Cloudflare (+2.2%) beats and raises; adjusted EPS of $0.27 on $562 million (vs. $0.23 and $544.8 million)Twilio (+6%) rises after double beat; adj EPS of $1.25 on $1.3 billion (vs. $1.07 on $1.25 billion)Republic Services (-1.2%) beats on profit; $1.90 adjusted EPS on $4.212 billion in revenue (vs. $1.78 and $4.254 billion)First Solar (+1.89%) beats on revenue thanks to strong module sales; $1.594 billion (vs. $1.554 billion)Rocket Companies (+2%) beats on both; $0.07 EPS on $1.783 billion (vs. $0.04 EPS an ...

Earnings Reports - 173 S&P 500 companies are reporting earnings this week, with Apple and Amazon.com reporting after Thursday's close [1] - 84% of the S&P 500 companies that have reported so far have beaten forecasts, indicating a strong Q3 earnings season [1] - 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 [1] Market Reactions - US stock indexes are mixed, with Meta Platforms down over 10% and Microsoft down over 2% due to disappointing earnings, while Alphabet is up over 4% after beating Q3 earnings [4][5] - Chipmakers are experiencing declines, led by Nvidia's 2% drop after comments from President Trump regarding sales approvals [13] - Sprouts Farmers Market reported Q3 net sales of $2.20 billion, below the consensus of $2.23 billion, leading to a decline of over 24% in its stock [15] Economic Indicators - The US government shutdown is ongoing, affecting market sentiment and delaying the release of key economic reports, with an estimated 640,000 federal workers furloughed [7] - Eurozone Q3 GDP rose by 0.2% quarter-over-quarter and 1.3% year-over-year, exceeding expectations [11] Interest Rates - Markets are pricing in a 70% chance of a 25 basis point rate cut at the next FOMC meeting on December 9-10, with an overall expected cut of 81 basis points by the end of 2026 [3] - The 10-year T-note yield has risen to a 2.5-week high of 4.11%, influenced by reduced safe-haven demand and rising inflation expectations [9][10]

Group 1 - The Federal Reserve's recent decision and potential interest rate cuts may lead to lower mortgage rates, providing relief for homebuyers [1] - The average rate for a 30-year fixed-rate mortgage is currently 6.3%, the lowest since October 2024, but still significantly higher than the under-3% levels at the pandemic's onset [2] - High mortgage rates, elevated home prices, and economic uncertainty have kept many potential buyers from entering the market [2] Group 2 - Adjustable-rate mortgages (ARMs) offer lower initial rates compared to fixed-rate loans, with the current ARM rate nearly one percentage point lower than the 30-year fixed rate [3] - The average interest rate for a 5/1 ARM is 5.66%, according to recent data from the Mortgage Bankers Association [3] - ARMs are considered an "underappreciated opportunity" by industry experts, suggesting potential advantages for borrowers [4]

Interest Rate Changes - The Federal Reserve has cut interest rates for the second time in 2023, lowering the federal funds rate to a range of 3.75%-4% [1][14] - Fed Chair Jerome Powell has expressed uncertainty about the possibility of another rate cut in December [1][15] Impact on Borrowers and Savers - The rate cut is beneficial for borrowers, potentially leading to lower loan and mortgage rates [2] - For savers, the lower rates signify a turning point, making it harder to earn strong returns from savings accounts and fixed-income products [2] Investment Strategies - Experts recommend maintaining emergency funds and short-term savings in safe, low-risk places [3] - Money not needed immediately could be invested in higher-return options like stocks, which historically tend to rise when interest rates fall [4][5] - Since the September rate cut, stock prices have continued to climb [7] Investment Vehicles - Exchange-traded funds (ETFs) are suggested as a way to invest in a broad range of companies, spreading risk while capturing market growth [8][17] - Acorns, a micro-investing app, allows users to invest spare change into ETFs based on their risk level [9][17] Real Estate Investment - Real estate is highlighted as an alternative investment path, with Homeshares offering accredited investors exposure to a portfolio of owner-occupied homes through its US Home Equity Fund [11][17] - The fund targets homes with strong equity and aims for risk-adjusted target returns of 14% to 17% [13][17] - A balanced investment portfolio is suggested, comprising 50% stocks, 30% bonds, and 20% alternative assets like real estate [12][17]

Interest rate cut.China agreement.The market is now cleared for takeoff. ...

Core Viewpoint - The recent rate cuts by the Hong Kong Monetary Authority (HKMA) and local banks are expected to positively impact the economy and property market in Hong Kong, although the pace of future cuts remains uncertain [1][6]. Group 1: Rate Cuts and Economic Impact - The HKMA cut the base rate by a quarter point to 4.25%, marking the lowest level since November 2022 [6]. - HSBC and Bank of China (Hong Kong) reduced their prime lending rates by 12.5 basis points to a historic low of 5%, while Standard Chartered's rate is now 5.25% [5][7]. - The adjustments in rates are a response to the US Federal Reserve's recent rate cut, reflecting local market conditions [2][3]. Group 2: Banking Sector Response - The prime rate cut is the second in six weeks, following a 12.5-basis-point reduction in September [3]. - Other banks in Hong Kong are expected to follow HSBC's lead in adjusting their rates [3]. - The new rates from HSBC will take effect on Friday, while Bank of China and Standard Chartered will implement changes on Monday [3]. Group 3: Mortgage and Lending Environment - As of the end of August, Hong Kong homebuyers had HK$1.89 trillion in outstanding mortgage loans, with an average mortgage size of HK$4.61 million for new loans [10]. - The rate cuts are seen as beneficial for small and medium-sized enterprises and mortgage borrowers, although further reductions in interbank rates would enhance this effect [17][19]. - The one-month Hong Kong interbank offered rate (Hibor) has increased to 3.4373%, impacting mortgage pricing [17].

Gold vs Silver vs gold. Photo by BeInCrypto After the much-anticipated FOMC interest decision, Bitcoin, the colloquial digital gold, and commodity safe havens like gold and silver seek footing after turbulence. Markets are moving past policymakers’ decision to cut interest rates by a quarter percentage point to focus on other drivers, including earnings and geopolitics. What Next for Bitcoin, Gold, and Silver After FOMC Interest Rate Decision? BeInCrypto reported the Fed’s decision to cut interest rates ...

Monetary Policy Impact - The Federal Open Market Committee (FOMC) cut interest rates by 25 basis points to a range of $3.75-4.00 for the first time in three years, causing major stock indexes to fall into negative territory [1][7] - Fed Chair Jerome Powell indicated that future rate cuts are not guaranteed and will be data-driven, despite market assumptions of another cut in December [2][3] Earnings Reports Overview - Microsoft (MSFT) reported earnings of $4.13 per share on revenues of $77.67 billion, exceeding estimates of $3.65 per share and $74.96 billion, with Azure Cloud revenue growing by 40% year over year [4] - Alphabet (GOOGL) saw shares rise by 6% after reporting earnings of $2.87 per share, surpassing the $2.26 estimate, with revenues of $87.47 billion, better than the $84.96 billion forecast [5] - Meta Platforms (META) reported earnings of $7.25 per share on revenues of $51.24 billion, exceeding the $6.61 estimate and $49.45 billion forecast, with daily active users reaching 3.54 billion [6] - ServiceNow (NOW) shares increased by 3% after reporting earnings of $4.82 per share on revenues of $3.41 billion, both surpassing expectations [8] - Starbucks (SBUX) missed earnings expectations by 3 cents per share, reporting 52 cents, but revenues of $9.6 billion exceeded the $9.33 billion forecast [8]

BREAKING: Futures Rise After Huge Earnings; Trump-Xi Ahead Small caps lagged in the stock market at Wednesday's close after Federal Reserve Chair Jerome Powell said cutting interest rates at its December meeting "is not a foregone conclusion." Policymakers cut the key rate by 25 basis points to a range of 3.75% to 4% at the Fed's meeting earlier Wednesday. Now, the stock market turns to a boatload of… Get instant access to exclusive stock lists, expert market analysis and powerful tools with 2 months of IBD ...

After the Fed cut interest rates this afternoon, all three indices hitting intraday records early, but only the Nasdaq landed in the green. The S&P nearly unchanged, the Dow down more than 70 points. Nvidia making history, becoming the first company to hit a $5 trillion valuation.It is up nearly 15% in just the last five trading sessions. Gold, meantime, settling back above the $4,000 level today, but pulling back in the last few hours. Shares of Adidas dropping more than 10% on weak sales in North America. ...