Stock Market Update

Equity futures point to a sharply lower opening this morning, with technology stocks facing substantial pressure once again following disappointing earnings from Amazon (AMZN) and weak guidance from Intel (INTC). Nasdaq futures are down more than 2.0%, suggesting another difficult session for the tech-heavy index.

The weakness follows yesterday's session, when concerns surrounding AI infrastructure spending weighed heavily on mega-cap technology stocks, although the broader market proved considerably more resilient. Eight S&P 500 sectors finished higher, and the S&P 500 Equal Weighted Index gained 1.2% despite losses in the major averages. That rotational strength faces an additional headwind this morning as crude oil prices climb back above $104 per barrel, potentially limiting the broader market's ability to offset continued technology weakness.

Despite yesterday's losses and this morning's sharp retreat in futures, the major averages remain higher for the week heading into Friday's session, though those gains will be challenged at the open.

Today's remaining economic calendar:

• 8:30 AM ET: Q3 Employment Cost Index; Briefing.com consensus 0.8%; prior 0.9%
• 9:45 AM ET: October Chicago PMI; Briefing.com consensus 55.9; prior 58.8

In corporate news:

• Amazon (AMZN 227.23, -16.56, -6.79%) missed the FactSet earnings consensus, reported roughly in-line revenue, issued in-line fourth-quarter revenue guidance, and reiterated its 2026 capital-spending outlook.
• Chevron (CVX 235.29, +3.83, +1.65%) exceeded FactSet earnings and revenue expectations, supported by higher production and stronger cash flow.
• Intel (INTC 69.10, -22.97, -24.95%) reported a $0.11 EPS beat and in-line revenue but issued Q4 earnings and revenue guidance below consensus estimates.
• NVIDIA (NVDA 207.09, -6.57, -3.07%) is reportedly in talks to provide credit guarantees for an Nscale data center project, according to Bloomberg.
• Regeneron Pharmaceuticals (REGN 878.47, +59.70, +7.29%) topped FactSet earnings and revenue expectations and expanded its collaboration with Sanofi (SNY 44.64, +1.51, +3.50%) to include multiple next-generation immunology antibodies.
• Gilead Sciences (GILD 173.00, +7.39, +4.46%) is indicated higher following its earnings and guidance update.

Reviewing overnight developments:

According to Nikkei, Asian markets finished mostly lower as technology shares came under pressure, although Hong Kong and India showed relative strength.

In news:

• The Bank of Japan kept its policy rate at 1.25%, said underlying inflation has reached its 2% target, signaled further tightening, and announced plans to accelerate sales of its ETF holdings.
• AI-related shares were among the weakest groups in Japan, mainland China, and South Korea.

In economic data:

• Bank of Japan held its policy rate at 1.25%
• Japan's October Tokyo Core CPI +2.6% yr/yr (expected +2.6%; prior +2.7%), Tokyo CPI +2.8% yr/yr (expected +3.3%; prior +2.7%), and CPI excluding food and energy +2.4% yr/yr (expected +2.7%; prior +2.7%)
• Japan's September Industrial Production +2.2% m/m (expected +1.2%; prior -2.4%) and Retail Sales +2.3% yr/yr (expected +3.3%; prior +2.9%)
• Japan's September Unemployment Rate 2.4% (expected 2.5%; prior 2.5%) and Jobs/Applications Ratio 1.19 (expected 1.18; prior 1.18)
• South Korea's September Industrial Production +9.0% m/m (prior -4.6%) and +1.2% yr/yr (prior -1.7%), Retail Sales +3.6% m/m (prior -1.8%), and Service Sector Output +0.5% m/m (prior +0.7%)
• Australia's Q3 PPI +1.1% q/q (expected +1.0%; prior +1.3%) and +3.6% yr/yr (prior +3.6%)

Equity Markets:

• Japan's Nikkei: -2.1%
• Hong Kong's Hang Seng: +1.5%
• China's Shanghai Composite: -1.4%
• India's Sensex: +0.4%
• South Korea's Kospi: -3.5%
• Australia's All Ordinaries: +0.1%

European markets trade mixed, with technology weakness weighing on continental markets while energy and health care names support the U.K. market.

In news:

• AstraZeneca (AZN 183.60, +9.20, +5.28%) advanced after better-than-expected results, while Bayer rose following a favorable verdict in a Roundup lawsuit.
• Technology-related names, including Infineon and STMicroelectronics, traded lower.

In economic data:

• Eurozone Q3 GDP +0.4% q/q (expected +0.2%; prior +0.6%) and +1.3% yr/yr (expected +1.1%; prior +1.2%); September Unemployment Rate 6.5% (expected 6.4%; prior 6.5%)
• Germany's Q3 GDP +0.2% q/q (expected +0.1%; prior +0.3%) and +1.2% yr/yr (expected +1.1%; prior +1.0%); October Unemployment Rate 6.4% (expected 6.4%; prior 6.4%) and Unemployment Change +4K (expected +5K; prior +12K)
• France's Q3 GDP -0.1% q/q (expected +0.1%; prior 0.0%) and -0.1% yr/yr (expected +0.3%; prior +0.5%); October CPI +3.4% yr/yr (expected +3.2%; prior +3.1%) and +0.4% m/m (expected +0.2%; prior -0.3%)
• Italy's Q3 GDP 0.0% q/q (expected +0.1%; prior +0.2%) and +0.8% yr/yr (expected +0.9%; prior +1.0%); October CPI +5.4% yr/yr (expected +4.6%; prior +4.2%) and +0.9% m/m (expected +0.1%; prior +0.7%)
• Spain's Q3 GDP +0.6% q/q (expected +0.6%; prior +0.7%) and +2.7% yr/yr (expected +2.7%; prior +2.6%); October CPI +4.9% yr/yr (expected +4.9%; prior +4.9%) U.K. October Nationwide HPI 0.0% m/m (expected -0.2%; prior -0.3%) and +0.5% yr/yr (expected +0.6%; prior +0.8%)

Equity Markets:

• STOXX Europe 600 : -0.2%
• Germany's DAX : -0.5%
• U.K.'s FTSE 100 : +0.4%
• France's CAC 40 : +0.2%
• Italy's FTSE MIB : -0.7%
• Spain's IBEX 35 : -0.4%