Good morning. It will be little surprise that today's main event is a double helping of megacap earnings from Alphabet and Microsoft after the bell.
Alphasoft -- yes, that's what we can call this combo of tech news -- has the potential to give markets an even bigger bout of AI indigestion than the appetizer from Meta last week.
Those earnings struck a raw nerve for AI stocks, so pray for a fine line between just enough capital expenditure and no overindulgence.
Before that is the latest Fed rate decision, and all the latest news can be found here.
But first up today came early indications from the Israeli election. It will likely take a few days before there is a clear direction. Politics, especially abroad, rarely has an impact on markets, but this poll has a bearing on oil -- which was pushed a little higher first thing. If incumbent Benjamin Netanyahu ends up leading a coalition it could mean fresh strikes on Iran and an escalation of hostilities.
Back to the bread and butter that is futures, and stocks were diverging. Patrick O'Donnell explains why the Nasdaq is rising and the Dow falling. Some of the biggest movers are memory plays Micron and SK Hynix, and online trading platform Robinhood.
Check back tomorrow for the latest on Alphasoft -- certain to join Barbenheimer in the lexicon.
Have a great day.
P.S. Feel free to get in touch with any thoughts and comments.
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📈 Here's what's happening in markets today:
Stock futures diverge on a crucial day for markets.
Alphabet, Microsoft, SK Hynix, Robinhood, and more stocks that explain today's market.
GE Vernova earnings reveal that AI power demand remains red hot.
Micron stock pops as rival SK Hynix fuels AI frenzy with two bombshells.
Biogen crushes earnings estimates. As old blockbusters fade, new bets pick up the slack.
Hyperscalers are still spending. TE Connectivity earnings top estimates.
Vertiv earnings show another way to play the AI boom.
Nvidia stock faces a test from its biggest AI chip rival.
Boston Scientific slashed earnings guidance after cyberattack hits business.
Hidden gems in the SpaceX filing: soaring compute rates and deep Tesla ties.
Alphabet swaps buybacks for data centers. Wall Street is getting nervous.
Microsoft earnings will be another test of AI revenue growth.
?? Boeing's MAX progress isn't as fast as expected
Boeing management said 737 MAX deliveries would miss targets -- and they pushed out longer term free cash flow goals. MAX production has been an investor focus for months. The company doesn't expect to raise its monthly production rate to 52 a month until late 2027. Read more about earnings here.
🌐 Broadcom is the big Anthropic IPO winner. Here's why.
Broadcom's stock has had a rough couple of months, but Anthropic's initial public offering could help kick-start a rally for the chip designer as analysts welcome the details of a $63 billion deal between the two companies. Read more about it here.
🕋 Why Meta's $27 billion data center bond is slumping
A record corporate bond offering a year ago to fund the construction of Meta Platforms' huge Louisiana data center has traded down recently over concerns about Meta's growing debt load and high financing needs. Meta and Blue Owl Capital created the special-purpose entity to fund the $30 billion project. Read about it here.
🎅 The Santa rally commences, if these 3 things don't ruin it
Stock markets are about to face a crucial stretch of mega tech earnings, a Federal Reserve interest-rate decision, and the midterm elections. It's about that time of year when the Santa rally kicks off, sending stocks higher into the end of the year. Read about it here.
🤖 Corning's earnings show how deeply dependent it is on AI
Corning, the optical networking company and a key cog in the artificial-intelligence trade, tried to quell investor AI fears by beating expectations on earnings only for fresh concerns to arise. Net sales in optical communications, its largest business, jumped 44% from a year ago. Read more about it here.
💳 Visa's focus shifts to reaching new customers
Payments giant Visa beat expectations as expands beyond credit cards to other markets, other partnerships, and other sources of revenue, including initiatives to support agentic AI commerce, cryptocurrency, and fraud detection. Read about its earnings here.
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💸 Don't miss the latest Moneyist column from MarketWatch
MarketWatch's managing editor for advice Quentin Fottrell, otherwise known as the Moneyist, fields another reader question about whether it's better to keep money invested in your house as home equity or in the bank as cash in case you have a need for it in the future. Read his advice here.
💬 Quote of the day:
Other headlines moving markets:
Seagate stock falls as record breaking earnings aren't enough.
Enphase Energy extends weakness on weak residential demand.
Kalshi adds new safety measures for young traders.
Chipotle's stock needs a jolt. An earnings beat might not be enough.
Can Chili's keep growing? Brinker's earnings put comeback to the test.
Robinhood is moving beyond crypto. Momentum is building, CFO says.
Refining stocks crack. Will gasoline prices fall next?
MercadoLibre's growth makes its stock a buy, Citi analysts say.
You diversified your IRA allocation. Did you diversify your IRA types?
Here's what Anthropic still has to do before its IPO.
Whirlpool is struggling while JetBlue is soaring. What it says about the consumer.
SEC enforcement activity is down 57%, new report says.
PayPal beats earnings estimates. Does it now have a shorter path to recovery?
Fixing a broken trading strategy for fun and profit.
The secrets to being a better options trader.
The high-voltage stopgap that could save the AI buildout.
How the new actively managed crypto ETFs are valuing their assets.
-- Edited by Liz Moyer, Stacy Ozol, and Patrick O'Donnell
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