Before the bell: enjoy the calm before the storm

Harris or Trump? Who have the investors chosen? Amazon isn’t allowed to “tap” nuclear energy.

Markets collectively fell yesterday, but mild losses of around half a percent suggest that investors are confident today’s U.S. presidential election will end well. Investors seem to be leaning slightly toward a Trump victory, as that expectation is already priced in. We can already guess which direction the markets will take if Harris wins. Furthermore, Trump is likely to deny any loss, claiming fraud. While a civil war is unlikely, chaos seems almost certain. Another key issue is who will control the House of Representatives and the Senate. If either the Democrats or the Republicans gain complete control, one side will hold all the power. This scenario carries the highest risk and could lead to maximum market swings. Perhaps we’re exaggerating, as things rarely get as extreme as they seem… Amazon fell by 1.1% and Microsoft by 0.5%. Amazon had already reached an agreement with Talen Energy (-2.3%), the operator of a local nuclear reactor, to supply electricity to its data centers. The U.S. regulator dismissed this plan, citing “risks to the power grid.” Nvidia (+0.5%) once again outperformed its fellow “Magnificent Seven” stocks, briefly overtaking Apple (-0.5%) as the highest-valued company.

This morning, Japan is up 1.1% and Hong Kong 1.5%. In Brussels, Jensen and Shurgard will open their books today. UCB announced that this year’s revenue is expected to reach nearly €6 billion, compared to its earlier forecast of €5.5–5.7 billion. Ferrari will report in Italy, and DHL in Germany.

The military loves AI

American defense and data analysis specialist Palantir (1.2%) dropped with the market, but posted better-than-expected earnings after hours and raised its outlook. Revenue climbed by 30% to $725 million, and profit hit a record $144 million. For the current quarter, the company expects $262 million. Its military software relies heavily on AI, with U.S. Army contracts rising by 40% in the latest quarter to make up nearly half of the company’s revenue. CEO Alex Karp hastened to assure investors that American businesses are also lining up; revenue from this segment grew by 54%, though from a much smaller base. After-hours, the stock shot up 14.5%.

Fewer employees and fewer shares

Syensqo performed in line with its forecast and above the average analyst expectation in the third quarter. Organic revenue grew by 2%, while EBITDA fell by 10% to €374 million, better than the €360 million analysts predicted. Revenue from composite materials rose by 14%. Nevertheless, CEO Kadri has lowered the top end of the full-year EBITDA forecast range from €1.48 billion to €1.44 billion, while the lower end remains at €1.4 billion. The strike at Boeing is “disrupting the supply chain.” Solvay will lay off 300 to 350 employees and begins a €300 million share buyback today. Unions may see it as “€1 million per laid-off worker,” but investors are likely to appreciate the reduction in costs and outstanding shares.

Did you know…

that Israel’s Teva was fined €463 million by the EU? The publicly traded pharmaceutical company disseminated misleading information about a competing and approved drug from Dutch company Synthon.

This article was translated from Dutch and was originally published on Spaarvarkens.be.