Marcus Today Pre-Market Podcast – Friday 28th October

• 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• ECB raised rates by 75 bps, as expected and has withdrawn support for European banks.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.

Catch up on the latest news with Henry Jennings’ Pre-Market Podcast.

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