The Dow Jones climbed 0.7%, the S&P 500 edged up 0.4%, and the Nasdaq added 0.2% this morning. Tech stocks are basking in the glow of stable bond yields. Investors are eagerly anticipating quarterly earnings from tech titans like Alphabet, Microsoft, Apple, Meta, and Amazon. These reports are expected to underscore the sector's buoyant outlook, boosted by the rise of artificial intelligence. The "Magnificent 7," which includes Nvidia and Tesla, have collectively surpassed a $12 trillion market cap, propelling the Nasdaq's ascent.

Beyond earnings, the spotlight is on U.S. economic indicators, including third-quarter GDP, the monthly jobs report, and the PCE index, the Fed's favored inflation gauge. The impending U.S. presidential election on November 5 adds a layer of market uncertainty, with a very tight contest between Donald Trump and Kamala Harris.

Last week, global equity markets took a hit, despite a late rally attempt. In a sea of losses, some companies shone green, thanks to solid results (SAP SE, Philip Morris, GE Vernova), technological prowess (Nvidia, Microsoft), or a touch of the arcane (Tesla). Consequently, most indices faltered, except the Nasdaq, which eked out a 0.1% gain, buoyed by Tesla's 22% surge on Thursday. Big tech stocks remain a safe haven amid investor jitters, especially when those jitters are tangled with the U.S. election, monetary policy, and geopolitical tensions. With Tesla's results already out and Nvidia's slated for November 20, the remaining "Magnificent" are set to unveil their quarterly numbers this week. Alphabet reports on Tuesday, followed by Microsoft and Meta on Wednesday, and Apple and Amazon on Thursday. These post-market releases will fill the gap before the November 5 election.

So far, results are "mixed," according to FactSet, a go-to for S&P 500 earnings analysis. To date, 37% of S&P 500 companies have reported, with that number expected to rise to 71% by week's end. In the Middle East, Israel targeted military sites in Iran, yet the situation is deemed stable. Oil prices dipped as the strikes spared Iran's oil infrastructure. On the macroeconomic front, key data releases include the first estimate of Q3 GDP (Wednesday), PCE inflation (Thursday), and the monthly jobs report (Friday).

The Federal Open Market Committee's decision looms, fostering market caution. The Bank of Japan's monetary policy meeting on Thursday is expected to be uneventful, with rates likely unchanged. Fed officials are observing a pre-meeting silence ahead of the November 7 policy decision. On the corporate scene, around 50 mega-cap companies are on the docket. In the Asia-Pacific region, Japan's Nikkei 225 rebounded 1.5%, aided by a weaker yen. China's markets are steady, while South Korea and India rose 1.5% and 0.6%, respectively. Australia nudged up 0.1%. European indices are mostly on the rise.

Today’s economic highlights:

The dollar is down to EUR 0.9246 and GBP 0.7702. The ounce of gold remains high at USD 2,738. Oil fell sharply, with North Sea Brent at USD 71.15 a barrel and US light crude WTI at USD 67.17. The yield on 10-year US debt rose to 4.24%. Bitcoin is just under USD 69,000.

In corporate news:

  • Google develops an AI capable of using a web browser, according to The Information.
  • Boeing announced a capital increase of approximately $19 billion following its largest quarterly loss in four years, including the issuance of 90 million new ordinary shares for $14 billion.
  • McDonald's hamburger infections multiply in the USA. The group rules out the possibility that hamburgers are the cause of the E. coli epidemic.
  • Eli Lilly gets green light to launch weight loss drug in Hong Kong.
  • Meta Platforms to use Reuters news content in artificial intelligence chatbot.
  • Delta Air Lines sues CrowdStrike over software update that caused massive flight disruptions.
  • The U.S. sues Lyft, claiming the company inflated drivers' earnings prospects.
  • Italy's competition watchdog investigates alleged unfair practices by Otis Worldwide.
  • Philips revised its revenue forecast downward due to a "significant deterioration" in demand in China, causing its stock to drop
  • Apple faced a setback in Indonesia, where the sale of its iPhone 16 was blocked due to non-compliance with local investment requirements.

Today's top earnings reports: Waste Management, Welltower, Cadence Design Systems, Ford Motor, ON Semiconductor Corporation, Brown & Brown, SBA Communications, CenterPoint Energy, Regency Centers...

Analyst recommendations:

  • Aon Plc: Wells Fargo upgrades to equalweight from underweight with a price target raised from USD 315 to USD 377.
  • Cdw Corporation: JP Morgan downgrades to neutral from overweight with a target price reduced from USD 260 to USD 235.
  • Ciena Corporation: Morgan Stanley downgrades to equalwt from overwt with a target price of USD 63.
  • Dover Corporation: Wolfe Research upgrades to outperform from peerperform with a target price of USD 227.
  • Edwards Lifesciences Corporation: Bernstein upgrades to market perform from underperform with a price target raised from USD 65 to USD 71.
  • Frontier Communications Parent, Inc.: Raymond James downgrades to market perform from strong buy.
  • Globalfoundries, Inc.: Morgan Stanley downgrades to equalwt from overwt with a price target reduced from USD 53 to USD 43.
  • Honeywell International Inc.: Wolfe Research downgrades to peerperform from outperform.
  • Kinsale Capital Group, Inc.: Wolfe Research upgrades to outperform from peerperform with a target price of USD 535.
  • Nutanix, Inc.: Morgan Stanley upgrades to overweight from equal weight with a target price raised from USD 71 to USD 72.
  • Trinet Group, Inc.: Needham downgrades to hold from buy.
  • Wex Inc.: Wolfe Research downgrades to peerperform from outperform.
  • Boston Properties, Inc.: Barclays maintains its equalweight recommendation and raises the target price from 65 to USD 88.
  • Coherent Corp.: Raymond James maintains its outperform rating and raises the target price from USD 79 to USD 112.
  • Equinix, Inc.: Barclays maintains its equalweight recommendation and raises the target price from 671 to USD 810.
  • Nov Inc.: TD Cowen maintains its buy recommendation with a price target reduced from USD 28 to USD 22.
  • Reddit, Inc.: Bernstein maintains its underperform recommendation and raises the target price from USD 50 to USD 65.
  • Resmed, Inc.: Morgans Financial Limited maintains its add recommendation and reduces the target price from 230.80 to USD 41.33.
  • Vornado Realty Trust: Mizuho Securities maintains a neutral recommendation with a price target raised from 26 to USD 38.
  • Glencore Plc: HSBC upgrades to buy from hold with a target price raised from ZAR 102.50 to ZAR 110. HSBC upgrades to buy from hold with a price target raised from GBP 4.35 to GBP 4.65.
  • Man Group Plc: Autonomous Research upgrades to outperform from neutral with a price target reduced from GBX 262 to GBX 240.
  • Telus Corporation: Scotiabank upgrades to sector outperform from sector perform with a target price of CAD 24.