US100 gains 1,25%. Palantir shares rise 20%, sell-off on Albemarle shares

• Wall street continue to rise, US100 leads gains with 1% gains
• US unemployment claims slightly above expectations - reading supported the bulls
• US orders data revised downward but factory orders surprised upward
• Panic on Confluence - shares lose 40%, euphoric 20% rally on Palantir (PLTR.US) after Q3 results
• Qualcomm (QCOM.US) and PayPal gain after Q3 results; AirBnb erases early gains
• Bulls return to Inmode (INMD.US) amid temporary drop in concerns over Israel's geopolitical situation - company has production and logistics located in Israel
• Largest global producer of lithium for EVs - Albermarle (ALB.US) cuts forecasts - shares lose 4%
• Apple (AAPL.US) results after the US session

Sentiment in financial markets continues to improve after yesterday's Powell conference and Fed decision. Markets are also recovering from the temporary impasse in the Middle East, where Israel's conflict with Hamas has not yet grown to regional proportions, and Arab states have not yet joined the war - as a result, oil prices have reduced some of the geopolitical premium, and the assessment of the chances of a return of price pressure has fallen. Now the market will focus on the results of the largest listed company - Apple. The giant will report results after the session. Yields on 10-year Treasury bonds are still trading under pressure today, and a losing dollar lifts risky assets higher. Strong gains in the U.S. are also being recorded by companies that have been oversold in recent months due to uncertain financial conditions and growth prospects like Roku (ROKU.US), which is trading up 20%, and Lemonade (LMND.US) which is up nearly 38% today after strong Q3 results and forecasts for the current quarter.

Today's data readings from the US:

• US unemployment claims, current: 217k. Expectations 210k; previously 210k

• Non-farm productivity in 3Q +4.7%; consensus +4.3%

• Labor costs in 3Q. -0.8%; consensus +0.7%

Source: US Census Bureau

US factory orders data: 2.8% increase vs. 2.3% estimate and 1.2% previously

At the same time, the underlying reading for orders in the US economy was revised downward to 0.4% vs. 0.5% forecast and 0.5% previously and the headline index also came in lower, at 4.6% vs. 4.7% expected and 4.7% previouslySource: xStation5

Albemarle (ALB.US) under pressure - cuts forecasts

Electric car battery supplier Albemarle (ALB.US) lowered its annual forecast and saw lower-than-expected quarterly profit amid falling lithium prices. The company now estimates that the volume of lithium sold this year will increase by at least 30% over last year's levels, but that prices will rise by only 15%, far below the period of strong growth that Wall Street had expected. Albemarle appears to be one of the cyclical companies that could face problems in an environment of consumer weakness.

The company reported third-quarter net income of $302 million ($2.57 per share), compared with $897 million, (about $7.61 per share) for the same period in 2022. Analysts had expected earnings of $3.99 per share. The company lowered its net sales forecast for full-year 2023 to a range of $9.5 billion to $9.8 billion (from $10.4 billion to $11.5 billion previously)

Palantir (PLTR.US) - has AI made a difference?

Palantir is a company whose business base is based on data analytics and AI in the broadest sense - this year the company managed to reach profitability for the first time since inception in February 2023. Q3 results beat Wall Street forecasts:

• Earnings per share: $0.07 vs. $0.06 forecasts (Refinitiv)
• Revenue: $558 million vs. $556.1 million (Refinitiv)

Palantir's third-quarter revenue rose 17% to $558 million from $478 million in Q3 2022. The company reported a net profit of $72 million, compared to a net loss of $123.9 million in the same quarter last year. The company's results mark the 4th consecutive profitable quarter, qualifying the company for potential inclusion in the S&P500. For the fourth quarter, the company expects revenue of $599 million to $603 million, and raised its revenue forecast for the full year from $2.216 billion to $2.22 billion. The company conveyed that Israel, in its conflict with Hamas, is using its intelligence software, which is reserved exclusively for Western countries. The market is positive about both the increases in revenue from private customers (up 33% y/y) and 37% y/y in the US market alone (from 132 to 181 entities). According to some observers, the company is also likely to be a 'beneficiary' of geopolitical frictions in the medium term, which may herald higher demand for its services.Source: xStation5