Market Review: October 27, 2026

Closing Recap

Tuesday, October 27, 2026

U.S. stock markets were higher as energy prices slipped and investors positioned themselves ahead of the FOMC rate meeting tomorrow and key earnings releases in the next few days, as tech (XLK, QQQ) rebounded alongside a solid bounce in Smallcaps. The Dow Jones Industrial Average slipped amid weakness in Boeing (BA) after results/commentary, while the other major stock indexes traded higher paced by gains in Tech, Industrials Consumer Discretionary and Materials, while defensive sectors REITs , Consumer Staples lagged and Energy (XLE) fell over 2%. Meanwhile, the Federal Reserve’s two-day policy meeting kicked off as consumer confidence came in better than expected on the stock market today. In data today, Consumer confidence jumped in Oct to highest level since Jun as both present situation and expectations indexes rebound on gas prices and inflation expectations easing.

All eyes on the Fed tomorrow after the FOMC raised rates in September for the first time in three years to combat higher inflation. Traders are now pricing in an 83% probability of a US rate hike in December, according to the CME’s FedWatch Tool, but a very low probability of any changes at tomorrow’s meeting. Investors also await US Personal Consumption Expenditures data, the gauge the Fed watches most closely, due on Thursday as it targets 2% inflation. Earnings reports from hyperscalers Alphabet (GOOGL), Microsoft (MSFT) and Amazon.com (AMZN) are due this week and will be watched for more signs of spending and growth on the AI front. Speaking of, the AI sector rebounded partially after a dreadful October thus far, as the SOX index and key data center plays rallied.

• U.S. Consumer Confidence Index increased to 91.7 in October vs. 80.4 consensus and 84.2 in September (revised from 81.9). Present Situation Index: 120.4, up by 8.6 points and the Expectations Index at 72.6, up 6.9 points.
• Sept single-family home sales posted a 676K unit ann. Rate vs. consensus 650K; Sept single-family home sales -0.6%; Sept home sales Northeast +28.0%, Midwest -7.3%, south -6.6%, West +21.4%; US Sept new home supply 8.4 months’ worth at current pace vs Aug 8.5 months
• House prices rose 0.3% after a downwardly revised 0.2% gain in July, the Federal Housing Finance Agency said on Tuesday. Prices were previously reported to have climbed 0.3% in July. They increased 2.4% in the 12 months through August, after advancing 2.5% year-on-year in July. Monthly house prices increased in five of the nine census regions in August, rising 2.1% in the East South Central region.

• Ahead of tomorrow’s FOMC meeting where no rate hike is expected, December gold climbed $36.20, or +0.90%, to settle at $4,074.60 an ounce while December silver rises $0.17, or +0.32%, to finish the day at $54.51 an ounce. Traders are now pricing in an 83% probability of a US rate hike in December, according to the CME’s FedWatch Tool. Investors also await US Personal Consumption Expenditures data, due on Thursday as it targets 2% inflation.

• Specialty retailers/Appliances: WHR earnings results/guidance weak as Q3 adj EPS loss (-$0.21) vs. est. $1.01; Q3 revs fell -8.8% y/y to $3.68B vs. est. $3.93B, hurt by an -8.3% decline in 3Q net sales from its North American major domestic appliances segment and cuts its full-year sales guidance by $500M to around $14.5B following the 3Q results (shares fell initially before recovering).
• Building products/homebuilders: AWI shares fell as cut the upper end of FY26 adj. EPS forecast to $8.30-$8.40, from prior forecast of $8.3-$8.50 and posted Q3 adj. EPS of $2.26, below analysts’ estimates of $2.39 saying rising inflationary pressures/timing-related mix headwinds in its mineral fiber sales hurt results.
• Uniform sector: shares of UNF tumbled after Semafor reported that the FTC reportedly plans lawsuit to block $5 billion merger with CTAS. The FTC has reportedly informed the companies it intends to sue to block the proposed transaction. The potential legal challenge threatens completion of the $5B deal. https://tinyurl.com/2upstd5a

• Casinos & Gaming: Reuters reported this afternoon that a US regulator is probing whether prediction market operator Polymarket violated a 2022 agreement to bar U.S. users. The Commodity Futures Trading Commission (CFTC) is probing Polymarket’ S controls, advertising activity in the United States per the report (DKNG, FLUT shares bounced on headlines).
• Cruise sector: RCL rose on results as Q3 adj EPS $6.57 vs. est. $6.38 and revs $5.59B vs. est. $5.61B; guides Q4 EPS $3.48-$3.58 which is below consensus of $3.65 and guides year EPS $17.85-$17.95 vs. est. $17.79; said 2027 bookings are pacing ahead of historical levels at higher rates; said since last earnings call, booking volumes have increased in mid-teens across all major channels.
• Online travel & Lodging: Keybanc previewed the sector saying they expect 3Q results to come in above consensus across ABNB, BKNG, and EXPE, supported by resilient travel demand despite elevated oil prices and persistent geopolitical tensions. The macro backdrop could drive conservative forward outlooks, putting greater emphasis on company-specific execution. Key areas of focus include ABNB’s core homes growth and scaling of hotels, BKNG’s Connected Trip progress and marketing efficiency, and EXPE’s B2C turnaround, B2B investment.
• Leisure sector: in golf industry (CALY, GOLF), Based on Truist’s sample data set, U.S. Golf Equipment retail sales were +2.7% Y/y in September versus August’s -6.4% result and July’s -2.6%. September’s result was more in-line to the LSD-MSD growth Truist saw earlier this year. Two-year Equipment stack sales accelerated 310 bps M/m in September to +8.0%. PII shares jumped on results as Q3 sales $2.043B topped est. $1.902B and adj EPS $1.08 beat est. $0.60; guides FY adj EPS $3.50-$3.60 above est. $3.06.

• Energy sector: oil prices were modestly lower early, weighing on the complex ahead of key earnings later this week (XOM, CVX, COP); refiners were notable laggards, with shares of DINO, DK, MPC, PSX, PBF and VLO all falling sharply (group has been making all time highs for months on surging diesel prices and improving crack spread margins). Weakness today likely a sector-wide reaction to easing US-Iran tensions, falling oil prices, and pressure on the extreme crack spreads that drove their huge 2026 rally. The group remains highly leveraged to crack spreads (especially distillate) and geopolitical risk.

• FinTech sector: PYPL lifted its full-year outlook and reported higher revenue y/y in Q3 to $8.58B but below est. $8.71B (though EPS missed); Q3 Transaction margin dollars were up 2% to $3.95B and total payment volume rose 6% to $487.14B; said it now expects full-year adjusted earnings of around $5.60 a share, up from a previous view of around $5.38 a share. Visa (V) is expected to report earnings after the close (coming off recent all-time highs).
• Lending sector: SOFI Q3 EPS and revs rose 44% y/y, topping consensus ($0.18/$1.385B vs. est. $0.17/$1.26B); Fee-based revenue reached $570.6 million, representing 42% of total revenue; said it has added a record 1.2Mm members during the quarter, bringing its total count up 35% y/y to 17.1 million members; guides 20206 EPS $0.61 on revs $5.04B above ests. $0.60/$4.87B.

• PECO reported 3Q26 Core FFO of $0.71, +$0.02 vs. consensus, and management raised FY26 guidance by $0.01 at the midpoint. Underlying fundamentals strengthened, with SSNOI growth accelerating to 5.3% from 3.8%, healthy leasing, and improved occupancy.
• PSA reported a $0.09 Core FFO beat vs. consensus, and management raised FY26 guidance by 0.6% at the midpoint. More importantly, fundamentals continue to improve, despite a lackluster housing environment, with 3Q trends exceeding PSA’s early September update and move-in rents accelerating. SSREV/SSNOI guidance increased 50bps/90bps, respectively.
• WELL 3Q26 nFFO beat consensus by ~2%, while FY26 guidance increased 1.6%, which is ~1% above consensus, supporting upside to 2026-27 estimates. SHO SSNOI growth rose 21% y/y on continued occupancy gains and improving RevPOR growth, resulting in 100 bps and 75 bps increase to SHO and total SSNOI guidance, respectively.

• ARTV shares tumbled after the company scrapped development of its experimental cell therapy AlloNK after a review of clinical data and two patient deaths in studies. AlloNK was being evaluated in combination with rituximab in rheumatoid arthritis and other autoimmune diseases; the company is also reducing its workforce by ~94% and evaluating strategic alternatives.
• MRK said patients receiving Sacituzumab tirumotecan, known as sac-TMT, lived a median of 19 months, compared with 12.1 months for those given chemotherapy, according to results from a late-stage study.
• MRNA was downgraded to Market Perform at William Blair citing valuation for the downgrade with the stock up 545% year-to-date. The firm still believes the interim INTERPATH-001 data of intismeran in combination with pembrolizumab in adjuvant melanoma is supportive of a potential new standard of care if the personalized neoantigen vaccine can be rolled out commercially
• NVS recorded about $2.2B in charges related to two drugs that failed in late-stage studies last month, even as it boosted its full-year profit expectations; Q3 operating income fell 61%, hurt by higher research and development costs and a $1.9B partial impairment charge; still raised its full-year core operating income guidance to low single-digit percentage growth, compared with the low single-digit decline previously expected.
• PFE said Elrexfio met the primary endpoint in the Phase 3 MagnetisMM-32 trial, outperforming standard regimens in relapsed or refractory multiple myeloma; treatment reduced the risk of disease progression or death in patients previously treated with anti-CD38 therapy and lenalidomide. No new safety signals emerged, though severe infections were more frequent with Elrexfio than with comparator treatments.
• VNDA announces positive results from study 3601 of Nereus™ (Tradipitant) for prevention of glp-1-induced vomiting; Nereus reduces any vomiting to 43.0% vs 58.5% placebo, 27% relative reduction and was generally well tolerated with no new safety signals observed.

• Managed Care sector: CNC reported 3Q results, with revs of $50.7B (vs. $47B consensus), with HBR 20 bps lower than cons and SG&A 70 bps better, EPS $0.58 (vs. $0.10 consensus). Marketplace MBR missed cons by 190 bps balanced by better MA/PDP performance. Guidance was raised to EPS greater than $5.20 (vs. greater than $4.80 prior), with HBR guidance now expected to be 90.4% to 91.1% (vs. 90.5% to 91.3% prior).
• CRO sector: IQV 3Q results were modestly ahead, with revs of $4.43B (vs. $4.37B consensus) with adj EBITDA of $1.03B (vs. $1.01B est.), book to bill was 1.2x (vs. 1.17x cons) and bookings +15% y/y. The company tweaked guidance higher, now expecting EBITDA of $4.025B to $4.055B (vs. $4B to $4.05B prior) and EPS to $12.90 to $13 (vs. $12.80 to $13 prior). 

• Industrials sector: JCI beats Q4 profit and revenue estimates, driven by strength in its Applied HVAC & Controls business and sustained demand from data centers, while guided FY EPS in the range of $6.15 to $6.30, the midpoint of which is above Wall Street expectations of $6.16; ITW misses Q3 revenue estimates ($4.24B vs. $4.26B estimate) while quarterly net income came in at $855M, above expectations of $847.1M and raises full-year 2026 EPS guidance; PCAR reported both a top and bottom line Q3 beat in heavy duty truckers. HUBB shares fell despite Q3 EPS/rev beat as margin concerns outweigh Q3 earnings/also raises FY26 adjusted EPS outlook to $20.40-$20.60 from $20.25-$20.55
• Aerospace sector: BA shares tumbled after posted a Q3 core loss of (-$0.34) vs. est. loss (-$0.20) while revs $24.19B compared to $24.37B estimate as supply-chain ‌challenges, production delays in its commercial airplane division overshadows bigger margins across rest of the company; Commercial Airplanes’ revenue dipped slightly to $10.7B with an operating loss of $697M and a margin of -6.5%; shares of parts suppliers such as CRS, ATI were volatile as well to the downside as Boeing said on its c/c they will be ‘shy’ of 737 production target.

• Metals & Mining sector: in steel sector, NUE 3Q adj EPS of $5.80 vs. Street $5.84, and the guidance range of $5.55-$5.65 provided in mid-September; posted strong Steel Products (Fabrication) and Raw Materials earnings, while strong Steel Mills earnings were in line; 3Q EBITDA was ~$2.23B vs. our estimate of $2.24B, up ~14% q/q vs. 2Q26’s $1.97B and up ~80% y/y.

• DeepSeek’s latest Ai model showed stronger safety controls in Independent tests than earlier versions, but could still disable software intended to shut it down, exploit gaps in monitoring and follow deceptive instructions during long tasks, according to a Chinese Ai-safety group. Start-up DeepSeek is one of China’s most closely-watched artificial Intelligence companies, and its models have drawn global attention for their performance and relatively low operating costs – Reuters.
• Data Center and Neocloud stocks saw a notable rebound today, helped by commentary out of CLS in EMS sector, with shares of CRWV, NBIS, IREN, HUT, CIFR and others rebounding.

• Optical sector: GLW Q3 core EPS $0.91 tops est. $0.88 on core sales rising 19% y/y to $5.08B vs. est. $5.02B; guides core EPS $0.96-$1.00 above consensus $0.92 and revenue $5.2B-$5.3Bvs. consensus $5.21B; said expect to grow earnings faster than sales, with significantly higher ROIC and substantially more free cash flow.
• Software sector: GWRE agreed to acquire Hyperexponential for a base purchase price of $1.7B in cash, subject to adjustments, and up to an additional $400M in contingent consideration based on achievement of specified recurring revenue targets. HUBS was downgraded to Neutral at UBS as checks point to a more mixed near-term setup, with uneven SMB and new-logo demand, nascent Ai monetization, intensifying competition down-market. Rosenblatt said heading into Q3 2026 earnings season, expects a "slight beat" from FTNT and downgraded OSPN to Neutral. AGYS reported beat and raise as total rev, Sub rev, and EBITDA all topped consensus, but given rally in shares into print, Cantor said guidance was not raised enough to boost shares further.
• EDA sector: CDNS delivered strong Q3 results on broad-based strength and raised its full-year guidance meaningfully ($79M/1.3%) with only one quarter remaining in the year and it comes on the heels of the Company’s largest ever guidance increase last quarter. Despite the strong guide raise, Q4 revenue growth still implies a deceleration.

• AMKR shares rose early after mixed results for Q3 and guided Q4 slightly below the Street. While 2.5D/HDFO programs remain on track, smartphone/consumer demand further downticked, as one major customer further cut production over the past quarter due to component shortages. Management remains upbeat on 2.5D/HDFO programs and expects to raise CAPEX next year
• AVGO was upgraded to Buy at DA Davidson after Anthropic S1 and raised tgt to $400 from $350 saying reading the Anthropic S1 leads it to believe the IPO will proceed, Anthropic will raise its capital, and next year OpenAI will raise more capital in its own IPO, allowing Broadcom to meet its expectations for the next couple of years.
• AMAT said to increase its strategic investment in Be Semiconductor (BESIY) to about 20% of shares; said does not intend to increase investment beyond 20% or seek board representation.
• SMCI backed neocloud Computing firm Argentum Ai is in talks to secure a $5B financing deal for Ai chips with a major private credit firm, according to two people familiar with the matter, reported Reuters. Argentum has secured more than $12B in contracted revenue, the person said