Market Update Into November 3rd: Tech Earnings Beat

Markets pressed higher this week as the Fed delivered a widely anticipated 25bps rate cut, but Powell emphasized December rate cuts are not a sure thing. Earnings season remained in full swing, with tech giants $META, $MSFT, $AMZN, $AAPL, and $GOOGL posting solid results. However, despite the beats, names like $META and $MSFT sold off post-earnings, signaling that investor sentiment remains cautious even with strong fundamentals.

• Amazon’s AI Explosion
• Microsoft’s $250B Deal
• Nvidia’s Nokia Surge
• Qualcomm’s AI Chips

Looking ahead, the earnings spotlight shifts to $PLTR, $AMD, and $IONQ, while the ongoing government shutdown threatens to delay additional economic data releases. With several downside gaps still unfilled on the major indexes, price action this week will be crucial. Let’s take a closer look at the charts.

Weekly Analysis

SPY (SPDR S&P 500)

SPY ended the week slightly higher at $682.06 (+0.71%), after making another new all-time high. However, despite the continued rally, market breadth continues to weaken. The percentage of S&P 500 components above their 50-day SMA is near April lows, even as SPY hits all-time highs. The Trend Strength Candles are also printing neutral colors, suggesting the index’s gains are increasingly reliant on a narrow group of leaders.

QQQ (Invesco QQQ Trust)

QQQ led the charge this week, closing at $629.07 (+1.94%) as the Magnificent 7 continued to outperform on earnings. While index breadth remains declining, it improved modestly this week, driven by strength in the trillion-dollar mega caps. As long as these market leaders maintain their momentum, QQQ is likely to remain the frontrunner among the major indexes.

IWM (iShares Russell 2000)

Rate cuts were a sell-the-news event for small-caps last week, with IWM closing at $246.23 (-1.29%). Powell emphasized during the FOMC that a December rate cut is far from confirmed, which hinders small caps the most. With IWM’s Trend Strength Candles flipping bearish and breadth weakening, its 50-day SMA will be a key support level for bulls to hold.

Earnings

Notable Results

MSTR (MicroStrategy)

• EPS: $8.42 vs $5.76 est
• REV: $128.69M vs $117.01M est

NOW (ServiceNow)

• EPS: $4.82 vs $3.49 est
• REV: $3.41B vs $3.35B est

COIN (Coinbase)

• EPS: $1.44 vs $1.09 est
• REV: $1.87B vs $1.78B est

RBLX (Roblox)

• EPS: $(0.37) vs $(0.52) est
• REV: $1.92B vs $1.70B est

GOOG (Alphabet – Google)

• EPS: $2.87 vs $2.27 est
• REV: $102.35B vs $94.07B est

AMZN (Amazon)

• EPS: $1.95 vs $1.57 est
• REV: $180.17B vs $177.81B est

LLY (Eli Lilly)

• EPS: $7.02 vs $5.96 est
• REV: $17.60B vs $16.05B est

GILD (Gilead Sciences)

• EPS: $2.47 vs $2.14 est
• REV: $7.77B vs $7.46B est

MSFT (Microsoft)

• EPS: $4.13 vs $3.66 est
• REV: $77.67B vs $75.22B est

PYPL (PayPal)

• EPS: $1.34 vs $1.20 est
• REV: $8.42B vs $8.24B est

MRK (Merck & Co.)

• EPS: $2.58 vs $2.35 est
• REV: $17.28B vs $17.01B est

CAT (Caterpillar)

• EPS: $4.95 vs $4.52 est
• REV: $17.64B vs $16.76B est

CVX (Chevron)

• EPS: $1.85 vs $1.69 est
• REV: $49.73B vs $49.88B est

META (Meta Platforms)

• EPS: $7.25 vs $6.66 est
• REV: $51.24B vs $49.41B est

NEE (NextEra Energy)

• EPS: $1.13 vs $1.04 est
• REV: $7.97B vs $8.78B est

AAPL (Apple)

• EPS: $1.85 vs $1.75 est
• REV: $102.47B vs $101.83B est

UNH (UnitedHealth Group)

• EPS: $2.92 vs $2.80 est
• REV: $113.16B vs $113.18B est

XOM (ExxonMobil)

• EPS: $1.88 vs $1.81 est
• REV: $85.29B vs $84.87B est

BUD (Anheuser-Busch InBev)

• EPS: $0.99 vs $0.96 est
• REV: $15.13B vs $15.27B est

MA (Mastercard)

• EPS: $4.38 vs $4.31 est
• REV: $8.60B vs $8.52B est

RCL (Royal Caribbean)

• EPS: $5.75 vs $5.68 est
• REV: $5.14B vs $5.17B est

MO (Altria Group)

• EPS: $1.45 vs $1.44 est
• REV: $6.07B vs $5.31B est

V (Visa)

• EPS: $2.98 vs $2.97 est
• REV: $10.72B vs $10.62B est

SBUX (Starbucks)

• EPS: $0.52 vs $0.55 est
• REV: $9.57B vs $9.35B est

What’s Happening Now

PLTR Palantir
Palantir enters earnings with momentum on every front. Revenue growth has surged more than 50% YoY, margins have expanded above 30%, and free cash flow is at record highs. Partnerships with Nvidia, Lumen, and Snowflake mark its evolution into an AI infrastructure leader, making Monday’s report a test of scale and sustainability.

XLK SPDR Sector Fund – Technology
October signaled a sharp rotation. Capital flowed out of safe havens and back into growth, led by tech strength and renewed momentum in cyclicals. Defensives lagged while energy and consumer names gained traction. Markets now enter November with optimism building and risk appetites high, as investors re-position themselves for growth.

Believe it or not, this is just a fraction of what happened in the markets this week. For a full rundown delivered straight to your inbox every weekend, sign up for The Official Trendspider Newsletter!