[BRIEFING.COM] The major averages remain near their session lows in late-afternoon trading, with weakness in mega-cap technology stocks continuing to weigh on the broader market.

In addition to Amazon's (AMZN 245.20, -9.40, -3.69%) earnings report after the close, investors are awaiting results from Sandisk (SNDK 1329.47, -75.30, -5.36%), which is trading sharply lower ahead of its Q1 release. Shares have fallen 23% in October but remain up an extraordinary 467% year-to-date, reflecting the substantial expectations surrounding AI-driven demand for memory and storage products. Sandisk's results will provide an important look at NAND pricing trends and demand from data center customers, which have fueled the company's rapid earnings growth. The FactSet consensus calls for EPS of $46.67 on revenue of $10.72 billion, with the earnings estimate sitting above management's guidance of $44.00-$46.00 per share.

Investors will be particularly focused on forward guidance, pricing strength, and whether accelerating data center demand can sustain the company's exceptional margins and earnings growth. The report could also have broader implications for memory stocks as investors continue to scrutinize the sustainability of AI-related investment and demand.

[BRIEFING.COM] The S&P 500 (-0.7%), Nasdaq Composite (-1.7%), and DJIA (-0.6%) are charting session lows as the market enters the final hour of the session.

Mega-cap and tech stocks continue to face pronounced pressure, while the broader market's rotational strength has faded a bit.

The move to session lows coincides with oil reclaiming much of its earlier losses, with WTI crude now down just $0.51 (-0.5%) to $102.27 per barrel after dipping below $100 per barrel this morning. CBS News reports that Iran's Navy claims that four tankers hit mines in the Strait of Hormuz.

[BRIEFING.COM] Recent action saw the S&P 500 (-0.6%) slip past its opening low while the Nasdaq (-1.6%) is fighting to stay above its lowest level of the day. With these moves, the S&P 500 is now just a couple points above its 50-day moving average (7698), which has been a high-traffic area for nearly three weeks now. Meanwhile, the Nasdaq finished yesterday's session just below its 50-day moving average (26586) but today's selling has pressured the tech-heavy index away from that level.

The disappointing quarterly report from Alphabet (GOOG 279.32, -42.57, -13.22%), which is a member of the S&P communication services sector (-7.0%), has had a negative impact on sentiment surrounding tech stocks, especially those that are closest to the AI universe.

Staying on the tech theme, software stocks are facing some profit taking today, sending the iShares Expanded Tech-Software Sector ETF (IGV 107.55, -4.36, -3.90%) from its best close in three weeks back to its 50-day moving average (106.94). Oracle (ORCL 138.05, -6.49, -4.49%) which is a major piece in the AI story is among the underperformers there, but today's losses in that group have been paced by a sharp plunge in ServiceNow (NOW 109.83, -40.30, -26.84%) after the company missed quarterly expectations. Fortinet (FTNT 136.50, -37.58, -21.59%) is also a big laggard in that group with underwhelming billings overshadowing above-consensus results for Q3 and above-consensus EPS guidance for Q4.

[BRIEFING.COM] Selling has intensified in the Nasdaq Composite, which is down 1.67%, while the Russell 2000 remains up 0.74%. The widening gap continues to show that today's weakness is concentrated in large technology stocks rather than extending uniformly across the market.

Alphabet (GOOGL 282.81, -42.08, -12.95%) remains a major source of pressure after its earnings miss. Cloud revenue surged, but heavy capital spending produced negative free cash flow, and plans for another significant spending increase next year reinforced concerns about returns on AI investment. Microsoft (MSFT 525.46, -5.54, -1.04%) has also turned lower despite accelerating Azure growth and above-consensus guidance, as planned capital expenditures above $50 billion next quarter and weaker free cash flow draw scrutiny.

Caterpillar (CAT 649.13, -64.24, -9.01%) and Merck (MRK 147.12, +6.19, +4.39%), also Dow components, are traveling different paths following their earnings reports. Caterpillar is sharply lower as an unchanged outlook, expectations for moderate fourth-quarter sales growth, tariff costs, and sequential margin compression overshadow strong earnings growth and a record backlog. Merck is higher after beating earnings and revenue expectations and raising its earnings guidance, supported by strength in its KEYTRUDA family and WINREVAIR.

Amazon (AMZN 244.84, -9.76, -3.83%) reports after the close, with AWS growth, cloud margins, and returns on its roughly $220 billion capital-spending plan in focus. The negative responses to Alphabet and Microsoft earnings have Amazon on the defensive ahead of the report, increasing the importance of cash generation and holiday-quarter guidance alongside AI-driven cloud demand.

[BRIEFING.COM] The major averages remain little changed from previous levels as pronounced weakness in tech weighs against some solid rotational gains throughout the broader market. 

Meanwhile, U.S. Treasuries have dipped from their morning highs, though they continue holding solid gains with the 10-year yield back near its 50-day moving average (5.008%), which has been an area of congestion over the past week. Treasuries climbed after today's economic data included the advance Q3 GDP that showed a dip in the Core PCE Price Index to 2.5% from 3.3% in Q2. The gains were extended in immediate reaction to the European Central Bank's latest policy statement, which acknowledged that financing conditions have tightened since the last meeting. The central bank acknowledged that this is likely to weigh on inflation and growth, which in turn got the market thinking that the ECB's tightening cycle could be closer to an end than previously thought. That said, the post-ECB gains in Treasuries were short-lived as the market returned to levels seen after today's batch of U.S. data. The past few minutes have seen some light pressure in longer tenors after the U.S. Treasury completed this week's note auction slate with a decent sale of 7-year notes. The auction drew a high yield of 4.894%, which was right on the screws, but the offering looked a little worse when compared to the prior 12-auction averages, as the bid-to-cover ratio (2.46x vs 2.48x average) and indirect takedown (57.8% vs 63.0% average) came in a bit light.

The 2-year note yield is down seven basis points to 4.67%, and the 10-year note yield is down four basis points to 5.00%.

[BRIEFING.COM] The major averages remain under pressure ahead of midday, with the S&P 500 (-0.4%), Nasdaq Composite (-1.3%), and DJIA (-0.3%) all trading lower as weakness in mega-cap technology stocks continues to weigh on the broader market.

Caterpillar (CAT 657.44, -55.94, -7.84%) is a notable laggard following its Q3 earnings report, as expectations for moderating Q4 sales growth and an unchanged FY26 outlook overshadow strong earnings growth and a record $78.1 billion backlog. Revenue increased 17% year-over-year and adjusted EPS rose 45%, but investors appear focused on slowing growth expectations and continued tariff-related cost pressures.

Meanwhile, Marvell (MRVL 221.28, -30.37, -12.07%) is facing selling pressure following a Bloomberg report that the company is in discussions to acquire Lumentum (LITE 936.56, +22.61, +2.47%). The decline has pushed MRVL back below its 50-day moving average (244.08), based on yesterday's closing level.

[BRIEFING.COM] The major averages continue to trade in a stable range at midday.

The consumer discretionary sector (-0.1%), however, has steadily improved from sharp opening losses and now looks to reclaim its unchanged level. Amazon (AMZN 247.26, -7.34, -2.88%) is weighing on the sector ahead of its earnings report after the close, amid heightened caution surrounding mega-cap stocks as investors scrutinize the substantial costs and potential returns of AI infrastructure investment.

However, several sharp post-earnings moves are helping offset that weakness. Carvana (CVNA 68.13, +9.08, +15.38%) is the best-performing S&P 500 stock after missing EPS expectations but reporting better-than-expected revenue, while Norwegian Cruise Line (NCLH 18.16, +2.10, +13.04%) is moving sharply higher following an earnings beat. Chipotle Mexican Grill (CMG 31.16, +2.43, +8.47%) is also surging despite a $0.02 EPS miss, as improving traffic and management's confidence in a stronger year-end sales trajectory offer encouragement following a steep stock decline.

DoorDash (DASH 177.83, +8.34, +4.92%) is another standout after beating earnings expectations and announcing an approximately $17 billion acquisition of Instacart (CART 57.48, -0.94, -1.62%). The deal would expand DoorDash's grocery delivery, advertising, and merchant technology capabilities, although Instacart shares are trading lower after rallying earlier this week on reports of acquisition discussions.

[BRIEFING.COM] The major averages remain lower in late-morning trading, with the S&P 500 (-0.2%) and DJIA (-0.2%) holding relatively modest losses while the Nasdaq Composite (-1.1%) continues to lag amid pronounced weakness in mega-cap technology stocks.

The communication services sector (-5.9%) is bearing the brunt of the selling, weighed down by Alphabet's (GOOG 285.03, -36.86, -11.45%) sharp post-earnings decline. The information technology sector (-0.8%) is also under pressure as investors scrutinize the substantial costs of AI infrastructure investment, although it has recovered from its worst levels alongside the PHLX Semiconductor Index (-0.7%).

Meanwhile, there is a solid rotation into the broader market, which helps soften losses for the S&P 500 and DJIA. Eight S&P 500 sectors trade higher, and the S&P 500 Equal Weighted Index outperforms its market-weighted counterpart by over 100 basis points. Strength in the Russell 2000 (+1.2%) and the S&P Mid Cap 400 (+1.2%) highlights the scope of the rotational gains.

Earnings are contributing to the rotation, with timely beats from Eli Lilly (LLY 1363.76, +75.46, +5.86%) and Mastercard (MA 638.40, +28.09, +4.60%) contributing to strength in the health care (+2.2%) and financials (+1.8%) sectors.

Additionally, crude oil prices and Treasury yields are both moving firmly lower after The Wall Street Journal reported that Vice President JD Vance sent a letter to Iranian security chief Mohsen Rezaei to try to restart peace talks. Crude oil is down $2.47 (-2.4%) to $100.31 per barrel, and the 10-year note yield is down six basis points to 4.98%, adding to the constructive tone in the broader market. 

[BRIEFING.COM] The major averages have seen little improvement from their opening levels, with selling pressure persisting despite some pockets of relative strength outside the technology sector.

Microsoft (MSFT 521.69, -9.32, -1.76%) is trading lower despite reporting better-than-expected quarterly results and issuing encouraging guidance last night. Shares initially moved firmly higher in after-hours trading but have since surrendered those gains, reflecting continued investor scrutiny of the substantial costs associated with AI infrastructure investment.

Microsoft reported adjusted earnings of $4.89 per share on revenue growth of 18.8% to $92.28 billion, both ahead of expectations. Azure revenue growth accelerated to 48%, exceeding guidance, while the company projected further acceleration to 49-50% next quarter. However, capital expenditures are expected to exceed $50 billion in Q2 and accelerate further in the second half of FY27. Free cash flow declined approximately 27% year-over-year despite strong operating results, reinforcing concerns about the financial demands of the AI buildout.

The weakness extends beyond Microsoft, with several software stocks facing sizable post-earnings declines. ServiceNow (NOW 112.76, -37.36, -24.89%) is plunging after an earnings miss and a relatively modest increase to its full-year subscription revenue outlook overshadowed strong AI adoption. Investors were also disappointed by guidance pointing to slower growth in current remaining performance obligations next quarter. Fortinet (FTNT 134.24, -39.84, -22.88%) is another notable laggard despite beating earnings expectations and issuing generally favorable guidance, with a downgrade to Neutral from Buy at BofA adding to the pressure.

The broad weakness has pushed the iShares Expanded Tech-Software Sector ETF (IGV) down 4.2%, moving the software-focused fund into negative territory for the week. The disappointing reactions underscore the increasingly demanding expectations facing software companies, with investors looking for stronger evidence that AI-related spending and adoption can translate into sustained revenue growth and improved cash generation.

[BRIEFING.COM] The major averages are little changed from their opening lines, with the Nasdaq Composite (-1.3%) bearing the brunt of today's tech-driven retreat, while rotational strength across the broader market keeps the S&P 500 (-0.3%) and DJIA (-0.3%) seated with more modest losses. 

Alphabet (GOOG 284.28, -37.61, -11.68%) is plunging more than 10% following its Q3 earnings report, weighing heavily on the Nasdaq Composite as concerns surrounding the enormous costs of AI infrastructure investment overshadow exceptional growth in its cloud business. The stock is approaching its 52-week low from October 29 2025 (268.43), and is down roughly 9.5% on a year-to-date basis.

Alphabet reported earnings of $2.12 per share, missing the $3.02 FactSet consensus, although investment losses accounted for $0.55 of the shortfall. Revenue increased 25% to $127.58 billion, roughly in line with expectations, while Google Cloud revenue surged 103% to $30.7 billion. However, Search revenue growth slowed to 12%, and the company's substantial infrastructure spending pushed quarterly free cash flow to negative $9.1 billion.

Alphabet maintained its FY26 capital expenditure outlook of $195-205 billion but signaled another significant increase in spending next year. The company also raised substantial debt and equity financing during the quarter, adding to concerns about the funding requirements and eventual returns on its AI investments. Meanwhile, management warned that increased reliance on third-party computing capacity could pressure cloud profitability in the coming quarters.

The disappointing reaction is contributing to broader weakness in technology stocks as investors reassess the costs associated with the ongoing AI infrastructure buildout.

[BRIEFING.COM] The S&P 500 (-0.3%), Nasdaq Composite (-1.3%), and DJIA (-0.3%) are lower this morning as the latest round of earnings reports drives some impressive moves across a host of notable stocks. Most notably, the Nasdaq Composite trails the other major averages by a significant margin as Alphabet (GOOG 283.51, -38.38, -11.92%) sinks after last night's earnings miss.

The communication services sector (-6.2%) is unsurprisingly the worst-performing S&P 500 sector, though renewed concerns around AI investment returns also weigh on semiconductor and other tech stocks. The PHLX Semiconductor Index is down 1.6%, and the information technology sector is down 0.8%. ServiceNow (NOW 114.08, -36.04, -24.01%) is the worst-performing S&P 500 name after an earnings miss of its own.

The weakness across mega-cap tech extends to Amazon (AMZN 245.88, -8.72, -3.42%) ahead of its own earnings release after the close, weighing on the consumer discretionary sector (-0.4%). Meanwhile, the broader market is seeing some solid rotational action, with several other notable earnings releases contributing to the enthusiasm. The health care sector (+2.8%) leads the advance following solid earnings results from Eli Lilly (LLY 1389.59, +101.29, +7.86%) and Merck (MRK 147.68, +6.75, +4.79%), with relative strength across more defensive stocks today boosting the consumer staples (+1.0%) and utilities (+1.0%) sectors as well.

Mastercard (MA 638.05, +27.74, +4.55%) leads the financials sector (+1.7%) higher after earnings, while the real estate sector (+1.5%) also holds a solid gain.

While the pronounced weakness in tech and mega-cap stocks weighs on the major averages, the S&P 500 Equal Weighted Index (+0.6%) is decently higher, highlighting the rotational gains under the surface.

The stock market remains on track for a lower open as several heavyweight stocks sink after their latest earnings report while this morning's bach of economic data highlighted that inflation remains above target.

Q3 GDP increased at an annual rate of 3.4% (Briefing.com consensus: 3.0%), led by increases in consumer spending, investment, and government spending, and the GDP Price Index increased 2.2% (Briefing.com consensus: 3.5%), down from a lofty 6.1% in the second quarter.

The key takeaway from the report is that it conveys an economy that is operating on a solid growth track in the face of headwinds that include higher interest rates, higher oil prices, and higher tariffs.

Initial jobless claims for the week ending October 24 decreased by 1,000 to 194,000 (Briefing.com consensus: 196,000). Continuing jobless claims for the week ending October 17 decreased by 21,000 to 1.701 million.

The key takeaway from the report is that the historically low level of initial jobless claims points to a labor market that remains relatively full on account of a solid demand outlook for goods and services.

Personal income increased 0.2% month-over-month (Briefing.com consensus: 0.3%) in September following an upwardly revised 0.3% increase (from 0.2%) in August. Personal spending rose 0.5% month-over-month (Briefing.com consensus: 0.3%) following a 0.9% increase in August. The PCE price Index was up 0.5% month-over-month (Briefing.com consensus: 0.5%), which left it up 3.6% year-over-year versus 3.4% in August. The core PCE price Index jumped 0.3% month-over-month (Briefing.com consensus: 0.3%), leaving it up 3.1% year-over-year versus 3.0% in August.

There are two key takeaways from the report. The first is that spending outpaced income growth, which speaks to the strain of higher living costs. The second is that the PCE Price Index moved further away from the Fed's 2.0% target, which should have the Fed tracking to another rate hike in December.

Equity futures remain on track for a lower open, with the S&P 500 futures currently trading 21 points below fair value.

Asian markets finished mostly lower on Thursday as renewed concerns surrounding AI spending and valuations pressured technology shares, although strength in Advantest helped Japan buck the regional weakness. Japan's Nikkei 225 gained 1.1% for a third consecutive advance, with Advantest (+6%) rallying after raising its full-year earnings forecast on stronger AI chip-testing demand, while Tokyo Electron (+2%), Ibiden (+2%), and Kioxia (+1%) also advanced. China's Shanghai Composite fell 0.8% and the Shenzhen Component sank 2.9%, with Eoptolink Technology (-11%), Zhongji Innolight (-9%), and Cambricon Technologies (-5%) reversing part of Wednesday's AI-fueled rebound as strong industry results struggled to satisfy elevated expectations. Hong Kong's Hang Seng lost 0.6%, with Z.AI (-7%), Lenovo (-7%), SMIC (-6%), Meituan (-3%), and Tencent (-3%) caught in the broader technology selloff, while the Hong Kong Monetary Authority left its base rate unchanged at 4.25% following the Federal Reserve's decision to hold rates steady. South Korea's KOSPI fell 1.2%, giving back part of Wednesday's 6.6% surge as Samsung Electronics slipped 1% despite record overall earnings, while SK Hynix (+4%) extended its advance after announcing plans for increased shareholder returns. The divergence between Samsung and SK Hynix adds another layer to the region's increasingly selective AI trade, with investors now weighing not only demand and earnings growth but also capital intensity, valuations, and how those profits ultimately reach shareholders. India's Sensex climbed 1.2%, standing out alongside Japan as most other major regional markets retreated. Attention now turns to Friday's Bank of Japan policy decision after Japanese household confidence softened to 35.0 in October.

• In economic data:
  • South Korea's October Manufacturing BSI Index fell to 78 from 79.
  • Japan's October Household Confidence fell to 35.0 (expected 35.1; prior 35.4).
  • Foreign investment in Japanese stocks totaled JPY1,180.9 bln (prior -JPY67.5 bln).
  • Japan's foreign bond buying totaled -JPY92.6 bln (prior -JPY160.5 bln).
  • Australia's Q3 Import Price Index fell 1.1% q/q (expected +1.3%; prior +5.7%).
  • Australia's Q3 Export Price Index rose 1.4% q/q (prior +1.1%).
  • New Zealand's October ANZ Business Confidence rose to 52.5 from 51.9.
  • New Zealand's October ANZ Own Activity reading fell to 46.2% from 47.9%.

European markets trade mostly higher on Thursday as investors respond to another heavy slate of corporate earnings while awaiting the European Central Bank's policy decision following President Christine Lagarde's surprise resignation announcement. Germany's DAX gains 1.0% and reaches its highest level since early September, with Adidas (+4%) advancing after reporting record profits and raising its outlook, while Airbus (+3%), Deutsche Telekom (+3%), and Henkel (+2%) also gain. France's CAC 40 rises 1.0%, with Renault (+4%) climbing on resilient third-quarter revenue and stronger electric-vehicle sales and TotalEnergies (+1%) advancing after beating earnings expectations, while STMicroelectronics (-1%) moves against the broader market. London's FTSE 100 gains 0.4%, with Shell (+3%) reaching a record high after increasing its quarterly share buyback to $5 bln, while Haleon (-11%) plunges after cutting its full-year revenue outlook and Lloyds (-3%) falls despite better-than-expected profit. The U.K.'s September credit data also point to softer borrowing activity, with mortgage approvals, mortgage lending, consumer credit, and net lending all falling short of expectations, while broader Eurozone confidence data remain mixed. The STOXX Europe 600 rises 0.5%, although Italy's FTSE MIB slips 0.1% and Spain's IBEX 35 falls 0.6%, highlighting a market being driven more by country and company-specific catalysts than a uniform regional risk-on move.

• In economic data:
  • The Eurozone's October Business and Consumer Survey fell to 96.9 (expected 97.5; prior 97.5).
  • The Eurozone's October Industrial Sentiment improved to -3.4 (expected -3.8; prior -3.9).
  • The Eurozone's October Services Sentiment fell to 5.3 (expected 5.9; prior 5.9).
  • The Eurozone's October Consumer Confidence fell to -17.9 (expected -17.9; prior -16.5).
  • U.K. September Mortgage Approvals fell to 53.44K (expected 54.00K; prior 54.81K).
  • U.K. September Mortgage Lending fell to GBP3.87 bln (expected GBP4.20 bln; prior GBP4.17 bln).
  • U.K. September Consumer Credit fell to GBP1.914 bln (expected GBP2.200 bln; prior GBP2.683 bln).
  • U.K. September Net Lending to Individuals fell to GBP5.800 bln (expected GBP6.200 bln; prior GBP6.874 bln).
  • Spain's September Retail Sales fell 1.4% yr/yr (prior -0.5%).
  • Italy's September Unemployment Rate rose to 6.3% (expected 6.2%; prior 6.2%).
  • Italy's October Business Confidence was unchanged at 91.9 (expected 92.0).
  • Italy's October Consumer Confidence fell to 90.3 (expected 90.9; prior 91.2).

The S&P 500 futures currently trade 31 points below fair value.

The GDP deflator increased 2.2% (Briefing.com consensus: 3.5%) versus a 6.1% increase in Q2.

The September Personal Income and Spending report showed personal income increased 0.2% month-over-month (Briefing.com consensus: 0.3%) versus an upwardly revised 0.3% increase in August (from 0.2%).

Personal spending increased 0.5% (Briefing.com consensus: 0.3%) versus a 0.9% increase in August.

The PCE Price Index increased 0.5% (Briefing.com consensus: 0.5%) versus a 0.3% increase in August.

The core PCE Price Index, which excludes food and energy, increased 0.3% (Briefing.com consensus: 0.3%) versus an upwardly revised 0.3% increase in August (from 0.2%).

Initial jobless claims decreased by 1,000 for the week ending October 24 to 194,000 (Briefing.com consensus: 196,000) versus an upwardly revised 195,000 in the prior week (from 194,000). 

Continuing jobless claims for the week ending October 17 decreased by 21,000 to 1.701 million versus a downwardly revised 1.722 million in the prior week (from 1.728 million).

Equity futures point to a lower opening this morning, with Nasdaq futures facing particularly pronounced pressure as Alphabet (GOOG 287.15, -34.74, -10.79%) tumbles by double digits following its disappointing earnings report. Microsoft (MSFT 539.50, +8.49, +1.60%) is faring better following its own results, but technology stocks are broadly on track for a weak start, with the VanEck Semiconductor ETF (SMH) down 1.7% in premarket trading after outperforming in the first three sessions this week.

The weakness follows a modestly higher finish for the major averages yesterday, when stocks navigated a busy session featuring the FOMC decision, a sharp rally in Oracle (ORCL), and rising oil prices and Treasury yields. The Fed left interest rates unchanged while reiterating its commitment to bringing inflation back to its 2.0% target.

Alongside another busy morning of earnings reports, investors face a full economic calendar highlighted by the September PCE price indexes, the Fed's preferred inflation gauges. Headline PCE prices (Briefing.com consensus 0.5%; prior 0.3%) and core PCE prices (Briefing.com consensus 0.3%; prior 0.2%) will be particularly important following yesterday's FOMC meeting, with the CME FedWatch Tool currently assigning an 83.3% probability to a rate hike at the December meeting.

Today's remaining economic calendar:

• 8:30 AM ET: Q3 GDP-Adv.; Briefing.com consensus 3.0%; prior 2.2%
• 8:30 AM ET: Q3 Chain Deflator-Adv.; Briefing.com consensus 3.5%; prior 6.1%
• 8:30 AM ET: September Personal Income; Briefing.com consensus 0.3%; prior 0.2%
• 8:30 AM ET: September Personal Spending; Briefing.com consensus 0.3%; prior 0.9%
• 8:30 AM ET: September PCE Prices; Briefing.com consensus 0.5%; prior 0.3%
• 8:30 AM ET: September PCE Prices - Core; Briefing.com consensus 0.3%; prior 0.2%
• 8:30 AM ET: 10/24 Initial Claims; Briefing.com consensus 196K; prior 194K
• 8:30 AM ET: 10/17 Continuing Claims; prior 1728K
• 10:30 AM ET: 10/24 EIA Natural Gas Inventories; prior +77 bcf

In corporate news:

• Alphabet (GOOG 287.15, -34.74, -10.79%) is sharply lower after missing the earnings consensus by $0.90 while reporting revenue roughly in line. Google Cloud revenue increased 103%, but free cash flow was negative $9.06 billion.
• Microsoft (MSFT 539.50, +8.49, +1.60%) is higher after beating earnings and revenue estimates. Commercial remaining performance obligation increased 73% to $677 billion.
• Caterpillar (CAT 647.26, -66.12, -9.27%) is lower after beating the earnings consensus by $0.14 on revenue that was roughly in line.
• Merck (MRK 143.85, +2.73, +1.93%) beat earnings and revenue estimates and raised its FY26 earnings guidance above consensus while maintaining an in-line revenue outlook.

Reviewing overnight developments:

Asian markets finished mostly lower as concerns about AI spending and valuations pressured technology shares, although strength in chip-testing shares helped Japan outperform, according to Nikkei.

In news:

• The Hong Kong Monetary Authority left its base rate unchanged at 4.25% after the Federal Reserve held rates steady.
• South Korean semiconductor shares diverged despite record overall earnings from one major chipmaker and increased shareholder-return plans from another. Attention now turns to Friday's Bank of Japan decision.

In economic data:

• South Korea's October Manufacturing BSI Index 78 (prior 79)
• Japan's October Household Confidence 35.0 (expected 35.1; prior 35.4)
• Japan's foreign investment in Japanese stocks JPY1,180.9 bln (prior -JPY67.5 bln) and foreign bond buying -JPY92.6 bln (prior -JPY160.5 bln)
• Australia's Q3 Import Price Index -1.1% q/q (expected +1.3%; prior +5.7%) and Export Price Index +1.4% q/q (prior +1.1%)
• New Zealand's October ANZ Business Confidence 52.5 (prior 51.9) and Own Activity 46.2% (prior 47.9%)

Equity Markets:

• Japan's Nikkei: +1.1%
• Hong Kong's Hang Seng: -0.6%
• China's Shanghai Composite: -0.8%
• India's Sensex: +1.2%
• South Korea's Kospi: -1.2%
• Australia's All Ordinaries: +0.5%

European markets trade mostly higher as investors respond to a heavy slate of corporate earnings and await the European Central Bank's policy decision.

In news:

• Earnings updates supported major markets, although weakness in Italy and Spain underscored a session shaped by country- and company-specific catalysts.
• The ECB decision remains in focus following President Christine Lagarde's surprise resignation announcement.

In economic data:

• Eurozone October Business and Consumer Survey 96.9 (expected 97.5; prior 97.5), Industrial Sentiment -3.4 (expected -3.8; prior -3.9), Services Sentiment 5.3 (expected 5.9; prior 5.9), and Consumer Confidence -17.9 (expected -17.9; prior -16.5) U.K. September Mortgage Approvals 53.44K (expected 54.00K; prior 54.81K), Mortgage Lending GBP3.87 bln (expected GBP4.20 bln; prior GBP4.17 bln), Consumer Credit GBP1.914 bln (expected GBP2.200 bln; prior GBP2.683 bln), and Net Lending to Individuals GBP5.800 bln (expected GBP6.200 bln; prior GBP6.874 bln)
• Spain's September Retail Sales -1.4% yr/yr (prior -0.5%)
• Italy's September Unemployment Rate 6.3% (expected 6.2%; prior 6.2%)
• Italy's October Business Confidence 91.9 (expected 92.0; prior 91.9) and Consumer Confidence 90.3 (expected 90.9; prior 91.2)

Equity Markets:

• STOXX Europe 600 : +0.5%
• Germany's DAX : +1.0%
• U.K.'s FTSE 100 : +0.4%
• France's CAC 40 : +1.0%
• Italy's FTSE MIB : -0.1%
• Spain's IBEX 35 : -0.6%

[BRIEFING.COM] The stock market navigated a maze of catalysts today to secure a modestly higher finish for the S&P 500 (+0.3%), Nasdaq Composite (+0.3%), and DJIA (+0.2%). Investors had plenty to digest throughout the session, including a sizable batch of earnings reports that produced some notable stock-specific moves. A sharp rally in Oracle (ORCL 144.34, +13.81, +10.58%) following its long-term guidance coincided with Fed Chair Kevin Warsh's afternoon press conference, with the combination briefly helping propel the major averages to session highs.

Macroeconomic developments commanded considerable attention, with the FOMC leaving interest rates unchanged while reinforcing its commitment to bringing inflation back to target. Meanwhile, crude oil prices surged amid renewed concerns about a potential escalation in the conflict with Iran, contributing to upward pressure on Treasury yields and creating an additional headwind for the broader market.

The session began with renewed enthusiasm for semiconductor and AI infrastructure stocks following another round of encouraging earnings reports. Strong results from SK hynix Inc. (SKHY 164.77, +19.41, +13.35%) helped lift memory stocks, including Micron (MU 983.23, +54.47, +5.86%) and Sandisk (SNDK 1404.77, +99.93, +7.66%), although the early advance gradually lost momentum as weakness among several mega-cap technology names limited the broader market's upside.

The major averages subsequently drifted toward their flat lines ahead of the afternoon's FOMC decision. The FOMC voted to maintain the target range for the fed funds rate at 3.75% to 4.00%, with Fed Governor Cook and Cleveland Fed President Hammack dissenting in favor of a 25-basis-point increase. The accompanying statement emphasized resilient economic activity and persistently elevated inflation. Stocks briefly rallied during Chair Warsh's press conference as he suggested that incoming economic data would help clarify the appropriate path for monetary policy, although his reaffirmation of the Fed's 2.0% inflation target tempered some of that enthusiasm.

At roughly the same time, Oracle's (ORCL 144.34, +13.81, +10.58%) upbeat long-term outlook provided an additional catalyst, sparking a sharp rally in its shares and lifting other AI infrastructure names, including Nebius Group N.V. (NBIS 182.34, +11.87, +6.96%) and CoreWeave (CRWV 63.93, +4.36, +7.32%). Oracle projected annual revenue growth of more than 35% through FY30, with revenue reaching at least $225 billion, while outlining plans to reduce capital expenditures and generate at least $30 billion in positive free cash flow in FY29. Its expectation that additional capital markets funding would be limited to $20 billion through FY30 also offered some reassurance about the financing demands of its AI infrastructure expansion.

The information technology sector (+0.5%) finished among the stronger performers, supported by a 1.8% advance in the PHLX Semiconductor Index. However, the gains were somewhat restrained by weakness in NVIDIA (NVDA 215.38, -2.56, -1.17%), while Microsoft (MSFT 531.01, -0.32, -0.06%) finished little changed ahead of its earnings report after the close.

Alphabet (GOOG 321.89, +5.06, +1.60%) was a notable mega-cap outperformer ahead of its own results, helping lift the communication services sector (+0.4%).

Elsewhere, the health care sector (+0.3%) benefited from strength in biotechnology stocks, with the iShares Biotechnology ETF (IBB) climbing 2.0%, alongside favorable earnings reactions in select health care names. The industrials sector (+0.3%) also finished higher, supported by earnings-related strength in Vertiv (VRT 243.11, +34.55, +16.57%), while the financials sector (+0.4%) advanced despite a muted response to Visa's (V 401.02, -0.84, -0.21%) earnings report.

Participation had a positive tilt, with seven S&P 500 sectors finishing higher, although gains remained relatively modest. Decliners outpaced advancers by a slim 7-to-6 margin on the NYSE, while advancers held a roughly 4-to-3 edge on the Nasdaq.

The consumer discretionary sector finished unchanged, while the utilities (-0.9%), real estate (-0.7%), and consumer staples (-0.4%) sectors lagged. The weakness in rate-sensitive areas came as Treasury yields climbed alongside crude oil prices.

WTI crude futures settled $2.87 higher (+2.9%) at $102.74 per barrel amid renewed geopolitical concerns. According to Axios, regional mediators led by Qatar are pressing Iran for nuclear concessions as the possibility of U.S. military strikes following the midterm elections looms in the absence of an agreement.

The market ultimately held on to modest gains despite the competing influences of encouraging AI-related developments, a cautious Fed, and rising oil prices and Treasury yields. Attention now turns to another consequential round of mega-cap earnings after the close, with results from Alphabet and Microsoft set to provide an important test of the enthusiasm surrounding AI investment and infrastructure spending.

U.S. Treasuries finished the midweek session on a mixed note with the 2-year yield returning to unchanged (4.74%) in reaction to the October FOMC Statement while the 30-year yield (+6 basis points to 5.36%) climbed to a fresh session high. The 10-year yield (+5 basis points to 5.05%), meanwhile, was caught in the middle, finishing the session just above its early-afternoon high seen before the release of the FOMC Statement.

• Nasdaq Composite: +14.2% YTD
• Russell 2000: +14.1% YTD
• S&P 500: +13.1% YTD
• S&P Mid Cap 400: +10.9% YTD
• DJIA: +9.2% YTD

Reviewing today's data:

• 10/24 MBA Mortgage Applications Index 3.4% (Prior -5.3%)
• Sep Adv. Intl. Trade in Goods -$134.9B (Briefing.com consensus -$128.7B; Prior -$132.1B revised from -$132.6B)
• Sep Adv. Retail Inventories 0.3% (Prior 0.3%)
• Sep Adv. Wholesale Inventories 0.6% (Briefing.com consensus 0.5%; Prior 0.5% revised from 0.7%)
• 10/24 EIA Crude Oil Inventories -1.892M (Prior -3.061M)