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1. Q3 earnings season tracker.

US: 83% of S&P500 companies that have reported, beat EPS estimates. EPS growth for these companies is at +16% y/y.

Europe: Of the Stoxx600 companies that have reported so far, 56% beat EPS estimates. Q3 EPS growth is at +1% y/y.

2. Into thin air.

The S&P 500 Index continues its orderly, low-volatility rally within a welldefined trend channel, but recent gains have been led by an even narrower group of stocks, with internal breadth and momentum indicators weakening.

The index Price-to-Sales (P/S) hit 3.6x, WAY above the 2000 Dot-Com Bubble peak of 2.1x. The Price/Book (P/B) ratio hit 5.6x, above the 2000 high of 4.6x. Forward P/E is 26x, the second-highest since the Dot-Com.

3. Morgan Stanley now estimates the top 11 cloud players to spend $621B on cash capex in 2026.

4. Nvidia’s CEO provided clues about how the company might fit into the “quantum” ecosystem.

In a world where classical GPUs and CPUs are replaced by much more efficient quantum processors, or QPUs, Nvidia would have to shift its focus completely to stay afloat. "We now realize that it's essential for us to connect a quantum computer directly to a [graphics processing unit] supercomputer," Huang said, describing a system in which quantum processor and graphics processing units "working side by side."

Companies like Rigetti Computing and the privately-owned Quantinuum have been working to integrate their machines with classical computers, often creating powerful supercomputers to achieve a so-called hybrid model.

By becoming not just an early adopter, but an outspoken supporter of quantum, the Nvidia boss is also positioning the world's largest company for further success.

5. Morgan Stanley expects big falls in the U.S. Dollar by the end of next year.

Morgan Stanley expects substantial falls in the U.S. dollar by the end of next year as investors could reassess how much U.S. interest rates will fall over the longer term and step up hedging against the risk of a weaker dollar, Head of G-10 FX strategy David Adams said.

Fix the roof while the sun is shining.

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