US Open: Wall Street gain before Fed decision. Sell-off on Estee Lauder, AMD higher after earnings 📊

• Indexes on Wall Street are trading slightly higher ahead of the Fed decision. US500 gains 0.3%
• The U.S. Treasury Department's auction put pressure on  10-year U.S. Treasury bond yields
• Markets expect the Fed to keep rates unchanged (decision at 6 pm BST)
• AMD (AMD.US) and Apollo Global (APO.US) gain after Q3 earnings.
• Estee Lauder (EL.US) shares at 6-year lows despite much better-than-forecast net income
• Euphoric gains for pharmaceutical company Crispr Therapeutics (CRIS.US) after FDA reports
• Qualcomm (QCOM.US), PayPal (PYPL.US) and Airbnb (ABNB.US) results after the US session

With the consensus to keep Fed rates unchanged at today's meeting, market sentiment is centered around the conference of Federal Reserve Chairman Jerome Powell. It seems that in view of recently published - still quite strong - data from the US economy, Powell will not signal to the markets the end of the hike cycle, and even if there are no more hikes, it is hard to count on an overly dovish message from the Fed chairman at today's meeting. ADP data published today from the US private labor market indicated a 113k increase in full-time jobs, compared to 156k forecast and 89k previously, which, while not meeting forecasts, suggests that the labor market is still holding strong. At 2 PM BST JOTLS data and the PMI reading will be published, which will shed more light on the health of the US economy. At the moment declinign 10 yr treasuries yields help sentiments on Wall Street with US500 0,4% gain and US100 climbing 0,6% higher.

Looking at the chart of the US500, we can see that if the index maintains its current structure an upward breakout of about 100 points is not out of the question, in the vicinity of the LWMA 200 between 4300 and 4350 points. The final reaction of the markets during Jerome Powell's conference (starting at 19:30 Polish time) may be crucial for further stock market sentiments. Source: xStation5

News from companies

• Crispr Therapeutics (CRIS.US) shares gain 10% as the gene-editing treatment for sickle cell anemia gained support among some advisors to the US regulatory agency FDA
• Estée Lauder (EL.US) shares lose 15% after the company lowered its full-year forecast, citing continued consumer weakness in the travel industry and mainland China.
• Apollo Global's (APO.US) third-quarter earnings rose 23% on higher management fees and pension plan services. The company's net income for the third quarter rose nearly 23% year-on-year;
• Lumen Technologies (LUMN.US shares are losing as the telecommunications company released third quarter results that are seen as mixed.
• MasTec (MTZ.US) shares lose heavily as the infrastructure company lowered its profit and revenue forecast for the current year
• Match Group (MTCH.US) shares are losing after the media company, which provides a popular dating app, provided lower-than-expected revenue guidance for the fourth quarter
• Paycom Software (PAYC.US) shares lose nearly 40% after the workforce software company lowered its full-year guidance
• Yum China (YUMC.US) loses 12% after the restaurant operator reported lower-than-expected comparable sales in the third quarter of the year
• Markets await results from payments industry giant PayPal (PYPL.US, semiconductor maker Qualcomm (QCOM.US) and hotel and travel company Airbnb (ABNB.US) after a session on Wall Street

Estee Lauder (EL.US) deepens declines - at 6 year lows

Estee Lauder shares are seeing an unprecedented sell-off, which is indirectly still fueled by a powerful 2020-2021 stock valuation increase and continued consumer weakness in China. Third-quarter results came in better in terms of EPS, which came in at $0.11 versus a -$0.21 projected loss ake revenues of $3.52 billion missed estimates of $3.53 billion, and the company stressed that consumer weakness in the Chinese market and the trend of lower spending in tourism still persists (cosmetics sales enjoyed strong sales in duty-free zones).
Source: xStation5

AMD (AMD.US) - mixed results but AI boost sentiments

Advanced Micro Devices'Q3 results came in slightly better than forecast, with the company's shares rising 2.3% today. In terms of revenue, the company reported $5.8 billion for Q3, compared to $5.7 billion forecast (up 4% y/y). Earnings per share came in at $0.7 versus $0.68 Wall Street estimates but sentiment was supported by a forecast of $2 billion in next year's AI chip revenue, which is expected to take on competition from Nvidia (NVDA.US) in 2024, and $100 million higher than forecasts for Q4 revenue of $400 million from nothing in the current year. For Q4, the company estimates revenues of $6.1 billion, with the potential for an upward or downward deviation of about $300 million. Gross margins are expected to be 51.5%, slightly below Wall Street's 52.1% forecast. 

Source: xStation5