Preview of US Stock Market | The three major stock index futures fell together, Wall Street warned of a stock market pullback, and Palantir (PLTR.US) plunged after earnings.

Pre-market market trends 1. Before the market on November 4th (Tuesday), the futures of the three major US stock indexes fell. As of the time of writing, Dow Jones futures fell by 0.63%, S&P 500 index futures fell by 0.99%, and Nasdaq futures fell by 1.28%. 2. As of the time of writing, the German DAX index fell by 1.25%, the UK FTSE 100 index fell by 0.59%, the French CAC 40 index fell by 1.19%, and the Euro Stoxx 50 index fell by 1.07%. 3. As of the time of writing, WTI crude oil fell by 1.46% to $60.16 per barrel. Brent crude oil fell by 1.26% to $64.07 per barrel. Market news Wall Street financial leaders warn: the stock market is "between fair and expensive", a 10% healthy correction is difficult to avoid. Several CEOs from Wall Street asset management institutions stated that investors should prepare for a healthy correction of over 10% in the stock market within 12 or 24 months, and that such an adjustment may be a positive development rather than a pessimistic signal of the start of a bear market. Mike Gitlin, President and CEO of Capital Group, stated that while corporate earnings performance is very strong, "the challenging aspect is that valuations are indeed too high." Similar viewpoints were expressed by Morgan Stanley CEO Ted Pick and Goldman Sachs Group, Inc. CEO David Solomon. They also believe that a significant sell-off may occur in the near future and point out that corrections are a normal feature of market cycles. Fed governor Milan once again calls for more aggressive rate cuts: credit pressures indicate current policy restrictions are too strong. Milan stated that monetary policy is still restrictive, and he will continue to advocate for rate cuts of an extraordinary magnitude. He stated, "the Fed's policy is too restrictive, and the neutral rate is much lower than the current policy rate. Given my more optimistic outlook on inflation compared to other members of the committee, I see no reason to maintain such a restrictive policy." Milan has repeatedly called for looser monetary policy. At the September and October policy meetings, he opposed the decision of policymakers to cut the Fed policy rate by 25 basis points, instead advocating for a larger 50 basis point cut. UBS Bank: the long-term positive trend of gold remains unchanged, the next uptrend "awaits only the east wind". Ole Hansen, Head of Commodity Strategy at UBS Bank, stated that since hitting a historical high of $4359.40 per ounce on October 20th, gold futures have fallen by nearly 8%, and market sentiment has shifted from exuberant to cautious during this period. Currently, the market is reassessing whether many bullish factors facing gold in 2025 - such as the uncertainty of US trade policy and strong central bank gold purchases - are fully reflected in future prices. However, Hansen speculates that gold still has further upside potential, but the timing of the uptrend is difficult to determine. He stated, "the current pullback in gold is more like a brief consolidation, rather than a trend reversal. Soft seasonal demand, short-term disruptions in Chinese policy, and a strong US dollar are the reasons for the short-term decline, but these factors have not changed the long-term positive outlook." Hawkish statements from Fed officials push up the US dollar, and copper prices continue to decline. Due to uncertainty about a rate cut in December by the Fed, base metal prices are under pressure. Among them, copper prices further fell from last week's record high, with all six major copper futures on the London Metal Exchange (LME) falling. Currently, investors' focus has shifted from supply crises back to the Fed's policy outlook. Hawkish statements from several Fed officials in recent days have boosted the strength of the US dollar, making commodities priced in dollars less attractive. Data shows that the US dollar index (DXY) rose by over 1% over the past week, reaching 100.02 at the time of writing, the highest level since the end of July. The "sorrows of the US bond" moment: Will Benson push more debt towards the short term? Investors are on high alert, expecting US Treasury Secretary Benson to further tilt the government's financing mix towards short-term maturities to control long-term yields under increasing debt burdens. Wall Street traders expect Benson to signal as early as Wednesday (when the Treasury releases its quarterly debt statement) that the issuance of US Treasuries, with a market size of $30 trillion, will continue to lean towards the short term. The Treasury lowered its estimate for federal borrowing in the current quarter in a statement on Monday. It now expects net borrowing from October to December to be $569 billion, lower than the $590 billion estimated in July. Individual stock news Tesla, Inc. (TSLA.US) October car sales in China once again declined, major shareholders publicly oppose Musk's trillion-dollar compensation plan. According to preliminary data released by the China Passenger Car Association (PCA) on Tuesday, the American electric vehicle giant delivered a total of 61,497 vehicles in China in October, a nearly 10% year-on-year decline. This further confirms market expectations that Tesla, Inc.'s global sales will face challenges in the last quarter of this year. In addition, ahead of Tesla, Inc.'s shareholder meeting (November 6th), Elon Musk's exorbitant compensation plan has been openly opposed by the Norwegian sovereign wealth fund. As the ninth largest shareholder of Tesla, Inc., the Norwegian sovereign wealth fund voted against Tesla, Inc.'s unprecedented trillion-dollar compensation package for its CEO Elon Musk. This is the strongest opposition signal from one of Tesla, Inc.'s major shareholders. As of the time of writing, Tesla, Inc. fell by over 2% in pre-market trading on Tuesday. Continued explosive performance! Amid the AI frenzy, Palantir (PLTR.US) has received a deluge of government and corporate orders, with Q3 revenue and profits soaring. The financial report shows that in the quarter ending in September, Palantir's revenue grew by 63% year-on-year, reaching $11.8 billion, exceeding analysts' average estimate of $10.9 billion, marking the second consecutive quarter of surpassing the $10 billion mark. Net profit more than doubled year-on-year, from $1.435 billion ($6 per share) to $4.756 billion ($18 per share). Adjusted earnings per share were $0.21, higher than the market's expected $0.17. This is the 21st consecutive quarter that Palantir has exceeded revenue expectations. Looking ahead, Palantir expects fourth-quarter sales to reach $13.3 billion, compared to the market's average forecast of $11.9 billion. For the full year, the company expects sales to reach around $44 billion, higher than Wall Street's forecast of $41.7 billion. However, as of the time of writing, Palantir fell by over 7% in pre-market trading on Tuesday. Pfizer Inc. (PFE.US) Q3 results beat expectations, raising full-year profit guidance. The financial report shows that Pfizer Inc.'s Q3 revenue was $16.65 billion, better than the market's expected $16.59 billion; adjusted earnings per share were $0.87, better than the market's expected $0.73. In addition, the company forecasts full-year revenue in 2025 to be $61-64 billion; the full-year adjusted earnings per share are expected to be $3.00-3.15, up from the previous forecast of $2.90-3.10. The company also stated that the impact of current US tariffs on Canada, Mexico, and others has been factored into its latest 2025 performance guidance. Strong performance in the North American market propels Koninklijke Philips N.V. Sponsored ADR (PHG.US), with Q3 comparable sales growth of 3% and adjusted EBITA exceeding expectations. Data shows that Koninklijke Philips N.V. Sponsored ADR's Q3 sales fell 2% year-on-year to 4.302 billion euros, in line with market expectations; comparable sales increased by 3%, with comparable North American sales up 5%. Adjusted EBITA was 531 million euros, better than the market's expected 484 million euros. Adjusted earnings per share were 0.36 euros. CEO Roy Jakobs stated during the earnings call that the company's performance in the third quarter reflects investments in the supply chain to mitigate the impact of tariffs. In addition, Koninklijke Philips N.V. Sponsored ADR reiterated its full-year 2025 performance guidance, expecting comparable sales to grow by 1%-3% for the full year, and adjusting EBITA profit margin to be 11.3%-11.8%. As of the time of writing, Koninklijke Philips N.V. Sponsored ADR rose by over 3% in pre-market trading on Tuesday. BP p.l.c. Sponsored ADR (BP.US) Q3 earnings beat expectations, strong refining margins offset weak oil prices. Data shows that BP p.l.c. Sponsored ADR's third-quarter underlying replacement cost profit (i.e. adjusted net profit) was $2.21 billion, higher than the analyst's expected $2.02 billion, but lower than the $2.27 billion in the same period last year. Driven by higher refining margins, the third-quarter underlying profit (EBIT) for the customer and product division was $1.61 billion, slightly higher than the expected $1.59 billion, and far higher than the $381 million in the same period last year. BP p.l.c. Sponsored ADR maintained the size of its quarterly share buyback plan in the third quarter, at $750 million. It also announced that it will conduct another $750 million share buyback in the next three months, maintaining the pace of shareholder returns, despite a reduction from earlier in the year. YUM CHINA (YUMC.US) operating profit increased by 8% year-on-year, and same-store transaction volume increased for the 11th consecutive quarter. The financial report shows that YUM CHINA's operating profit in the third quarter increased by 8% year-on-year, with system sales increasing by 4%, and the operating profit margin increasing by 40 basis points to 12.5%. Same-store transaction volume increased by 4% year-on-year, achieving growth for the 11th consecutive quarter. Thanks to its flexible store model and franchise strategy, the company added a net 536 stores in the third quarter, bringing the total number of stores to 17,514; KFC's pace of new store openings this year has reached a historic high, with Pizza Hut reaching the milestone of over 4,000 stores this quarter. In the third quarter, the company returned $414 million to shareholders, steadily progressing towards its goal of returning approximately $1.5 billion to shareholders this year. As of the time of writing, YUM CHINA rose by over 2% in pre-market trading on Tuesday. Earnings forecast Wednesday morning: AMD (AMD.US), Arista Networks (ANET.US), Tempus AI (TEM.US), Astera Labs (ALAB.US), Pinterest (PINS.US), Rivian (RIVN.US) Wednesday pre-market: Toyota (TM.US), Novo Nordisk A/S Sponsored ADR Class B (NVO.US), McDonald's Corporation (MCD.US), Cameco (CCJ.US)