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Friday, November 1

Some of the largest macro moves in the market today include: US 2Y Treasury Bond +0.2%. US 10Y Treasury Bond +0.4%. S&P 500 Index (US) +0.5%. Some of the largest moves among US mega-cap stocks include: Amazon.com Inc (AMZN) +6.9%. Exxon Mobil Corp (XOM) +2.2%. Apple Inc (AAPL) -1.6%.

The U.S. labor market data released today indicates a significant slowdown, with non-farm payrolls increasing by only 12,000 jobs in October compared to expectations of around 113,000 and down from the previous month's revised figure of 223,000. The unemployment rate remained steady at 4.1%, aligning with forecasts but raising concerns about economic momentum as temporary layoffs increased slightly.

In Europe, stock markets are experiencing gains ahead of key employment reports from the U.S., driven partly by positive earnings results from major companies like Amazon and Intel that have bolstered investor sentiment despite recent declines in tech stocks due to mixed performance indicators across sectors. Additionally, rising government bond yields amid inflationary pressures suggest cautious optimism regarding fiscal policies following budget announcements.

Market participants are closely monitoring developments related to upcoming elections in the United States which could influence monetary policy decisions moving forward; speculation is growing over potential Federal Reserve actions based on today's job report outcomes amidst ongoing geopolitical tensions affecting global risk appetite.

SPDR S&P 500 ETF Trust (SPY) [+0.5%]
The SPDR S&P 500 ETF Trust (SPY) saw a premarket increase of 0.5%, reaching a price of $575.8. The S&P 500 index declined by nearly 1% in October, ending a five-month rally, amid heightened volatility marked by a significant rise in the CBOE Volatility Index (VIX). This volatility is linked to political uncertainty surrounding the upcoming U.S. presidential election and disappointing earnings from major tech companies, particularly Microsoft, which experienced its worst single-day performance in over two years. Notably, Amazon reported strong third-quarter earnings, leading to an increase in after-hours trading. In contrast, Microsoft faced a substantial drop due to disappointing revenue guidance. The U.S. S&P 500 Spot Index is currently reporting a slight daily return, influenced by recent economic data, including a decrease in initial jobless claims and ongoing geopolitical tensions.

Energy Select Sector SPDR Fund (XLE) [+1.3%]
Exxon Mobil Corporation reported a 5% increase in net production, reaching 4,582 thousand oil-equivalent barrels per day for the third quarter. The company achieved cumulative structural cost savings of $11.3 billion since 2019, with an additional $1.6 billion in savings this year. Exxon raised its dividend per share by 4% to $0.99, effective December 10 for shareholders of record as of November 14. Concurrently, oil prices surged over 2% due to escalating tensions in the Middle East, particularly with Iran's threats against Israel, raising concerns about crude supply disruptions. OPEC+ is also considering delaying planned production hikes amid stronger demand signals. In the ETF’s holdings, Exxon and Chevron both surpassed analyst expectations in various financial metrics, contributing positively to the Energy Select Sector SPDR Fund's recent performance, which has increased by 1.3%.

AMZN | +7.3% | +152.6B
Amazon.com Inc | Broadline Retail
Amazon.com Inc has experienced a notable price increase, reflecting broader positive movements within the Broadline Retail sub-sector. The company reported third-quarter earnings, revealing net sales of $158.9 billion, an 11% year-over-year rise, surpassing expectations of $157.2 billion. Earnings per share reached $1.43, exceeding the forecast of $1.14. Key segments performed well, with Amazon Web Services generating $27.45 billion in sales, marking a 19% increase from the prior year. The North America segment contributed $95.5 billion, a 9% increase. For the fourth quarter, Amazon anticipates net sales between $181.5 billion and $188.5 billion, slightly below the consensus estimate of $186.36 billion. Following these results, several analysts raised their price targets for the stock significantly, reflecting optimism regarding Amazon's growth trajectory.

ABT | +5.2% | +10.8B
Abbott Laboratories | Health Care Equipment
Abbott Laboratories (ABT) shares rose significantly following a jury's ruling that cleared the company and Reckitt Benckiser's unit Mead Johnson of liability in a lawsuit concerning their premature baby formulas. This verdict, delivered on October 31, 2024, found that neither company was responsible for a young boy's severe intestinal disease, marking the first trial victory in a series of approximately 1,000 similar lawsuits. Analysts noted that this outcome could reduce Abbott's potential liability exposure by $500 million to $1 billion. The stock was priced at 24.25 times its estimated earnings for the next 12 months, compared to Reckitt's 14.73. Social media discussions highlighted the favorable ruling, which alleviated concerns regarding the safety of Abbott's specialized infant formulas. Following the court decision, Abbott's shares were reported at 113.37, reflecting a notable increase.

INTC | +8.4%| +8.3B
Intel Corp | Semiconductors
Intel Corp shares have increased significantly following the release of its third-quarter earnings, which exceeded expectations. The company reported revenue of 13.28 billion, surpassing the consensus estimate of 13.02 billion. However, the adjusted loss per share was 0.46, missing the anticipated loss of 0.02. Intel provided optimistic guidance for the fourth quarter, projecting revenue between 13.3 billion and 14.3 billion, with an adjusted EPS of 0.12. Additionally, the company announced a workforce reduction of 16,500 employees as part of its restructuring efforts, following previous layoffs of 19,000. CEO Pat Gelsinger noted the importance of operational efficiency and mentioned TSMC's role in the success of their Lunar Lake project. The stock surged approximately 12% in after-hours trading after the earnings announcement.

XOM | +1.9%| +9.9B
Exxon Mobil Corp | Integrated Oil & Gas
Exxon Mobil Corp's stock has increased, influenced by a significant upward movement in the Integrated Oil & Gas sub-sector. The company reported third-quarter earnings today, revealing a net income of $8.61 billion, or $1.92 per share, which slightly exceeded analyst expectations. Revenue came in at $90.02 billion, falling short of projections. Production levels reached 4.58 million barrels of oil equivalent per day, surpassing estimates. Cash flow from operating activities was reported at $17.6 billion, with free cash flow at $11.3 billion. Exxon also announced a 4% increase in its quarterly dividend to $0.99 per share, marking 42 consecutive years of dividend growth. Additionally, the company plans to repurchase over $19 billion of shares in 2024 and anticipates cumulative savings of $15 billion through 2027.

DJT | -8.3% | -476.3M
Digital World Acquisition Corp
Digital World Acquisition Corp's shares have experienced significant volatility, recently declining by over 8% in pre-market trading. The stock fell sharply on Thursday, following a substantial drop the previous day, closing at $35.34 after peaking earlier in the week. This decline has reportedly led to a loss of approximately $1.9 billion in net worth for Trump Media & Technology Group Corp's namesake. The sell-off is attributed to speculative trading and high short interest, as noted by S3 Partners. Social media discussions reflect a mixed sentiment, with traders reporting profits amidst selling pressure and highlighting potential delays in Q3 financial reporting. Additionally, political developments, including rising poll numbers for Kamala Harris, are being monitored for their potential impact on DJT's valuation.

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