Equities: Tech earnings weigh on US futures - Deutsche Bank
Tech earnings are the main theme this evening, and they are pulling markets in different directions. Disappointing results from Alphabet and Samsung are weighing on US equity futures, while Microsoft's strong cloud performance has not been enough to lift the broader mood. Weakness across Asian markets added to the cautious tone.
Microsoft was the bright spot. The company reported quarterly revenue of 92.3 billion dollars and profit of 36.6 billion dollars, beating expectations. Its Azure cloud division grew 48 percent, and the stock jumped 4 percent as a result.
Alphabet went the other way. Net profit fell 25 percent from a year earlier to 26.2 billion dollars, well short of expectations, even though revenue rose to 127.6 billion dollars. Shares fell more than 10 percent in after-hours trading, with investors reacting to the profit miss, an advertising slowdown and heavy spending.
Samsung also drew attention. It reported record profit for the third quarter, yet its shares slid. Separately, the company raised its 2026 chip investment to 76.8 trillion won, as demand for AI memory continues to surge.
That memory demand is visible elsewhere in the chip sector. SK Hynix posted a record quarter, with revenue topping 100 trillion won for the first time. The chipmaker says memory demand will outrun supply through 2030, with DRAM and high bandwidth memory sold out through 2029.
In other news, UK government borrowing costs fell as the City welcomed a budget that avoided unsettling gilt markets, with the pound steady and gilt yields lower. The euro stayed near its lowest level this year against the dollar, below 1.1150. Dow futures rose ahead of US inflation data, while S&P 500 and Nasdaq 100 futures fell. Frontier Airlines reported a 71 percent jump in airfare for the third quarter.
How many stories mention each market, and how many read bullish or bearish.
Shell nearly doubles quarterly profit year-on-year as refining margins soar to record high. The oil major hiked its share buyback program as global volatility in energy markets saw profits soar.
The issue centers on a deal with Scilex, under which Scilex agreed to buy shares of Datavault AI for $150 million, payable in bitcoin.
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UK government borrowing costs fall as City welcomes ‘no harm’ budget – business live. Pound steady and gilt yields drop as chancellor ‘navigates first budget without spooking gilt markets’, experts say.
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Nvidia CEO Jensen Huang targeted in Chinese espionage plot, NY Times reports. Increased scrutiny and regulatory challenges may impact Nvidia's market performance and complicate future licensing for China-bound products.
‘There has to be a bolder shift’: retail and hospitality businesses assess relief in budget. Chancellor cuts business rates for more small businesses and limits rise in minimum wage for younger workers.
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Swiss Franc: Range trade below 0.8320 against US Dollar – UOB. UOB strategists Quek Ser Leang and Lee Sue Ann observe that USD/CHF failed to decisively clear resistance, peaking at 0.8313 before closing lower at 0.8279.
Compiled by the Borearis Research Team from public news and market quotes, with AI-assisted summaries. For information only, not investment advice. Trading involves risk.
