U.S. stock futures were trending lower Thursday morning as investors braced for PCE inflation data and earnings releases from big tech companies like Apple (AAPL) and Amazon (AMZN). Nasdaq 100 futures (NDX), S&P 500 (SPX), Dow Jones Industrial Average (DJIA) were down 1.04%, 0.75%, and 0.41%, respectively, as of 4 a.m. ET on Oct. 31.
In regular trading on Wednesday, the Dow Jones fell 0.22%, the SPX fell 0.33% and the Nasdaq Composite fell 0.56%. Traders pushed Meta Platforms (META) stock lower in after-hours trading yesterday, even as the social media giant reported a third-quarter win. Investors appear to be frustrated by Meta’s lower-than-expected user growth.
Additionally, Microsoft (MSFT) stock fell 3.7% in after-hours trading as its revenue outlook fell short of analyst consensus, despite the company’s revenue and bottom line beats. Also, AI company Super Microcomputer (SMCI) fell 32.7% yesterday after its lead auditor, Ernst & Young LLC, resigned.
More big tech companies are expected to announce earnings news today. These include Apple, Amazon, Uber Technologies (UBER), Intel Corp. (INTC), Mastercard (MA), Li Auto (LI), and more.
Turning to economic indicators, traders are looking forward to today’s release of the PCE (Personal Consumption Expenditure) Price Index. The PCE (Personal Consumption Expenditures) price index is also the Federal Reserve’s recommended inflation measure. Experts predict that September PCE will rise 0.20% quarter-on-quarter and 2.1% year-on-year. Additionally, the weekly unemployment insurance filing deadline is this morning.
The Federal Open Market Committee (FOMC) meeting scheduled for November 7th will be decided based on the September PCE data and the October employment report to be released this Friday.
On the other hand, the yield on US 10-year government bonds is on an upward trend at the time of writing, hovering around 4.28%. At the same time, WTI crude oil futures are trending higher, hovering around $68.95 per barrel at last check.
Elsewhere, European markets opened lower today as investors braced for euro zone inflation statistics. This reading will guide the European Central Bank’s (ECB) upcoming interest rate decisions. Investors will also keep an eye on major European corporate earnings, including Shell (SHEL), Stellantis (STLA), and Anheuser-Busch InBev SA (BUD).
Asia-Pacific markets traded mixed on Thursday.
Asia-Pacific indexes traded mixed today as Japan’s central bank kept interest rates on hold, but factory activity in China showed signs of expansion after months of contraction.
China’s Manufacturing Purchasing Managers Index (PMI) in October was 50.1, contrary to expectations of 49.9 (shrinkage), and stock prices rose. As of last check, Hong Kong’s Hang Seng Index and China’s Shanghai Composite Index and Shenzhen Composite Index were up 0.16%, 0.42% and 1.25%, respectively.
Meanwhile, the Bank of Japan kept interest rates unchanged at 0.25% and gave no indication of future rate hikes. In response, major Japanese indexes such as the Nikkei Stock Average and TOPIX fell 0.50% and 0.30%, respectively.
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