Market Analysis: Oct 29th, 2025

STA Research
October 29th, 2025
Market Analysis: Oct 29th, 2025
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Global Markets

Canadian Markets

Canada’s main stock index fell nearly 1% after the Bank of Canada delivered a widely anticipated quarter-point rate cut, lowering its policy rate to 2.25%, the lowest level since mid-2022. The central bank signaled that it may now pause further cuts, emphasizing a delicate balance between supporting a slowing economy under the effects of tariffs and preventing a rebound in inflation. Analysts interpreted the BoC’s message as cautious, indicating a shift toward maintaining monetary stability while monitoring consumer and housing market trends.

American Markets

US markets traded the day in a choppy fashion, as investors adopted a cautious stance ahead of a pivotal week of earnings reports from major technology firms, Alphabet, Meta Platforms, and Microsoft. the three members of the influential “Magnificent Seven.” Market sentiment was mixed, reflecting both optimism about strong tech sector fundamentals and concern over stretched valuations in a high-interest-rate environment.

In an expected move, the Federal Reserve reduced its benchmark interest rate by 0.25 percentage points for the second consecutive meeting, bringing the target range to 3.75%–4.00%. The decision came amid a government shutdown, which has limited access to key economic data.

Nvidia surpassed a $5 trillion market valuation, becoming the first company in history to reach that level. The company’s dominance in powering AI data centers and generative AI applications has made it a key driver of the broader market’s performance in 2025.

Investors are now looking ahead to how these upcoming tech earnings could influence market direction and sector leadership, particularly as expectations for AI monetization and corporate spending trends continue to shape valuations across the indices.

European Markets

European stocks declined as investors digested a mixed batch of corporate results. Adidas warned of a $140 million hit to operating profit from U.S. import tariffs, while UBS and Mercedes-Benz both reported earnings that exceeded expectations.

The UK’s FTSE 100 surged to a new all-time high, driven by upbeat earnings from retailer Next and pharma heavyweight GSK. Gains came despite deteriorating economic forecasts and a weaker British pound.

Corporate Stock News

Booking Holdings Inc (BKNG) – The online travel giant beat Wall Street estimates for third-quarter revenue and profit, supported by strong travel demand and more customers bundling services on its platform. Gross bookings rose 14% year-over-year to $49.7 billion, with adjusted EPS of $99.50, exceeding expectations of $95.66.

BXP Inc (BXP) – The real estate investment trust surpassed revenue forecasts, reporting $871.5 million in Q3 revenue amid solid leasing trends. However, the firm swung to a loss of $0.77 per share, compared with a profit of $0.53 last year, reflecting higher costs and valuation adjustments.

Caterpillar Inc (CAT) – Reported lower quarterly profit due to soft U.S. construction activity and tariffs, though overall sales increased 9.3% to $17.6 billion. Adjusted EPS came in at $4.95, down from $5.17 a year ago.

Cheesecake Factory Inc (CAKE) – Jefferies cut its target price to $70 from $74, citing weaker same-store sales and softening casual dining demand amid cautious consumer spending and unfavorable holiday timing.

CoStar Group Inc (CSGP) – Beat expectations and raised full-year guidance, driven by higher bookings and strong growth across subscription businesses like Homes.com. Revenue rose to $834 million, ahead of the $813.1 million forecast, with net new bookings up 92% year-over-year.

CVS Health Corp (CVS) – Raised its annual profit forecast on strong pharmacy performance but announced a $5.73 billion writedown of healthcare units. Q3 adjusted EPS of $1.60 topped estimates, and full-year guidance was raised to $6.55–$6.65 per share.

Edison International (EIX) – Posted better-than-expected earnings, benefiting from rate increases. Adjusted EPS was $2.34 versus $2.18 expected, with full-year profit guided between $5.95 and $6.20 per share.

Electronic Arts Inc (EA) – Missed on bookings as sports game sales softened, reporting $1.82 billion versus $1.88 billion expected. Net income declined to $137 million from $294 million a year earlier.

Enphase Energy Inc (ENPH) – Beat Q3 estimates but issued a weak Q4 outlook, citing U.S. tariffs that hit margins by nearly 5 percentage points. Adjusted EPS of $0.90 topped expectations of $0.65.

Equity Residential (EQR) – Reported higher funds from operations at $1.05 per share, up from $0.99, with strong rental demand and limited new supply. Revenue of $782.4 million edged past estimates.

Expand Energy Corp (EXPAND) – Swung to a profit of $547 million ($2.28/share) from a loss a year earlier, driven by higher production and stronger commodity prices. Cut full-year capex outlook by $75 million to $2.85 billion.

Ford Motor Co (F) – Announced a recall of 175,000 U.S. vehicles (Expedition, Navigator, F-Series) over potential moonroof wind deflector detachment, with repairs to be made free of charge.

Jamf Holding Corp (JAMF) – Francisco Partners is nearing a deal to acquire Jamf in a take-private transaction, with Vista Equity Partners expected to exit its 34% stake.

Lyft Inc (LYFT) – Roth MKM raised its target to $25 from $19, citing improved execution, expected synergies from the Freenow acquisition, and cost relief from new California insurance legislation.

Mondelez International Inc (MDLZ) – Cut its annual profit forecast due to weaker demand for premium chocolates and snacks and rising cocoa costs. Now expects 2025 EPS to fall 15%, vs. prior 10%. Jefferies also lowered target to $70 from $74, citing pricing pressures.

MSCI Inc (MSCI) – JPMorgan raised target to $680 from $655, noting strong bookings growth, better management visibility, and a $3 billion share buyback that signals confidence in long-term earnings growth.

Nvidia Corp (NVDA) – The company surpassed a $5 trillion valuation, becoming the first company to do so, amid AI optimism. CEO Jensen Huang announced plans to build seven new U.S. supercomputers, while President Trump said he would discuss Nvidia’s AI chips with China’s Xi Jinping.

ONEOK Inc (OKE) – Reported higher Q3 profit, driven by acquisitions and strong natural gas liquids volumes. Segment profits rose up to 78% year-over-year, led by the Medallion and EnLink deals.

Palantir Technologies Inc (PLTR) – Announced a partnership with Nvidia to integrate AI chips and software into Palantir’s platforms, improving logistics and decision-making efficiency for clients.

PPG Industries Inc (PPG) – Beat profit estimates with net sales of $4.08 billion, boosted by aerospace and coatings demand, but trimmed its 2025 EPS guidance to $7.60–$7.70 from $7.75–$8.05.

TE Connectivity plc (TEL) – Issued an upbeat forecast after strong demand for AI-related components lifted sales 34% in industrial solutions. Q4 EPS of $2.44 beat expectations.

Teradyne Inc (TER) – Forecast Q4 revenue between $920M–$1B, above consensus, supported by strong chip-testing demand. Announced a new CFO and expects Q4 EPS of $1.20–$1.46, topping estimates.

Tesla Inc (TSLA) – Investors to vote on Elon Musk’s record $1 trillion pay package on November 6. The board supports the plan, warning Musk might leave if rejected, while critics push back on governance concerns.

Thermo Fisher Scientific Inc (TMO) – Nearing a $10 billion cash acquisition of Clario, marking its biggest deal since 2021. The deal could be announced within days, pending final approvals.

Toyota Motor Corp (TM) – Clarified that it did not commit to a new $10 billion U.S. investment, contrary to remarks by President Trump, though it reaffirmed continued investment and job creation in the U.S.

Veralto Corp (VLTO) – Raised 2025 profit guidance after beating Q3 estimates, helped by strong demand for water treatment and UV filtration services. Now expects EPS of $3.82–$3.85, up from $3.72–$3.80.

Verizon Communications Inc (VZ) – Beat profit and subscriber forecasts, adding 44,000 new postpaid customers thanks to iPhone promotions. Revenue came in at $33.8 billion, slightly below estimates, but outlook reaffirmed.

Visa Inc (V) – Beat Q4 earnings with net revenue up 12% to $10.72 billion, and guided for low double-digit revenue growth in FY 2026 on strong U.S. spending and card transaction volumes.

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