5 Things to Know Before the Stock Market Opens on Thursday
5 Things to Know Before the Stock Market Opens on Thursday
Aaron McDadeThu, October 29, 2026 at 12:02 PM UTC
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Stocks ended slightly higher yesterday, posting gains for a third straight session.Credit: Michael Nagle / Bloomberg / Getty Images
Stock futures are lower amid a tech sector sell-off this morning; Alphabet shares plunged after a disappointing earnings report from the Google parent; Microsoft shares rose after the company’s results topped Wall Street estimates; Amazon is set to follow with its own third-quarter report tonight; and shares of Marvell and Lumentum are making big moves after a report that the companies are in deal talks. Here’s what you today.
Nasdaq Futures Sink as Tech Stocks Slide
Stock futures are lower Thursday as the AI trade stumbles following earnings reports from Alphabet and Microsoft (more on that below). Nasdaq futures were down 1.1% recently, while futures linked to the S&P 500 and Dow Jones Industrial Average fell 0.3%. The major indexes each posted a gain of less than 0.3% yesterday, rising for a third straight session, after the Federal Reserve left its key interest rate unchanged, as expected. WTI crude oil futures were down 1% at $101.90 per barrel, while gold futures ticked lower to $4,040 an ounce, and bitcoin traded around $80,100, down from yesterday’s high of $81,700. The yield on the 10-year Treasury was holding steady around 5.02%.
Alphabet Stock Plunges After Disappointing Results
Alphabet (GOOGL) shares were down more than 10% before the opening bell and on track to hit their lowest point since early April, after the Google parent missed expectations with its third-quarter results. The company late Wednesday reported earnings per share of $2.12 on revenue of $127.58 billion. Analysts surveyed by Visible Alpha had called for EPS of $2.94 on revenue of $127.89 billion. While cloud revenues roughly doubled to $30.7 billion, ahead of projections, search and advertising revenues fell short. The results could add fuel to worries about Google’s ability to generate enough revenue from its new AI products to provide a return on its massive investments in data centers and AI hardware. Coming into today’s session, Alphabet shares had gained 4% since the start of the year, lagging the S&P 500’s 13% gain over the period.
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Microsoft Stock Rises on Solid Earnings
Microsoft (MSFT) shares were gaining ground in premarket trading, after the tech giant posted fiscal first-quarter results that topped analysts’ estimates on the top and bottom lines. The company reported adjusted earnings per share of $4.89 on revenue that grew 19% year-over-year to $92.28 billion, above expectations, as cloud sales surged. For the first time in an earnings release, Microsoft broke out revenues from its Azure cloud, which rose 48% to $33.17 billion. Broader cloud revenues jumped 30% to $63.9 billion. Microsoft has faced similar questions to Alphabet and others in the AI trade about whether they are overspending to get ahead in the AI race, but Microsoft’s latest report could ease some of those fears for now. Microsoft shares, which have gained roughly 10% in 2026, were up 1.5% in recent premarket trading.
Amazon Earnings Due After the Closing Bell
Amazon (AMZN) is the next AI heavyweight set to report earnings, with its third-quarter results due after the closing bell this afternoon. The online retail and cloud computing giant is seen posting earnings of $1.97 per share, up 2 cents from a year ago, on revenue of $202.35 billion, growth of about 12%. After Alphabet and Microsoft posted solid cloud revenue growth, investors will be keeping a close eye on Amazon Web Services revenue, which is forecast to have grown more than 40% to $45.45 billion. Amazon shares were down nearly 2% premarket.
Marvell Stock Sinks, Lumentum Jumps on Report of Possible Merger
A pair of AI hardware stocks are on the move this morning amid reports that they could merge. Marvell Technology (MRVL) shares were down 12% recently while Lumentum (LITE) rose 6% following a Bloomberg report that Marvell is nearing a deal to acquire Lumentum, which could be announced as soon as next week. Such a deal would bring together two hot AI stocks. Lumentum had a market capitalization of roughly $83 billion as of yesterday’s close, while Marvell’s is just over $220 billion. Marvell, a chip designer, recently hiked its long-term sales targets thanks to booming data center demand. Meanwhile, Lumentum’s CEO said earlier this month that it is sold out of its current production capacity through early 2029. The company won’t be able to meet some 70% of the demand for its optical networking products, which transmit data through lasers at high speeds, a vital need for AI data centers.
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Source: “AOL Money”
