Mark Zuckerberg, chief executive officer of Meta Platforms Inc., during the Acquired LIVE event at the Chase Center in San Francisco, California, US, on Tuesday, Sept. 10, 2024.
David Paul Morris | Bloomberg | Getty Images
My top 10 things to watch Thursday, Oct. 31, Halloween
1. The S&P 500 was poised to add to Wednesday’s declines at the open. Bond yield, which took a pause, were rising again Thursday after the Fed’s favorite inflation gauge moved close to the central bankers’ 2% target. The headline personal consumption expenditures price index in September was up 2.1% year over year, matching estimates.
2. Weekly jobless claims came in at 216,000. That was fewer than expected. On Wednesday, the ADP’s October look at hiring at U.S. companies was much stronger than expected. Traders are trying to see what all that means for the government’s monthly employment data Friday.
3. Big Tech earnings will continue to roll in after Thursday’s closing bell, with Club names Apple and Amazon leading the way. On Apple, be ready for the single most anticipated worse-than-expected and guided own that I have ever seen. On Amazon, remember it told us that retail was weaker in its previous guide down that took the stock down to $161 per share back in August. The stock closed Wednesday at nearly $193.
4. Microsoft was not getting any credit for an incredibly strong quarter with ridiculously conservative guide. The stock was dropping 3%. We reiterated our 1 rating and $500-per-share price target in Wednesday night’s Club commentary.
5. It was a disconnect at Meta Platforms, which we detailed in a Wednesday night earnings analysis. The Club stock was down 1.5% despite one heck of a strong third quarter and a current quarter revenue guide above expectations. Meta detailed a commitment to spend to make its artificial intelligence No. 1 as it should be.
6. Club name Starbucks released quarterly results Wednesday evening that were in-line with last week’s preannouncement warning. The news came from new CEO Brian Niccol’s commentary on the post-earnings conference call. Niccol’s overarching message we wrote about: A bunch of changes, both big and small, are coming to the menu, mobile app, and stores that should satisfy all parties involved.
7. Shares of Nextracker, which has been a tough Club holding, jumped 15% following Wednesday night’s better-than-expected quarterly earnings and revenue and guidance raise. We were pleasantly surprised and gratified that this was the best solar earnings we’ve seen this quarter. Red states and blue states both endorse solar, so it shouldn’t be so political.
8. Eaton, which released quarterly results before Thursday’s open, beat on earnings and slightly missed on revenue. The Club stock was lower. As of Wednesday’s close, shares of the electrical components company were up 42% year to date, roughly double the S&P 500’s performance in 2024, on ties to the buildout of data centers for AI.
9. Club stock Linde, as always, went down on the cutting of the company’s forecast. Nothing new here. It’s what the industrial gases giant has done for the last $200-per-share upside in the stock. Out on Thursday morning, third quarter earnings per share beat but revenue slightly missed. Linde has lagged the S&P 500 year to date.
10. Comcast said Thursday it’s exploring the separation of its cable networks business. Shares of Comcast rose more than 6.5% on the news, which came during the company’s post-earnings conference call. The third quarter beat on earnings and revenue.
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