US Stocks Likely To Open Higher As Investors Eye GDP Print, Strong Alphabet Results To Kick Off 'Mag 7' Earnings Week: Strategist Flags November As 'Best Month Of The Year' For Markets

Investors on Wall Street seem upbeat as the index futures point to a positive start on Wednesday despite ending the previous session on a mixed note.

Search and advertising giant Alphabet Inc. GOOG GOOGL kicked off the highly anticipated tech earnings week on a strong note. The Sundar Pichai-led company posted strong momentum across verticals, beating revenue and earnings per share (EPS) expectations.

Advanced Micro Devices Inc. AMD, on the other hand, fell 8% in premarket trading after the chipmaker's fourth-quarter guidance disappointed investors. That said, AMD beat revenue expectations in Q3.

The remaining four of the "Magnificent 7" companies will post their earnings this week – this includes Apple Inc. AAPL, Microsoft Corp. MSFT, Meta Platforms Inc. META, and Amazon.com Inc. AMZN.

Futures	Performance (+/-)
Nasdaq 100	0.16%
S&P 500	0.19%
Dow Jones	0.03%
R2K	-0.16%

In premarket trading on Monday, the SPDR S&P 500 ETF Trust SPY rose 0.20% to $582.95 and the Invesco QQQ ETF QQQ gained 0.15% to $500.90, according to Benzinga Pro data.

Cues From Last Session:

Investors remained cautious, with most sectors on the S&P 500 index closing the day in the red.  However, information technology and communication services stocks bucked the overall market trend, closing the session higher.

Crude oil prices remained tentative and kept their levels after tumbling over the weekend due to Israel's missile strikes on Iran.

Treasury yields eased slightly on Tuesday after running up over the past week. However, a possible re-election of former President Donald Trump could keep the bond yields elevated due to an increased fear of higher deficits, according to WisdomTree and Wharton School economist Jeremy Siegel.

Besides, the International Monetary Fund has also warned about the long-term trajectory of U.S. national debt

Tech stocks helped the Nasdaq Composite index surge to a new all-time high.

Index	Performance (+/-)	Value
Nasdaq Composite	0.78%	18,712.75
S&P 500	0.16%	5,832.92
Dow Jones	-0.36%	42,233.05
Russell 2000	-0.27%	2,238.09

Insights From Analysts:

Ryan Detrick, Chief Market Strategist at Carson Group, highlighted that November is the "best month of the year" as far as equity markets are concerned.

"The last time it fell more than 1% was in 2008, and it has been higher in 11 of the past 12 years. Not to be outdone, it is the best month since 1950, in the past decade, and in election years, while it ranks as the second-best month in the past 20 years (only July is better)."

Detrick added that the bull market is here to stay. After experiencing a bull run for the past three years, the expert highlighted that "the potential for many more years of gains is actually quite high."

That said, he explains that while it's not clear how long this rally will last, investors should be open to the possibility that there's more gas left in the tank.

Mike Mayo, Wells Fargo Securities managing director, told CNBC in an interview that regardless of who wins the 2024 presidential election, financials stocks will benefit.

"Wall Street likes certainty over uncertainty," Mayo said, referring to the rules on stress tests and other parameters to measure the health of financial institutions.

"The second thing is common sense regulation. You've already seen this put in place by the current administration… they rolled back the 1000-page report on capital changes."

On the economic data front, the S&P CoreLogic Case-Shiller home price index rose 5.2% year-over-year in August versus a 5.9% gain in July.

U.S. wholesale inventories declined by 0.1% month-over-month to $905 billion in September compared to a revised 0.2% gain in the earlier month.

The U.S. trade deficit increased to $108.2 billion in September from the $94.2 billion gap in the previous month.

See Also: Best Futures Trading Software

Upcoming Economic Data:

• Mortgage Market and Refinance indices will be released at 7 a.m. ET.
• ADP employment numbers will be released at 8:15 a.m. ET.
• The preliminary GDP print is scheduled to be released at 8:30 a.m. ET.
• Pending home sales data is scheduled to be released at 10 a.m. ET.
• Crude oil inventories data will be released at 10:30 a.m. ET.

Stocks In Focus:

• Alphabet Inc. GOOG GOOGL shares surged nearly 6% in premarket trading after the search giant reported an AI-powered boost in its revenue in Q3, which beat expectations and surged 15% year-on-year.
• Advanced Micro Devices Inc. AMD stock felt the pressure, falling 8% in premarket trading after its Q4 revenue guidance fell short of expectations. Other chipmakers, Qualcomm Inc. QCOM and Intel Corp. INTC felt the pressure, too, falling 5% and 0.3% in premarket, respectively.
• Snap Inc. SNAP shares surged 1.5% in premarket after the company posted slightly better-than-expected revenue, aided by AI.
• Reddit Inc. RDDT shares jumped nearly 24% after the social media company handily beat revenue expectations thanks to its data licensing and advertising sales.
• Chewy Inc. CHWY shares were down 1.8% in premarket after "Roaring Kitty" Keith Gill reported in a securities filing that he does not hold a stake in the company anymore.
• Investors are awaiting earnings results from Meta Platforms Inc. META, Microsoft Corp. MSFT, Starbucks Corp. SBUX, Coinbase Global Inc. COIN, and Robinhood Markets Inc. HOOD today.

Commodities, Bonds And Global Equity Markets:

Crude oil futures gained in the early New York session, rising 1.03% as preliminary data showed a decline in U.S. inventory levels.

The benchmark 10-year Treasury note yield declined marginally to 4.22%.

Most Asian markets closed in the red on Wednesday, with Chinese markets falling the most, while Japan's Nikkei 225 gained.

European stocks were mostly lower in early trading.

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