Nasdaq 100, Dow Jones, S&P 500 News: Starbucks Earnings Could Set Early Tone

Highlights

• Market optimism as traders pivot focus from the Fed to a barrage of corporate earnings.
• Starbucks poised for 10.3% YoY revenue growth, yet challenges in China could arise.
• SolarEdge faces a sharp 18% drop after lackluster earnings and dim outlook.
• Awaiting crucial U.S. Weekly Initial Claims; spotlight then shifts to Friday’s Non-Farm Payrolls.

Focus Shifts to Corporate Earnings

U.S. stock markets are set to open positively on Thursday based on the pre-market futures trade as investors move their attention from Federal Reserve actions to the slew of corporate earnings lined up.

At 08:38 GMT, blue chip Dow futures are trading 33412.00, up 61.00 or +0.18%. Benchmark S&P 500 Index futures are at 4273.75, up 17.75 or +0.42% and tech-heavy Nasdaq Composite futures are trading 14833.75, up 89.25 or +0.61%.

The S&P 500 futures edged higher by 0.22% indicating a positive sentiment following a bullish session yesterday. The tech-heavy Nasdaq and blue-chip Dow Jones also registered green, adding fuel to the upbeat mood.

Mixed Bag of Corporate Updates

SolarEdge’s disappointing earnings and bleak guidance took the shine off its stock, which plummeted over 18%. Conversely, DoorDash registered a commendable climb of 7%, surpassing Wall Street’s expectations. On the flip side, Etsy dropped 5% post its warning about an uncertain consumer spending environment.

The market also kept a keen eye on the Federal Reserve’s decision, and Jerome Powell’s hints about potential rate hikes still loom over traders.

Before the Bell Highlights

Starbucks is in the spotlight today. While the U.S market shows promise with consumers still splurging on their favorite drinks, Starbucks’ plans in China might hit some turbulence. The expected revenue for the coffee giant, as per Bloomberg, is set to surge by 10.3% YoY.

Meanwhile, Eli Lilly’s expected report might show a per-share loss, and Peloton’s earnings are anticipated to reflect a revenue dip. The fitness giant’s past performance showed earnings consistently missing estimates.

Short-Term Market Outlook

Given the recent earnings and economic indicators, the market is displaying a tentative bullish stance.

As investors keenly await the U.S. Weekly Initial Claims slated for Thursday, 12:30 GMT, all eyes will subsequently turn to Friday’s much-anticipated Non-Farm Payrolls report. Pre-release predictions suggest the addition of 179K jobs in October, with the unemployment rate remaining consistent at 3.8%. Additionally, Average Hourly Earnings are projected to rise by 0.3%.

Post-market earnings from industry giants like Apple and DraftKings are set to further influence market trajectories. In the coming sessions, corporate earnings will be the primary catalyst steering market movements.

Technical Analysis