December S&P 500 futures (ESZ22) are trending down -0.20% this morning after three major US benchmark indices closed the regular session sharply lower as the Federal Reserve delivered another interest rate hike while policymakers espoused a more hawkish outlook than expected. Three major U.S. stock indexes were weighted down primarily by losses in the Technology, Consumer Services, and Consumer Goods sectors.

In Wednesday's trading session, stocks initially jumped in the wake of the hike by the Fed but sharply reversed course after Fed Chair Jerome Powell said that it was "very premature" to be thinking about pausing rate hikes. But Powell raised the prospect of smaller rate hikes in the future, which saw a rising number of traders pricing in a 50 bps hike in December.

Meanwhile, U.S. rate futures have priced in a 61.5% chance of a 50 basis point rate increase and a 38.5% chance of a 75 basis point hike at December's monetary policy meeting.

"It is one speech, maybe it is a moment of frustration. I don’t think he should have done it the way he did this. But I understand why he did it, and in the big picture of things, he is doing the right thing right now," said Stephen Massocca, a senior vice president at Wedbush Securities in San Francisco.

In addition, the ADP National Employment report indicated that U.S. private payrolls rose more than expected in October, giving more reason to the Fed to keep its aggressive policy path.

Today, all eyes are focused on the U.S. Initial Jobless Claims data in a couple of hours. Economists, on average, forecast that Initial Jobless Claims will stand at 220K, compared to the previous value of 217K.

Also, investors are likely to focus on the U.S. Trade Balance data, which was at -67.40B in August. Economists forecast the new number to be -72.20B.

U.S. Unit Labor Costs preliminary data will be reported today as well. Economists estimate this figure to come in at 4.1% q/q in the third quarter, compared to the previous value of 10.2% q/q.

In the bond markets, United States 10-Year rates are at 4.185%, up +3.05%.

The Euro Stoxx 50 futures are down -0.72% this morning as another substantial interest rate hike by the Federal Reserve and weak Chinese data bolstered global recession fears ahead of a key policy meeting by the Bank of England. The Bank of England is set to hike interest rates by 75 basis points later in the day, putting its base rate at 3.0%, the highest level since 2008. The BOE is also likely to revise its CPI forecasts and reduce GDP projections.

U.K. Composite PMI, U.K. Services PMI, and Eurozone Unemployment Rate data were released today.

U.K. October Composite PMI has been reported at 48.2, stronger than expectations of 47.2.

U.K. October Services PMI stood at 48.8, stronger than expectations of 47.5.

Eurozone September Unemployment Rate came in at 6.6%, in line with expectations.

Asian stock markets today settled in the red, slammed by the hawkish Fed. China’s Shanghai Composite Index (SHCOMP) closed down -0.19%, while the Japanese market was closed for the holidays.

China’s Shanghai Composite today closed lower, breaking its two-day rally amid uncertainty over the country’s plans to scale back COVID lockdowns. In addition, China's services activity contracted again in October, with the Caixin services PMI falling to 48.4, the lowest figure since May, as COVID-related disruptions hit businesses and consumption. 

Pre-Market U.S. Stock Movers

Roku Inc (ROKU) plunged about -20% in pre-market trading after the company reported upbeat Q3 earnings results but provided a weak Q4 outlook.

HubSpot Inc (HUBS) gained over +7% in pre-market trading after the company reported better-than-expected Q3 results and provided favorable Q4 and FY22 guidance.

eBay Inc (EBAY) jumped about +7% in pre-market trading after the company delivered upbeat Q3 results.

Booking Holdings Inc (BKNG) climbed about +5% in pre-market trading after the company reported better-than-expected Q3 results.

Qualcomm Incorporated (QCOM) slid about -7% in pre-market trading after the company delivered mixed Q4 results and a soft Q1 outlook.

Cognizant Technology Solutions Corp Class A (CTSH) tumbled over -9% in pre-market trading after BMO Capital downgraded the stock to market perform from outperform with a price target of $65, down from $73.

You can see more pre-market stock movershere

Today’s U.S. Earnings Spotlight: Thursday - November 3rd

ConocoPhillips (COP), Amgen (AMGN), Cigna (CI), Starbucks (SBUX), PayPal Holdings Inc (PYPL), Petroleo Brasileiro ADR Reptg 2 Pref (PBRa), Petroleo Brasileiro Petrobras ADR (PBR), EOG Resources (EOG), Regeneron Pharma (REGN), Zoetis Inc (ZTS), Canadian Natural (CNQ), Becton Dickinson (BDX), DBS Group Holdings ADR (DBSDY), BNP Paribas ADR (BNPQY), Moderna (MRNA), Air Products (APD), ICE (ICE), BMW ADR (BMWYY), Corteva (CTVA), ENEL Societa per Azioni (ENLAY), Cheniere Energy (LNG), TC Energy (TRP), MercadoLibre (MELI), Stellantis NV (STLA), BCE Inc (BCE), Motorola (MSI), Exelon (EXC), ING ADR (ING), Parker-Hannifin (PH), Orsted ADR (DNNGY), Microchip (MCHP), Illumina (ILMN), Block (SQ), AmerisourceBergen (ABC), Consolidated Edison (ED), DuPont De Nemours (DD), Ametek (AME), Cheniere Energy Partners (CQP), Mettler-Toledo (MTD), Verbund ADR (OEZVY), Restaurant Brands Int (QSR), Kellogg (K), Barrick Gold (GOLD), Gartner (IT), Woolworths ADR (WOLZY), Aptiv (APTV), Legrand ADR (LGRDY), Panasonic Corp PK (PCRFY), PTT Exploration & Production (PEXNY), Hannover Re (HVRRY), Quanta Services (PWR), PPL (PPL), EPAM Systems (EPAM), Pembina Pipeline (PBA), Insulet (PODD), Tenaris ADR (TS), Texas Pacific Land Trust (TPL), DoorDash (DASH), Live Nation Entertainment (LYV), The AES (AES), Cloudflare (NET), Renesas Electronics ADR (RNECY), Targa Resources (TRGP), Ball (BALL), Advanced Info Service Public (AVIFY), NortonLifeLock Inc (NLOK), Novozymes AS (NVZMY), Iron Mountain (IRM), Expedia (EXPE), Wheaton Precious Metals (WPM), Liberty Media SiriusXM A (LSXMA), Liberty Media SiriusXM C (LSXMK), Coinbase Global (COIN), Skyworks (SWKS), MTN Group Ltd PK (MTNOY), AMH 4 Rent (AMH), Twilio (TWLO), Bill Com (BILL), Paylocity Holdng (PCTY), Godaddy Inc (GDDY), Credicorp (BAP), Fairfax Financial (FRFHF), ASE Industrial ADR (ASX), Regency Centers (REG), Celanese (CE), Huntington Ingalls Industries (HII), Hyatt (H), Smith&Nephew SNATS (SNN), Teva ADR (TEVA), Reinsurance of America (RGA), News Corp (NWS), News Corp A (NWSA), Lenovo Group Ltd PK (LNVGY), Lenovo Group (LNVGF), Bruker (BRKR), Builders FirstSource (BLDR), Store Capital Corp (STOR), WillScot A (WSC), Sumitomo Electric ADR (SMTOY), Switch (SWCH), agilon health (AGL), Federal Realty (FRT), Rolls Royce Holdings plc (RYCEY), Pinnacle West (PNW), Pinnacle West (PNW), National Retail Properties (NNN), Murphy Oil (MUR), Omega Healthcare (OHI), Cognex (CGNX), Dropbox (DBX), OGE Energy (OGE), Karuna Therapeutics (KRTX), WESCO (WCC), Floor & Decor (FND), Procore Technologies (PCOR), Americold Realty (COLD), DXC Technology (DXC), Arrow Electronics (ARW), Engie Brasil (EGIEY), Reynolds (REYN), Turquoise Hill Resources (TRQ), ITT (ITT), Apartment (AIRC), Dentsply (XRAY), National Fuel Gas (NFG), Penumbra Inc (PEN), Quidel (QDEL), EXACT Sciences (EXAS), MasTec (MTZ), Civitas Resources (CIVI), WWE (WWE), Ingredion (INGR), ZALANDO ADR (ZLNDY), Cyberark Software (CYBR), Envista Holdings (NVST), Ternium ADR (TX), Dun And Bradstreet (DNB), AngloGold Ashanti ADR (AU), Gildan Activewear (GIL), AMN Healthcare Services (AMN), J Sainsbury PLC (JSAIY), Adecco Group (AHEXY), PENN Entertainment (PENN), INC Research (SYNH), Lumentum Holdings Inc (LITE), Lantheus Holdings Inc (LNTH), Leonardo ADR (FINMY), Guardant Health (GH), Universal Display (OLED), Denbury Resources (DEN), Natera Inc (NTRA), Tempur Sealy International (TPX), IAC/InterActiveCorp (IAC), South Jersey Industries (SJI), Denali Therapeutics (DNLI), Enviva Partners LP (EVA), Enerplus (ERF), Cytokinetics Inc (CYTK), Globalstar Inc (GSAT), Stericycle (SRCL), Air Lease (AL), Phillips Edison Co (PECO), Virtu Financial Inc (VIRT), Wayfair Inc (W), Douglas Emmett (DEI), Physicians Realty Trust (DOC), Appian (APPN), Carvana (CVNA), Prestige Brand (PBH), Sprout Social (SPT), Macerich (MAC), Alignment Healthcare LLC (ALHC), Cushman & Wakefield (CWK), Cummins (CMI), Stagwell (STGW), ICF International (ICFI), NV5 Global (NVEE), Shake Shack Inc (SHAK), Laureate Education (LAUR), Diamondrock Hospitality (DRH), Uniti Group (UNIT), Urban Edge Properties (UE), Frontdoor (FTDR), Strategic Education (STRA), Goldman Sachs BDC Closed End Fund (GSBD), Portillo's (PTLO), Lancashire (LCSHF), InterDigital (IDCC), SolarWinds Corp (SWI), Dno (DTNOF), Kimbell Royalty (KRP), Service Properties (SVC), PRA Group Inc (PRAA), Global Net Lease (GNL), Companhia Brasileira de Distribuicao (CBD), Adaptive Biotechnologies (ADPT), US Physicalrapy (USPH), Laredo Petroleum (LPI), HudBay Minerals (HBM), Bigcommerce (BIGC).

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