Stock Market Today: Dow Jones Futures Slip, Nasdaq Gains Following Fed Rate Cuts, Big Tech Earnings—Alphabet, Meta, Amazon, Apple In Focus

Benzinga

U.S. stock futures swung between gains and losses on Thursday following Wednesday’s mixed moves. Futures of major benchmark indices were mixed.  The meeting between President Donald Trump and President Xi Jinping yielded significant agreements, including reduced U.S. fentanyl tariffs in exchange for China restarting “tremendous amounts” of U.S. soybean imports, a settled deal on rare earths, and strong indications that a broader trade deal is “pretty soon.”  Despite the positive meeting, Fed Chair Jerome Powell’s speech from Wednesday weighed on stocks as he cautioned that another cut is “not a foregone conclusion—far from it,” pushing back against expectations that had built up across financial markets in recent weeks.  Meanwhile, the 10-year Treasury bond yielded 4.07% and the two-year bond was at 3.59%. The CME Group's FedWatch tool‘s projections show markets pricing a 70.4% likelihood of the Federal Reserve cutting the current interest rates during its December meeting.

Transcript

00:00all right futures are near unchanged here today to slightly down s&p futures actually exactly

00:12flat here 0.00 percent change dow futures here down three tenths uh it's likely because of

00:19microsoft down 0.30 and the nasdaq actually just turned green it was just flat and now it is up

00:250.02 percent so for the most part we are basically just flat here today now let's take a look at some

00:32cues from the last session the s&p 500 sectors largely declined on wednesday

00:37as real estate consumer staples and material stocks recorded the biggest losses the meeting

00:47between president trump and president xi yielded significant agreements including reduced u.s

00:53fentanyl tariffs in exchange for china restarting tremendous amounts of u.s soybean imports a

00:59settled deal on rare earths and strong indications that a broader trade deal is going to be imminent

01:05quote pretty soon so some pretty good news there although not totally official that gives us another

01:12possible upside catalyst we'll see when that does end up coming despite the positive meeting fed chair

01:17jerome powell's speech on wednesday wait on stocks as he cautioned that another cut is quote not a

01:24foregone conclusion far from it end quote uh this is pushing back against expectations that have built

01:31up across financial markets in recent weeks and i'm sure we're going to be talking about it here today

01:36but how many of you think we're going to be getting a rate cut in december um looks like there's some

01:42question about that and the cme fed watch tools supports that as well the 10-year treasury bond

01:49yielded 4.07 percent and the two-year bond was 3.59 percent now we do have some stocks in focus here

01:56today and none of them should be a surprise the first one here is alphabet alphabet soared 7.57 percent

02:03in the pre-market on thursday after reporting better than expected financial results for the third quarter

02:08with revenue of 102.35 billion and earnings of 287 per share both of those beat the estimates

02:16um the key here is google cloud revenue growth uh in my opinion they caught up to microsoft and caught

02:24up to amazon maybe not completely caught up but they absolutely closed the gap uh google here actually

02:29trading at 299.82 as your high print here in the pre-market we might see 300 prints out of google here

02:36today the next one is meta meta platforms tumbled 7.39 percent despite upbeat earnings however it's

02:44diluted earnings per share of 105 which includes a one-time non-cash income tax charge of 15.93 billion

02:51made the results not directly comparable to wall street estimates of 668 per share meta also had a

02:58comment we're going to cover it here in a sec but meta had a comment about increased costs to

03:03increase capex spending on the ai front microsoft is our third stock in focus here today they declined

03:102.78 as it estimates second quarter sales of 79.5 billion to 80.6 billion versus the market estimate of

03:1879.95 billion microsoft actually is up off the lows in the pre-market today so there might actually be

03:26a short-term trade setting up for microsoft here today amazon was five tenths lower or a half a percent

03:33lower ahead of its scheduled earnings to be released after the closing bell today it didn't stop with the

03:37big earnings yesterday today is going to be apple and amazon analysts are expecting 157 per share on

03:43revenue of 177.74 billion apple rounds out our list as i just mentioned shares were 0.72 percent higher

03:52as analysts expected to report earnings at 177 per share on revenue of 102.17 billion after the closing bell

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