- US September durable goods orders +1.8% vs +1.7% expected
- US FHFA Monthly home prices index 0.3% vs 0.2% estimate
- US August Case-Shiller 20-city house price index +2.7% y/y vs +2.6% expected
- October US consumer confidence 91.7 vs 81.0 expected
- US New home sales for September 0.676M annualized vs 0.650M estimate
- US October Richmond Fed -2 vs -2 expected
- Flávio Bolsonaro reportedly flees Brazil for the US after election loss
- Macro takeaways from earnings: Travel, package delivery and home appliances in focus
- FOMC Preview: A hawkish hold as markets watch for signals about timing and extent of further tightening
Markets:
- WTI crude down $1.99 to $99.78
- US 10-year yields flat at 4.98%
- AUD leads, EUR lags
- S&P 500 up 0.6%
- Nasdaq up 1.3%
- Gold up $44 to $4060
Chip and AI stocks gained for a second day to aid a broad lift for US equities. Western Digital was a top performer, up 6.8% as we await after-hours earnings for Seagate and Visa among others. Some of the positive momentum came after a funding announcement from several banks allowing Anthropic to finance purchases of Broadcom chips. It’s a sign that the funding window remains open ahead of the Anthropic IPO next month. Neocloud Nebius also rose 11% in a big rebound from heavy recent selling.
On the macro side, economic numbers were generally solid but not spectacular. Commentary from the corporate sign mostly emphasized resilient consumers, though strained on the lower end. Business spending has been picking up and travel demand is strong.
Oil fell and gold rallied on some hopes for a Middle East peace deal, though details remained more rumors than truly positive signs. Oftentimes, price action has led news in this war so we will wait on what comes next. Israel exit poll numbers have also hit with no big surprises with the usual coalition talks now set to begin.
Wednesday is the big day this week with the FOMC decision followed by earnings from Microsoft and Alphabet. That should add some significant volatility.
Update: The initial move on Seagate earnings was notably lower.
This article was written by Adam Button at investinglive.com.