5 Things to Know Before the Stock Market Opens Monday

Here are five key things investors need to know as they gear up for today’s trading session:

The opening bell today marks the start of November, building on the momentum from a robust October. Stock futures are trending higher, fueled by the ongoing enthusiasm surrounding artificial intelligence and renewed optimism about U.S.-China trade relations.

Here’s a snapshot of the market landscape as November begins:

• All major stock indexes closed October with gains. The S&P 500 added 2.3%, the Dow Jones Industrial Average rose 2.5%, and the Nasdaq Composite surged 4.7%.
• Beyond the AI boom, signals indicating a potential easing of trade friction between the U.S. and China contributed to market gains last month. The prospect of more stable international trade policies provides a tailwind for multinational corporations and supply chains.
• On Wednesday, the Supreme Court will hear oral arguments concerning President Trump’s tariffs, a case that could significantly impact the trajectory of U.S. trade policy. The court’s decision carries substantial weight for businesses operating in global markets.
• This week is packed with earnings reports from over 100 companies, including Palantir, Uber, AMD, and McDonald’s. Investors will be closely watching these reports for insights into corporate performance and future outlooks.
• With over 300 S&P 500 companies already reporting Q3 results, FactSet data reveals that more than 80% have surpassed Wall Street’s expectations. This strong earnings performance underpins the positive market sentiment.
• Historically, November has been a bullish month for the S&P 500, showing an average gain of 1.8%, according to the Stock Trader’s Almanac. Seasonal trends, however, should always be viewed in the context of prevailing economic conditions.

Berkshire Hathaway’s cash reserves have swelled to a record $381.6 billion, the company disclosed over the weekend. This surpasses the previous high of $347.7 billion set earlier in the year, highlighting Warren Buffett’s continued focus on liquidity and strategic capital allocation, particularly in the absence of significant share buybacks following his announcement to step down in May.

The conglomerate reported $13.485 billion in operating profit from its wholly owned businesses for the third quarter, a substantial 34% increase year-over-year. This performance was largely driven by a 200% surge in income from Berkshire’s insurance underwriting business. Overall, Berkshire Hathaway’s earnings rose 17% year over year to $30.8 billion, showcasing the resilience of its diversified portfolio, and Buffett’s investment strategy.

Last week’s Big Tech earnings reports sparked mixed reactions, yet all members of the “Magnificent Seven” that reported outperformed revenue expectations. A standout performance was observed in online advertising revenue.

Meta, Amazon, Alphabet, and Microsoft collectively reported strong digital advertising sales, signaling that economic uncertainties have not significantly impacted ad spending, as initially feared. Furthermore, these tech giants show no signs of slowing down their AI investments, projecting a combined capital expenditure (capex) exceeding $380 billion for the year. This level of investment underscores the strategic importance of AI in their future growth plans, offering opportunities for investors.

Microsoft CEO Satya Nadella suggested that AI will enable the company to scale its operations “with a lot more leverage,” hinting at future headcount expansion following a period of workforce stabilization in fiscal year 2025. This indicates that Microsoft is strategically positioning itself to capitalize on AI-driven growth opportunities.

A federal judge has mandated the Trump administration to utilize emergency funds to maintain SNAP food benefits during the ongoing government shutdown. This decision averts a scheduled Nov. 1 cutoff that would have affected 42 million Americans.

The Rhode Island court has directed the immediate disbursement of these benefits from emergency reserves. Treasury Secretary Scott Bessent has confirmed the administration’s intention to comply with the order, suggesting that the required funds can be secured by Wednesday. This intervention provides crucial relief amid the prolonged government shutdown.

The potential lapse in SNAP benefits underscores the far-reaching consequences of the government shutdown, now nearing its fifth week.

Eli Lilly and Novo Nordisk currently dominate the market for weight loss and diabetes medications. However, the landscape is poised for change as new players enter the arena.

As CNBC has reported, a wave of drugmakers are preparing to compete for a share of what analysts project could become a $100 billion market by 2030. Amid challenges in accessing name-brand GLP-1 medications such as Eli Lilly’s Mounjaro and Zepbound, and Novo Nordisk’s Ozempic and Wegovy, patients are turning to cheaper, generic alternatives.

The incumbent pharma giants are responding proactively. Eli Lilly and Novo Nordisk are prioritizing increased supply, enhanced convenience, and the exploration of new clinical applications for their existing drugs. Novo Nordisk, behind Eli Lilly in market share, is looking to reinvigorate performance with a new CEO, its shares having declined some 40% this year amidst perceptions of lagging behind Lilly in safety and efficacy.

Here are the key reports and events to watch this week. Note: Economic data releases may be affected by the ongoing government shutdown.

• Monday: Palantir Technologies earnings (after market close); ISM Manufacturing Index; September construction spending data
• Tuesday: Election Day; Uber Technologies, Spotify, Shopify, Norwegian Cruise Line, Pfizer and Yum Brands earnings (before market open); Advanced Micro Devices, Pinterest, Super Micro, Hinge Health, Amgen and Rivian earnings (after market close); September international trade data; September Job Openings and Labor Turnover Survey
• Wednesday: McDonald’s earnings (before market open); Qualcomm, Snap, Arm Holdings, Lyft, Figma, e.l.f. Beauty and Lucid Group earnings (after market close); weekly mortgage applications data; ADP private payrolls report; ISM Services Index; Supreme Court hears oral arguments on Trump tariffs
• Thursday: Warner Bros. Discovery, Tapestry, Under Armour and Moderna earnings (before market open); Airbnb, Affirm Holdings, Block and Peloton Interactive earnings (after market close); weekly jobless claims; third quarter productivity and costs preliminary data
• Friday: October jobs report; preliminary consumer sentiment data