Amazon calms the horses, payrolls due
A look at the day ahead in U.S. and global markets from Mike Dolan
With next week's U.S. election now dominating thinking, the last two megacap earnings reports of the week appear to have calmed the stock market somewhat and a potentially noisy October payrolls report is up next.
Amazon AMZN.O and Apple AAPL.O got different market receptions to their updates overnight - the remaining two of five "Magnificent Seven" firms reporting this week.
Amazon stock jumped 6% on forecast-beating profit and sales, with the company indicating healthy results in the holiday quarter thanks to its faster shipping times and a move to stock lower-cost items.
It was a relief to markets that saw fresh doubts this week about the speed with which the hefty spend on artificial intelligence was translating into returns for Big Tech giants.
Apple underwhelmed with its beat and the stock is off about 1% before Friday's bell. Its AI-enhanced iPhone made a strong start, pushing quarterly sales ahead of expectations. But a modest revenue forecast raised questions about the holiday season and a decline in China sales bothered some analysts.
Ailing chipmaker Intel INTC.O perked up, however, with a 7% rally overnight on optimism about a turnaround in its PC and server businesses.
The market-wide upshot today is that index futures ESc1, NQcv1 look set to regain some of Thursday's heavy losses.
And more than 60% through the current earnings season, the blended annual profit growth estimate for the S&P500 has actually picked up pace to as much as 7.5% - well up on pre-season forecasts of just over 5%.
With sovereign bonds markets focusing more attention agitated by post-budget British gilts GB10YT=RR, U.S. Treasuries remained relatively calm as the October employment report is due later on Friday, the dead heat election race enters its final weekend, and a second Federal Reserve interest rate cut of the year is expected next week.
Although a month of storms may distort the numbers, a Reuters survey showed nonfarm payrolls probably increased by 113,000 jobs last month after rising by 254,000 in September and jobless rate is forecast to remain unchanged at 4.1%.
This week's private sector payrolls update for October and weekly jobless data came in hotter than many had bet on, but inflation readings were calm enough to keep futures confident the Fed will deliver a quarter-point post-election rate cut next Thursday.
The personal consumption expenditures (PCE) price index rose 0.2% in September, driven mainly by services but with goods prices actually falling outright for a second consecutive month.
An annual 2.1% gain in the headline PCE price index was the smallest since February 2021 and close to the Fed's target.
ISM and S&P Global release October U.S. manufacturing surveys later on Friday too.
In Europe, British gilts and the pound calmed down somewhat on Friday after a torrid week that saw 10-year yields hit their highest in a year following heavy tax and borrowing plans in the new Labour government's first budget.
Worrying on Thursday was a slide in the pound GBP=, EURGBP= even as yield premiums on gilts over other major government bonds increased and money markets removed at least one Bank of England rate cut from next year's horizon.
Markets still see an 80% chance the BoE will deliver its second rate cut of the year next Thursday although its 5% policy rate is now expected to remain above 4% through 2025 - almost half a point higher than the expected Fed rate at the end of next year.
Helping calm the piece on Friday, credit ratings agency S&P said Britain's public finances were "constrained" after the budget but added it had not revised its forecasts for borrowing.
"We have not changed our headline budget deficit forecasts as a result of the budget announcement, partly because our existing projections already contain wider deficits that reflect lingering public spending pressures," it added.
Elsewhere, oil prices edged higher CLc1 and world stocks were mixed - with European indexes advancing but Japan's Nikkei .N225 underperforming with losses of more than 2% on a slightly stronger yen and the previous day's Wall Street slide.
Big U.S. oil firms top the earnings diary later.
Market bets on a U.S. election win for Republican Donald Trump - Bitcoin, Trump Media and gold - were pared back.
The dollar index .DXY was firmer.
Key developments that should provide more direction to U.S. markets later on Friday:
* US October employment report, October manufacturing surveys from ISM and S&P Global
* US corporate earnings: Exxon, Chevron, PPL, Dominion Energy, T Rowe Price, Cboe Global Markets, Church & Dwight, Cardinal Health, Waters, LyondellBasell Industries, Charter Communications
US non-farm payrolls likely hit a four-month low in October https://reut.rs/3Yx7fns
US inflation gauges https://reut.rs/3AoBR1j
Fed poised to cut rates again as inflation eases closer to target https://reut.rs/4e4Xm53
Apple's iPhone sales return to growth in Sept-quarter https://reut.rs/4huvDhe
Sterling and US-UK rate gap go separate ways https://tmsnrt.rs/3Uzyj37
By Mike Dolan, Editing by Hugh Lawson
mike.dolan@thomsonreuters.com
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ताजातरीन समाचार
अस्वीकरण: XM Group के सत्व केवल निष्पादन वाली सेवा और हमारी ऑनलाइन व्यापार सुविधा में पहुँच प्रदान करते हैं, ताकि व्यक्ति वेबसाइट पर या उसके जरिए उपलब्ध सामग्री को देख सके और/या उसका उपयोग कर सके। इसका प्रयोजन इसे बदलना या विस्तार देना नहीं है, न ही वह इसे बदलता या विस्तार देता है। इस तरह की पहुँच हमेशा ही निम्नलिखित के अधीन रहेगी: (1) नियम और शर्तें; (2) जोखिम चेतावनियाँ; और (3) पूर्ण अस्वीकरण। इसलिए ऐसी जानकारी सामान्य सूचना से अधिक कुछ भी नहीं है। विशेष रूप से, कृपया इससे अवगत रहें कि हमारी ऑनलाइन व्यापार सुविधा की सामग्रियाँ न तो किसी चीज का अनुरोध करती हैं, न ही वित्तीय बाजारों में प्रवेश करने की पेशकश ही करती हैं। किसी भी वित्तीय बाजार में व्यापार करने के साथ आपकी पूँजी को उल्लेखनीय जोखिम है।
हमारी ऑनलाइन व्यापार सुविधा में प्रकाशित सभी सामग्रियाँ शैक्षणिक/सूचनात्मक प्रयोजनों मात्र के लिए हैं, और इनमें वित्तीय, निवेश टैक्स या व्यापार सलाह और सुझाव नहीं हैं - न ही ऐसा समझना चाहिए कि इनमें ये सब हैं; न ही इनमें हमारी व्यापार कीमतों का अभिलेख है; न ही इनमें किसी वित्तीय उपकरण में लेन-देन करने का निमंत्रण या अनुरोध है; न ही ये आपको अवांछित वित्तयी प्रोमोशन पेश करती हैं।
इस वेबसाइट में मौजूद कोई भी तृतीय पक्षीय सामग्री, तथा XM द्वारा तैयार की गई सामग्रियाँ, जैसे: अभिप्राय, समाचार, अनुसंधान, विश्लेषण, कीमतें और अन्य सूचनाएँ या तृतीय पक्षों की साइटों के लिंक, "जैसा-है-वैसा" के आधार पर बाजार के बारे में सामान्य टिप्पणी के रूप में उपलब्ध कराई गई हैं, और वे निवेश हेतु सलाह नहीं हैं। जिस हद तक कीसी सामग्री को निवेश अनुसंधान मान लिया जाता है, उस हद तक आपको ध्यान में रखना होगा और इसे स्वीकार करना होगा कि वह सामग्री इस उद्देश्य से और निवेश अनुसंधान की स्वतंत्रता को बढ़ावा देने के लिए कानूनी आवश्यकताओं के मुताबिक, तैयार नहीं की गई है, और इसलिए उसे प्रासंगिक कानूनों और विनियमों के तहत विपणन संप्रेषण माना जाएगा। कृपया सुनिश्चित करें कि आपने गैर-आश्रित निवेश के बारे में हमारी सूचना को पढ़ और समझ लिया है। पीछे दी गई जानकारी के बारे में अनुसंधान और जोखिम चेतावनी यहाँ उपलब्ध है।
