5 Things to Know Before the Stock Market Opens Friday

The earnings season continues to deliver crucial insights into the performance of the tech behemoths. While the dust settles from Meta’s mixed reception, overnight trading suggests a more positive outlook for some, albeit with nuanced strategies.

• Amazon’s stock experienced a significant surge, jumping 13% following a robust earnings report that exceeded expectations. The company’s cloud division, AWS, fueled this growth with a striking 20% revenue increase. Further bolstering investor confidence, Amazon raised its capital expenditure guidance for 2025 to $125 billion, signaling aggressive investment in future growth, with projections for even higher spending the following year. This reflects a strategic focus on infrastructure and expansion to support AWS’s growing demand and overall e-commerce operations. The expansion hints at continued investment in AI capabilities related to AWS’s offerings but also expanding fulfillment and logistic operations.
• Apple shares saw a more moderate 2% increase after surpassing analysts’ forecasts. CEO Tim Cook highlighted strong demand for the recently launched iPhone 17, attributing it to innovative features and Apple’s continued brand strength. Apple has adopted a comparatively restrained approach to artificial intelligence investment, marking a strategic departure from its megacap peers. This approach may reflect a focus on integrating AI more subtly into existing products and services, rather than large-scale, speculative ventures. This may also reflect a strategy to maintain a strong balance sheet.
• Netflix shares climbed 3%, driven by the announcement of a 10-for-1 stock split. This move, primarily aimed at enhancing retail investor participation, is expected to increase liquidity and accessibility of the stock. While a stock split doesn’t fundamentally alter the company’s value, it can create renewed interest and potentially boost trading volume. Analysts will watch to see if this fuels greater valuation.
• The broader tech sector experienced a mixed session yesterday, with Meta and Microsoft facing post-earnings declines. This contrasting performance underscores the increasing differentiation within the FAANG group, indicating that investors are becoming more discerning in their assessment of each company’s prospects. However, and the three major indexes are still on track to conclude the month in positive territory, displaying overall market resilience.

The ongoing federal government shutdown, now in its 31st day, is increasingly impacting crucial sectors of the economy, particularly the airline industry. Delta Air Lines, United Airlines and American Airlines have collectively urged an immediate resolution to the crisis.

The air traffic controllers, facing missed paychecks, are under immense pressure, often working mandatory overtime while grappling with increasing stress. These conditions raise concerns about potential safety repercussions, as the air traffic system is increasingly stretched thin. Delta Air Lines has pleaded with the Senate to “immediately pass a clean continuing resolution” so as to relieve the tremendous pressure on these essential workers.

The U.S. Chamber of Commerce estimates that the shutdown is costing government contractors approximately $3 billion per week. A Congressional Budget Office report further warns that the closure has already erased at least $7 billion from the gross domestic product by the end of the following year. This economic fallout underscores the severe implications of prolonged political impasse.

The energy sector witnessed a split performance as Chevron outperformed Wall Street expectations on both revenue and earnings. Chevron posted a record daily production of 4.1 million barrels in its third quarter, elevated by its acquisition of Hess.

In contrast, Exxon Mobil reported third quarter revenue that fell short of analysts’ projections. The energy company disclosed a 12% decline in net income, settling at $7.55 billion for the period.

Automakers are bracing themselves for a potential resurgence of the semiconductor shortage, with geopolitical tensions adding a new layer of complexity to the supply chain.

The key concern revolves around Nexperia, a chip supplier owned by a Chinese entity that was recently taken over by the Dutch government. In response, China has blocked exports of Nexperia’s products. Automakers and original equipment manufacturers (OEMs) are closely monitoring the evolving issue as they seek to minimize production disruptions. Honda may be forced to reduce production.

Shares of Stellantis, the parent company of Jeep and Dodge, experienced a nearly 9.5% decline yesterday after the company cautioned investors about potential one-off costs. These expected expenses overshadowed an otherwise positive third quarter for the automaker, revealing underlying vulnerabilities within the supply chain.

Chocolate aficionados may feel disheartened this Halloween as rising prices dampen their sweet indulgences, consumers maybe feeling sour. Prices have surged by approximately 30% since last Halloween and nearly 78% over the past five years, according to data sourced from Circana and the Bureau of Labor Statistics. Factors such as tariffs, inflation and even crop yields have all created the perfect storm to dramatically increase chocolate good prices.

CNBC’s Luke Fountain reports that chocolate may be losing its luster to trends and potentially losing ground in the market because of cheaper alternatives and changing consumer tastes. This year, chocolate accounted for 44% of Halloween candy sales, marking a decrease from 52% in 2024, as determined by Circana.

Navigating the complexities of the ongoing government shutdown, Federal Reserve meeting, and a deluge of earnings numbers can be difficult, and important events may have slipped under your radar this week. To assist in getting you up to speed, here is a compilation of our recommended stories requiring only a small time investment: