Top News

• U.S. GDP Growth Slows to 2.8% in Q3, Below Expectations
• AMD: $5B GPU Sales, Q4 misses Guidance;
• Lucid to Begin Taking Orders for Gravity SUV;
• Meta, Microsoft Earnings Inbound;
• Economist Warns Fed on Inflation;

I. Market Report

On Wednesday, S&P 500 futures rose, driven by Alphabet's Alphabet Inc. Class C(GOOG.US) Alphabet Inc. Class A(GOOGL.US)  impressive results.

As major tech companies prepared for reports, the market looked ahead to a key reading on US economic growth. The Google parent exceeded expectations, with strong cloud revenue growth, while chipmaker Advanced Micro Devices, Inc.(AMD.US)  fell on weak fourth-quarter guidance.

Investors await Wednesday's GDP reading, expected to show a 3.1% growth rate, and are optimistic about inflation moving closer to the Fed's target.

The S&P 500 index(SPX.US)  and NASDAQ(IXIC.US)  gained on Tuesday, while the Dow Jones Industrial Average(DJI.US)  dipped slightly.

As of 07:32 AM, EST (or 07:32 PM in Riyadh), the blue-chip Dow Jones Futures are down 90 points or 0.21% to 42,357, the broad-based S&P 500 Futures are heading up 7 points or 0.12% to 5,878, the tech-heavy Nasdaq Futures edge up by 48 points or 0.23% to 20,745. (Data source: Wind)

Top pre-market movements are as follows:

II. Flash Headlines

U.S. GDP Growth Slows to 2.8% in Q3, Below Expectations

The U.S. GDP cooled to a 2.8% growth rate in the third quarter, falling short of the expected 3.00%, and down from the previous quarter's 3.00%. 

U.S. Private Payrolls Rise by 233K in September, ADP Jobs Report

U.S. private nonfarm payrolls saw an increase of 233K in September, surpassing the consensus estimate of 115K and accelerating from a gain of 159K in August, which was revised from 143K. Annual pay gains for those remaining in their jobs were 4.6%, a decrease from 4.7% in August. For job changers, annual pay gains were 6.2%, down from 6.6% in the previous month.

Hedge Funds Turn to SGD Options as Bet on US Election Outcome

The Singapore dollar is becoming a popular U.S. election trade among options investors. The premium for buying one-month calls, which gain value when the dollar rises against the dollar, over puts is near its highest level since May 2023. So far this week, all notional amounts of nearly or more than US$100 million in the currency pair have been calls, with expiration dates as far out as Jan. 22, according to the Depository Trust & Clearing Corporation.

U.S. Treasuries Face Worst Monthly Performance in 2 Years, Funds Shift to Asian Sovereign Bonds

U.S. Treasuries are on track for their worst monthly performance in two years, as the market cuts expectations for a rate cut by the Federal Reserve, the US election and a new round of U.S. bond sales this week. Funds are instead pouring into Asian sovereign bonds, which are believed to be some of the best hedges against turbulent times. 

Economist: Federal Reserve Has Not Yet Tamed Inflation

The Fed should be cautious about inflation. In September, the year-on-year growth rate of the US Consumer Price Index (CPI) slowed to 2.4%, but core inflation, which excludes food and energy, was still as high as 3.3%. Prices of necessities such as health care, auto and homeowner insurance continue to rise rapidly. The decline in oil prices has slowed overall inflation, but this can easily reverse. 

Goldman CEO Optimistic on U.S. Economy's 'Soft Landing', Sees Positive Outlook for Trading Business

In an interview, Goldman Sachs CEO David Solomon spoke of the potential resilience of the US economy and an improving outlook for the trading business, while also expressing concerns about the widening conflict in the Middle East. The US economy is performing quite well, very resilient, and the base case for the US economy is a soft landing, said Solomon. 

Rumor: OpenAI Plans to Partner with Broadcom on Developing AI Inference Chips

OpenAI is working with Broadcom Limited(AVGO.US)  to develop a new artificial intelligence chip for the AI model inference process, according to two people familiar with the matter. The artificial intelligence startup and chip maker are also working with TSMC, the world's largest chip contract manufacturer, the people said. OpenAI has plans to customize the chip and work on such uses of the technology within a year or so, but the discussions are still in the early stages. 

World Gold Council: Global Gold Demand Grew 5% Year-over-Year in Q3

According to the World Gold Council, the total global gold demand in the third quarter of 2024 was 1,313 tons, a year-on-year increase of 5%. As the gold price hit a record high in the third quarter, the total gold demand denominated in US dollars exceeded US$100 billion for the first time, a year-on-year increase of 35%, setting a new record.

III. Stocks To Watch

SMCI Drops Over 33% Pre-Bell as Independent Auditor Resigns

Super Micro Computer, Inc.(SMCI.US) saw its shares plummet by over 33% in pre-market trading as of 4:00 PM in Riyadh. The company’s independent auditor, Ernst & Young, resigned due to concerns about the integrity of the board and the reliability of the financial statements.

In response, the board has established a special committee comprising members from Greenberg Traurig LLP and Secretariat Advisors to conduct an ongoing review.

AMD Expects GPU Sales to Top $5B in 2022, but Q4 Revenue Guidance Misses

After the US stock market closed on October 29th local time, Advanced Micro Devices, Inc.(AMD.US)  announced its third-quarter 2024 results ending September 28th. Revenue in the reporting period was US$6.819 billion, an increase of 18% year-on-year, higher than the market expectation of US$6.71 billion; net profit under US Generally Accepted Accounting Principles (GAAP) was US$771 million, compared with US$299 million in the same period last year, an increase of 158% year-on-year; net profit under non-GAAP principles increased by 33% year-on-year to US$1.504 billion, and diluted earnings per share increased by 31% year-on-year to US$0.92, in line with market expectations. 

Lucid to Begin Taking Orders for Gravity SUV in the U.S. Starting at $94,900

Lucid Group Inc Ordinary Shares(LCID.US)  announced it will begin taking orders from U.S. customers for its Gravity SUV starting November 7. The initial orders will be for the Grand Touring trim of the SUV, priced at $94,900, with production expected to commence in late 2024. Production of the lower-priced Touring trim, starting at $79,900, will start in late 2025. Existing Lucid owners will be prioritized for delivery of the Gravity SUV. The Gravity is anticipated to compete with Tesla Inc.'s Model X SUV, which starts at $79,990 for the base version and $94,990 for the more premium Plaid version. The Gravity variants are priced at just $90 lower.

Google Execs Interpret Q3 Earnings: 'Extraordinary Year of Innovation' Despite Challenges

Alphabet Alphabet Inc. Class C(GOOG.US) Alphabet Inc. Class A(GOOGL.US)  released its third-quarter financial report today: revenue was US$88.268 billion, up 15% from US$76.693 billion in the same period last year, and up 16% year-on-year excluding the impact of exchange rate changes; in accordance with US generally accepted accounting principles, net profit was US$26.301 billion, up 34% from US$19.689 billion in the same period last year; diluted earnings per share were US$2.12, up from US$1.55 in the same period last year. 

Cathie Wood's Ark Invest Dumps Cybercab Stocks, Bets Big on This eVTOL Play

On Tuesday, Cathie Wood's Ark Invest made some significant trades, most notably selling shares of Tesla Motors, Inc.(TSLA.US)  and buying a substantial amount of Archer Aviation Inc. Class A Common Stock(ACHR.US) . 

Meta Q3 Earnings Preview: AI and Search Engine Plans in Focus, Analyst Sees Company 'Well Positioned'

A new report that Meta Platforms(META.US)  is building its own search engine could put a greater emphasis on AI growth when the company reports third-quarter results after market close Wednesday. 

Ahead of Microsoft Earnings, Wall Street's Top Analysts Revise Forecasts

Microsoft Corporation(MSFT.US)  will release earnings results for its first quarter, after the closing bell on Wednesday, Oct. 30. Analysts expect the Redmond, Washington-based company to report quarterly earnings at US$3.1 per share, up from US$2.73 per share in the year-ago period. Microsoft projects to report revenue of US$64.51 billion for the quarter, compared to US$49.66 billion a year earlier, according to data from Benzinga Pro. 

GameStop Rises as Roaring Kitty Sells Chewy

GameStop Corp. Class A(GME.US)  and Chewy(CHWY.US)  displayed contrasting market movements in overnight trading Tuesday. The divergent price action comes as Keith Gill, popularly known as “Roaring Kitty”, a key figure in the 2021 meme stock movement, sold his 6.6% stake in Chewy, according to Tuesday's filing. This development affects both companies connected to Ryan Cohen, who serves as GameStop's CEO and is Chewy's founder.

IV. Calendar

Events: