtr (expected 0.8%; last 0.6%); 3.0% yr/yr (expected 2.7%; last 2.7%). Monthly CPI Indicator 3.5% yr/yr (expected 3.1%; last 3.0%)

Major European indices trade mostly higher. Deutsche Bank reported an unexpected profit for Q3 while UBS reported a doubling in its profit for Q3. STOXX Europe 600: +0.3%, Germany's DAX: -0.2%, U.K.'s FTSE 100: +0.8%, France's CAC 40: UNCH, Italy's FTSE MIB: +0.5%, Spain's IBEX 35: +0.6%.

In news:

• Deutsche Bank reported an unexpected profit for Q3 while UBS reported a doubling in its profit for Q3.
• Germany's engineering association expressed concern that more than half of German exports could be impacted if President Trump expands the tariff list in December.
• Nokia will receive a $1 bln investment from NVIDIA.

In economic data:

• U.K.'s September BoE Consumer Credit GBP1.491 bln (last GBP1.749 bln). September Mortgage Approvals 65,940 (expected 64,000; last 64,960) and September net Lending to Individuals GBP7.00 bln (expected GBP5.60 bln; last GBP6.00 bln)
• Italy's September non-EU trade surplus EUR2.47 bln (last surplus of EUR1.88 bln)
• Spain's Q3 GDP 0.6% qtr/qtr, as expected (last 0.8%); 2.8% yr/yr (expected 3.0%; last 3.1%). September Retail Sales 4.2% yr/yr (last 4.7%)
• Swiss October ZEW Expectations -7.7 (last -46.4)