Stocks Rebound on Economic Optimism

Group 1: Economic Indicators - The US October ISM services index rose by 2.4 to 52.4, exceeding expectations of 50.8, marking the fastest pace of expansion in 8 months [2] - The US October ADP employment change increased by 42,000, surpassing expectations of 30,000 [3] - Price pressures in the service sector accelerated, with the ISM services prices paid sub-index unexpectedly rising by 0.6 to a 3-year high of 70.0 [2][11] Group 2: Market Performance - US stock indexes initially moved lower but recovered, with the S&P 500 up by 0.42%, the Dow Jones up by 0.12%, and the Nasdaq 100 up by 0.41% [7] - The correction in AI-infrastructure stocks continued, with Super Micro Computer down more than 8% after reporting weaker-than-expected Q1 net sales [5][19] Group 3: Corporate Earnings - Q3 corporate earnings season is strong, with 80% of S&P 500 companies that have reported so far beating forecasts, on track for the best quarter since 2021 [8] - Q3 profits are expected to rise by 7.2% year-over-year, the smallest increase in two years, while sales growth is projected to slow to 5.9% year-over-year from 6.4% in Q2 [8] Group 4: Notable Stock Movements - Seagate Technology is up more than 11%, Micron Technology is up more than 8%, and Western Digital is up more than 7% [14] - Lumentum Holdings is up more than 24% after reporting Q1 adjusted EPS of $1.10, above the consensus of $1.03 [15] - Zimmer Biomet Holdings is down more than 15% after reporting Q3 net sales of $2.00 billion, weaker than the consensus of $2.01 billion [18]