Marcus Today Pre-Market Podcast – Wednesday 18th October

Wall Street’s major indexes finished mixed overnight, losing earlier gains to end near flatline amid rising bond yields and renewed fears of higher for longer after higher-than-expected retail sales data. The Dow closed marginally in the green, up 13 points (+0.04%), up 163 points at best and down 130 points at worst. The S&P 500 ended slightly lower, down 0.01%, while the NASDAQ lost 0.25%, weighed down by heavy losses in chip companies after President Biden said it planned to halt shipments of advanced AI chips to China, Nvidia down 4.7%. US Treasuries rose to 2006 and 2007 highs, with the 10Y yield up to 4.838% and the 2Y yield at 5.216% following hot retail sales data, which advanced 0.7% MoM in September, significantly higher than expectations of 0.3%. Spending strength reinforces the Fed’s higher-for-longer thesis. Among stocks, Goldman Sachs slipped 1.6% after reporting profit slid 33%, BofA rose 2.3% after traders reported their best Q3 results in more than a decade, and Johnson & Johnson fell 0.8% despite posting upbeat results and outlook.

ASX to rise on opening bell. SPI Futures up 20 points (+0.28%).

• 10Y yield: US 4.83%, Australia 4.54%, and Germany 2.88%
• Base metals mixed. Copper falt, Nickel +0.13%, Aluminium -0.07%, Zinc -0.92%, Lead ++0.82%, and Tin up 0.18%.
• Oil prices rose as markets await Biden’s trip to Israel in the hope of preventing conflict in the Middle East from widening. Brent Crude up 0.26%, and WTI up 0.67%.
• Gold gained 0.14% as Middle East conflict buoys safe-haven appeal.

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