Here we go again -- the embattled tech sector is trying to mount another rebound. Let's hope it goes better than yesterday's effort, which started well but ended with the Nasdaq 100 entering a correction for the third time this year.
The broader market is in a more cautious mood on Election Day, particularly with oil prices moving back higher.
Tech earnings sent markets reeling last week and continue to be a problem. Apple and Palantir were both sharply lower despite beating earnings expectations. The market was expecting more after the pair's strong recent runs -- the bar is high.
Surging memory costs are also set to take a bite out of Apple's margins, but that's good for Micron and other memory plays. Advanced Micro Devices has the unenviable task of reporting next after the close, but it has a chance to change the near-term mood.
However, the midterms will set the tone for Corporate America and the stock market in the months and years ahead.
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📈 Here's what's happening in markets today:
Dow futures are falling, while Nasdaq futures bounce back.
Apple, Palantir, AMD, Sandisk, Onsemi, and more stocks that explain today's market.
'Let the slowdown begin,' and more Apple earnings takeaways.
Pfizer finds life beyond the pandemic as earnings top estimates.
Micron stock is in a slump, but analysts say it can soar 100%.
How Nvidia regained its crown over Apple after just 4 days.
Want a Tesla-SpaceX merger? Look at the Marvell-Lumentum deal.
SpaceX buying Boost Mobile won't unlock wireless for Musk.
DuPont's earnings outlook is improving.
Ferrari earnings top expectations. The stock skids anyway.
Zebra Technologies earnings: Big growth, big stock drop.
AMD will try to change the mood with earnings.
🍎 Apple results were just strong enough. Its outlook wasn't.
Apple posted better-than-expected fiscal fourth-quarter financials and gave revenue guidance for the holiday quarter that was higher than Wall Street estimates, but the bar was high. Commentary from executives left investors wanting more. Read about it here.
🔎 Marvell could be making a $115 billion mistake
Marvell Technology couldn't have picked a worse time to acquire optical components maker Lumentum Holdings at a $115 billion valuation in a bet on surging artificial-intelligence demand and the buildout to support it. But investors are spooked by the massive amount of spending needed for AI infrastructure. Read more on the deal's timing here.
🤖 Palantir's earnings boosted by a critical source
Palantir's quarterly results crystallized its transition from a government contractor to a vendor for the much larger and less politically-risky commercial world. The third quarter marked the first time in the company's history that U.S. commercial revenue surpassed U.S. government revenue. Read about its earnings here.
📈 Earnings beats are stronger outside the tech sector
Wall Street loves an earnings beat, but tech stocks and the Magnificent Seven are barely clearing the bar. Wells Fargo's chief equity strategist Ohsung Kwon and his group found that through Oct. 30, companies have beaten expectations by 3% on average. Excluding the Magnificent Seven, earnings have beaten expectations by 5.1%. Read more here.
💡 These stocks pressured by voter backlash on data centers
From tech giants to utilities, companies involved in the data center buildout risk a backlash. Polls say Americans think data centers inflate home energy costs and are bad for the environment. Most don't want any built in their neighborhoods. Utilities like Georgia's Southern Co. and Arizona's Pinnacle West face pressure. Read more here.
🎯 Berkshire's Alphabet record exposes weak stock picking
Berkshire Hathaway's likely loss on its Alphabet investment highlights a disappointing trend. The conglomerate hasn't created much value from stock picking during the current decade despite favorable factors like the S&P 500's 150% return since the end of 2019. It's been a decade of missed opportunities and ill-timed sales. Read about it here.
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The ultrawealthy -- particularly those minted from the AI boom and yearslong bull-market run -- have dwindling liquidity while calls to tax the rich amplify. Inevitably, some will have to decide how to pony up more cash to the taxman if the handful of ballot measures are successful. Read more about it here.
💬 Quote of the day:
Other headlines moving markets:
Fabrinet reports surging data center demand.
Rivian's stock can rise more than 30%. The R2 isn't just for Tesla switchers.
Lionsgate Studios is a takeover target and 3 other reasons to own the stock.
Onsemi pressured despite earnings beat. Why results weren't enough.
Micron expected to launch massive stock buybacks in December.
Lower oil prices take energy stocks down with them.
Oracle's $20 billion funding plan wasn't the surprise, the speed was.
Tech's AI binge is sinking the market. Can Santa save it?
Hard hit airline stocks get a break because of falling oil prices.
SharkNinja still looks sharp heading into earnings.
Active fund managers staged a comeback. Can it last?
Jennifer Garner's Once Upon a Farm faces product recall.
Why Wall Street is coming back around on Amazon stock.
CrowdStrike is upgraded after tech selloff.
How to invest in the rise of China's biotech: Buy U.S. drug stocks.
-- Edited by Liz Moyer, Stacy Ozol, and Patrick O'Donnell
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