The Morning Bull – US Market Morning Update Wednesday, Nov, 4 2026

US stocks are set for a cautiously higher open, with sentiment pulled in two directions by strong economic data and sticky cost signals. The dominant driver this morning is firm US demand that keeps inflation worries alive.

Factory orders rose 1.8% in September, with a 4.6% jump in transportation equipment and a 1.3% gain even when that category is stripped out. Job openings reached 7.523 million and the quits rate hit 2.1%, pointing to resilient hiring appetite and wage pressure.

This mix usually points to higher for longer borrowing costs, which can weigh on interest rate sensitive areas while supporting earnings expectations in businesses with pricing power. Supply chain data adds to that pressure, as the Logistics Managers Index climbed to 70.7 in October, highlighting rising warehousing costs and persistent bottlenecks.

The unresolved question is simple: Do policymakers lean more on the strong demand story or on the inflation risk flashing through logistics and energy markets? Upcoming labour readings, starting with today’s ADP employment data and running into Friday’s payrolls, will test how durable this narrative really is.

Stocks to Watch Before the Opening Bell

Datadog (DDOG)

Datadog is in focus after reporting Q3 2026 revenue growth of 35% and generating US$290 million in operating cash flow. Management issued upbeat guidance for the next quarter and the full year. The launch of Scout 1.0, its first specialized AI model for incident response, along with recent AIOps awards, keeps attention on how AI features relate to future demand.

Fiserv (FISV)

Fiserv is reviewing its portfolio and is already in talks with multiple buyers for non core assets as the new CEO pursues US$1b in cost savings. The effort aims to reshape the business mix and sharpen focus on faster growing areas such as the Clover point of sale operation. Watch for which assets are sold and how proceeds are used.

McDonald’s (MCD)

McDonald’s posted Q3 2026 earnings of US$2.49b with adjusted EPS of US$3.57, above Wall Street expectations, on revenue of US$7.16b that came in below forecasts. Global systemwide sales rose 4% and consolidated operating income increased 7%, helped by the US and key overseas markets. A 4% increase in the quarterly dividend to US$1.93 per share indicates management confidence.

Top Movers

• Bloom Energy (BE) rose 9.05% after a Barclays upgrade and a California Resources collaboration on large fuel cell projects.
• DuPont de Nemours (DD) added 8.61% after Q3 results exceeded guidance and management increased full year 2026 earnings expectations.
• Telesat (TSAT) gained 7.90% following new analyst coverage that initiated with a Buy rating and a C$91 price target.

Top Losers

• Sysco (SYY) fell 9.33% after quarterly revenue and EBITDA came in below expectations, even as guidance was reaffirmed and a new CFO was appointed.
• Shopify (SHOP) declined 8.74% after Q3 revenue, GMV and subscription trends missed forecasts, prompting broad post-earnings downgrades.
• Archer-Daniels-Midland (ADM) slipped 6.82% after Q3 earnings beat profit forecasts, while revenue missed analyst estimates and guidance was raised.

On The Radar

US traders face a tight cluster of labour and inflation releases over the next three sessions, alongside a heavy earnings slate that leans on energy, health care, and large consumer platforms.

• ADP Employment Change, Wed 4 Nov. The October reading is expected around 69,000 after 90,000 previously. A result meaningfully above that level could reinforce wage pressure concerns and keep expectations for higher US borrowing costs in play.
• ISM Services PMI, Wed 4 Nov. Services activity is projected near 54.8 after 54.9. A reading well above that band would highlight firm US demand that supports revenue for travel, hospitality, and business service stocks, while complicating the inflation picture.
• US Nonfarm Payrolls and Unemployment Rate, Fri 6 Nov. Payrolls are forecast at 65,000 with joblessness at 4.2%. Any upside surprise on hiring without a drop in unemployment would underline labour tightness that can keep wage costs elevated for employers.
• US CPI and Core CPI, Tue 10 Nov. Headline inflation is forecast at 3.7% year on year with core at 2.5%. Hotter prints would likely pressure rate expectations and weigh on more rate sensitive areas of the market, including housing, utilities, and long duration growth stocks.
• ConocoPhillips (COP) Q3 2026 results, Thu 5 Nov. Cash flow and production guidance from this large US producer will show how current crude and diesel market conditions affect upstream profitability and may influence sentiment toward the broader energy complex.

Sector & Industry Watch

Tech: AI builders meet rate reality

Tech has eased over the past week, with a roughly 6.2% 7 day decline that lines up with the sector’s softer 30 day patch. Heavy AI and cloud projects now compete with higher financing costs and fresh political focus on data center rules after the Democratic sweep, which is making investors more selective about long payback spending.

If your portfolio leans on software, cloud or data platforms, today’s ISM Services PMI is worth watching because a firm services reading can keep pressure on borrowing costs, and that usually bites hardest where expectations rely on earnings further out in time.

Semiconductors: Chips cool after strong run

Semiconductors have fallen harder than broader Tech, with roughly a 7.3% 7 day drop even as year to date and 1 year returns still sit ahead of the US Market. Headlines around Nvidia’s supply priorities, export rules, and SK hynix license delays show how tightly chip demand now ties to AI servers and policy, not just phones and PCs.

If you hold chip ETFs or GPU exposed stocks, Friday’s US Nonfarm Payrolls is the key release because a stronger hiring print can keep Treasury yields firm, and higher long term rates often weigh most on sectors priced for fast future growth.

Healthcare & Pharmaceuticals & Biotech: Defensives supported by drug news

Healthcare has been positive over the past week and ahead of the US Market across 7 day, year to date, and 1 year periods, with Pharmaceuticals & Biotech adding further gains helped by company updates from Amgen, CVS Health, Madrigal and others. Earnings here still hinge more on trial data, treatment volumes, and reimbursement decisions than on swings in discretionary spending, which is why this area often holds up when AI or high growth stories pause.

If you use these sectors as a stabiliser next to more cyclical holdings, Thursday’s US Initial Jobless Claims and productivity data matter because they shape how solid employer benefits budgets and public health funding look as the Fed decides how restrictive policy needs to stay.

Energy & Oil and Gas: Strong 12 month gains face inventory test

Energy and Oil and Gas have very strong 12 month returns of about 47% and 49%, even though 7 day moves have softened slightly as crude trades around shifting diesel and Middle East supply stories. Deals around refineries and midstream assets and comments from large producers keep attention on how current cash flow gets split between buybacks, dividends, and new projects.

If you own US producers, refiners, or LNG related stocks, today’s EIA crude inventory report is the main catalyst because the prior 5.267m barrel draw and a fresh Strategic Petroleum Reserve release show how stock changes can quickly influence pump prices, inflation expectations, and in turn rate views that feed back into Energy positioning.

Real Estate: Rate sensitive areas track yields and AI debate

Real Estate has picked up over the past 7 days, with a roughly 2.9% weekly gain after a more mixed year as long term yields steadied and deal flow continued in data centers, storage, and healthcare properties. At the same time, state level pushback on new AI data centers in places like Texas adds another layer for landlords counting on power hungry tenants.

If you hold REITs tied to offices, industrial parks, or data centers, today’s US 30 year mortgage rate update and this week’s jobs and wage numbers are important because any move higher in borrowing costs flows straight into financing terms, property values, and how comfortable boards feel about keeping dividends where they are.

Find Stocks Poised To Move

With Energy and Oil and Gas posting very strong 12 month gains while rate fears linger, you can focus on sturdier ideas by starting with this list of 30 resilient stocks with low risk scores

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