Wall Street holds its breath as investors await a fresh wave of quarterly earnings. Bank of America already posted its results, reporting a lower quarterly profit than the previous year, but above expectations. Q3 revenues reached $25.35 billion, in line with expectations. Meanwhile, Goldman Sachs delivered a quarterly profit of $8.40 per diluted share, much higher than the $5.47 recorded the previous year. Analysts had predicted $6.92. So far, so good.

The stock market is currently thriving. Nvidia hit a new high yesterday, as investors continue their AI buying spree. Nvidia is closing in on Apple's top spot, with Apple holding a market value of $3.517 trillion. The S&P 500 reached a record 5,860 points. The Dow Jones earned its first 43,000-point badge. The Nasdaq 100 is still 1.2% shy of its July record.

Europe is trying to keep pace with Wall Street, but it's struggling due to a lack of AI champions. Investors are sticking with big names like ASML, which supplies the machines for Nvidia's chips, and Schneider, a key player in data centers. Meanwhile, luxury goods are suffering from China's consumer crisis. Once seen as invincible, the sector now hopes for consumer vouchers from Beijing to boost growth. Shares in LVMH and Kering fell yesterday as rumors of direct aid to Chinese consumers fizzled. China is awash with rumors of new support measures. Bloomberg reports that the People's Bank of China might cut rates again this week. The Caixin agency suggests the country could issue 6,000 billion yuan in special bonds to support investment. These whispers haven't reversed the downward trend in Chinese indices, which slipped again this morning. Investors are eager for tangible results, but patience is required.

On the oil front, prices dropped sharply (from $79 to $74 for Brent) after the Washington Post reported that Israel has no plans to strike Iranian oil or nuclear facilities. OPEC also cut its demand projections, adding to the bearish sentiment.

Today's session will feature the first major quarterly earnings reports. UnitedHealth, Johnson & Johnson, Bank of America, Goldman Sachs, Citigroup, and Charles Schwab are all publishing their results today. In Europe, LVMH takes the stage.

In Asia-Pacific, Japan had a strong session, but Chinese markets slipped. Taiwan rose thanks to its semiconductor sector, including TSMC, while Australia ended in the green, and India in the red. Europe is mostly bearish. Futures on Wall Street are slightly above zero.

Economic highlights:

European industrial production, the ZEW German financial confidence index and the US Empire Manufacturing index are the main indicators today. Speeches from Federal Reserve officials are also on the agenda, including San Francisco Fed President Mary Daly and Atlanta Fed President Raphael Bostic. For the full agenda, click here.

The dollar is worth EUR 0.9172 and GBP 0.7645. The ounce of gold is at USD 2,650. Oil fell, with North Sea Brent at USD 74.44 a barrel and US light crude WTI at USD 70.31. The yield on 10-year US debt is down to 4.07%. Bitcoin is worth USD 65,600.

In corporate news:

  • Nvidia has set a new record and is approaching Apple's market capitalisation. In addition, according to Bloomberg, the United States is considering restricting access to Nvidia and AMD chips in certain countries (particularly in the Persian Gulf).
  • Google to buy nuclear power from Kairos.
  • Coty warns that its sales for the first fiscal quarter are below forecasts.
  • Verizon ‘s bid for Frontier meets with investor scepticism, according to several sources.
  • Phillips 66 sells 49% stake in Swiss joint venture for $1.24 billion.
  • Blackstone to invest €7.5 billion in Spain.
  • Accenture acquires supply chain consultancy Joshua Tree Group.
  • Vanda Pharmaceuticals rejects Cycle Pharma's second takeover bid.
  • Bank of America reported a quarterly profit in Q3 of $0.81 per diluted share on Tuesday, a decline from $0.90 the previous year, and above analyst expectations of $0.76. Revenues reached $25.35 billion, in line with expectations.
  • Goldman Sachs delivered a quarterly profit of $8.40 per diluted share, much higher than the $5.47 recorded the previous year. Net revenue for Q3 reached $12.70 billion, also topping expectations. 
  • Apple's smartphone shipments increased by 3.5% year-on-year in the third quarter, driven by strong demand for its flagship product and the AI-equipped iPhone 16 series, according to research firm IDC.
  • Microsoft announced that Sebastien Bubeck, its vice president for artificial intelligence, is leaving to join OpenAI, 

Today's main earnings reports: UnitedHealth Group, Johnson & Johnson, Bank of America Corporation, The Goldman Sachs Group, Citigroup, Charles Schwab, PNC Financial Services Group, State Street Corporation, Omnicom Group, United Airlines Holdings, JB Hunt Transport Services, Interactive Brokers...

Analyst recommendations:

  • Airbnb, Inc.: Evercore ISI downgrades to underperform from in-line with a target price of USD 125.337.
  • Appfolio, Inc.: Keefe Bruyette & Woods downgrades to underperform from market perform with a price target reduced from USD 255 to USD 193.
  • Boeing: DZ Bank AG Research downgrades to hold from buy with a price target reduced from USD 229 to USD 152.
  • Cms Energy Corporation: Mizuho Securities downgrades to neutral from outperform with a price target reduced from USD 76 to USD 72.
  • Consolidated Edison, Inc.: Citi upgrades to buy from neutral with a target price raised from USD 103 to USD 116.
  • Duke Energy Corporation: Mizuho Securities upgrades to outperform from neutral with a price target raised from USD 116 to USD 121.
  • Enphase Energy, Inc.: RBC Capital downgrades to sector perform from outperform with a price target reduced from USD 125 to USD 100.
  • Etsy, Inc.: Goldman Sachs downgrades to sell from neutral with a price target reduced from USD 70 to USD 45.
  • Lennox International Inc.: KeyBanc Capital Markets downgrades to sector weight from overweight.
  • Wells Fargo & Company: Phillip Securities upgrades to accumulate from neutral with a price target raised from USD 60.83 to USD 65.
  • Booking Holdings Inc.: JMP Securities maintains its market outperform recommendation and raises the target price from USD 3950 to USD 5000.
  • Coherent Corp.: BNP Paribas Exane maintains its outperform recommendation and raises the target price from USD 85 to USD 108.
  • Duolingo, Inc.: Goldman Sachs maintains a neutral recommendation with a price target raised from 198 to USD 250.
  • Fiserv, Inc.: Morgan Stanley maintains its overweight rating and raises the target price from USD 177 to USD 220.
  • Lam Research Corporation: Raymond James maintains its outperform rating and reduces the target price from USD 1250 to USD 100.
  • Penumbra, Inc.: Baird maintains its outperform recommendation and raises the target price from USD 180 to USD 244.
  • Super Micro Computer, Inc.: Loop Capital Markets maintains its buy recommendation and reduces the target price from USD 1000 to USD 100.
  • Targa Resources Corp.: Wolfe Research maintains its outperform recommendation and raises the target price from USD 150 to USD 190.
  • BP Plc: DZ Bank AG Research downgrades to hold from buy with a price target reduced from GBP 5.50 to GBP 4.45.
  • Bodycote Plc: RBC Capital upgrades to outperform from sector perform with a price target reduced from GBX 720 to GBX 700.
  • Man Group Plc: BNP Paribas Exane downgrades to neutral from outperform with a price target reduced from GBX 245 to GBX 215.
  • Paragon Banking Group Plc: Jefferies downgrades to hold from buy with a target price reduced from GBX 875 to GBX 780.
  • Cgi Inc: CIBC Capital Markets upgrades to outperform from neutral with a price target raised from CAD 155 to CAD 178.
  • Saputo Inc.: BMO Capital Markets downgrades to market perform from outperform with a target price reduced from CAD 35 to CAD 30.