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Friday, October 23

Noteworthy macro moves today: A50 Index (China) -2.0%. USD/TRY +0.2%. Noteworthy US mega-cap moves today: SK Hynix Inc (SKHY) +4.3%. Alphabet Inc (GOOGN) +2.7%. Space Exploration Technologies Corp (SPCX) +2.2%.

Global equity indices are trading lower, with U.S., European, and Asian markets reflecting a broad-based decline amid rising concerns over inflation and geopolitical tensions in the Middle East. The Nasdaq Composite fell sharply by 2.6% on Thursday, marking its steepest single-day drop since early June, as worries about debt-fueled spending in the artificial intelligence sector intensified.

In economic data released today, Germany's S&P Global Manufacturing PMI rose to 54.2 in October, exceeding expectations of 53.5, indicating continued growth in manufacturing activity despite a slight easing in output growth. Conversely, France's composite PMI fell to 48.4, signaling a return to contraction as domestic and global uncertainties weighed on demand.

The UK reported a decline in retail sales of -0.4% for September, worse than the forecasted -0.1%, raising concerns about consumer demand amid ongoing economic pressures from inflation and changing shopping behaviors due to unseasonably warm weather affecting clothing sales.

Additionally, Canada's retail sales excluding autos increased by 1.2%, surpassing expectations of a 1% rise, suggesting some resilience in consumer spending despite broader market anxieties surrounding inflation and potential interest rate hikes from central banks.

State Street Communication Services Select Sector SPDR ETF (XLC) [-1.7%]
A substantial penalty imposed on Meta Platforms has contributed to a broader tech sell-off affecting the telecommunications sector, which includes key holdings in the State Street Communication Services Select Sector SPDR ETF. The fund is declining in pre-market trading, driven by sharp declines in AT&T, T-Mobile, Verizon, and Comcast. Negative developments in the telecommunications sector, including increased competition from SpaceX and concerns over potential mergers, have weighed on these stocks. AT&T's shares fell amid discussions about its satellite strategy, while T-Mobile faced pressure due to worries about Starlink Mobile's impact. Verizon has seen a decline following a significant drop in the previous session. The fund's performance aligns with a general decline in the U.S. stock market, particularly within the Nasdaq, amid concerns over AI infrastructure spending.

iShares MSCI South Korea ETF (EWY) [+1.5%]
The iShares MSCI South Korea ETF is advancing in pre-market trading, buoyed by strong gains in semiconductor holdings, particularly SK Hynix, which saw a rise after announcing a pause on its planned U.S. IPO for its Solidigm chip unit. This decision did not impact Solidigm's growth outlook. Meanwhile, the broader South Korean KOSPI index experienced a sharp decline, driven by losses in tech stocks amid concerns over debt-fueled AI infrastructure spending. Despite this, users on social media noted that EWY's recent price movements might indicate resilience compared to the KOSPI's performance. Overall, EWY is trading higher since Thursday's close.

iShares MSCI Japan ETF (EWJ) [-1.3%]
The iShares MSCI Japan ETF declined in pre-market trading, driven by sharp drops in key holdings such as Mitsubishi UFJ Financial Group and SoftBank Group, both of which are facing significant challenges. Analysts noted that these companies' stock prices remain well below recent averages. Additionally, Sony Group's shares fell slightly following its announcement to discontinue its last 4K UHD Blu-ray player in Japan, signaling a shift toward digital media. The broader Japanese stock market also experienced a notable decline, with the Nikkei index falling amid concerns over debt-fueled AI infrastructure spending and rising oil prices due to geopolitical tensions in the Middle East.

E | +2.8% | +5.2B
Eni SpA | Energy
Eni SpA reported strong third-quarter results, with adjusted net profit reaching €2.80 billion, exceeding analyst expectations of €2.48 billion. The company announced an extraordinary dividend of €0.46 per share, set to be paid in December, and increased its share buyback program by 12% to €3.80 billion. This robust performance was driven by a 4% rise in oil and gas production and significantly improved refining margins, which surged compared to the previous year. Eni's cash flow from operations also rose by 30%. In pre-market trading, shares are advancing notably since Thursday's close, reflecting robust momentum as the market prepares to open for the day.

ZLAB | +7.8% | +2.1B
Zai Lab Ltd | Health Care
Zai Lab Ltd reported promising results from its Phase 1b clinical trial of zocilurtatug pelitecan (zoci) in combination with atezolizumab for treating first-line extensive-stage small cell lung cancer, achieving a confirmed objective response rate of 81.8% and a six-month progression-free survival rate of 81.9% among 33 patients. The company plans to initiate a global randomized Phase 3 study evaluating zoci with an immuno-oncology regimen by year-end 2026. Additionally, Zai Lab announced a $250 million private investment in public equity (PIPE) at $22.04 per American Depositary Share (ADS), led by TCGX with participation from several investors. In pre-market trading, shares are advancing significantly since Thursday's close.

SLB | +1.9% | +1.4B
SLB NV | Energy
SLB NV reported third-quarter earnings today, surpassing analyst expectations with adjusted earnings per share of $0.64 compared to an estimate of $0.62, and revenue of $9.45 billion, exceeding the consensus of $9.27 billion. The company's performance was bolstered by a 5% year-over-year revenue increase, particularly a 13% rise in the Middle East. CEO Olivier Le Peuch noted broad-based growth and strong contributions from the recently acquired ChampionX business, which added $956 million to revenue. Additionally, SLB announced a quarterly dividend of $0.295 per share, payable on January 7, 2027. In pre-market hours, shares are trading higher since Thursday's close.

OMC | +3.1% | +0.7B
Omnicom Group Inc | Communication Services
Omnicom Group Inc reported strong third-quarter results, with revenue of $6.4 billion, exceeding consensus estimates of $6.22 billion, and adjusted earnings per share of $2.73, surpassing expectations of $2.67. The company also noted a significant year-over-year increase in net income to $656 million from $341 million and highlighted ongoing benefits from its acquisition of Interpublic Group, targeting $900 million in cost-reduction synergies for the year. In after-market trading, shares are advancing significantly since Thursday's close, with notable strength observed throughout the session. Social media posts highlighted the company's ability to deliver anticipated benefits from its recent acquisition and pointed to the reported earnings as aligning with expectations.

FCNCA | +2.7% | +0.7B
First Citizens BancShares Inc (Delaware) | Financials
First Citizens BancShares Inc. reported a third-quarter net income of $577 million, or $51.23 per share, up from $554 million, or $43.08 per share, in the prior year. The bank announced a new share repurchase plan authorizing up to $1.2 billion in buybacks through 2027, alongside a recent repurchase of 278.83k shares for $600 million during the quarter. The board declared a quarterly dividend of $2.25 per share, payable on December 15, 2026, to shareholders of record as of November 30, 2026. Despite a decline in net interest income to $1.70 billion from $1.73 billion last year, Chairman and CEO Frank Holding Jr. highlighted strong top-line growth and improved credit quality as performance drivers. In pre-market trading, shares are advancing significantly since Thursday's close.

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