Morgans AM

US equity markets mixed in the wake of the October inflation report released in the previous session - Dow down -159-points or -0.44% . Walt Disney Co fell -7.07% - its worst daily performance since June 2020- after the company reported after the closing bell of the previous session, with fiscal fourth quarter earnings per share and revenue falling short of Wall Street’s expectations, while Disney+ added a less-than-expected +2.1M subscribers. The broader S&P500 edged +0.10% higher, with Materials (up +0.85%) leading six of the eleven primary sectors higher. Tesla Inc lost -0.42%, with a Securities and Exchange Commission filling showing Chief Executive Officer (CEO) Elon Musk sold more than 4.5 million shares of the electric-vehicle maker for close to US$5B. The technology centric Nasdaq rebounded +0.57%. Chipmakers NVIDIA Corp (up +3.16%) and Advanced Micro Devices (+4.39%) logged solid gains. The small capitalisation Russell 2000 +0.82%.

US equity markets retreated as investors digested the latest inflation data that recorded that consumer prices rose at their fastest pace in more than 30-years in October - Dow shed -240-points or -0.66% . The broader S&P500 fell -0.82%, with Energy (down -3.00%) leading eight of the eleven primary sectors lower. Information Technology (down -1.68%) and Communication Services (-1.25%) both fell over >1%. The Utilities sector was the best performing primary sector overnight with a +0.70% gain. The technology-cetnric Nasdaq dropped -1.66%. The small capitalisation Russell 2000 fell 1.55%.

US equity markets retreated amid some profit taking ahead of the release of US inflation data - Dow down -112-points or -0.31% . The broader S&P500 -0.35%, snapping an eight session losing streak and a day after posting its 64th record closing high of 2021. Consumer Discretionary (down -1.35%) led five of the eleven primary sectors lower. PayPal Holdings Inc tumbled -10.46% a day after the digital payments company issued weaker-than-expected fourth-quarter and full-year guidance. Tesla Inc (down -11.99%) continued to slide after founder Elon Musk last weekend asked in a Twitter poll whether he should sell 10% of his stock, with nearly 58% of respondents saying ‘yes’. General Electric Co gained +2.65% after announcing plans to break into three separate companies focused on healthcare, energy and aviation. GE Healthcare will be spun off in 2023, with GE retaining a 19.9 per cent stake in the unit. GE Renewable Energy, GE Power and GE Digital will be combined into one energy-focused company that will be spun off in 2024. Once these transactions are completed, the original GE will focus on aviation. The Nasdaq fell -0.60%. The small capitalisation Russell 2000 lost -0.65%. In merger and acquisition (M&A) news, DoorDash Inc (down -0.59%) - which posted both record revenue and orders in the third quarter as demand for delivery continued - also announced it is buying Finland food-delivery company Wolt in an all-stock deal worth more than >US$8B.

Modest gains for the benchmark US equity indices after Congress approved an infrastructure spending package, with the S&P500 logging its first close above >4,700 - Dow up +104-points or +0.29% to a record closing high 36,432.22. Caterpillar Inc rose +4.07% to be the leading index performer. The broader S&P500 inched +0.09% higher to log its eighth consecutive record closing high at 4,701.72, marking the longest series of all-time highs since 1997, according to Dow Jones Market Data. Materials (up +1.23%) led six of the eleven primary sectors higher, while more defensive sectors underperformed. Utilities (down -1.45%) and Consumer Discretionary (-1.38%) both fell over >1%. Tesla Inc fell -4.84% founder Elon Musk rattled investors over the weekend, asking in a Twitter poll whether he should sell 10% of his stock as a response to political clamouring to tax unrealised gains from equity holdings (58% of respondents said yes). Airlines climbed (Delta Air Lines Inc up +0.81%, United Airlines Holdings Inc +0.76% and American Airlines Group Inc +1.97%) after the US ended its pandemic-era international travel ban overnight. The Nasdaq inched +0.07% higher to 15,982.36 and registered its 11th straight gain and the longest such win streak since 26 December, 2019. Advanced Micro Devices Inc soared +10.14% after the company announced new products during its Accelerated Data Centre Premiere and disclosed that Facebook parent Meta Platforms Inc would use its Epyc processors. Chipmaking peer Nvidia Corp rose +3.40% as the company’s annual GPU Technology Conference kicked off overnight. The small capitalisation Russell 2000 also inched +0.07% higher.

Fresh record highs for the benchmark US equity indices to cap a solid week, buoyed by the latest October jobs figures and encouraging results from Pfizer for its antiviral COVID-19 pill - Dow up +204-points or +0.56% to close at a new peak of 36,327.95. The broader S&P500 added +0.37% to log its seventh consecutive gain and settle at a record high of 4,697.53. Energy (up +1.42%) led ten of the elven primary sectors higher on Friday night AEST (5 November), with Health Care (down -1.03%) the only primary sector to close in the red. Pfizer Inc jumped +10.86% after the pharmaceutical company said its COVID antiviral reduced the risk of hospitalizations or death by 89% in a Phase 2/3 study. Pfizer board member Dr. Scott Gottlieb said that the pandemic could be over in the U.S. by the time President Biden’s workplace vaccine mandates take effect in early January. Pharmaceutical peer Merck & Co closed -9.86% lower as investors appeared to shun Pfizer rivals. However, the news boosted classic reopening plays, with United Airlines Holdings Inc rallying +7.26% and American Airlines Group Inc +5.77%. Expedia Group Inc jumped +15.63% a day after the company said renewed travel demand boosted its top and bottom lines higher than analysts had expected. Chief Executive Officer (CEO) Elon Musk n Saturday (6 November) asked his 62.5M Twitter followers to determine the future of a chunk of his Tesla Inc (down -0.64%) holdings. Mr Musk previously said he was likely to sell “a huge block” of his options in the fourth quarter. The Nasdaq +0.020% to an all-time closing high of 15,971.59. The small capitalisation Russell 2000 +1.44%. For the week, the Dow rose 1.42%, the S&P 500 gained +2.00% and the Nasdaq advanced +3.05%.

The S&P500 and Nasdaq logged their sixth consecutive record closing highs - Dow slipped -33-points or -0.09% snaping a run of four record closing highs as Goldman Sachs Group Inc (down -2.35%) and JPMorgan Chase & Co (-1.31%). The broader S&P500 rose +0.42% to a record close of 4,680.06, with Information Technology (up +1.54%) and Consumer Discretionary (+1.49%) both rising ~1.5% to lead six of the eleven primary sectors higher. Financials (down -1.34%) and Real Estate (-1.14%) declined over >1% to be the worst performing primary sectors. The technology-centric Nasdaq gained +0.81% to 15,940.31. NVIDIA Corp soared +12.04%, recording its largest single-day percentage gain in more than 19 months and topped US$700B in market capitalisation for the first time, as optimism builds ahead of the chipmaker’s annual GTC developer conference on Monday (8 November). Qualcomm Inc jumped +12.73% after the chipmaker forecast better-than-expected profit and revenue for its current quarter after the close of the previous session on soaring demand for chips used in phones, cars and other internet-connected devices. The small capitalisation Russell 2000 dipped -0.08% after climbing to a fresh record closing high a day earlier.

Benchmark US equity indices pushed further into record territory, logging a fourth straight session of record closing highs – the longest such streak since 5 October, 2017 - - Dow up +105-points or +0.29% to a record closing high of 36,157.58, recovering from an earlier -160-point slide. The broader S&P500 +0.65% to record settlement of 4,660.57 The Nasdaq +1.04% to an all-time high of 15,811.58. The small capitalisation Russell 2000 gained +1.8% to a record closing high of 2,404.28.

Another round of fresh record closing highs for all three benchmark US equity indices amid better-than-expected earnings reports ahead of a Federal Reserve policy statement tomorrow morning AEST - Dow up +139-points or +0.39% at 36,052.63, settling above 36,000 for the first time. It was 71 trading days since the Dow last cleared a 1,000-point milestone, marking the longest stretch between milestones since the stretch of 218 trading days between the Dow’s move between 29,000 and 30,000 completed in November of last year, according to Dow Jones Market Data. The close above 36,000 marks the Dow’s sixth 1,000-point milestone of 2021, the most ever seen in a single year. Salesforce.com Inc. (up +0.06%) has been the biggest contributor to the Dow’s rise since 35,000, while Visa Inc (down-1.56%) has been the biggest drag. The broader S&P500 rose +0.37% to 4,630.65. Materials (up +1.10%) led nine of the eleven primary sectors higher, with Energy (down -1.01%) and Consumer Discretionary (-0.62%) the only primary sectors to close in the red. Telsa Inc fell -3.03% after Chief Executive Officer (CEO) Elon Musk questioned the factors driving the recent rally for the electric vehicle maker that has seen the company’s market capitalisation surge past US$1 trillion in market capitalisation since an announcement on 25 October that Hertz Global Holdings Inc (up +2.66%) will by 100K Model 3 vehicles. Mr Musk tweeted ““If any of this is based on Hertz, I’d like to emphasise that no contract has been signed yet,” adding “Tesla has far more demand than production, therefore we will only sell cars to Hertz for the same margin as to consumers.” Separately, Tesla is recalling about 11,700 2017 to 2021 Model S, Model 3 and Model X vehicles, and 2020 to 2021 Model Y vehicles, because a communication error with the software may cause unexpected activation of the emergency brake system, according to a notice filed with the National Highway Traffic Safety Administration. The technology-centric Nasdaq added +0.34%. Nikkei reported that Apple Inc (up +0.71%) has cut back production of iPad tablets to allocate more components to the iPhone 13 amid signs that the global chip supply crunch may be hitting the company harder than previously indicated. Chipmaker Nvidia Corp rose +2.22% to usurp Warren Buffet’s investment vehicle Berkshire Hathaway Inc (up 0.59%) as the seventh largest US company by market capitalisation (with its market cap rising to ~US$660B). Nvidia has gained almost US$530B in market value off its pandemic low set 16 March, 2020, according to Dow Jones Market Data. It marked the first time since December 2019 that all three benchmark indices logged record closing highs for three straight sessions, according to Dow Jones Market Data. The small capitalisation Russell 2000 edged +0.16% higher to an all time high of 2,361.86. Bed Bath & Beyond Inc skyrocketed over >75% in the extended session after the retailer announced a partnership to have some of its “most sought-after” baby and home items available at Kroger Co.’s (+0.62%) stores and on-line and said it was ahead of its share buyback schedule.

Fresh record closing highs for all three benchmark US equity indices to kick off November and ahead of a busy week of US corporate earnings and key economic data and central bank meetings - Dow up +94-points or +0.26% to 35,913.84, briefly trading above >36,000 for the first time earlier in the session and with Boeing Co (up +3.65%) and Dow Inc (+2.63%) among the leading index performers. The broader S&P500 edged +0.18% higher to 4,613.67, with Energy (up +1.55%) and Consumer Discretionary (+1.46%) lifting eight of the eleven primary sectors and offsetting declines for Information Technology (down -0.08%). Tesla Inc jumped +8.49% The Nasdaq gained +0.63% to 15,595.92 The small capitalisation Russell 2000 jumped +2.65%, recording its best single session performance since 27 August and within 0.1% of establishing its first record high since March. Harley-Davidson Inc jumped +9.07% after the European Union (EU) removed retaliatory tariffs on U.S. products including whiskey, power boats and company's motorcycles. The motorcycle maker was facing a European retaliatory tariff of 56%.

Record closing highs for all three benchmark US equity indices to close out the week and month, with a late rally seeing the market retrace earlier losses and shrugging off some disappointing corporate results from some major technology companies after the close of last Thursday’s (28 October) session - Dow up +89-points or +0.25% to settle at a fresh record closing high of 35,819.56. The broader S&P500 edged +0.19% higher to record close of 4,605.38, with Health Care (up +0.95%), Communication Services (+0.83%) and Information Technology (+0.43%) all advancing. Real Estate (down -1.19%) was the worst performing primary sector. The Nasdaq rose +0.33% to scale a fresh record peak of 15,498.39 Apple Inc fell -1.82% Microsoft Corp (up +2.24%) usurped Apple (market capitalisation of ~US$2.458 trillion) as the most valuable U.S. company by market capitalisation for the first time in nearly 16 months, with the latest gain leaving the software giant with a market capitalisation of ~US2.49 trillion. Amazon.com Inc fell -2.15% The small capitalisation Russell 2000 dipped -0.03%.