Opening Comment — Thursday, October 29, 2026
DJIA: 52,475.10, up 97.53
S&P 500: 7,743.98, up 21.38
NASDAQ: 26,549.85, up 72.04
Stocks lower after mega-cap tech earnings
Stock futures are lower Thursday morning following mega-cap earnings releases that renewed artificial intelligence (AI) spending concerns. Meanwhile, investors look ahead to several key economic releases, including the advance reading of third-quarter gross domestic product (GDP), September’s personal income and spending data, and the Personal Consumption Expenditures (PCE) Deflator, the Federal Reserve’s (Fed’s) preferred gauge of inflation. As of 7:25 AM ET, the Dow is decreasing 0.1%, while the S&P 500 is down 0.2%. The Nasdaq 100 is falling 0.9% relative to fair value on the GLOBEX.
U.S. equities were higher on Wednesday following the Fed’s policy meeting yesterday, as policymakers voted 10-2 to hold the benchmark interest rate steady at a range of 3.75% to 4.00%. During the post-meeting press conference, Fed Chair Kevin Warsh noted that most policymakers do not believe the economy is overheating and stated that the Fed remains focused on its 2% inflation target. Meanwhile, the advance goods trade deficit unexpectedly widened to $134.9 billion in September. Additionally, the preliminary reading of wholesale inventories rose by a stronger-than-expected 0.6% month-over-month (MOM), while retail inventories increased 0.3% MOM, in line with expectations. The Dow was up 0.2%, while the tech-heavy Nasdaq Composite rose 0.3%. The S&P 500 increased 0.3% with eight of 11 sectors finishing in positive territory. The Information Technology sector was the top performer, rising 0.5%, while the Utilities sector was the bottom performer, falling 0.9%.
On the data front, personal income is expected to have increased 0.3% MOM in September, versus the prior month’s increase of 0.2%, while personal spending is expected to have increased 0.6% MOM in September compared to the prior month’s increase of 0.9%. The PCE deflator for September is expected to have accelerated to 0.5% MOM and 3.6% year-over-year (YOY) from the prior month’s 0.3% and 3.4%, respectively. Meanwhile, the core PCE deflator for September is expected to have also increased 0.3% MOM and 3.1% YOY, accelerating from the prior month’s 0.2% and 3.0% YOY, respectively. Initial jobless claims for the week ending October 24 are expected to come in at 198,000, higher than the prior week’s 194,000, while continuing claims are expected to come in at 1.720 million for the week ending October 17, down from the prior week’s 1.728 million. The advance reading of third-quarter GDP, the GDP Price Index, the core PCE Price Index, and personal consumption are expected to come in at annualized growth rates of 3.2%, 3.2%, 2.4%, and 3.4%, respectively, compared to the prior quarter’s annualized increases of 2.2%, 6.1%, 3.3%, and 3.8%, respectively.
Across the pond, European stocks are mixed in mid-day trading as the European Central Bank is set to announce its monetary policy decision today, with the deposit facility rate expected to remain unchanged at 2.50%. The eurozone economic confidence unexpectedly fell to 96.9 in October. Meanwhile, the U.K. net consumer credit increased by a less-than-expected £1.9 ($2.5) billion in September. The country’s mortgage approvals also came in below expectations at 53,400 in September, following a downwardly revised reading in the prior month.
Overnight in Asia, stocks were mixed after Japan’s Consumer Confidence Index declined more than expected to 35.0 in October. Meanwhile, Australia’s export prices increased 1.4% in the third quarter, while import prices fell 1.1% quarter-over-quarter.
In FOREX trading, the U.S. dollar is little changed as investors look ahead to today’s U.S. PCE Deflator and GDP data.
Over in the commodity pits, West Texas Intermediate (WTI) crude oil is 1.2% lower at $101.52/barrel and Brent crude oil is down 1.0% at $114.12/barrel amid hopes for easing tensions in the Middle East.
In the metals complex, gold is 0.9% lower at $4,030.46/ounce.