Futures rise as the Fed meets; Coca-Cola raises its outlook and Boeing narrows its loss
Five things to know before the open on Tuesday, October 27.
Good morning. Monday's rebound has carried into early futures trading, but earnings are now giving investors something more concrete to work with. Coca-Cola has raised its outlook, Boeing has narrowed its loss, and Meta's financing plans keep the cost of artificial intelligence in view. Here are five things to know before the open.
1. Futures move higher as the Fed meeting begins
U.S. stock-index futures were modestly higher in early trading Tuesday. S&P 500 and Dow futures were up about 0.3%, while Nasdaq 100 futures gained roughly 0.4% to 0.5% in reports updated between 7:00 and 7:45 AM ET. That is a firmer picture than the mixed session described in our First Light futures story, though it is still a premarket indication, not an opening result.
Monday's gains set the backdrop: the S&P 500 rose 0.7%, the Nasdaq Composite added about 0.8% and the Dow gained about 0.3%. AI-linked shares helped the recovery after Anthropic filed to go public. Our Monday Dusk Ledger has the close. The question this morning is whether that recovery can broaden as companies outside the AI trade report. The Federal Reserve begins its two-day meeting today, with its decision due Wednesday. That leaves earnings and the incoming data to compete for attention before the policy announcement.
2. Coca-Cola raises its outlook after a stronger quarter
Coca-Cola reported revenue of $13.4 billion, up 7%, and comparable earnings of 91 cents a share. Its unit case volume rose 5% globally, although North American volume was flat. The company now expects full-year comparable earnings per share to rise at least 11%, compared with its previous forecast of 9% to 10% growth. It also expects organic revenue growth of at least 5%.
The useful distinction is between the global result and the home market. Revenue growth came with higher worldwide volume, rather than price increases alone, but flat North American volume is a reminder that the consumer picture is uneven. This is one earnings report, not a verdict on household spending. It gives investors a fresh set of numbers to compare with today's confidence reading and the other consumer businesses reporting this week.
3. Boeing narrows its loss, but commercial aircraft remain a drag
Boeing reported quarterly revenue of about $24.2 billion, up 4%, and a net loss of $116 million, or 26 cents a share. Its adjusted loss was 34 cents a share. That is a much smaller net loss than the $5.34 billion recorded a year earlier. Defense revenue rose 15% to about $7.9 billion, while the commercial-airplane business remained loss-making.
A narrower loss is progress, but it does not mean the turnaround is finished. The split between defense growth and continuing commercial-aircraft losses matters more than the headline comparison alone. For readers following the recovery, the next question is whether stronger activity can turn into steadier profits, rather than whether one quarter looks better against a particularly weak year-earlier result.
4. Meta increases the common-stock part of its financing
Meta increased the common-stock offering tied to forward sale agreements to $25 billion from $22.5 billion, at a public offering price of $625 a share. It also priced 250 million depositary shares at $50 each. These are financing arrangements, not operating revenue. They put another large funding plan alongside this week's debate over the cost of building AI infrastructure.
There is a difference between raising capital and earning a return on it. More funding can support investment, but it does not by itself answer when that spending will pay off. That is the tension worth keeping in view as technology companies report: investors can welcome growth while still asking how much cash, borrowing or new equity it requires. The size of the common-stock offering is one part of that funding picture, not a measure of how much the business has earned.
5. Asian chips rally; HSBC's profit rise meets a cooler reception
South Korea's Kospi closed 3.09% higher at 5,638.34. Samsung Electronics gained 4.23% and SK hynix rose 5.18%, while Tokyo also finished higher. Our Asia story covers the chip-led rebound. It follows Monday's improvement in U.S. technology shares, but one strong session does not settle the wider debate about AI investment.
HSBC, meanwhile, reported pretax profit of $9.6 billion, up 32%, and announced plans to buy back up to $1 billion of shares. Its shares fell despite the increase. The profit comparison benefited from the absence of last year's legal provisions as well as higher revenue and lower credit losses. Our HSBC results story explains the moving parts. It is a useful contrast to the chip rally: a large profit increase and a positive share-price reaction are different things.
Today's calendar
Durable-goods orders are scheduled for 8:30 AM ET. Consumer confidence and new-home sales follow at 10:00 AM ET. Those results are still ahead of this edition. Visa and Robinhood are among the companies on the after-close earnings calendar. Our week-ahead preview has the broader schedule.
