Market Snapshot
Ahead of Tuesday's open, the three major stock index futures were mixed: Dow Jones futures closed flat, Nasdaq 100 futures fell 0.67%, and S&P 500 futures dropped 0.25%.
International crude oil futures rose, with WTI crude up 2.13% and Brent crude up 1.51%.
Cryptocurrencies are down.
Precious metals posted mixed results.
$Star Technology Stocks (LIST2518.US)$Pre-market, most stocks declined: Micron Technology fell nearly 3%, AMD dropped 2%, Intel slipped nearly 2%, SpaceX and Apple both fell more than 1%, Meta and NVIDIA edged lower by about 1%, while Tesla inched down.
$Optical Communications (LIST23979.US)$Pre-market, stocks fell across the board, with Coherent down nearly 4%, Credo down more than 3%, and Marvell Technology, Nokia, and Corning each down more than 2%.
$Storage Concept (LIST23925.US)$Pre-market, all stocks declined across the board: SK Hynix fell nearly 5%, Western Digital dropped nearly 3%, SanDisk slid 3%, Micron Technology slipped more than 2%, and Seagate Technology fell nearly 2%.
Individual Stock News
Jensen Huang met with Mertes, and NVIDIA plans to invest several billion dollars in Germany.
German Chancellor Merkel stated that the U.S. artificial intelligence (AI) chipmaker…$NVIDIA (NVDA.US)$Plans to invest several billion dollars in Germany. On Monday, Merz held a dialogue with NVIDIA CEO Jensen Huang at the historic Berlin power plant Kraftwerk, focusing on Germany's strategy for integrating AI into the industrial sector.
At the event, Jensen Huang announced that NVIDIA plans to invest in four German startups, as part of NVIDIA's initiative to inject nearly $10 billion into Europe to support local businesses, universities, and research institutions. The investments announced this time include Agile Robots, Avelios Medical, Mirelo, and Reflex Aerospace. In addition, Siemens announced a collaboration with NVIDIA to jointly advance AI-driven autonomous manufacturing technologies and showcase solutions that can significantly optimize production processes.
Citi: Maintains SK Hynix's "Buy" rating, noting that the potential for an extended memory upcycle has not yet been fully priced in.
Citi released a report, forecasting$SK Hynix (SKHY.US)$Operating profit for the third quarter totaled KRW 81.3 trillion, up 34% quarter over quarter and 614% year over year, exceeding market expectations of KRW 75.5 trillion by 8%, despite headwinds from foreign-exchange volatility and noise surrounding HBM4. The firm forecasts SK Hynix's third-quarter revenue at KRW 101.2 trillion, up 28% sequentially and 314% year over year.
The bank believes that the tightness in memory supply will persist through 2028. Currently, the stock price corresponds to a forward P/E ratio of 2.7x and a forward P/B ratio of 1.4x, which does not fully reflect the potential for an extended memory upcycle. Citi has maintained its KRW 3 million target price and "Buy" rating for SK Hynix.
Earning 120 million in one hour, Musk's compensation last year exceeded 1 trillion, yet he took home zero.
October 19,$Tesla (TSLA.US)$Documents filed with the U.S. Securities and Exchange Commission (SEC) reveal that the company's CEO, Elon Musk, received total compensation of $158.359 billion (approximately RMB 1.07 trillion) last year, all in the form of stock awards. Based on a full-year calculation of 8,760 hours, this compensation equates to Elon Musk earning $18.08 million (about RMB 120 million) per hour last year.
However, the $158.359 billion in stock awards is not actual cash that Musk has received; rather, it represents the accounting fair value of Tesla's CEO performance‑based compensation plan for last year. In its filings, Tesla stated that in 2025, the company failed to meet multiple evaluation criteria, including market capitalization and operating performance, resulting in zero actual income for Musk for the entire year—no cash and no equity vesting.
Deutsche Bank: Reaffirms "Buy" rating on Alphabet, expects relatively robust search revenue growth in the third quarter.
Deutsche Bank stated,$Google-C(GOOG.US)$The company will release its quarterly results for the quarter ended September on October 28. Google's third-quarter search revenue is expected to grow at a relatively healthy pace, driven by higher ad pricing, increased AI‑powered overview ad revenue, and the gradual waning of search engine optimization (SEO) benefits, while also supporting dynamic bidding in paid channels.
Data analysis indicates steady growth in desktop and mobile web traffic, while Chrome and the Google App have seen daily active users and engagement remain stable or improve. Expansion of Google Cloud Platform is likely to accelerate this quarter, as it increasingly serves as a core second platform for enterprise customers and captures greater spending from AI-native companies. The firm reaffirms its "Buy" rating on Alphabet, with a price target of $430.
Morgan Stanley: Microsoft's first-quarter results are expected to meet expectations, benefiting from Azure's growth momentum.
Morgan Stanley stated that, driven by the continued growth of the Azure cloud computing platform,$Microsoft (MSFT.US)$Microsoft's first-quarter results for fiscal year 2027 are expected to meet Wall Street's expectations. Morgan Stanley forecasts Microsoft's first-quarter earnings per share at $4.73, in line with market estimates and up sharply from $3.72 a year earlier; revenue is projected at $90.24 billion, while the market expects a year-over-year increase of nearly 17% to $90.64 billion.
Morgan Stanley believes that Microsoft remains the biggest beneficiary of large-scale spending on AI-related products and services. Increased data center capacity will provide additional support for Azure's growth.
KeyBanc: Apple's price hikes and reduced telecom promotions may suppress upgrade demand, with a target price of $250 for Apple.
KeyBanc analyst Brandon Nispel noted in a report compiling iPhone user surveys that the sales performance of the iPhone 18 upon its launch may fall short of…$Apple(AAPL.US)$Expectations. From the perspective of a broader consumer base, rising prices, telecom operators scaling back promotions, and the fact that existing devices already meet everyday needs will all dampen consumers' willingness to upgrade, ultimately cooling sales. The firm has set a $250 price target for Apple, roughly 27% below last Friday's closing price, with an "Underperform" rating.
Investment bank BTIG: The semiconductor index and Apple's stock price exhibit a "seesaw effect."
Investment bank BTIG noted in its latest research report that semiconductor stocks are poised for a counter‑trend rally, though they could subsequently decline again. If the 2000 market pattern holds, the Philadelphia Semiconductor Index may rebound 15% to 18% over the next 5 to 10 days from last Friday's low, approaching its early‑October highs, before turning weaker once more. From a technical standpoint,$Philadelphia Semiconductor Index (.SOX.US)$At a minimum, it is expected to rebound to the 20-day moving average; if historical analogies hold, it could even edge closer to the October high. The report recommends reducing semiconductor exposure again after the rally.
$Apple(AAPL.US)$It could face the opposite trend. The report notes that, based on the recent 10-day window, the correlation coefficient between Apple and the Mag 7 is approximately -0.9. Previously, the Mag 7 retraced about 16%, while the tech sector and the Mag 7 each pulled back roughly 9% and 5%, respectively; yet Apple remained near its all-time high. Accordingly, the report concludes that the semiconductor rebound may be accompanied by a pullback in Apple, with a target at least at the 50-day moving average of around $327 at the time.
Morgan Stanley: Upgrades Amazon to its top pick, raising the price target to $350.
Morgan Stanley will$Amazon (AMZN.US)$It has been designated as a top-pick stock, with its price target raised from $335 to $350, while maintaining an "Overweight" rating. Analysts note that AWS's revenue growth trajectory, its operational excellence as a 90-percent‑rule company, the increasing visibility of Bedrock's market position, and Amazon Retail's strategic positioning in the smart‑agent commerce space are all key factors underpinning this view. Morgan Stanley has revised up its growth expectations for AWS, now forecasting 47% year-over-year revenue growth in 2027 and 42% in 2028.
Amazon announced plans to invest 16 billion euros in Germany by 2027.
$Amazon (AMZN.US)$It announced plans to invest €16 billion in Germany by 2027, while pledging to advance more sustainable infrastructure and water resource management across the country.
Micron's Taoyuan union plans a strike, putting AI storage chip deliveries to the test.
$Micron Technology (MU.US)$A labor union representing employees at Micron's Taoyuan facility in Taiwan announced it will stage a strike on Thursday, coinciding with a mediation session between the U.S. memory‑chip maker and another union that represents workers at its Taichung plant, further escalating the dispute over employee bonuses. Although Micron is headquartered in the United States, its chip‑manufacturing facilities in Taiwan are critical to the company's overall memory‑chip production capacity.
Reports indicate that Samsung Electronics has lowered its shipment target for next year's OLED Galaxy A-series smartphones to 100 million units.
Samsung Electronics has tentatively set its shipment target for next year's mid-range Galaxy A series smartphones equipped with OLED displays at 100 million units, a reduction of 20 million units compared to the 120 million-unit target it communicated to partners at the end of September.
According to reports, the primary reason Samsung Electronics has lowered its shipment forecast is the rise in memory prices. This also increases the likelihood that the company will revise downward its overall smartphone shipment target for next year. Initially, Samsung had planned to ship more than 250 million smartphones next year, but the company is reportedly revising this plan. It is widely believed that the final shipment volume will be more than 20 million units lower than originally projected.
Walmart rose more than 1% in pre-market trading, marking its first foray into Canadian-dollar bonds and offering a $120 bundled deal for "Walmart+" and Sam's Club.
$Walmart (WMT.US)$It plans to raise approximately $6.5 billion by issuing U.S. dollar- and Canadian dollar-denominated bonds. The world's largest retailer is seeking to diversify its funding sources amid soaring expansion expenditures. According to people familiar with the matter, Walmart has launched a C$5 billion (about $3.55 billion) Canadian dollar bond offering, marking its first-ever issuance of Canadian dollar bonds. In addition, the company has priced a $3 billion U.S. dollar bond.
In addition$Walmart (WMT.US)$It is bundling its online subscription service with the paid membership of its high-end consumer platform, Sam's Club, to attract consumers from Amazon Prime and other competing platforms.
3M's third-quarter adjusted earnings per share of $2.50 exceeded expectations, and its full-year adjusted sales growth guidance stands at 4.5%.
$3M(MMM.US)$Third-quarter adjusted earnings per share were $2.50, above the market consensus of $2.38; adjusted sales totaled $6.6 billion, slightly below the expected $6.61 billion. Adjusted organic sales grew 3.3% in the third quarter. The company forecasts full-year 2026 adjusted earnings per share of $9.10 to $9.15, adjusted operating cash flow of $5.9 billion, a 4.5% increase in adjusted total sales, and 3.5% growth in adjusted organic sales.
Thor Industries raised its full-year guidance, with third-quarter adjusted earnings per share of $2.26.
$RTX Corp (RTX.US)$The company reported third-quarter sales of $24.97 billion, up 12% year over year, with adjusted earnings per share of $2.26. It raised its full-year 2026 guidance for adjusted sales to $97.0–$97.5 billion, from a previous range of $95.0–$96.0 billion; adjusted EPS is now expected to be $7.65–$7.75, compared with the prior range of $7.10–$7.25; and free cash flow is projected at $9.0–$9.2 billion, up from $8.5–$8.75 billion. At the end of the third quarter, the company's order backlog totaled $340 billion, including $176 billion in commercial business and $164 billion in defense.
GE Aerospace reported third-quarter adjusted earnings per share of $2.25 and raised its full-year profit guidance.
$GE Aerospace (GE.US)$Third-quarter adjusted earnings per share came in at $2.25, surpassing the London Stock Exchange Group (LSEG) IBES consensus estimate of $2.01; adjusted revenue totaled $13.29 billion, above the expected $12.87 billion. Third-quarter order intake reached $19.0 billion. The company now forecasts 2026 adjusted earnings per share of $8.00–$8.10, higher than the market's expectation of $7.92, and expects full-year adjusted revenue growth of approximately 19%–20%.
According to LSEG IBES data, the company's revenue forecast for 2026 stands at $50.42 billion. Looking ahead to 2027, GE Aerospace expects its commercial services segment to deliver low-double-digit growth, with current commercial services order backlog exceeding $170 billion.
Li Auto is up nearly 3% in pre-market trading, as it holds its PowerDay electric-vehicle technology launch event tonight.
$Li Auto (LI.US)$On the evening of October 20 at 7:30 p.m., PowerDay held a press conference on electric‑vehicle technology, where it is expected to unveil its latest advancements, including its self‑developed 5C battery and the Mach chip, providing a modest boost to market sentiment. Additionally, on October 16, the company announced that its chip subsidiary, Mach Xin Technology, had closed its first round of external financing, raising RMB 1.625 billion—a move widely interpreted by the market as evidence that its in‑house chip business has secured an independent valuation and gained commercial validation.
BHP Group Ltd fell more than 3% in pre-market trading, with third-quarter copper production down sharply by 19% year over year.
Due to adverse weather conditions and declining ore grades at the major mines in Chile,$BHP Group Ltd (BHP.US)$In the third quarter, copper production fell sharply by 19% year on year, but the company kept its full-year copper production guidance unchanged. According to BHP Group Ltd's quarterly report, the company mined 400,700 tonnes of copper during the quarter, while iron ore output remained stable at 66.5 million tonnes.
AstraZeneca rose nearly 2% in pre-market trading, planning to use AI to accelerate the screening of patients for clinical trials.
$Oracle (ORCL.US)$and$AstraZeneca (AZN.US)$Announced the signing of a non-binding agreement to explore the use of artificial intelligence (AI) and real-world data to identify patients eligible for clinical trials, accelerate the generation of medical evidence, and integrate relevant research findings into routine clinical workflows. This collaboration is expected to combine AstraZeneca's scientific and therapeutic expertise with Oracle's capabilities in health data, cloud computing, artificial intelligence, analytics, and clinical workflows.
Eli Lilly and Co. rose more than 1% in pre-market trading, planning to expand the indications of Omvoh for the treatment of pediatric ulcerative colitis.
$Eli Lilly and Co (LLY.US)$The company announced that, following the success of a late-stage trial of Omvoh injection in pediatric patients with ulcerative colitis, it plans to seek expansion of the indication for this therapy in this intestinal disease. In the study, Omvoh's safety profile was consistent with the drug's established tolerability in adult patients.
General Motors fell more than 6% in pre-market trading as its earnings guidance failed to meet expectations for the third consecutive time: profits from General Motors' international operations plunged 88%, while the company spent a hefty $20 billion on share buybacks.
$General Motors (GM.US)$Announced its third-quarter 2026 financial results. The report showed quarterly revenue of $50.015 billion, up 2.9% year over year, exceeding the LSEG consensus estimate of approximately $48.7 billion; adjusted earnings per share were $3.70, up 32.2% year over year, surpassing the consensus estimate of $3.63. The company also announced that its Director approved a multi-year share repurchase authorization of $20 billion, representing about 28% of its current market capitalization, and declared a quarterly dividend of $0.18 per share.
In a letter to shareholders, CEO Mary Barra stated that full-year deferred revenue from software and services is expected to approach $7.5 billion, while Super Cruise's penetration in pickup truck models is projected to grow four- to fivefold next year. Despite quarterly results that exceeded expectations and a substantial share buyback, General Motors—having already raised its guidance twice this year—only narrowed its profit range this time, leaving investors who had hoped for a third upward revision disappointed and weighing on the stock price.
OpenAI is reportedly accelerating a $30 billion fundraising round to secure funding ahead of Anthropic's IPO.
According to insiders, OpenAI is stepping up efforts to secure investment commitments, aiming to close its funding round before its rival Anthropic, which is expected to go public in mid-November. The pace of this fundraising drive has been exceptionally rapid, potentially pushing OpenAI's valuation above $1.4 trillion.
In addition, OpenAI aims to leverage the revenue growth generated following the recent launch of its new models to attract further investment. According to a source familiar with the matter, SoftBank, Abu Dhabi–based MGX, and other existing investors in OpenAI are currently in negotiations to participate in this round of financing, which is expected to total approximately $30 billion.
Global Macro
Iran: High-ranking Pakistani military officials' visit to Iran does not involve mediating the Hormuz Strait conflict.
According to Iran's Tasnim News Agency, Kashkavi, spokesperson for the Iranian Parliament's Committee on National Security and Foreign Policy, stated that the nuclear issue is by no means on the agenda of current diplomatic activities or negotiations. Kashkavi emphasized that claims suggesting Iran's diplomatic engagements with Western or regional countries involve the nuclear question are entirely unfounded. At present, Iran's foreign ministry has not scheduled any talks pertaining to the nuclear issue.
He stated that Iran's position on the current regional situation and the issue of reopening the Strait of Hormuz hinges on whether the United States accepts and implements the seven conditions previously announced by Iran. Iranian diplomatic efforts have moved beyond the stage of preliminary consultations, with the final decision resting with the other side. Kashkavi also noted that this visit by senior Pakistani military and security officials, including Pakistan Army Chief of Staff Asim Munir, was hosted by Iran's Interior Ministry and falls squarely within the framework of bilateral relations, aimed at strengthening border cooperation and exchanges between neighboring countries, and is unrelated to any mediation efforts or new initiatives concerning the conflict in the Strait of Hormuz.
Iranian Revolutionary Guard: Two oil tankers struck mines in the Strait of Hormuz.
According to Iran's Tasnim News Agency, the Islamic Revolutionary Guard Corps announced that two oil tankers violating international regulations struck mines in the Strait of Hormuz, caught fire, and were forced to cease operations. Iran also shot down the U.S. military's 54th MQ-9 drone.
The statement said that the Islamic Revolutionary Guard Corps' Navy and Aerospace Force are continuously monitoring the regional situation, steadfastly upholding their commitments to Iran's Supreme Leader and its people, and maintaining pressure on the adversary by exercising control and management over the Strait of Hormuz. The IRGC Navy once again warned that transiting through mined waterways is an illegal act that will result in the destruction of the violator's assets. Should the United States persist in such actions, oil companies will face even greater consequences.
Oppenheimer: Raises S&P 500 earnings-per-share forecast and maintains year-end target of 8,100 points.
Oppenheimer has raised its 2026 earnings-per-share forecast for the S&P 500 from $305 to $365, reflecting nearly 36% year-over-year growth. To date, 45 S&P 500 companies have reported their latest quarterly results, with earnings and sales up roughly 47% and 14%, respectively, compared with the same period last year. The firm maintains its year-end 2026 target of 8,100 points for the S&P 500.
John Stoltzfus, Chief Investment Strategist at Oppenheimer Asset Management, said he expects another quarter that exceeds expectations. He noted that, given the economic and corporate fundamentals of recent quarters and the significant innovations driven by the accelerated adoption of artificial intelligence across businesses and among consumers, equity markets may still have room to climb further before year-end.
Trump has expressed a positive attitude toward holding a trilateral summit among China, the United States, and Russia on the sidelines of the APEC meeting, and the Chinese side has responded.
On the 20th, Foreign Ministry Spokesperson Mao Ning chaired a regular press conference. During the session, a reporter asked about U.S. President Trump's positive stance on holding a trilateral meeting with the Chinese and Russian leaders on the sidelines of next month's APEC Leaders' Informal Meeting. Mao Ning replied: "On this issue, I currently have no information to share."
Sources: The Bank of Japan may raise its inflation outlook but will keep interest rates unchanged.
According to four sources familiar with the matter, the Bank of Japan may revise upward its inflation outlook for the next fiscal year in its projections due this month, as rising oil prices are exerting price pressures on the economy that are proving more persistent than expected. The sources added that, given the central bank's rate hike just last month, it is expected to keep interest rates unchanged at its two-day policy meeting ending October 30—unless the yen depreciates sharply again, thereby driving up import costs and overall inflation.
However, sources indicate that the Bank of Japan may continue to underscore mounting inflation risks in its quarterly report released after the meeting, leaving room for another rate hike as early as December. One source noted, "Consumer price growth could persist longer than expected, even though underlying inflation has not shifted significantly." Two other sources echoed this view.
Top 20 Stocks by Pre-Market Trading Volume in the U.S. Market
U.S. Stock Market Macro Calendar Reminder
(The following is in Beijing Time)
20:30 U.S. September Housing Starts, Annualized Rate (in 10,000 units)
20:30 U.S. September Total Housing Permits (in ten thousands)
22:00 U.S. September Existing-Home Sales Contract Index MoM
The following day at dawn
04:30 U.S. API Crude Oil Stocks for the Week Ending October 16 (in 10,000 barrels)
After-hours earnings
$SpaceX(SPCX.US)$、$Netflix(NFLX.US)$、$Intuitive Surgical (ISRG.US)$、$United Airlines (UAL.US)$、$Capital One Financial (COF.US)$It will release its earnings report after the U.S. stock market closes today.
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Edited by melody