Market Movers

Crude prices dropped sharply in the first days of November. Oil fell more than 7% on Monday, November 2, after Washington and Tehran signaled openness to a settlement, and fell again Tuesday, with Brent settling at $103.60 and WTI at $96.09, CNBC reports. CNBC also cites a Wall Street Journal report that the US struck Iran's Qeshm Island on Monday as part of 'limited strikes' in recent weeks.

On Wednesday, after Democrats swept Congress, Vice President JD Vance posted 'The reason we lost is the war.' WTI fell 8.3% to $88.12 and Brent 8.7% to $94.62, leaving oil down more than 14% for the week. Analysts told CNBC the market now expects Trump to have a bigger incentive to make a deal; Trump told the Financial Times he had no immediate plans to strike Iran. Others warned the selloff may be overdone and that escalation risk remains, with ship attacks continuing in and around the Strait of Hormuz.

US stocks had their steepest one-day drop since April 2025 on Thursday, November 5. The Nasdaq Composite fell 5.5% and closed more than 11% below its October record, which puts it in correction territory; the S&P 500 lost about 4.4% and the Dow about 1,833 points, or 3.4%, according to CNBC.

AI-linked stocks led the decline as investors weighed whether Democratic wins in Tuesday's midterms, including a Texas governor-elect who campaigned on a data center moratorium, could slow data center construction. The tech sector fell 7.3%, its worst day since March 2020; the iShares Semiconductor ETF dropped 12%. The 'Magnificent Seven' lost more than $1 trillion in market value, with Nvidia down more than 9% and now negative for the year. The VIX volatility index posted its biggest point gain since April 2025.

CNBC notes that across 10 Nasdaq corrections in the past decade, the index averaged a 9.41% gain over the three months after the bottom, with 2022 the main exception.

SpaceX shares fell about 9% and Tesla about 11% on Thursday afternoon, November 5, and by the close the two companies had lost about $456 billion in combined market value since Tuesday's election, CNBC reports. The drop came alongside a broad tech selloff.

Elon Musk was the biggest donor to Republican candidates and causes in the midterms, with more than $470 million, according to the Financial Times, and most of the candidates he backed lost. In Texas, where both companies are headquartered, Democrats won the Senate and governor races; Governor-elect Gina Hinojosa campaigned on a moratorium on new data center approvals. Deutsche Bank analysts wrote that SpaceX could face 'incremental headwinds' and that its Texas compute capacity, including the planned Terafab chip and data center site in Grimes County, could be delayed.

CNBC also reports that, citing CNN, Musk and SpaceX have been told to preserve records on Starlink restrictions in Ukraine, and that regulatory scrutiny could complicate Musk's idea of merging the two companies.

Anthropic filed an amended Form S-1 with the SEC on Monday, November 2, adding third-quarter financials to the IPO prospectus it published the week before, CNBC reports. Revenue for the nine months to September 30 was $33.24 billion, up roughly 1,200% from a year earlier. Third-quarter revenue was about $17 billion, but growth slowed quarter over quarter: about 47%, down from 144% in the second quarter and 132% in the first.

The company reported a $104 billion net loss for the nine months, mostly from changes in the fair value of convertible notes and derivative liabilities; the third-quarter loss was $23.29 billion. Anthropic disclosed purchase commitments and leases totaling about $895.4 billion, almost all for compute and infrastructure, and said compute and infrastructure expenses rose 329%.

A separate CNBC piece notes the filing landed in a rough week: Microsoft, Alphabet and Amazon results added to worries about AI spending and the borrowing costs of the data center companies Anthropic relies on. No pricing or listing date was announced in the window.

US stocks rallied on Wednesday, November 4, after Democrats won control of both the House and the Senate in Tuesday's midterm elections. The S&P 500 gained more than 1%. CNBC reports that strategists credited President Trump's statement overnight, to The New York Times and The Wall Street Journal, that he accepted the results and would work with Democrats, which eased fears of a drawn-out fight over the outcome.

The biggest tech companies led: during the session Amazon rose 8%, Alphabet more than 6%, Apple nearly 7%, Microsoft 4% and Meta 3%. JPMorgan Asset Management's David Kelly said divided government means 'moderation in growth, moderation in inflation, less uncertainty.' Stocks tied to the AI data center buildout and to Elon Musk fell: CoreWeave dropped 10%, after voters sided against data centers in 40 of 41 local ballot measures, according to CNBC.

The rally did not last: the next day the market gave back those gains and more.

CVS Health said on Wednesday, November 4, that it plans to split into two publicly traded companies by the first half of 2028, separating its roughly 9,000 retail pharmacies from its Aetna insurance business and its Caremark pharmacy benefit manager. It reverses the $78 billion Aetna deal of 2018 and, CNBC notes, would be one of the largest corporate breakups on record.

The insurer and PBM company would keep the CVS Health name under CEO David Joyner, who told CNBC the move comes 'out of a position of strength.' The drugstore company would be called CVS Pharmacy, led by Prem Shah. Shareholders would own stock in both. CVS also beat third-quarter estimates, with sales of $108.40 billion.

Shares closed more than 12% lower. CNBC reports that PBMs face bipartisan scrutiny, and that Tennessee and Arkansas have passed laws banning co-ownership of PBMs and pharmacies, which CVS and others are challenging in court.

Oracle filed with the SEC on Monday, November 2, to sell $10 billion in common stock and $10 billion in senior notes to help pay for its AI buildout. The plan had been outlined at its investor day the week before, but the shares still fell 8.8%. Oracle has said this $20 billion is all the new capital-market funding it plans for its fiscal 2027 to 2030 investment cycle, leaning instead on vendor financing, customer-provided hardware and prepayments.

On Tuesday, Meta sought to raise $20 billion to $25 billion in a bond sale, about two-thirds in dollars and one-third in euros, according to people familiar with the matter cited by CNBC. The sale came days after S&P Global Ratings revised Meta's AA- outlook to negative, citing its heavy capital spending and negative free cash flow. Meta has said it plans to raise $95 billion in total, including $35 billion in public stock offerings. Its shares rose 2.7% on Tuesday after a losing October.

Wendy's said on Thursday, November 5, that it rejected a $1.4 billion offer from an investor group led by Nelson Peltz's Trian Fund Management, which on October 28 offered $7.35 a share in cash to take the chain private. The group also included BlueFive Capital, Sixth Street Partners and Flynn Group, one of Wendy's largest franchisees. A committee of independent directors found the bid 'substantially undervalues' the company and ignores its turnaround plan under CEO Bob Wright. Trian declined to comment.

Wendy's adopted a one-year shareholder rights plan, or poison pill, after the group turned down a standstill agreement. CNBC recounts that a Peltz company owned Wendy's from 2008, and that Trian's Peter May and Peltz's son Bradley still sit on its board. Wendy's also reported a seventh straight quarter of falling same-store sales, though earnings and revenue beat estimates. The shares moved less than 1%.

Chipmaker Marvell Technology agreed on Monday, November 2, to buy optical components maker Lumentum in an all-stock deal. Lumentum shareholders will get 4.5 Marvell shares for each share they own; Marvell put the implied enterprise value at $115 billion, though the final value depends on Marvell's share price. The deal is expected to close in the first half of 2028.

Marvell CEO Matt Murphy told CNBC the combination will create 'a new category of company' by making semiconductors and optical connections work together for AI systems, which increasingly use light to link chips. Investors were not convinced on day one: Marvell fell 13% and Lumentum nearly 19%. CNBC notes both had been big AI winners, with Marvell more than doubling over the past year and Lumentum quadrupling before Monday.

Apple reported fiscal fourth-quarter results on Monday, November 2: earnings of $2.10 a share against $1.99 expected by analysts polled by LSEG, and revenue of $114.48 billion against $113.39 billion expected. iPhone sales of $57.58 billion beat the $56.54 billion consensus, while iPad and other product sales fell short.

Apple forecast a gross margin of 45% to 46% for the current quarter, below the average analyst estimate of 46.3%, and the shares slid about 4% in premarket trading on Tuesday. CNBC notes the stock was up about 24% for the year and reports that analysts, including at Goldman Sachs, still see the results as a temporary blip.

AMD reported third-quarter results on Tuesday, November 3, with adjusted earnings of $2.09 a share against $1.95 expected by analysts polled by LSEG, and revenue of $13.38 billion against $13.09 billion expected. CEO Lisa Su said server revenue is expected to double in 2027 and that data center AI growth should accelerate faster than AMD forecast three months earlier. Analysts said stronger AI revenue could offset softness in PCs, and the stock rose about 4% in premarket trading on Wednesday after falling roughly 24% over the prior month.

The bounce did not last. In Thursday's AI and chip selloff after the midterms, AMD fell about 14%, CNBC reports, as investors worried that Democratic wins could slow data center construction.

Job openings rose by 333,000 in September to 7.52 million, well above the 7.15 million economists expected, the Bureau of Labor Statistics reported on Tuesday, November 3. Quits rose to 3.36 million, the most since March 2025, and there were about 1.05 openings for every unemployed worker.

On Wednesday, payroll processor ADP said private employers added 86,000 jobs in October, the same as September's revised figure and above the 75,000 expected. Professional and business services lost 27,000 jobs; people who changed jobs saw 4.8% annual pay gains.

On Thursday, Richmond Fed President Thomas Barkin told CNBC he expects the Fed will need to raise rates further, at a gradual pace, saying inflation is 'the most important risk right now' and that AI is pushing some prices up. The Fed held its benchmark rate at 3.75% to 4% at its last meeting after a hike in September. The official October payrolls report is due Friday, after this issue's window.

The Federal Reserve kept its benchmark rate in a 3.75% to 4% range on October 28, after raising it a quarter point in September. Its statement said "Inflation remains elevated" and that more information will help it decide its next step. Governor Lisa Cook and Cleveland Fed President Beth Hammack dissented in favor of a quarter-point hike; CNBC reports it was Cook's first dissent since joining the Fed in 2022. Futures pricing points to a strong possibility of a hike in December.

On October 29 the Bureau of Economic Analysis estimated that real GDP grew at a 3.4% annual rate in the third quarter, up from 2.2% in the second, driven by investment, consumer spending and government spending. The PCE price index rose 0.5% in September, for 3.6% annual inflation; core PCE was 3.1%. Weekly jobless claims fell to 194,000.

Two software companies fell sharply on October 29 after reporting late on October 28. ServiceNow dropped 26% after adjusted profit of $1 a share missed the $1.02 consensus, while its fourth-quarter subscription revenue guidance of $4.245 billion to $4.255 billion straddled the $4.25 billion estimate. Fortinet fell 21% after its non-GAAP gross margin came in at 79.6% against 80.1% expected, even though revenue and profit beat estimates.

CNBC's Jim Cramer said Fortinet's results pulled down Palo Alto Networks and CrowdStrike, and ServiceNow's weighed on Workday and Salesforce. He argued Fortinet, which is more hardware-focused, has been losing share to those rivals, so its weakness is company-specific rather than a sign of slowing demand for cybersecurity.

Alphabet reported third-quarter revenue of $127.58 billion, up 25% but short of the $128.22 billion analysts expected, and adjusted earnings of $2.67 a share against $3.02 expected. CNBC calls it the company's first top-and-bottom-line miss in nearly four years. Free cash flow was negative $9.07 billion, far below the negative $2.70 billion analysts expected, and long-term debt rose to $125.1 billion from $21.6 billion a year earlier.

Search revenue grew 12% to $63.35 billion, missing estimates; Alphabet's business chief said lower monetization in AI Mode was part of the reason. Google Cloud revenue more than doubled to $30.7 billion, ahead of forecasts. Alphabet kept its 2026 capital spending forecast at $195 billion to $205 billion and said spending will rise significantly in 2027.

The shares fell about 9% after hours on October 28 and closed down nearly 13% on October 29, which CNBC reports is the stock's worst day since Google went public in 2004, erasing roughly $500 billion in market value.

On October 26, Microsoft's chief people officer, Amy Coleman, announced a voluntary exit offer for about 60,000 employees, roughly 27% of the global workforce, in the US, UK, Canada and India, the AP reports. Microsoft had about 223,000 full-time employees at the end of June and cut 4,800 jobs in July.

Two days later Microsoft reported fiscal first-quarter revenue up 19% and diluted earnings of $4.92 a share, up 32%. Microsoft Cloud revenue was $63.9 billion, up 30%, and commercial remaining performance obligation rose 73% to $677 billion, according to the company. CNBC reports Azure grew 48% and finance chief Amy Hood guided to 49% to 50% growth next quarter.

Capital expenditures and finance leases were $45.2 billion, below the $50.67 billion analysts expected; Hood said some third-party capacity deliveries were delayed. Free cash flow fell 27% to $18.63 billion but stayed positive. The stock rose 2% to 4% after hours but ended the next day roughly flat.

Brazil's Ibovespa index fell 13.88% on Monday, October 26, to 176,608 points, its steepest one-day fall since March 2020, after President Luiz Inácio Lula da Silva won the October 25 runoff, according to The Rio Times. A circuit breaker halted trading for 30 minutes after a 10% drop in the morning. The US dollar rose 8.79% against the real, its largest one-day move since at least 2020. Banks and other domestic-focused companies fell hardest, while exporter Vale rose 4%.

MercoPress reports that markets had positioned for a win by Senator Flávio Bolsonaro, who led the first round, on expectations of tighter fiscal policy. Brazil's Treasury canceled the debt auctions scheduled for October 27 to 29. Bolsonaro has not recognized the result and has said he will seek to annul it. Analysts quoted by MercoPress say investors now want a fiscal plan that stabilizes debt, which exceeds 80% of GDP.

DoorDash agreed on October 29 to acquire Instacart's parent, Maplebear, for $65 a share in cash and stock, about $17 billion. CNBC reports the price is an 11% premium to Instacart's October 28 close and about 26% above its October 22 close, before reports of a possible sale surfaced. The companies expect the deal to close at the end of 2027 or early 2028; DoorDash plans to keep Instacart's brand, app and enterprise technology products, and the two will operate separately until then.

DoorDash also reported third-quarter revenue of $4.62 billion and adjusted earnings of $1.06 a share, both above estimates, with orders up 28% to 993 million. DoorDash shares rose more than 6% in morning trading, while Instacart traded near flat. CNBC notes Instacart agreed in December to pay $60 million to settle FTC allegations about its advertising.

Amazon reported third-quarter results after the close on October 29: earnings of $1.89 a share on revenue of $201.94 billion, short of the $1.96 and $202.31 billion analysts expected, per LSEG. Shares fell more than 6% in extended trading.

Free cash flow was negative $42.4 billion over the trailing twelve months, the second straight negative quarter, which Amazon attributed mainly to AI-related purchases of property and equipment. Capital expenditures were $77.3 billion in the quarter, well above the $58.7 billion analysts estimated; Amazon kept its 2026 capex forecast at $220 billion, and CEO Andy Jassy said it expects to spend "meaningfully more in 2027."

AWS sales rose 39% to $45.98 billion, beating forecasts, and Jassy said he expects AWS growth above 40% next year. Fourth-quarter revenue guidance of $240 billion to $247 billion had a midpoint below expectations.

Intel shares fell more than 20% in extended trading on October 29 after the company forecast fourth-quarter revenue of $15 billion to $16 billion and adjusted earnings of 25 cents a share; analysts expected $17.1 billion and 43 cents, per LSEG.

Third-quarter revenue rose 21% from $13.7 billion a year earlier. Data center and AI revenue jumped 78% to $7.3 billion, while the client computing group fell 5% to $8.1 billion. Finance chief David Zinsner said the PC slowdown should continue at least through the first half of next year. He said an explosion earlier this month at a fab in Israel, which killed two workers, will cost about $600 million in lost revenue over two quarters.

CNBC notes the stock was up about 150% this year before the report, though down roughly 23% in October.

Brent crude rose 3.1% on October 23 to settle at $116.72 a barrel, its highest settlement since April 29, and gained 6.2% for the week, its third straight weekly rise. US West Texas Intermediate settled at $103.27. CNBC reports the move followed a New York Times report, citing US officials, that the US and Israel plan fresh strikes on Iran after the midterm elections, while Iran-allied Houthi militants kept attacking Saudi Arabia.

Prices eased early in the week, with Brent settling at $115.81 on October 26, then rose again on October 28 to $115.32 after The Wall Street Journal reported the US had told Gulf Arab countries to be ready for a short, intense campaign after the midterms. CNBC also reports the US Strategic Petroleum Reserve stood at 282.6 million barrels, its lowest since 1982.

Eli Lilly reported third-quarter revenue of $24.4 billion on October 29, above the $22.61 billion analysts expected, and adjusted earnings of $7.48 a share against $6.26 expected, per LSEG. It raised its 2026 revenue forecast to $91 billion to $92 billion, from $85 billion to $87 billion. Its earnings-per-share outlook moved slightly lower to $35 to $36, because $4.57 a share in deal-related charges more than offset a $4.07 increase in underlying guidance.

Mounjaro revenue rose 65% to $10.72 billion, with sales outside the US up 93%, and Zepbound rose 49% to $5.35 billion. Sales of the new obesity pill Foundayo, launched in April, came in below expectations. CEO Dave Ricks pointed to Medicare's pilot coverage of GLP-1 drugs for weight loss. The stock rose 6% to 8% during the day, and CNBC reports the healthcare sector hit a record high.