Dow futures show a slight decline following a mixed performance at the start of November trading. Palantir shares declined in after-hours trading despite surpassing expectations in its third-quarter financial results, exerting pressure on other major technology companies. Advanced Micro Devices, a prominent player in the artificial intelligence chip sector, is set to announce its most recent quarterly results. Meanwhile, BP has reported an adjusted net income that surpasses expectations, and a significant institutional investor in Tesla has declared its intention to oppose a substantial proposed compensation package for CEO Elon Musk.

Dow futures declined on Tuesday, as investors monitored perspectives on the condition of the American economy from various Federal Reserve officials while also tracking a series of forthcoming corporate earnings reports. As of 02:58, the Dow futures contract experienced a decline of 313 points, representing a decrease of 0.7%. Meanwhile, S&P 500 futures decreased by 61 points, or 0.9%, and Nasdaq 100 futures saw a drop of 311 points, equivalent to 1.2%. The principal indices concluded the trading session on Monday with a mixed outcome, as the blue-chip Dow Jones Industrial Average experienced a decline, whereas the benchmark S&P 500 and the tech-oriented Nasdaq Composite both recorded gains. During the opening session of November, markets were evaluating corporate dealmaking. Consumer goods group Kimberly-Clark has revealed intentions to acquire Band-Aid manufacturer Kenvue in a $40 billion deal, despite analysts expressing concerns regarding potential legal risks associated with the latter. OpenAI has entered into a $38 billion agreement to procure cloud computing services from the e-commerce giant Amazon. This marks the ChatGPT-maker’s initial endeavor to enhance its artificial intelligence capabilities following a recent restructuring of the business. In the interim, the rifts among Federal Reserve policymakers became increasingly evident. In her inaugural public remarks following President Donald Trump’s efforts to remove her from her position as a Fed Governor, Lisa Cook addressed the ongoing discourse surrounding the challenges confronting the central bank’s dual mandates of employment and inflation. Cook indicated that the Fed’s December gathering was a “live” one, implying that the decision regarding interest rates made at the meeting remains largely uncertain. San Francisco Fed President Mary Daly remarked that last week’s rate cut served as a form of “insurance” to safeguard against potential further softening in the labor market, while emphasizing her intention to maintain a “open mind” as she approaches next month’s meeting.

Palantir’s shares declined in after-hours trading, even as the data analytics powerhouse reported yet another quarter of record revenue. Palantir, which also engages in software solutions for the defense sector, announced a net profit of $475.6 million alongside third-quarter sales of $1.18 billion, both exceeding expectations. In a letter accompanying the release, Alex Karp stated that the business is “now producing more profit in a single quarter than it did in revenue not long ago.” The company has projected sales for the current quarter to exceed expectations, driven by a surge in AI adoption that has enhanced demand for its data analysis services. Palantir’s stock price has surged by over 175% this year, exemplifying the elevated valuations fueled by the enthusiasm surrounding AI. Highlighting its impact on market sentiment regarding the exuberance in certain segments of the stock market, shares of several major technology firms listed in Frankfurt, which have announced substantial investments in AI, experienced a decline.

In other developments on the earnings calendar, Advanced Micro Devices is scheduled to announce its results after the market closes on Tuesday, marking its position as the latest AI chipmaker to disclose quarterly performance amid a vigorous phase of consolidation within the industry. As reported by Reuters, the U.S. Department of Energy has established a $1 billion partnership with the semiconductor group aimed at developing two supercomputers essential for tackling significant scientific challenges, including cancer treatments and national security. Last month, AMD announced it would supply AI chips to OpenAI under a multi-year agreement, which is expected to generate billions of dollars in annual revenue and provide the AI startup with approximately a 10% equity stake in the company. Yet the deal is part of a series of similarly circular arrangements that have intensified worries regarding the potential emergence of an AI bubble akin to the dotcom boom of the late 1990s. Such deals have become increasingly prevalent, driven by the AI industry’s imperative to finance and enhance computing capabilities to satisfy the surging demand for advanced AI models. Executives at AMD, a significant competitor to the AI powerhouse Nvidia, remarked that the OpenAI agreement was “certainly transformative” for both the company and the broader AI sector. The stock of AMD has experienced an increase exceeding 115% year-to-date.

BP’s third-quarter underlying replacement cost profit, a metric for adjusted net income, decreased by a lesser amount than anticipated to $2.21 billion, exceeding analyst forecasts of $2.02 billion. The oil major, benefiting from enhanced refining margins that alleviated the effects of declining crude prices, upheld its quarterly share buyback at $750 million and projected asset disposals to reach approximately $5 billion this year. “We’ve delivered another quarter of good performance across the business with operations continuing to run well,” stated Murray Auchincloss. “We are looking to accelerate delivery of our plans, including undertaking a thorough review of our portfolio to drive simplification and targeting further improvements in cost performance and efficiency,” he stated. The company’s net debt was recorded at $26.05 billion at the conclusion of the quarter, showing minimal variation from the preceding three months, yet reflecting an increase from $24.27 billion a year prior. The results emerge approximately eight months following BP’s initiation of a significant strategic overhaul designed to enhance operational efficiency and boost returns.

Norway’s sovereign wealth fund, recognized as the largest globally, has announced its intention to reject a $1 trillion compensation proposal from Tesla for CEO Elon Musk, expressing concerns regarding the magnitude and implications of the award. Norges Bank Investment Management, which oversees the $1.9 trillion fund and was the first major investor to disclose its decision on the matter, stated that while it “appreciate[s] the significant value created under Mr. Musk’s visionary role” at the helm of the electric carmaker, “we are concerned about the total size of the award, dilution, and lack of mitigation of key person risk.” The fund presently holds a 1.2% stake in Tesla, positioning it as the sixth-largest institutional investor in the company, as per reports, referencing data. Other significant institutional investors, including BlackRock, Vanguard, and State Street, have yet to disclose their voting intentions. Tesla is scheduled to conduct its annual shareholder meeting later this week, during which it is anticipated to disclose the outcomes of votes regarding Musk’s compensation package, alongside a variety of other proposals. Under the terms of the agreement, Musk stands to gain an additional 12% ownership in Tesla if he successfully navigates the company—currently shifting its focus towards AI and robotics—toward an ambitious valuation increase to $8.5 trillion over the next ten years.