S&P 500 third-quarter earnings per share are expected to grow 33% year over year, unchanged from the second quarter; cloud revenue continues to accelerate, but growth in capital spending and AI infrastructure earnings is facing a slowdown.
Intel’s server and PC businesses diverged, with supply constraints and rising inventories coexisting. Evercore ISI believes AI investment can extend the demand cycle, but earnings upgrades can only partly offset valuation contraction.
AMD’s third-quarter data-center business exceeded market expectations, and its fourth-quarter guidance indicates that it will continue to drive growth, while client and gaming businesses are expected to decline sequentially. Goldman Sachs raised its earnings forecast for 2027 while lowering its price target because of a lower valuation multiple.
In a 73-minute conversation, Threadneedle founder Ann Berry said that concerns about an AI bubble and circular financing are both reasonable—earnings reports contain almost no rigorous analysis of returns on capital expenditures. But the companies being funded today are real businesses with scale, revenue, and even profits.
BlackRock Global Fixed Income CIO Rick Rieder says the October jobs report doesn’t matter; everyone is crowded on the same side of the boat, 70% of S&P net profit growth comes from 10 companies, stock allocations are 71% versus just 8% in fixed income, and what’s happening is an “epic rebalancing.”
ARK founder Cathie Wood tells CNBC at Kennedy Space Center: Tesla and SpaceX have shed a combined 420 billion dollars in market value since the midterm elections; ARK has been buying and will concentrate on its highest-conviction names during corrections.
“Big Short” inspiration Steve Eisman says the midterms have shifted the AI narrative once again; but a slowdown in data center construction could be a major positive for hyperscalers, which may return to positive cash flow by the end of 2027.
Global shipments by 60 Japanese electronic component makers in August grew 24% year over year, with capacitors and Asia standing out; total shipments fell 8% month over month, below the seasonal average.
A recovery in Middle East supply, increased Latin American crude supply and contracting consumption together pushed the global oil market back into surplus, but insufficient refining and processing capacity continues to keep refined-product inventories under pressure.
Citi previously estimated that 30% to 40% of new data centers in the U.S. over the next several years would be located in Texas; the gubernatorial election result has led the bank to expect tighter project reviews, with key approvals also facing a risk of delay.
Grainger’s third-quarter sales and earnings both exceeded market consensus, and the company raised its full-year guidance. Bernstein believes the indirect demand from data-center construction is underestimated, but freight, expenses and valuation limit the room for optimism.
Arista’s third-quarter revenue and earnings exceeded Citi’s expectations, and its first revenue guidance for 2027 was also above market consensus. The company secured key components in advance, but the effects of price increases and cost changes on gross margins will emerge gradually over an extended period.
Lam Research’s third-quarter 2026 results slightly exceeded market expectations, but component shortages pushed some fourth-quarter shipments into the following quarter. Evercore ISI raised its wafer fab equipment spending forecast while lowering its price target on expectations of valuation contraction.
By the end of October, the MSCI Asia-Pacific ex-Japan index had fallen 8% from its September peak. Although it rose 0.6% this week, corporate earnings and fund flows remained weak. Goldman Sachs maintains its target for gains over the next 12 months, while also watching the November index reshuffle.
Unity’s third-quarter revenue was 622 million dollars and profit was 122 million dollars, both above market expectations. Growth Solutions revenue rose 90% year over year, while Create Solutions grew just 8%.
In mid-October, State Grid’s “one AC, two DC” UHV projects were approved together, with total investment of around 59.1 billion yuan; the grid investment plan for the Fifteenth Five-Year Plan grows by more than 40% compared with the Fourteenth Five-Year Plan.
Wanlian Securities believes that 2026 will be a key window for validating mass production and deploying applications for humanoid robots; lower prices for complete robots should help enable commercialization at scale, but related companies remain at different stages of deployment.
Third-quarter growth in food and cost controls offset weaker beverage sales and gross margin, but raw-material cost pressure will persist into the first half of 2027_. Goldman Sachs lowered its earnings forecasts and target price, while maintaining a Neutral rating.
Switch 2 software sales exceeded Goldman Sachs’ expectations, while hardware shipments and operating profit fell short. Goldman Sachs lowered its full-year console sales and profit forecasts but maintained its Buy rating.
In September, U.S. apparent steel demand grew 5% year over year, but declined month over month; finished steel imports rebounded from a low base, while cumulative imports year to date remained below last year. Goldman Sachs maintained its forecast for full-year demand growth of 2.6%.
