Alphabet and Carvana Lead a Busy Earnings Day

US: Alphabet and Carvana Steal the Show

GOOGL dominated Wednesday's session. Alphabet reported Gemini customer counts quadrupled year-on-year. AI investments are driving search query growth, including commercial queries. The company's CEO outlined 30 new YouTube products. Options desks loaded up on short-dated contracts expiring October 30, with the next cluster pointing to post-election hedging demand.

CVNA jumped after Q3 results. Carvana set a 2027 target of 3 million annual retail units at a 12.5% operating margin, to be achieved between 2030 and 2035. Fuel prices and rising interest rates dented unit economics by roughly $200 per unit in Q3. The company expects Q4 retail volumes to rise sequentially.

FDX raised full-year adjusted EPS guidance to $18.00 to $18.60, beating the $17.85 estimate. Revenue growth outlook moved up to 12% from 11%. Despite the beat, put buyers stepped in quickly as options traders focused on the guidance outlook. MKL posted a sharp EPS miss at $18.15 versus a $33.51 estimate, though sales of $4.16 billion beat forecasts.

Europe: Car Giants Face a Tough Print

Mercedes-Benz Group opens European earnings today. Dutch car registrations, which lead its revenue by 26 days with a strong fit, are running 6% below the same quarter last year. Volkswagen and Renault follow Thursday with a similar read: Austrian registrations point to a 6% decline for VW, while Renault gets a split signal. Barclays cut its target on BA to $250 from $300, reflecting continued pressure on the aerospace sector.

Index Watch: Russell Deadline in Two Days

The Russell 2000 December review ranks on 30 October. 102 names remain in play. TWST saw its Russell 1000 addition probability jump from 20% to 55% overnight, implying $529 million of forced buying if it crosses the line. LTH sits exactly on the Russell 2000 exit price at $44.08, with $942 million of forced selling attached. The Transocean-Valaris deal carries an additional $791 million in forced S&P MidCap 400 selling on an 80% probability if it closes.