Market Overview - Major U.S. index futures indicate a higher open on Friday, with stocks expected to rebound after previous session pressure [1] - Early buying interest is driven by positive earnings reports from Amazon and Apple [1] Company Earnings - Amazon shares surged by 13.0% in pre-market trading following better-than-expected Q3 results, particularly due to a significant increase in cloud computing revenue [2] - Apple also experienced notable pre-market strength after exceeding analyst estimates in its fiscal Q4 results and providing optimistic guidance for the current quarter [2] - Netflix announced a ten-for-one stock split, which may lead to an increase in its share price [3] - Exxon Mobil reported a year-over-year decline in Q3 earnings due to lower oil prices, potentially leading to initial weakness in its shares [3] - Meta Platforms saw a significant drop of 11.3% after reporting Q3 results that beat expectations but forecasted increased AI spending [5] - Microsoft shares fell by 2.9% despite exceeding fiscal Q1 estimates, citing accelerated capital spending growth [6] - Alphabet's shares rose by 2.5% after reporting Q3 results that surpassed expectations [6] - Eli Lilly's shares increased by 3.8% after reporting better-than-expected Q3 results and raising its full-year revenue guidance [7] Sector Performance - Software stocks declined sharply, influenced by Microsoft's slump, with the Dow Jones U.S. Software Index down by 2.2% [8] - Telecom stocks also faced considerable weakness, reflected by a 2.0% loss in the NYSE Arca North American Telecom Index [8] - Gold and pharmaceutical stocks performed strongly amid the overall market fluctuations [8] International Markets - Asian stocks ended mixed, with Japan's Nikkei reaching a record high due to a weaker yen and strong tech sector gains, while Chinese and Hong Kong markets retreated [10] - China's Shanghai Composite Index fell by 0.8% after a contraction in manufacturing activity, while Hong Kong's Hang Seng Index dropped by 1.4% following disappointing earnings from BYD [11][12] - The Nikkei 225 Index surged by 2.1%, driven by optimism in AI and fiscal stimulus [13] European Markets - European stocks drifted lower despite a slight easing in Eurozone inflation, with the harmonized index of consumer prices rising by 2.1% year-over-year in October [16][17] - The German DAX Index fell by 0.3%, while the U.K.'s FTSE 100 Index and the French CAC 40 Index both decreased by 0.2% [18]

Market Overview - Stocks are expected to rebound in early trading on Friday, with S&P 500 futures up by 0.7 percent after a previous session of pressure [1] - Early buying interest is driven by positive earnings reports from major companies like Amazon and Apple [1] Company Performance - Amazon shares surged by 13.0 percent in pre-market trading following better-than-expected third quarter results, particularly due to a significant increase in cloud computing revenue [2] - Apple also experienced notable pre-market strength after reporting fiscal fourth quarter results that exceeded analyst estimates and provided optimistic guidance for the current quarter [2] - Netflix announced a ten-for-one stock split, which may lead to an increase in its share price [3] - Conversely, Exxon Mobil's shares may face initial weakness after reporting a year-over-year decline in third quarter earnings due to lower oil prices [3] Economic Indicators - The Chicago business barometer is anticipated to rise to 42.3 in October from 40.6 in September, although a reading below 50 still indicates contraction [4]

Group 1: Optimist Fund Performance - Optimist Fund achieved a return of +9.1% in Q3 2025, outperforming the benchmark return of 7.9% [1] - The fund is focusing on cyclical holdings that have been in multi-year downswings while also paying attention to developments in AI [1] Group 2: Revolve Group, Inc. Overview - Revolve Group, Inc. (NYSE:RVLV) is an online fashion retailer targeting millennial and Generation Z consumers [2] - The stock had a one-month return of 2.32% but experienced an 8.29% decline over the last 52 weeks, closing at $22.89 per share with a market capitalization of $1.632 billion on October 30, 2025 [2] Group 3: Optimist Fund's Position on Revolve Group - Optimist Fund exited its position in Revolve Group, citing tempered confidence in the company's ability to achieve 20% revenue growth [3] - The fund lowered its base-case estimates for Revolve, reducing the expected five-year annualized investment return to approximately 15%, which is below the 20% internal rate of return hurdle rate [3] Group 4: Market Sentiment and Sales Performance - Revolve Group generated net sales of $309 million in Q2 2025, reflecting a year-over-year increase of 9% [4] - Despite recognizing the potential of Revolve Group, the sentiment is that certain AI stocks present greater upside potential and lower downside risk [4]

Core Insights - Optimist Fund reported a return of +9.1% in Q3 2025, outperforming the benchmark return of 7.9% [1] - The fund is focusing on cyclical holdings that have been in multi-year downswings while also paying attention to developments in AI [1] Company Performance: Carvana Co. (NYSE:CVNA) - Carvana Co. experienced a one-month return of -18.80% but saw a 52-week gain of 33.17%, closing at $305.07 per share with a market capitalization of $35.677 billion on October 30, 2025 [2] - The company achieved record highs in key financial metrics, with retail units sold increasing by 41% year over year to 143,280 vehicles and total revenue rising by 42% to $4.84 billion [3] Hedge Fund Interest - Carvana Co. was held by 91 hedge fund portfolios at the end of Q2 2025, an increase from 90 in the previous quarter [4] - Despite the interest, some analysts believe that certain AI stocks present greater upside potential and less downside risk compared to Carvana Co. [4]

Core Insights - Taobao Flash Sale has officially launched a new convenience store brand called "Taobao Convenience Store" [2] - The brand will operate in a flash warehouse model, leveraging Alibaba's supply chain advantages to provide a comprehensive shopping experience with 24-hour service and 30-minute delivery [2] - The service will be available to consumers starting November 1, and the convenience store will gradually expand to over 200 cities nationwide [2] Financial Commitment - Taobao Flash Sale plans to invest 2 billion yuan (approximately 0.3 billion USD) in the next year to support merchants in building quality warehouses, enhancing product quality, improving logistics capabilities, and promoting continuous digital capability upgrades [2]

Core Insights - Taobao Flash Sale has launched a new convenience store brand called "Taobao Convenience Store" aimed at providing a comprehensive shopping experience with 24-hour service and 30-minute delivery [1] - The first batch of Taobao Convenience Stores will open 34 slots for high-quality service providers, focusing on flagship and standard warehouse models with around 10,000 SKUs [1] - The brand will also introduce special warehouse types to cater to student needs in campus settings, with plans to expand to over 200 cities nationwide in the future [1] - The company emphasizes a collaborative ecosystem approach, stating it will not build warehouses, open stores, or compete with merchants for profits [1] - Taobao Convenience Store will operate under a brand authorization model, allowing qualified merchants to use the brand while retaining ownership of their store assets [1]

Corporate Earnings - Companies in the S&P 500 are expected to post an average +7.2% increase in quarterly earnings for Q3 compared to the previous year, marking the smallest rise in two years [2] - Meta Platforms (META) reported weaker-than-expected Q3 EPS and raised its full-year total expense forecast, leading to a plunge of over -11% [3] - Microsoft (MSFT) fell nearly -3% after its Azure cloud-computing unit's revenue growth failed to meet expectations [3] - Chipotle Mexican Grill (CMG) tumbled over -18% after cutting its full-year comparable restaurant sales guidance [3] - C.H. Robinson Worldwide (CHRW) soared more than +19% after posting better-than-expected Q3 adjusted EPS and raising its 2026 operating income guidance [3] - Amazon.com (AMZN) jumped over +12% in pre-market trading after posting the strongest growth rate in nearly three years in its cloud unit and issuing solid Q4 revenue guidance [4][18] - Apple (AAPL) rose more than +1% in pre-market trading after reporting better-than-expected FQ4 results and providing an upbeat sales forecast for the holiday quarter [4][18] - Western Digital (WDC) surged more than +10% in pre-market trading after posting upbeat FQ1 results and issuing strong FQ2 guidance [19] Economic Indicators - The U.S. government shutdown has entered its 31st day, delaying the publication of key economic data including the September core PCE price index and Personal Spending [6] - The Congressional Budget Office stated that the four-week government shutdown will trim real annualized GDP growth by 1 percentage point this quarter [7] - Economists forecast the October Chicago PMI at 42.3, compared to the previous value of 40.6 [6] - Eurozone's October CPI rose +2.1% y/y, in line with expectations, while the Core CPI rose +2.4% y/y, stronger than expectations of +2.3% y/y [12] Market Sentiment - U.S. rate futures have priced in a 68.8% chance of a 25 basis point rate cut at the December FOMC meeting [8] - The Euro Stoxx 50 Index is down -0.37% amid profit-taking and fresh corporate earnings reports [9] - Japan's Nikkei 225 Stock Index closed sharply higher, hitting a new record high, supported by strong earnings from domestic companies and a weaker yen [15]

Group 1: Company Performance - 1-800-FLOWERS.COM (FLWS) is a leading e-commerce provider of floral products and gifts, with a significant customer base and revenue. The Zacks Consensus Estimate for its current year earnings has been revised downward by almost 87.9% over the last 60 days [1] - Bridgeline Digital (BLIN) is a digital engagement company that offers a platform integrating Web Content Management, e-commerce, e-marketing, Social Media management, and Web Analytics. The Zacks Consensus Estimate for its current year earnings has been revised downward by almost 12% over the last 60 days [2] - Avita Medical (RCEL) is a regenerative medicine company focused on developing and commercializing a technology platform for point-of-care autologous skin restoration. The Zacks Consensus Estimate for its current year earnings has been revised downward by 6.5% over the last 60 days [3] Group 2: Market Sentiment - All three companies have been added to the Zacks Rank 5 (Strong Sell) List, indicating a negative market sentiment towards their current performance and future earnings potential [1][2][3]

Core Insights - The 2025 Q3 earnings cycle has shown resilience, with many S&P 500 companies exceeding expectations and overall growth remaining strong [1][5] Company Performance: Wayfair - Wayfair reported adjusted EPS of $0.70, a 220% increase year-over-year, and sales of $3.1 billion, reflecting an 8.1% growth [2] - The adjusted EBITDA margin reached 6.7%, marking the highest level outside of the pandemic [2] - Orders delivered increased by over 5% year-over-year, with new orders growing in mid-single digits for two consecutive periods, indicating positive momentum [3] - Wayfair holds a favorable Zacks Rank 2 (Buy), with EPS expectations rising for the current fiscal year, suggesting a bullish outlook [4] Market Context - The Q3 earnings season has been strong overall, with many companies exceeding quarterly expectations and big banks providing solid insights into consumer health [5]

Group 1 - Verkkokauppa.com Oyj acquired 14,900 shares on 30 October 2025 at an average price of EUR 3.9539 per share, totaling EUR 58,913.11 [1] - After the acquisition, Verkkokauppa.com Oyj holds a total of 90,891 treasury shares [1] Group 2 - Verkkokauppa.com is an e-commerce pioneer in Finland, known for its fast deliveries and customer-centric approach, serving over 1.7 million customers [2] - The company reported a revenue of EUR 468 million in 2024 and employs around 600 people [3] - Verkkokauppa.com has been operational online since its founding in 1992 and is listed on the Nasdaq Helsinki stock exchange [3]