Morning Brief | INTC down 2% due to China security review, Morgan Stanley Q3 profit beat estimate

Pre-market Movers

Ahead of Wednesday's trading, the three major U.S. stock index futures were slightly rise, with Dow futures rise 0.07%, S&P 500 futures rise 0.06% and Nasdaq 100 futures rise 0.10% at press time.

Intel slides about 2% in premarket trading, after CyberSecurity Association of China is calling for checks to be conducted on the chipmaker’s products.

Morgan Stanley's Q3 profit beat estimate, fueled by a rebound in dealmaking that had also buoyed its rivals, sending its shares up 3% before the market open.

Trump-related stocks rise in the premarket, Trump Media Technology Group up more than 6%;

ASML extended yesterday's losses, falling another 3% in the Pre-Market trading. German software firm SAP has taken the title of Europe’s most valuable technology company away from ASML.

TSMC shares are up more than 1% in pre-market trading as the company is set to release its Q3 earnings report tomorrow

Market Watcher

Goldman Sachs analysts said in a report on Tuesday that after a brief risk aversion in the summer, risk appetite has returned, which will support the U.S. stock market in the coming months. Goldman Sachs pointed out that in the late cycle when the economy is near its peak and policies are relaxed, risk assets are usually favorable unless growth momentum slows down or inflation accelerates, triggering policy tightening.

Pre-market Headlines

Analysts interpret ASML’s slump: global chip factory overcapacity, but not the end of the industry

Many industry analysts said the weak forecast could reflect overcapacity at chip factories around the world that have stockpiled ASML's expensive lithography machines during the pandemic and have used them to produce more chips. The information reflected in ASML's earnings report is really only a lagging performance of the real situation of these chip factories in recent months.

Morgan Stanley's Q3 earnings beat estimate, profit jumps 32% on bumper dealmaking

Morgan Stanley's third-quarter profit surged 32%, fueled by a rebound in dealmaking that had also buoyed its rivals, sending its shares up 3% before the market open.

The investment bank posted a profit of $3.19 billion on Wednesday, or $1.88 per share, for the three months ended Sept. 30. That compares with $2.41 billion, or $1.38 per share, a year earlier.

A revival in corporate debt issuance, initial public offerings and mergers have bolstered profits for investment banks this year.

Ryanair to cut traffic estimate for next year due to plane delivery delays

Ryanair will have to revise down its passenger traffic estimates for next year because of expected aircraft delivery delays from Boeing ,the budget airline's group CEO Michael O'Leary told Reuters on Wednesday, "I think we're clearly going to walk back our traffic growth for next year, because I don't think we're going to get all those 30 aircraft,"

World at A Glance

Elon Musk gives $75mn boost to Donald Trump’s presidential run

Musk made several multimillion-dollar donations during the third quarter to America Pac, his political action committee, according to a federal filing released on Tuesday, giving the group a huge budget to support Trump’s re-election bid.

The group already spent more than $96mn boosting Trump, according to the independent non-profit OpenSecrets, and about $10mn more helping Republicans in congressional races.

EU AI Act checker reveals Big Tech's compliance pitfalls

Some of the most prominent artificial intelligence models are falling short of European regulations in key areas such as cybersecurity resilience and discriminatory output, according to data seen by Reuters.

China’s property shares surged

China’s property shares surged as markets prepared for a joint news conference to be held by government officials including the housing minister and central bank on Thursday.

Israeli strike hits municipal building in south Lebanon, mayor and five others killed

Israel launched an airstrike on Wednesday on the municipal headquarters in Nabatieh, a major town in south Lebanon, killing the mayor and at least five others.

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