Market Updates

• Dow Jones up 829 points (2.59%) closing pretty much on its highs. NASDAQ up 2.87% after a 7.6% bounce in Apple and a 4% recovery in Microsoft after results this week. Intel also up 10.7% and Nvidia was up 5.0%. S&P 500 up 2.46%. Caterpillar continued its rally up 3.4% after results last week. It was up 17.5% for the week. Exxon Mobil was up 2.9% on results with Chevron up 1.2%.
• The Dow Jones was up a solid 5.72% last week with the NASDAQ up 2.24% and the S&P 500 up 3.95% which was a remarkably good performance considering the drop in Tech stocks on the back of a week of poor results reactions.
• The SPI Futures are up 92 points which makes up for the 59 point drop on the ASX 200 on Friday. The Friday performance was driven by a 3.56% drop in the resources sector offset by a 0.7% rise in the bank sector.
• Bond yields in the US rose on Friday with the 10 year bond yield up 7bp and the two year bond yield up 9bp, but there was still a substantial drop in bond yields on the week.
• In commodities, the oil price was down 1.23% and 1.44% but was up 3.35% on the week. BHP and RIO were down 4.75% and 3.5% in the US. The gold price was down 1.27% ($21) and down $11 for the week. Most of the metal prices were lower except for Lead which rallied 8% one point after being included in the Bloomberg Commodity Index. For the week, the Dalian iron ore price was down 8.2%, and the coal price down 6.8%. Lithium managed a 3.7% rise. Metal prices didn’t see much action on the week. Zinc was down 4.4%, and copper down 1.1%.

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ASX 200 finished the week down 59 points to 6786 (-0.9%) as resources fell hard on iron ore falls. For the week the index rose 1.6% with Banks better again as the Big Bank Basket rose to $184.42 (0.7%). ANZ recovered from early losses to close up 0.9% on broker commentary. MQG down slightly giving back early gains, Insurers mixed, QBE down 0.4% and MPL down 2.8%.  Healthcare took flight with RMD leading the sector down falling 5.0% on quarterly results. CSL dropped 0.6% and CUV lower by 5.2%. Industrials were mixed, some buying of defensives, TLSDA up 0.3% and TCL doing well up 2.2% as bond yields dropped to 3.76%. RBA beckons next week. REITs mixed, GMG off 1.1% with SCG up 4.0%. Tech stocks were down but not out with the All-Tech index down 1.5%. XRO continued to slide down another 2.8% with our own ‘Amazon Lite’ KGN falling 3.0%. Resources were hurt today as iron ore stocks fell hard, BHP down 5.0% (30 index points alone), FMG savaged 8.2% after production and broker rethink. Lithium stocks too in distress, PLS off 4.7% and CXO down 2.9%. Gold miners held up relatively well, MIN dropping 6.4% and IGO in base metals not flash. Oil and gas stocks held up but coal not such a merry old soul. NHC down 9.7% and WHC off 4.2%.

In corporate news, CXL lost its grants, falling 19.0%, MCR got smashed 14.8% on a quarterly report. AQZ fell 3.90% as ACCC pushed out its decision yet again to March 2023.

Nothing significant on the economic front as we line up for the RBA decision on Tuesday. Asian markets ease as Japan falls 0.6% as BoJ leaves rates unchanged, HK down 2.2% and China down 1%. Dow futures are down 20 points.

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• ASX SPI Futures down 26 points to 6813.
• The Dow climbed 194.17 points, or 0.6%, to end at 32,033.28 for its fifth day of wins driven by results from Caterpillar.
• The S&P 500 closed down 0.6%, ending the session at 3,807.30. The Nasdaq Composite lost 1.6%, closing at 10,792.68, as a rout in Meta and other tech stocks weighed on the index.
• After hours Amazon has fallen close to 20% on very disappointing results an doutlook. Apple is flat after its results with some hits and misses on numbers.
• Autos, biotech, MedTech, trucking, industrial metals, apparel, semis, tech hardware also among the laggards. Energy, media, machinery, multis airlines exchange sasset managers among the outperformers.
• Meta’s Reality Labs division, which houses its VR headsets, lost over $9bn in the first three quarters. Morgan Stanley, Cowen and KeyBanc downgraded Meta on Thursday, citing increased spending.
• Core Scientific, one of the largest publicly traded crypto mining companies in the U.S., raised the possibility of bankruptcy in a statement filed with the SEC. Core’s stock was down as much as 77% on Thursday following the filing, and has lost more than 97% of its value to date.
• Treasuries firm with the 10Y yield moving back below 4%.
• Dollar index up 0.8%, performing best vs euro though a bit weaker on yen cross.
• Gold ended down 0.2%. Bitcoin futures down 0.7%.
• Base metals were weaker as the USD rebounded. Nickel down 1.3%. BHP and RIO fell 2.3% and 3.8% respectively in ADRs. Vale down 2.7% as Brazil elections in focus.
• WTI crude ended up 1.3%, and up over 4.5% for the week.
• GDP rose 2.6% in the third quarter versus the estimate of 2.3%. Makes life interesting for Fed next week. A narrowing trade deficit and increases in consumer spending and government outlays boosted the number.
• A sharp pullback in housing subtracted from the number, part of a broader decline in private investment.
• Consumer spending decelerated, increasing at just a 1.4% pace in the quarter, down from 2% in Q2.
• September core durable goods orders posted surprise contraction.
• Initial jobless claims beat.
• ECB raised rates by 75 bps, as expected and has withdrawn support for European banks.
• China President Xi said willing to cooperate with US on finding ways to get along while Biden said US not seeking conflict with China.
• MQG out this morning.

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 ASX 200 pushed another 34 points higher to 6845 (0.5%) despite bank weakness after ANZ results. Six-week high. MQG tomorrow. The Big Bank Basket fell to $183.08 (0.1%). CBA managed a gain of 0.4% as its out of cycle. ANZ down 3.3% on results and outlook. MQG up 0.3% with insurers also doing well, IAG up 1.0% and QBE rallying 1.1%. MPL steadied after the rout yesterday. Fund managers mixed, MFG down another 0.7%.  Healthcare stocks mildly positive, CSL up 0.2% and RMD rising 0.8%. Industrials firm but unspectacular, WOW up 0.7%, WES up 0.4% and TCL doing well up 1.3% on director buying. Tech slightly better, whilst Resources were higher leading the market. BHP up 2.4%, RIO up 0.8% and FMG falling 0.4% on its quarterly. Base metal stocks and lithium slightly firmer as S32 recovered some lost ground up 3.0% and PLS rallied 2.6% after 7% sell off yesterday. Gold miners heading higher, NCM up 3.2% and NST rallying 4.3%. Oil and gas stocks better as crude rose, WDS up 3.2% and STO rallying 2.0% with coal stocks back to their merry old souls.

In corporate news, ANZ dominated, LYC rose 5.6% despite issues with quarter, ACL revealed a cyberattack on data, falling 5.4%, CXO missed out on Musk signature, losing 5.2%, WBT soared 25.8% on another step along the ReRam road.

On the economic front, economists were trying to grab headlines with RBA predictions for next week. 50bps rise now firming. Most got it wrong last time anyway. Asian markets mixed and 10-year yields slipped slightly lower.

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• ASX 200 SPI Futures up 26. Resources to shine. ANZ in focus. MQG Results.
• US equities were mixed in Wednesday trading. S&P and Nasdaq both finished lower after rallying for a third straight session on Tuesday and finishing at best levels in over a month. The Nasdaq dropped 228.12 points, or 2.04%, to close at 10,970.99. The Dow Jones Industrial Average gained 2.37 points, roughly flat for the day and ending at 31,839.11. S&P 500 lost 0.74%, ending at 3,830.60.
• Metals, healthcare, payments, rails, autos, IBs, semi-cap equipment, casual diners, grocers, tobacco among best performers. Most groups held up despite megacap tech weakness.
• Advancing stocks outnumber declining ones by a roughly 2-to-1 margin in the NYSE Composite, according to FactSet. In the S&P 500, the split is nearly 60-40 with advancers in the lead.
• Meta results after hours saw losses again. Down 12% after hours. Meta Platforms beat estimates for quarterly revenue on Wednesday as its dominance of the online ad market helped it attract a steady stream of business from recession-wary companies.
• Meta revenue in the third quarter fell for a second straight time to $US27.71bn from $US29.01bn.
• Harley-Davidson shares rose 12.6% after the motorcycle manufacturer reported beating expectations before the bell.
• Spotify fell more than 8% after it reported a wider-than-expected Q3 loss.
• Treasuries were better. 10Y yields spent some time below 4% and 3m/10Y spread inverted.
• Dollar index down 1.1% after losing ~1% on Tuesday, now lowest in over a month. Gold finished up 0.7%. Bitcoin futures up 2.3%, nearing $21K. The price of bitcoin was trading above its 50-day moving average for a second day.
• WTI crude settled up 3%, just off best levels.
• S&P was lower on Alphabet and Microsoft selloff (which make up ~10% of S&P 500),
• Biggest bright spot seemed to be lower rate backdrop and weaker dollar. Terminal rate below 4.90% after pushing above 5% last week and dollar index at a three week low.
• BoC raised rates by 50 bp vs expectations for a 75 bp move. Is this the first central bank to pivot? The benchmark overnight lending rate by 0.5% to 3.75%, less than the 0.75% move expected by markets
• September US new home sales came in above consensus, though August was revised down.
• The US will release its third-quarter annualised GDP data on Thursday.
• Jerome Powell could hint next week that the central bank’s aggressive pace of tightening won’t continue indefinitely, according to Capital Economics’s Andrew Hunter.
• The Bank of England will lift its key rate by 0.75 percentage points next week, and also say it will shift to a slower pace of rate increases going forward, according to Pantheon Macroeconomics.
• Stoxx 50 +0.6% FTSE +0.6% CAC +0.4% DAX +1.1%
• Base metals rally hard as USD falls 1%.
• AUD up to 65c. Oil up 2.3%. Gold up 1%.

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ASX 200 closed up 12 points to 6811 (0.2%) as caution crept in following worse than expected CPI numbers.7.3% is a big number and has sent economists to the models ahead of the RBA next week. Solid opening saw sellers take a few profits. Maybe time to consolidate. Bank results start tomorrow. Sector remain strong with the Big Bank Basket up to $183.92(0.3%). CBA up 0.2% and ANZ up 0.5% ahead of its numbers tomorrow. MQG rose 0.6% ahead of results tomorrow. QBE up 1.2%, IAG down 0.6% and ASX up 0.1%. MPL returned to trade falling 18.1% after its cyber attack update. Healthcare mixed, CSL slipped 0.3% with RHC and SHL slightly better. Industrials mixed, TLSDA up 0.5%, TCL up 1.7% with WES continuing to struggle down 0.5%. WOW, EDV and COL all lost ground yet again on inflation woes. Tech eased with the All-Tech Index unchanged. Resources mixed, some profit taking in lithium stocks as PLS fell 7.1% as brokers moved to take profits. AKE also eased 4.2% with others in the second tier under pressure too. Gold miners better, NCM up 1.6% with iron ore miners falling away, BHP up 0.1% and FMG down 0.8%. Selected base metal stocks doing ok, IGO up 3.3% and S32 up 1.1%. Energy stocks eased, WDS down 1.1% and STO off 0.7% with WHC down 8.1% after announcing yet another on market share buyback.

In corporate news, CDA tumbled 20.7% on its AGM update, CGC rose 10.8% on private equity taking a stake. BOE up 4.7% on its quarterly report. ELO saw plenty of Mr Blue Sky with a 485c bid from K1, rising 40.3%. WGX rose 8.0% on bonanza grad results.

In economic news, it was all about the 7.3% inflation rate. Over to you RBA. Asian markets continue to recover from Black Monday. 10-year yields dropping below 4%.


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• ASX 200 SPI Futures up 56 points (0.8%)
• Dow Jones up 337 points (1.1%) near highs for the day. Three days of gains.
• Nasdaq up 247 points (2.3%)
• S&P 500 up 62 (1.6%)
• Google and Microsoft disappoint.
• Results in focus. Buy backs kicking off again.
• Oil rises 0.3% Bitcoin up 4%
• Gold unchanged. Copper down 0.8%
• Nasdaq Golden Dragon Index rallies 4.6%
• Australian CPI today. Budget analysis.

Catch up on all the latest with Henry Jennings on today’s Pre-Market Podcast.

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 ASX 200 closed up 19 points to 6799 (0.3%) ahead of tonight’s budget and US results drop. Banks good, resources bad today. The Big Bank Basket closed at $183.33 (%) with CBA and NAB the best of the bunch. MQG piled on some points rising 2.2% ahead of the interim number on Thursday. Insurers better too, QBE up 1.1% and SUN rising 1.9%. Industrials generally led the way with CSL up 1.1%, FPH up 1.5%, REITs rising on lower 10-year yields. Some friends appearing for staples like WES, WOW and COL even TCL managed a rise today of 0.6%. Tech going nowhere though, the All-Tech Index becalmed up a mere 0.6%. XRO up another 0.7%. Resources though under pressure from the open. BHP down 1.4% and FMG slipping 3.0% on China woes. RIO off 1.4% and S32 suffering from broker downgrades. MIN down 1.8% on iron ore exposure as lithium stocks in places kicked higher again although some steam running out of PLS down 0.4% following quarterly. Energy tickled down, WDS giving back 0.9% as STO up 0.9% and coal stocks eased back. NHC down 6.2% and WHC off 4.5%.

In corporate news, CCP rose 7.9% on its AGM, CTT had another stonking day despite a ASX speeding ticket up 12.9%. RWC plumbed new depths down 13.4% after a trading updates, showed pressures on all front, ALD dropped 12.6% on an update despite record numbers but volatile conditions and lack of clarity hurt.

In economic news, consumer confidence continues to fall as rate pain hurts. Asian markets have rebounded from Black Monday’s sell off. 10 year yields softer at 4.09%

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• ASX 200 SPI Futures up 28 points (0.4%)
• Dow Jones up 417 (1.3%)
• S&P 500 up 45 (1.2%)
• Nasdaq up 93 points (0.9%)
• US 10 year yields 4.24%
• Gold unchanged. Oil unchanged.
• Base metals mixed. Iron ore eases.
• UK has a new PM.
• US results beckon.

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ASX 200 closes up 103 points to 6779 (+1.5%). Big jump straight out of the blocks but off highs as Chinese GDP and politics sends HK down 5% and US futures give up Sunday night gains. Volume remains on the modest side, Banks shining ahead of the results later this week and to come, the Big Bank Basket now at $181.57 (+0.9%). CBA doing well up 1.2% and MQG finding some support up 2.4%. Insurers gained with IAG up 2.1% and QBE rallying 0.5%. Industrials were firm but somewhat underwhelming. TLS rose 0.5%, WOW up 1.2% and WES up 2.1%. Healthcare better, CSL up 2.1%, RMD up 1.9% and FPH up 2.4%. Tech stocks rose 2.7% with XRO up 3.5% and NXT up 3.1%. Resources were the driving force today with BHP up 2.6% being nearly 15 points of index gains. RIO up 1.2%, FMG rallying 2.5% and even gold miners gaining ground as the USD falls. NCM up 2.9% and NST up 5.0%. EVN a stand out up 7.7%. Lithium and battery tech stocks once again in favour, PLS up 6.1% on another sales result and AKE rising 1.8%. CXO rose 1.8% and LPM up 7.3%. Oil and gas were mixed, STO down 0.1% and WDS up 0.4% with coal stocks in demand, WHC up 3.4%. NHC ex-dividend today. In corporate news, S32 fell 1.9% on a disappointing quarterly and OZL dropped 1.2% on a similar underwhelming report and BHP was steadfast in only paying 2500c for the company. VUL rose 13.4% on good pilot plant news in Germany and NMT rose 10.5% on environmental permitting. On the economic front, RBA assistant Clarke talked rates and demand, and the private sector contracted for the first time in nine months in October. Asian markets stumbled lower on GDP numbers from China finally dropping and around 3.9%. 10-year yields 4.15%. Dow Futures up 19 points.

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