^{_{Welcome to the TraderTV Live Morning Research Note. Here's what's making major moves in the market today.}}

0900 - Fed’s Bowman speaks
1000 - Existing home sales for September: Expected 3.88M; Prior 3.86M
1000 - Existing home sales m/m for September: Expected 0.52%; Prior -2.5%
1200 - Fed’s Barkin speaks

McDonald’s Corp (MCD)

-6.83%

Gapping down after the US Centers for Disease Control and Prevention (CDC) released a report linking an outbreak of E. coli to the chain’s Quarter Pounder menu item. At the time of the report, 49 people across 10 states were known to have been infected, ten of whom were hospitalized and one of whom passed away. The CDC noted it is trying to ascertain which ingredient in the Quarter Pounder led to the outbreak. Baird downgraded its rating on the stock to Neutral following the news.

Starbucks Corp (SBUX)

-4.03%

Trading sharply lower premarket after releasing preliminary results for fiscal Q4 and 2024 ahead of its scheduled report after the bell on Wednesday, October 30. Global comparable sales and consolidated net revenues for Q3 dropped by 7% and 3% year-over-year, respectively, while non-GAAP earnings of $0.80 per share represented a 25% year-over-year decline. For fiscal 2024, the company reported a 2% year-over-year decrease in global comparable store sales and a 1% increase in consolidated net revenues. Starbucks also raised its quarterly dividend from $0.57 to $0.61 and announced that it would be suspending its guidance for fiscal 2025.

Tesla Inc (TSLA)

-0.49%

On watch after Nikkei reported that the company plans to begin selling its Powerwall home battery system in Japan through the electronics store chain Yamada Denki. By partnering with Yamada Holdings, which operates around 1,000 stores nationwide, Tesla aims to accelerate the distribution of its home battery system in the country. Tesla is scheduled to report earnings after the close on Wednesday; analysts are looking for earnings of $0.58 per share and revenue of $25.55 billion.

The Boeing Company (BA)

-0.43%

On watch following its Q3 2024 earnings report, its first under new CEO Kelly Ortberg. The company reported adjusted losses of $10.44 per share, wider than the expected $10.34-per-share loss, with sales of $17.8 billion also missing estimates of $17.931 billion. Ortberg noted that Boeing needs a “fundamental change” because the public no longer trusts them as a company, and highlighted a backlog of approximately $500 billion.

Qualcomm and Arm Holdings

-2.99%

Both stocks are trading lower premarket after Bloomberg reported that Arm has threatened to cancel Qualcomm’s chip design license,. The report indicates that Arm has given Qualcomm a 60-day notice, potentially impacting Qualcomm's ability to sell chips for Android devices. The dispute centers on Qualcomm's acquisition of Nuvia, another Arm licensee; Qualcomm claims its current agreement covers Nuvia's operations, while Arm has accused Qualcomm of not renegotiating contract terms.

QCOM, ARM

Snap Inc (SNAP)

+2.51%

Trading higher premarket after JMP Securities upgraded the stock from Market Perform to Outperform with a $17 price target. The upgrade was attributed to optimism about Snapchat's new "Simple Snapchat" design improving user engagement and ad revenue growth. The analyst expects the redesign, along with the introduction of Sponsored Snaps, to significantly enhance ad revenue. JMP also acknowledged risks surrounding the stock with regards to Snap’s content, algorithm issues, and heavy reliance on margin expansion.

Trump Media, Phunware, and Rumble

+4.27%

Trading higher as a trio as the 2024 US Presidential election approaches. Former US President and current Republican candidate Donald Trump is the majority shareholder of Trump Media, and Phunware and Rumble tend to move in sympathy with the stock. All three stocks rallied yesterday amid a slew of catalysts, including Trump Media’s announcement that its Truth+ streaming app is now available on Android and a report from Politico suggesting that Trump is set to appear on Joe Rogan’s podcast.

DJT, PHUN, RUM

Enphase Energy (ENPH)

-15.10%

Gapping down after reporting earnings for fiscal Q3 2024, with adjusted earnings of $0.65 per share and sales of $380.9 million missing estimates of $0.77 and $391.979 million, respectively. The company reported a 43% quarterly increase in US revenue but a 15% quarterly decline in European revenue amid ongoing weakness in demand in Europe. Enphase guided Q4 revenue between $360 million and $400 million and a non-GAAP gross margin between 49% and 52%.

AT&T Inc (T)

+3.21%

Trading higher premarket following its Q3 2024 earnings report. Earnings of $0.60 per share exceeded expectations of $0.57, but sales of $30.213 billion fell short of the expected $30.44 billion. The company maintained its previously-stated guidance for fiscal 2024, forecasting adjusted EPS between $2.15 and $2.25 and broadband revenue growth of at least 7%.

Spirit Airlines Inc (SAVE)

+27.01%

Gapping up after the Wall Street Journal reported that Frontier Group Holdings is exploring the possibility of renewing its acquisition bid for the company which is in talks with bondholders about a potential bankruptcy filing. While the two carriers have had preliminary merger discussions, a deal may depend on Spirit's debt restructuring during potential bankruptcy proceedings. Spirit had previously entered a merger agreement with JetBlue, but the companies terminated the agreement in March 2024 after the merger failed to receive regulatory approval.