Today saw a slight risk-off sentiment in tech even with Brent crude oil prices dropping. Palantir PLTR saw a good earnings report as their technology was adopted not just by military but corporate. Their shares spiked up after hours, then settled down and around 1.40% up now in after-hours trading at the time of writing.
Investors could see PLTR as a company that has a big future as data becomes a bigger part of society. In John Ternus's first quarterly earnings report as CEO, Apple beat on earnings but missed revenue in China. What could possibly be the Chinese consumer choosing to adopt domestic tech companies for their products?
Not a great deal of volume whatsoever in Apple shares after hours, so it’s possible that it might not have an effect on the overall market. If so, and the market now shrugs off Apple's earnings, then all eyes are on US labor market data this week and could possibly be more of a macro than a micro story. Apple shares up around 0.50% in after-hour trading at the time of writing.
Apple Reports Record Revenue Results
Headline Results. Revenue: $114.48 billion, topping Wall Street expectations of $113.38 billion and up 12% year-over-year. Earnings Per Share (EPS): $2.10, beating the consensus estimate of $1.99. Gross Margin: Came in at 47.9%, slightly ahead of the estimated 47.5%.
Net Income: $30.71 billion (up 12% YoY). Forward Guidance & Negatives / Headwinds. Management highlighted that surging global memory chip costs continue to squeeze hardware margins. While pricing actions have absorbed some of the blow, component cost inflation remains a primary risk factor for upcoming quarters.
Commentary around the supply chain pointed to soft spots in high-end Pro model orders in key overseas regions (such as China), where shorter lead times and e-commerce discounting have surfaced, even as the lower-tier hardware lineups have seen strong reception. Despite beating top- and bottom-line estimates during John Ternus's debut quarter as CEO, shares dipped roughly 1% in after-hours trading as investors weighed whether soaring component expenses and softening Pro demand will cap margin expansion heading into the holiday season.
Financial markets navigated mixed signals today as sliding energy prices and solid economic data provided a risk-on backdrop despite political uncertainties surrounding the upcoming US midterm elections. The US Treasury Department reduced its fourth-quarter borrowing estimate to $618 billion, easing supply concerns across sovereign debt markets as bond yields adjusted to shifting fiscal projections.
Crude Oil Plunges on Geopolitical Shifts
Crude oil plunged 7% as reports surfaced that the US and Iran are on the verge of a preliminary agreement, alongside statements from Donald Trump that he will not strike Iran following the midterms. Brent oil tested its 200-day simple moving average as bearish momentum accelerated, providing an immediate boost to airline equities as lower fuel costs spurred buying.
US ISM manufacturing PMI for October beat expectations at 55.5 versus the 54.5 estimate, signaling robust expansion across factory floors. Megacap tech remained volatile as Meta targeted a $20 billion bond offering and Anthropic moved toward a $3.5 billion share sale, while chipmakers gave up early gains ahead of upcoming corporate results.
Markets Eye Upcoming Economic Indicators
Meanwhile, Bitcoin threatened a slide below $76,000, failing to mirror equity resilience. All eyes now turn to AMD earnings and incoming midterm election results.
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