S&P 500 futures are down 20 points, Nasdaq 100 futures have dropped 120 points, and Dow Jones Industrial Average futures are down 98 points. This follows last week's positive performance in stocks.
This week is busy with earnings reports from companies like Tesla (TSLA, Financial), Boeing (BA, Financial), Coca-Cola (KO, Financial), IBM (IBM, Financial), and UPS (UPS, Financial). Key economic reports include the September Existing Home Sales on Wednesday, jobless claims and September New Home Sales on Thursday, and the final October University of Michigan Consumer Sentiment survey on Friday.
The 10-year yield has risen to 4.13%, increasing by six basis points, while the 2-year yield is at 3.99%, up by four basis points.
Today's News
Microsoft (MSFT, Financial) is set to enhance its AI capabilities by allowing businesses to create autonomous AI agents starting next month. This move intensifies its competition with Salesforce (CRM), which launched its configurable AI models recently. The tech giant's Chairman and CEO, Satya Nadella, announced the new features in Copilot Studio and Dynamics 365, highlighting the shift from private to public preview. This development aims to transform critical business processes with AI.
Tesla (TSLA, Financial) and SpaceX CEO Elon Musk is under investigation following his promise to give away $1 million daily until Election Day to voters who sign a petition supporting the First and Second Amendments. Legal experts argue this initiative might breach federal laws against paying individuals to influence voting behavior. The scrutiny intensifies as Musk's actions coincide with a tight U.S. election race.
Ferrari (RACE, Financial) unveiled its new supercar, the F80, boasting a combined 1,184 horsepower from a twin-turbocharged V6 engine and multiple electric motors. The car accelerates from 0 to 62 mph in 2.15 seconds, with a top speed of 218 mph. Despite its release being years away, the F80's order book is already full, reflecting high demand for Ferrari's latest innovation.
Spirit Airlines (SAVE, Financial) saw a 23% surge in premarket trading after announcing a debt-refinancing extension with its credit card processor, U.S. Bank National Association. The airline must refinance its 2025 bonds by December 23 to maintain this deal. Spirit also reported borrowing $300 million from its credit line, projecting over $1 billion in liquidity by year-end.
Hertz Global Holdings (HTZ, Financial) experienced a downgrade from J.P. Morgan due to challenges in its electric vehicle strategy, leading to estimated losses of up to $1 billion. Despite structural improvements in earnings power, Hertz faces hurdles in achieving normalized earnings, expected beyond 2026.
Meta Platforms (META, Financial) has released new AI models from its research division, including a "Self-Taught Evaluator" designed to minimize human involvement in AI development. This model uses synthetic preference data to train reward models, advancing AI's capability to make reliable judgments without human annotations.
Nokia (NOK, Financial) declared a quarterly dividend of $0.0324 per share, payable on November 5. The company continues to focus on strategic partnerships, including a recent collaboration with VNPT to support 5G rollout in Vietnam, amidst plans to reduce its workforce in China and the EU.
ServiceNow (NOW, Financial) faced a downgrade from Morgan Stanley ahead of its third-quarter earnings release. Analyst Keith Weiss cited stable demand and encouraging execution but noted the lack of significant valuation upside and elevated expectations due to Pro Plus adoption, leading to a revised price target of $960.
PING AN (PNGAY, Financial) reported a 9M net profit of RMB119,182 million, with an 8.7% increase in revenue year-on-year. The company continues to benefit from new stimulus measures in China, contributing to the positive financial results.
Prospect Capital (PSEC, Financial) has expanded its preferred stock offering with Preferred Capital Securities, increasing the offering to $2.25 billion. This move aligns with the firm's strategy to strengthen its financial position.
Dynex Capital (DX, Financial) reported a Q3 GAAP EPS of $0.38, surpassing expectations by $0.16. The company achieved a total economic return of $0.89 per common share, driven by an increase in book value and declared dividends.
