US stock futures struggled on Monday to revive a rally stalled by doubts about interest-rate cuts, as investors looked ahead to high-stakes Nvidia (NVDA) earnings and the delayed September jobs report.
Nasdaq 100 futures (NQ=F) rose roughly 0.1%, while those on the S&P 500 (ES=F) hovered just above the flatline. Contracts on the Dow Jones Industrial Average (YM=F), which includes fewer tech stocks, also traded broadly flat.
Wall Street is already getting set for Nvidia’s (NVDA) earnings on Wednesday, always an intensely scrutinized event. But the stakes are even higher this time amid doubts about Big Tech valuations and hefty AI spending. The chipmaker’s results and outlook will test faith on Wall Street that earnings will continue to drive stock gains and that the tech sell-off is a blip.
A boost to start the week came after Berkshire Hathaway (BRK-B) disclosed it has taken a nearly $5 billion stake in Alphabet (GOOG, GOOGL). The move — likely one of the last under Warren Buffett’s leadership — is a rare tech bet by the conglomerate, one that markets will set against AI trade concerns. The Google parent’s stock popped 5% before the bell.
Investors are hoping to get an official snapshot of the labor market with the long-awaited release of September’s jobs report on Thursday. But a full return to a complete slate of economic data remains up in the air, even after the federal shutdown ended.
This week’s delayed monthly picture of the US jobs market will come under high scrutiny, as the more cautious tone struck by Federal Reserve officials recently throws doubt on the central bank’s rate move next month. Traders are now pricing in a 45% chance of a rate cut, compared with 62% a week ago.
In earnings this week, investors will get fresh insight into consumer strength as retailers led by Walmart (WMT) report. Home Depot (HD), Target (TGT), Lowe’s (LOW), and Gap (GAP) are others on this week’s docket.
Bitcoin (BTC-USD), meanwhile, is serving as a health check for the crypto market at large. The price of the cryptocurrency has dropped 30% in a little over a month, from a record high of over $126,000 to below $94,000 per token. Over the weekend, bitcoin briefly erased its gains this year, which were sparked by the Trump administration’s more crypto-friendly stance — a sign that investors are shifting to a risk-off mindset.
LIVE 7 updates
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Chinese EV maker XPeng’s Q4 sales forecast falls short
Reuters reports:
XPeng (XPEV) forecast fourth quarter revenue below estimates on Monday, as a prolonged price war and intensifying competition in China, the world’s largest auto market, threaten to slow its growth.
The Chinese electric vehicle maker’s US-listed shares, which have more than doubled this year, fell about 4% in premarket trading.
The cautious outlook comes despite XPeng and rival NIO (NIO) posting record deliveries in October, even as Tesla’s (TSLA) China sales slumped to a three-year low. The contrasting performance underscores the uneven impact of a bruising price war that has eroded profitability across China’s crowded EV sector.
XPeng expects fourth-quarter revenue between 21.5 billion yuan ($3.03 billion) and 23 billion yuan, below analysts’ average estimate of 26 billion yuan, according to data compiled by LSEG.
Read more here.
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Good morning. Here’s what’s happening today.
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Premarket trending tickers: Dell, Marriott Vacations, HP, and Masimo
Dell (DELL) Stock fell 5% in premarket trading on Monday after Morgan Stanley cut ratings on several major technology hardware makers, including Dell.
HP Inc. (HPQ) stock fell 3%. Alongside Dell, Morgan Stanley cut ratings for the technology stock.
Masimo (MASI) stock rose 3% before the bell after a US jury ruled that Apple (AAPL) must pay Masimo $634 million in smartwatch patent case.
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Alphabet stock rallies after Berkshire reveals $4.9 billion stake
Alphabet’s (GOOG, GOOGL) shares rose 5.5% in premarket trading on Monday after Berkshire Hathaway (BRK-B) disclosed an almost $5 billion stake in the Google parent.
The move marks what could be one of the final major moves by the conglomerate under the leadership of Warren Buffett, who is stepping down from his duties as chairman and CEO at the end of the year.
Reuters reports:
A filing on Friday showed that Berkshire owned 17.85 million shares in Google’s parent as of September 30. As of the stock’s last close, the stake would be worth $4.93 billion, according to Reuters’ calculations.
Berkshire’s move comes amid growing concerns over Big Tech’s heavy AI spending that intensified after Michael Burry, known for “The Big Short”, deregistered his hedge fund last week following his recent criticism of leading AI companies. …
It was unclear whether Buffett, his portfolio managers Todd Combs and Ted Weschler or [next CEO Greg] Abel made the specific purchase, though Buffett typically oversees the larger investments.
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‘Hold your ground’: Wall Street strategists say tech stock sell-off is a short-term blip as earnings bull case remains intact
Yahoo Finance’s Allie Canal reports:
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Japanese retail, tourism stocks fall after Beijing travel warning
Some of Japan’s biggest tourism and retail-related stocks slumped after China warned its citizens against traveling to and studying in the country, amid a deepening diplomatic spat between the nations.
Bloomberg reports:
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Oil drops as Russia opens up key port after week closure
Bloomberg reports:
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