It sees a rise in US stock futures on Monday morning. Wall Street looked to extend last month’s momentum into November. For instances, S&P 500 futures (ES=F) and Nasdaq 100 futures (NQ=F) made gains of 0.2% and 0.3% respectively. Dow Jones Industrial Average futures (YM=F) added about 0.1%.
The major indexes hit record highs on Wednesday. This occurred amid a barrage of earnings and other news. They finished the week with modest to solid gains. But small caps fell solidly amid weak breadth.
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Investors can consider adding exposure but be ready to cut stocks quickly if they aren’t acting well. MongoDB (MDB) is in a buy zone while Eli Lilly (LLY) and Interactive Brokers (IBKR) also are actionable.
On Saturday, Berkshire Hathaway (BRKB) reported Q3 operating earnings rose 34% vs. a year earlier, topping estimates. The cash hoard swelled to a record $381 billion. BRKB stock has been struggling. The difficulties began since Warren Buffett announced six months ago that he will step down as CEO at year-end.
- Looking at November, the 6 things that we are focusing on are:
1. 3Q25 EPS: 83% beat, best in several years
2. AI continues to gain visibility
3. Crypto suffers from Oct 10th deleveraging, but tokenization driving adoption
4. Fed “dovish” and inflation weakening
5. Private credit lingers in background
6. Sentiment remains muted = fuel for YE rally - We are halfway through 3Q25 earnings season with 244 companies reporting. 83% of companies are beating and overall beats are +4.3%, which implies overall 12% EPS growth YoY. There are many sectors posting double digit growth. This is not only an AI story. It demonstrates US corporates and multinationals are able to generate strong earnings gains. This happens despite the largest tariff increases in US history. Recall many economists predicted US profit margins would collapse by 3Q25 due to tariff cost surges.
Corporate Earnings Continue to Impress
The ongoing third-quarter (3Q25) earnings season has surpassed expectations. So far, 244 companies have reported results, with 83% beating analysts’ estimates — the strongest beat rate in several years. On average, earnings are exceeding projections by 4.3%, implying an overall 12% year-over-year EPS growth. These numbers reinforce confidence in the resilience of U.S. corporations, even amid lingering economic challenges.
Investors point out that this strong performance is not just an “AI story.” While artificial intelligence continues to drive visibility for tech giants, growth is widespread across multiple sectors, including healthcare, finance, and industrials. Companies like MongoDB (MDB) are in a buy zone, while Eli Lilly (LLY) and Interactive Brokers (IBKR) remain actionable stocks, reflecting continued confidence in select growth and healthcare names.
Berkshire Hathaway’s Record Cash Hoard
Adding to the news flow, Berkshire Hathaway (BRKB) reported that its third-quarter operating earnings rose 34% from a year earlier, surpassing expectations. The company’s cash holdings swelled to a record $381 billion, signaling a cautious stance from Warren Buffett’s team amid market uncertainty. Despite the strong results, BRKB stock has struggled since Buffett announced six months ago that he plans to step down as CEO by the end of the year.
This record cash position could indicate potential future investments or stock buybacks once market valuations normalize. For now, it also reflects a preference for safety as valuations climb and bond yields remain volatile.
Market Outlook for November
Looking ahead, analysts and traders are focusing on six key themes driving markets in November:
- Earnings Strength: 3Q25 EPS beat rate of 83%, highest in recent years.
- AI Expansion: Continued visibility and adoption across industries.
- Crypto Recovery: After the October 10th deleveraging, tokenization is driving renewed interest.
- Federal Reserve Stance: A more “dovish” tone and signs of weakening inflation support risk assets.
- Private Credit Influence: Remains a quiet but significant factor in market liquidity.
- Muted Sentiment: Paradoxically, this can fuel a year-end rally as sidelined cash re-enters markets.
Despite concerns about tariffs and global trade tensions, U.S. corporations have shown remarkable adaptability. Even with some of the largest tariff increases in history, profit margins have held steady, defying economist predictions of a sharp decline.
Investment Strategy: Cautious Optimism
For investors, the message is clear: the trend remains positive, but discipline is key. It’s wise to add exposure selectively, focusing on stocks showing relative strength and strong earnings momentum. However, traders should also be ready to cut positions quickly if they fail to perform.
With US stock futures signaling continued optimism, the balance of risk and reward remains favorable heading into the year-end. If inflation continues to cool and the Fed maintains its patient stance, Wall Street may find more room to run — potentially extending its record-setting rally well into December.
Conclusion
In summary, US stock futures continue to point toward a steady and optimistic start to November, supported by robust earnings, easing inflation, and growing confidence in the economic outlook. The combination of strong corporate results and a more accommodative Federal Reserve stance has created favorable conditions for investors looking to capitalize on short-term opportunities.
However, selective investing remains crucial. While large-cap tech and AI-driven companies are leading the rally, smaller firms and cyclical sectors still face headwinds from tariffs and tighter credit conditions. Maintaining a balanced portfolio and staying alert to market signals will be essential for navigating the weeks ahead.
If current trends hold, Wall Street could see an extension of its record-setting run into year-end, reinforcing the resilience of U.S. markets despite global uncertainty. Overall, US stock futures reflect a cautiously optimistic market mood — one that could set the stage for a strong finish to 2025.
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