Markets
The 7am Briefing: CoreWeave Lifts Nasdaq Futures as Bonds Take a Holiday
Hot CPI sent 2-year yields up 17bp, but CoreWeave's beat has tech futures rising.
HedgeWeekly Video & Briefing Desk ·
Top line: Prices rose faster than forecast in October, yet Nasdaq futures are up about 1.6% this morning. CoreWeave's results have pulled AI stocks off the floor while the bond market takes a holiday.
Before the bell (US futures as of 4:30 a.m. ET; yields are Tuesday's close): S&P 500 futures +0.7% · Nasdaq 100 +1.6% · Dow +0.17%. 10-year Treasury about 4.99% · 2-year about 4.74%. WTI crude +0.7% to about $86.64 · Brent +1.0% to about $92.43. Gold +0.6% to about $4,057 · Euro −0.16% to $1.1153. Bitcoin −0.02% to about $73,689, near an 11-week low.
Markets and macro: 1. Hot inflation reset the rate path. Consumer prices rose 0.4% in October, against a 0.3% forecast. Core prices, which strip out food and energy, rose 0.3% against 0.2%. The S&P 500 fell 0.38% to 7,520.93 and the Nasdaq lost 0.74%. Nvidia dropped 5.53% to $168.78 as its board probe continued. Saxo says markets now fully price a December hike, plus two more by next June.
Markets and macro: 2. CoreWeave turns the mood around. The AI cloud company reported third-quarter revenue of $3.66 billion, up 168%, and a loss of $1.27 a share against $1.55 expected. It raised its 2026 revenue forecast to $13.0 billion to $13.3 billion. Its backlog of contracted work stands near $133 billion. Shares were up about 17% before the bell, Stocktwits reported. Taiwan's Taiex rose 3.6% and South Korea's Kospi 2.4%, the AP said.
Markets and macro: 3. OpenAI passes $10 billion a quarter. OpenAI told investors its third-quarter revenue reached $10 billion, Bloomberg reported, according to Investing.com. That is up nearly 50% on the previous quarter. The Wall Street Journal put its adjusted operating loss at about $10.9 billion. Separately, the Financial Times said bankers for Anthropic are weighing a valuation of $1.5 trillion or more for its listing.
Markets and macro: Also overnight: Europe's Stoxx 600 rose 0.7% to 662.83, close to its August record, as Siemens Energy gained 6.5%. Japan's Nikkei 225 added 1.3% to 61,248.59, while Hong Kong's Hang Seng slipped 0.7%.
Hedge fund moves: October hurt most hedge funds. Hedge Fund Research's main index fell an estimated 1.4% last month, and about 60% of funds lost money. Equity hedge funds dropped 2.4%, with technology funds down 4.8%. The best tenth of funds gained 7.7% on average, while the worst tenth lost 13.2%. JPMorgan's positioning team called October "an exceptionally challenging period for hedge funds", Hedgeweek reported.
Hedge fund moves: Funds cut risk at the fastest pace since 2020. Goldman Sachs prime brokerage data cited by 24/7 Wall St show US stock-picking funds cut gross leverage, total longs plus shorts, by 8.7 points to 207.5%. That is the biggest drop since March 2020. Net leverage fell 3.7 points to 43.3%. Tech was the most heavily sold sector, just before chip stocks rebounded.
Earnings to watch: CoreWeave beat on revenue and loss per share, and guided 2026 capital spending to $37 billion to $39 billion. Netlist said third-quarter net sales rose 149% to $105.1 million. GoPro delayed its third-quarter results to finish accounting work on financing deals; shares fell more than 10% early. CGI reports before the open, with consensus earnings of $1.64 a share, StockTitan said. After the close: Corteva and Franco-Nevada, with Franco-Nevada expected to earn $1.77 a share. Cisco and Applied Materials follow on Thursday.
HedgeWeekly Stockwatch: CRWV CoreWeave: revenue beat forecasts and guidance rose, sending shares about 17% higher before the bell. NVDA Nvidia: up about 3.5% premarket after a 5.53% fall on Tuesday. GPRO GoPro: down more than 10% after delaying results. ENR Siemens Energy: up 6.5% on expectations of higher 2027 margins and a plan to more than triple its dividend.
Today's calendar (ET): US cash Treasury market closed all day for Veterans Day; stock exchanges are open. 7:00 a.m.: MBA weekly mortgage applications. Morning: ECB President Christine Lagarde speaks, and OPEC publishes its monthly oil market report. Thursday: jobless claims, a 30-year bond auction and the delayed EIA oil report. October producer prices follow on Friday.
Number of the day: 17 basis points. That is how far the 2-year Treasury yield rose on Tuesday, to about 4.74%, according to Saxo. Investing.com said it was the biggest jump in short-term yields in 19 months. The 2-year tracks expected Fed policy closely, so higher borrowing costs may now reach mortgages and company loans faster.
One thing to watch: Stocks open today with no live Treasury market to react against. When bonds reopen on Thursday, do yields keep climbing, or does the CoreWeave rally hold its ground? Friday's producer prices are the next test for December hike bets.
Sources
- Investing.com
- Reuters via Investing.com
- Bloomberg via Investing.com
- AP
- Stocktwits
- TradingKey
- Saxo
- NordFX
- investingLive
- Yahoo Finance
- StockTitan
- Hedgeweek
- 24/7 Wall St
- Trading and Investment News
- RTTNews