1. On Tuesday, November 4, U.S. stock index futures for the three major indices fell in pre-market trading. As of writing, Dow futures dropped 0.63%, S&P 500 futures declined 0.99%, and Nasdaq futures slid 1.28%. 2. European markets also weakened, with Germany’s DAX down 1.25%, the UK’s FTSE 100 falling 0.59%, France’s CAC 40 losing 1.19%, and the Euro Stoxx 50 retreating 1.07%. 3. Oil prices dipped, with WTI crude down 1.46% to $60.16 per barrel and Brent crude falling 1.26% to $64.07 per barrel.
**Market Highlights:** Wall Street executives warn that stocks are trading between "fair and expensive" levels, predicting an inevitable 10% correction. CEOs from major asset managers suggest investors prepare for a potential pullback within 12–24 months, framing it as a healthy market adjustment rather than a bearish signal. Capital Group’s CEO Mike Gitlin noted strong corporate earnings but cautioned against high valuations. Morgan Stanley’s Ted Pick and Goldman Sachs’ David Solomon echoed concerns over possible sell-offs, emphasizing corrections as a normal market cycle feature.
Federal Reserve Governor Mester reiterated calls for aggressive rate cuts, citing restrictive monetary policy. She argued that neutral rates are far below current levels and advocated for larger cuts, opposing the Fed’s recent 25-basis-point reduction in favor of 50 basis points.
Saxo Bank’s Ole Hansen maintained a bullish long-term outlook for gold despite an 8% drop from its October peak. He attributed the decline to seasonal weakness and a stronger dollar but dismissed it as a trend reversal, citing persistent demand drivers like trade uncertainty and central bank purchases.
Copper prices extended losses as hawkish Fed commentary strengthened the dollar, pressuring dollar-denominated commodities. LME copper futures fell across the board, with investor focus shifting from supply concerns to Fed policy.
**Corporate Updates:** - **Tesla (TSLA.US):** October China deliveries fell 10% YoY to 61,497 units, signaling Q4 challenges. Major shareholder Norway’s sovereign wealth fund opposed Elon Musk’s $1 trillion compensation package ahead of the shareholder meeting. Shares dropped over 2% pre-market. - **Palantir (PLTR.US):** Q3 revenue surged 63% to $1.18B, beating estimates, with adjusted EPS of $0.21 ($0.17 expected). Despite raising full-year guidance, shares fell 7% pre-market. - **Pfizer (PFE.US):** Q3 revenue of $16.65B and adjusted EPS of $0.87 topped forecasts. The company raised its 2025 profit outlook, accounting for tariff impacts. - **Philips (PHG.US):** Q3 comparable sales rose 3%, led by a 5% gain in North America. Adjusted EBITA of €531M exceeded expectations. Shares rose 3% pre-market. - **BP (BP.US):** Q3 adjusted profit of $2.21B beat estimates, supported by refining margins. The firm announced a $750M buyback. - **Yum China (YUMC.US):** Operating profit grew 8%, with same-store transactions rising for the 11th straight quarter. Shares gained 2% pre-market.
**Earnings Watch (Wednesday):** - Early: AMD (AMD.US), Arista Networks (ANET.US), Tempus AI (TEM.US), Astera Labs (ALAB.US), Pinterest (PINS.US), Rivian (RIVN.US). - Pre-market: Toyota (TM.US), Novo Nordisk (NVO.US), McDonald’s (MCD.US), Cameco (CCJ.US).
