ADDX Go Market Morning Wrap - Oct 18th

Market Key Focus

US Market

- Markets

The S&P large-cap and small-cap stocks closed lower, and the Dow Jones hit a new high for two consecutive days.

The S&P 500 closed down 1 point, or 0.02%, at 5,841.47.

The Dow Jones, which is closely related to the economic cycle, closed up 161.35 points, or 0.37%, at 43,239.05.

The Nasdaq, which is dominated by technology stocks, closed up 6.53 points, or 0.04%, at 18,373.61. The Nasdaq 100 index rose slightly. The Nasdaq Technology Market Capitalization Weighted Index (NDXTMC), which measures the performance of the Nasdaq 100 technology industry components, closed up 0.17%.

The Russell 2000 small-cap index, which is more sensitive to the economic cycle, closed down 0.25%.

The VIX index of fear fell more than 2% and approached 19.

- Stocks

Nvidia rose 3.8% and closed up 0.9%, hitting a new intraday high. TSMC's US stocks rose more than 13% and closed up nearly 10%, hitting an intraday and closing high. ASML turned positive. Netflix's earnings report was positive and rose nearly 4% after the market closed.

- Treasury

Positive data on retail sales and unemployment claims pushed up U.S. bond yields collectively, with long-term bond yields rising even more. The 10-year base bond yield rose by more than 8 basis points and once exceeded 4.10%. The 2-year yield also rose by nearly 8 basis points and briefly exceeded 4%.

- FX

Positive economic data pushed the US dollar index to an 11-week high. The US dollar index DXY rose as much as 0.3% to 103.87, the highest since August 2, and rebounded 3.34% since the end of trading on September 27

Asian Market

- Markets

The Nikkei 225 index closed down 0.7%, and the Topix index closed down 0.1%. The Indian stock index fell by about 0.7%, Vietnam and South Korea fell slightly, and the Indonesian stock index rose by more than 1%.

The Nasdaq China Golden Dragon Index fell 4% and then closed down 3.6%, hitting a three-week low. Among ETFs, the China Technology Index ETF (CQQQ) fell more than 2%, the China Internet Index ETF (KWEB) fell 3.8%.

- Stocks

Among the popular Chinese stocks, JD fell more than 4%, Alibaba and Tencent ADRs fell about 2%, Bilibili and Li Auto fell more than 5%, NIO and Zeekr fell more than 6%, Xpeng Motors fell more than 7%, Baidu fell more than 3%, and PDD fell nearly 3%, but Tiger Brokers stopped falling and turned to rise.

- FX

The Japanese yen fell as much as 0.5% against the U.S. dollar at midday on U.S. stocks, and fell 0.4% to 150.18 in late trading.

The offshore RMB against the U.S. dollar once fell 100 points during the European stock market session and briefly fell to 7.14 yuan, reaching its lowest level since August 23. During the U.S. stock market session The decline narrowed significantly, falling slightly to 7.1370 yuan in late trading.

European Market

- Markets

European stocks rise amid third ECB rate cut this year.

The European STOXX 600 index closed up 0.83% at 523.91 points. The Eurozone STOXX 50 index closed up 0.79%, and the FTSE Euro Stoxx 300 index closed up 0.87%.

Germany's DAX 30 index closed up 0.77%, France's CAC 40 index closed up 1.22%, Italy's FTSE MIB index closed up 1.09% and Britain's FTSE 100 index closed up 0.67%.

- Stocks

Nokia once fell more than 5%, and the slowdown in the Indian market caused its third-quarter sales to fall 8% year-on-year. Food giant Nestle fell 2.7% at the beginning of the session and then rose 2.5% after lowering its full-year sales forecast.

- Treasury

The 10-year German bond yield rose 2.4 basis points to 2.208%. After the European Central Bank cut interest rates as expected, it rose from 2.195% to above 2.210%. It fell during Lagarde's press conference and then refreshed the daily high to 2.223%.

The 2-year German bond yield fell 2.4 basis points to 2.146%.

The 10-year French bond yield stopped falling and rose 2 basis points, and the 10-year Italian bond yield stopped falling and rose 0.3 basis points. The 10-year British bond yield rose more than 2 basis points to 4.089%, and the two-year yield rose more than 1 basis point

- FX

The euro fell as much as 0.5% against the dollar, approaching 1.08, the lowest since August 2. The pound rose slightly against the dollar and returned to 1.30, still hovering at a two-month low. The euro fell to a new low this month against the pound.

Crypto

1. Bitcoin, the largest market cap leader, fell nearly 2% to $67,000, while Ethereum, the second largest, fell more than 1% to $2,600.
2. At the end of New York trading, the main contract of CME Bitcoin futures BTC was quoted at $67,050.00, down 1.21% from the end of New York trading on Wednesday.
3. The Biden administration arrested and prosecuted American hackers who attacked SEC accounts over the approval of Bitcoin ETFs.
4. The main contract of CME Ethereum futures DCR was quoted at $2,601.00, down 1.07% from Wednesday.

Macro

1. U.S. retail sales in September exceeded expectations and grew by 0.4% month-on-month, highlighting that consumption continues to support the economy. The number of first-time unemployment claims last week was 241,000, lower than expected. The two economic data led traders to lower their bets on the Fed's rate cuts this year, pushing up U.S. bond yields and the dollar. At the same time, the prospect of lower interest rates boosted demand expectations, and U.S. homebuilder confidence rose to a four-month high in October.
2. The uncertainty of the US election and expectations of more monetary policy easing have pushed spot gold to a new all-time high of nearly $2,700. It has risen by more than 30% this year. The gains narrowed after the release of favorable US economic data, and silver turned to decline in late trading

1. The unexpected decrease in U.S. EIA crude oil inventories last week stopped international oil prices from falling for four consecutive days and broke away from a two-week low. U.S. oil rose as much as 1% during the day and once exceeded $71, while Brent crude rose as much as 0.9% to nearly $75

Earnings For Today

Before Open

P&G

EPS forecast 1.9

Revenue forecast 22.02B

American Express

EPS forecast 3.38

Revenue forecast 16.68B

Fifth Third

EPS forecast 0.83

Revenue forecast 2.16B

Schlumberger

EPS forecast 0.89

Revenue forecast 9.28B

Regions Financial

EPS forecast 0.53

Revenue forecast 1.8B

Stocks to Focus

1. Oklo, a small nuclear power company held by OpenAI CEO Sam Altman, fell 14.7% and closed down nearly 5%, giving up gains after rising 41.97% on Wednesday. NuScale Power, which rose sharply yesterday, also fell more than 5%.
2. Online travel company Expedia rose nearly 5% to a two-and-a-half-year high. It was reported that Uber, the leader in shared travel, was exploring acquisitions. Uber fell 2.5%.
3. Luxury electric car manufacturer Lucid Group fell about 18% and will publicly issue nearly 262.5 million common shares to raise funds. The major shareholder Saudi Public Investment Fund subsidiary will purchase more than 370 million shares
4. Pay now & buy later payment provider Affirm fell more than 8%, the worst performance in nearly three months, after competitor Klarna announced that its payment option would be added to Apple Pay.