Delayed energy-storage revenue recognition, high-cost orders and fair-value losses on investments weighed on third-quarter results. BofA cut its earnings forecasts for the next three years, seeing continued margin and overseas regulatory pressure despite shipment growth.
As primary-market issuance faces difficulties, secondary-market supply has plunged and spreads have begun to tighten. BofA favors highly rated floating-rate CLO tranches, while noting that falling loan prices are eroding protection for junior debt and cash distributions to equity.
As of 23 October, HSBC’s climate transition equity tracking portfolio had fallen about 7% in the second half, but was still outperforming global equities by around 5 percentage points year to date. Lower valuations and earnings expectations support the medium-term view, while high interest rates and divergence among themes have also made stock selection more demanding.
The buyback relending rate has been cut to 1%, and support tools have been extended to leading technology companies. HSBC believes policy is reinforcing the market’s floor, but outflows from margin financing and adjustments to tech-stock positions continue to affect the market.
In the third quarter of 2026, Chinese battery makers' revenue grew 10%–20% quarter on quarter, but profit per unit generally declined. HSBC expects tax pressure to persist through the first quarter of 2027, with revenue recognition from overseas energy storage projects potentially providing a buffer.
US demand for aerial work platforms is recovering, with Zhejiang Dingli's order book extending into the first quarter of 2027; exchange rates, tariffs and product mix are also weighing on gross margin expectations.
Third-quarter net profit attributable to shareholders fell 23% year on year, below HSBC and market consensus estimates. HSBC cut its earnings forecasts for 2026–2028 while expecting water resources to improve during the 2027 flood season.
Third-quarter revenue and net profit rose 27.2% and 41.8% year on year, respectively. HSBC Qianhai expects a lower expense ratio to offset some pricing pressure from volume-based procurement, but its overall revenue forecast remains broadly unchanged as growth in the peripheral vascular intervention business levels off.
Focus Media’s third-quarter revenue and net profit attributable to shareholders continued to decline year on year, but recovered quarter on quarter. HSBC Qianhai expects improvement during the Singles’ Day advertising peak season, while lowering its gross margin forecasts because elevator media rents are higher than expected.
NiSource’s third-quarter earnings per share exceeded expectations, and it set its 2027–2033 investment plan at 40 billion dollars. The company raised its long-term EPS growth target, but contributions from data-center projects will materialize gradually as customer demand ramps up, and debt and equity financing will still be needed during the expansion.
Domestic medical equipment tenders returned to year-on-year growth in the third quarter of 2026, while company revenues improved. JPMorgan believes changes in procurement rules and lower geopolitical sensitivity are also supporting sector performance.
Thailand plans to raise the excise tax on imported battery electric vehicles and range-extended electric vehicles that meet certain conditions to 35% from 2027. JPMorgan believes the industry impact from Thailand alone is manageable, but the accumulation of overseas trade barriers will restrain export growth, while localization could also weigh on short-term margins.
Brent crude rose above $117 a barrel, while a decline in global equities triggered a sell-off in gold. HSBC says central bank or Chinese buying could provide support, but a decline in India’s foreign exchange reserves could limit gold purchases by its central bank.
Morgan Stanley divides software loans into three groups by AI disruption risk: high-risk loans account for 16% of outstanding balances and are concentrated among lower-rated borrowers and those with near-term maturities. Prices and refinancing conditions have diverged markedly, and CLO managers are adjusting their holdings.
Microsoft’s third-quarter capital spending came in below previous expectations, and delayed delivery of third-party cloud computing capacity sent shares of CoreWeave and other companies lower. Evercore ISI believes the supplier involved may not be CoreWeave, but Microsoft has not disclosed its identity.
Earnings season is still in its early stages. Jefferies expects adjusted earnings growth for S&P 500 companies outside the Magnificent Seven to reach 32.1%, above the seven’s 21.4%; the seven are still expected to lead in revenue growth.
BofA recognizes the strategic value of combining the optical connectivity businesses, but expects equity dilution, customer conflicts and a lengthy approval process arising from the all-stock deal to weigh on Marvell's investment appeal.
Morgan Stanley believes Democratic victories in both chambers of Congress and the Texas gubernatorial election will increase data center permitting risks in some regions, but will not interrupt the overall AI capital spending cycle; fiscal and debt ceiling negotiations will also become a market focus.
The proportion of S&P 500 companies beating earnings expectations rose to 83%, but capital expenditure and cash-flow pressures at some AI giants triggered a sell-off. Barclays sees potential opportunities in technology-stock valuations and their historical performance after midterm elections.
Apple’s iPhone and Mac revenue exceeded expectations in the fourth quarter of fiscal 2026, but higher memory prices and AI inference costs weighed on gross margin guidance for the next quarter. Goldman Sachs raised its revenue forecasts while lowering its earnings forecasts and price target.
