Daily global market review

In today's trading session, the market experienced a widespread decline, with major indices all dropping by at least 1.0%. Market breadth, represented by the advance-decline line (A-D line), favored decliners by a 5-to-1 margin at the New York Stock Exchange (NYSE) and by more than 3-to-1 at the Nasdaq. One significant factor influencing the market was rising Treasury yields, with the 10-year note reaching a new high in its yield for the current economic cycle. Although rates briefly dipped around midday in response to a successful $13 billion reopening of 20-year bonds, selling pressure resumed, causing Treasury yields to settle near their peak levels. Specifically, the 2-year note yield increased by two basis points to 5.22%, while the 10-year note yield climbed an additional six basis points to 4.90%. The negative sentiment in the stock market was also linked to geopolitical uncertainty. This uncertainty arose after a summit between President Biden, who is currently in Israel, and regional Middle East leaders was canceled due to a devastating bombing of a Gaza hospital on Tuesday, resulting in a significant loss of life. Many stocks participated in the sell-off, with nine out of the 11 S&P 500 sectors recording declines, four of which dropped by more than 2.0%. The energy sector (up 0.9%) and consumer staples sector (up 0.4%) were the only sectors that ended the day in positive territory. The industrial sector (-2.4%) was one of the major laggards, partly due to a substantial decline in United Airlines (UAL), which issued a Q4 profit warning due to increased costs and uncertainty related to the Israel-Hamas conflict. Another notable loser in the industrial sector was J.B. Hunt Transport (JBHT), which missed earnings estimates and expressed concerns about a freight recession.

Morgan Stanley (MS) also experienced significant losses, down 6.8%, after reporting quarterly results with some disappointing outcomes in its wealth management division. This weakness weighed on the financials sector, which declined by 1.7%.

Among Dow components, Travelers (TRV) and Procter & Gamble (PG) received mixed reactions from investors after reporting their earnings.

In other news, it was reported that Rep. Jim Jordan (R-OH) lost a second vote to become Speaker of the House.

Economic data for the day included the Weekly MBA Mortgage Applications Index, which declined by 6.9%, and September's housing starts, which came in at 1.358 million (slightly below expectations). Building permits for September were 1.473 million, indicating a supply boost for the housing market.

Overall, today's market was influenced by geopolitical concerns, rising Treasury yields, mixed earnings reports, and a general trend of selling activity.

In the United States, the Dow index closed at 33,665.08, showing a decrease of 332.57 points, equivalent to a 0.98% decline. Similarly, the S&P 500 recorded a value of 4,314.60, reflecting a loss of 58.60 points, marking a 1.34% decrease. The NASDAQ index also saw a decline, closing at 13,314.30, with a drop of 219.44 points or 1.62%. On the other hand, the VIX index, which measures market volatility, increased to 19.22, adding 1.34 points and showing a 7.49% rise. In the United States, the Russell 2000 index ended at 1,728.81, down by 37.24 points, a decrease of 2.11%. In Canada, the S&P/TSX Composite recorded a value of 19,450.70, with a loss of 242.10 points, indicating a 1.23% decrease, while the S&P/TSX 60 index in Canada closed at 1,169.64, down by 14.50 points, reflecting a 1.22% decrease. In Brazil, the BOVESPA index stood at 114,059.64, experiencing a decrease of 1,848.79 points or 1.60%. In Chile, the S&P IPSA index was at 5,796.44, showing a decrease of 94.30 points, marking a 1.60% decline. In Mexico, the S&P/BMV IPC index closed at 49,274.78, with a decrease of 391.23 points, equivalent to a 0.79% decrease.

In Europe, the STOXX Europe 50 index closed at 3,917.68. The STOXX Europe 600 also closed at 445.02. In the United Kingdom, the FTSE 250 closed at 17,403.46. The FTSE 100, also in the United Kingdom, recorded a value of 7,588.00.

In Germany, the DAX index was at 15,094.91, with a decrease of 156.78 points, indicating a 1.03% decline. In Italy, the FTSE MIB index stood at 28,135.79. In France, the CAC 40 index recorded a value of 6,965.99, with a decrease of 63.71 points, reflecting a 0.91% decrease. Finally, in Switzerland, the SMI index closed at 10,675.44, showing a decrease of 138.58 points and a 1.28% decrease.

In Japan, the Nikkei 225 index closed at 32,042.25. In Hong Kong, the Hang Seng index recorded a value of 17,732.52, showing a decrease of 40.82 points, equivalent to a 0.23% decline. In China, the Shanghai Composite closed at 3,058.71 with a decrease of 24.79 points, marking a 0.80% decrease, while the Shenzhen Composite in China was at 9,816.68, with a drop of 123.54 points, indicating a 1.24% decrease. Australia's S&P/ASX 200 remained steady at 7,077.60. In South Korea, the KOSPI index was at 2,462.60, adding 2.43 points and showing a 0.10% increase. Taiwan's Taiwan SE closed at 16,440.91, experiencing a decrease of 201.64 points, equivalent to a 1.21% decrease. In India, the Bombay Sensex stood at 65,877.02.

• TSLA (Tesla, Inc.) is priced at 242.68, with a change of -12.17, indicating a 4.78% decrease. The 52-week view shows a range between 101.81 and 299.29, with a trading volume of 122 million.
• BAC (Bank of America Corp) is trading at 27.31, with a change of -0.31, representing a 1.12% decrease. The 52-week range is between 25.46 and 38.60, and the trading volume is 68 million.
• AAL (American Airlines Group Inc.) has a price of 11.36, showing a change of -0.58, marking a 4.86% decrease. The 52-week range is between 11.22 and 19.08, with a trading volume of 67 million.
• NVDA (NVIDIA Corporation) is priced at 421.96, with a change of -17.42, reflecting a 3.96% decrease. The 52-week range is between 116.18 and 502.66, and the trading volume is 63 million.
• LCID (Lucid Group, Inc.) has a price of 4.53, with a change of -0.47, indicating a 9.40% decrease. The 52-week range is between 4.51 and 17.81, with a trading volume of 59 million.
• ARDX (Ardelyx, Inc.) is trading at 3.91, with a change of +0.46, marking a 13.33% increase. The 52-week range is between 1.16 and 5.13, and the trading volume is 58 million.
• AAPL (Apple Inc.) is priced at 175.84, with a change of -1.31, indicating a 0.74% decrease. The 52-week range is between 124.17 and 198.23, with a trading volume of 55 million.
• NIO (NIO Inc. Sponsored ADR Class A) has a price of 7.91, with a change of -0.62, reflecting a 7.27% decrease. The 52-week range is between 7.00 and 16.18, with a trading volume of 51 million.
• AMD (Advanced Micro Devices, Inc.) is trading at 102.17, with a change of -2.97, marking a 2.82% decrease. The 52-week range is between 55.71 and 132.83, with a trading volume of 50 million.
• RIVN (Rivian Automotive, Inc. Class A) is priced at 18.09, with a change of -1.81, indicating a 9.10% decrease. The 52-week range is between 11.68 and 36.45, with a trading volume of 46 million.
• FBYD (Falcon's Beyond Global, Inc. Class A) is currently priced at 21.49, reflecting an increase of 9.24, which represents a significant gain of 75.43%. The trading volume stands at 1 million, and the 52-week range is between 7.17 and 44.00.
• FZT (Falcon's Beyond Global, Inc. Class A) is also priced at 21.49, with a change of 9.24, indicating a notable increase of 75.43%. The trading volume is 1 million, and the 52-week range is between 7.17 and 44.00.
• OTMO (Otonomo Technologies Ltd.) currently stands at 5.30, showing a change of 1.30, resulting in a 32.50% increase. The trading volume is at 999,000, and the 52-week range falls between 3.08 and 9.90.
• SASI (Sigma Additive Solutions, Inc.) is priced at 5.06, reflecting a change of 1.20, equivalent to a 31.09% increase. The trading volume is substantial at 9 million, and the 52-week range is between 2.39 and 15.80.
• HARP (Harpoon Therapeutics, Inc.) currently stands at 6.64, showing a change of 1.29, marking a 24.11% increase. The trading volume is 562,000, and the 52-week range is between 3.11 and 33.55.
• SPR (Spirit AeroSystems Holdings, Inc. Class A) is priced at 21.16, with a change of 3.97, indicating a 23.09% increase. The trading volume is substantial at 32 million, and the 52-week range is between 14.65 and 38.55.
• GTN.A (Gray Television, Inc. Class A) currently stands at 8.50, showing a change of 1.52, marking a 21.78% increase. The trading volume is 3,000, and the 52-week range is between 6.79 and 14.61.
• MSS (Maison Solutions Inc. Class A) is priced at 6.45, reflecting a change of 0.96, equivalent to a 17.49% increase. The trading volume is 124,000, and the 52-week range is between 3.76 and 11.48.
• GDC (GD Culture Group Limited) currently stands at 2.83, showing a change of 0.37, indicating a 15.04% increase. The trading volume is 140,000, and the 52-week range is between 1.80 and 44.00.
• FRLN (Freeline Therapeutics Holdings Plc Sponsored ADR) is priced at 4.91, with a change of 0.59, marking a 13.66% increase. The trading volume is 467,000, and the 52-week range is between 2.11 and 12.00.
• NUZE (Nuzee Inc) is currently priced at 2.91, with a change of -2.29, indicating a significant decrease of 44.04%. The trading volume stands at 259,000, and the 52-week range is between 2.61 and 21.35.
• BAER (Bridger Aerospace Group Holdings, Inc.) is trading at 4.36, showing a change of -1.77, marking a 28.96% decrease. The trading volume is 348,000, and the 52-week range is between 3.26 and 25.90.
• PWM (Prestige Wealth, Inc.) is currently priced at 2.13, with a change of -0.76, equivalent to a 26.30% decrease. The trading volume is 191,000, and the 52-week range is between 2.13 and 31.88.
• GBIO (Generation Bio Co.) is priced at 2.41, with a change of -0.70, reflecting a 22.51% decrease. The trading volume is substantial at 3 million, and the 52-week range is between 2.31 and 7.35.
• TPIC (TPI Composites, Inc.) is currently trading at 2.13, showing a change of -0.55, indicating a 20.48% decrease. The trading volume is substantial at 3 million, and the 52-week range is between 2.06 and 14.80.
• SFWL (Shengfeng Development Limited Class A) is priced at 13.68, with a change of -3.11, marking an 18.52% decrease. The trading volume is 124,000, and the 52-week range is between 2.94 and 17.60.
• TPST (Tempest Therapeutics, Inc.) is currently priced at 5.85, showing a change of -1.32, equivalent to an 18.41% decrease. The trading volume is substantial at 18 million, and the 52-week range is between 0.17 and 9.77.
• FMST (Foremost Lithium Resource & Technology Ltd) is priced at 3.00, with a change of -0.61, reflecting a 16.90% decrease. The trading volume is 14,000, and the 52-week range is between 3.00 and 10.00.
• NTBL (Notable Labs, Ltd.) currently stands at 3.70, showing a change of -0.75, marking a 16.85% decrease. The trading volume is 125,000, and the 52-week range is between 2.85 and 11.20.
• PROK (ProKidney Corp. Class A) is priced at 2.22, with a change of -0.45, indicating a 16.85% decrease. The trading volume is substantial at 825,000, and the 52-week range is between 2.13 and 14.19.

In the world of cryptocurrencies, the Nasdaq Crypto Index recorded a value of 1,571.38, showing a decrease of 4.85 points, marking a 0.31% decrease. Bitcoin was at 28,327.00 with a decrease of 90.00, reflecting a 0.32% decrease. Ether closed at 1,563.80 with a decrease of 0.20, indicating a 0.01% decrease. Litecoin was at 60.98, with a decrease of 1.20, resulting in a 1.93% decrease, while XRP was at 0.49 with no change, showing a 0.44% change.

For bonds and rates, the 3 Month Treasury yield was 5.330% with a decrease of 0.002, while the 2 Year Treasury yield stood at 5.212% with an increase of 0.009. The 5 Year Treasury yield was 4.925% with an increase of 0.051, the 10 Year Treasury yield closed at 4.900% with an increase of 0.067, and the 30 Year Treasury yield was 4.987% with an increase of 0.056.

In the currency market, the Euro to US Dollar rate was 1.0540. The British Pound to US Dollar rate stood at 1.2144. The US Dollar to Canadian Dollar rate was 1.3713 with a decrease of 0.02% decrease, while the US Dollar to Swiss Franc rate was 0.8988 marking a 0.01% decrease. The US Dollar to Japanese Yen rate was 149.8245, resulting in a 0.04% decrease.

In this overview of commodity market data, we can see various indices and commodities along with their respective values, changes, percentage changes, highs, lows, and the time the data was recorded (EDT). The Bloomberg Commodity Index (BCOMTR:IND) stands at 240.50, experiencing a change of +2.45, reflecting a 1.03% increase. The UBS Bloomberg CMCI (CMCITR:IND) is at 1,557.85, showing a change of +12.14, representing a 0.79% increase. The Reuters/Jefferies CRB (CRYTR:IND) currently stands at 323.08 with a change of +3.15, marking a 0.99% increase. Rogers International (RICIGLTR:IND) is at 3,891.21, showing a change of +39.65 and a 1.03% increase. The S&P GSCI (SPGSCITR:IND) is at 3,721.83, indicating a change of +47.63, resulting in a 1.30% increase.

The energy sector provides information on various commodities. WTI Crude Oil (CL1:COM) is at 88.24 USD per barrel with a change of -0.08 and a -0.09% decrease for Nov 2023. Brent Crude (CO1:COM) stands at 91.50 USD per barrel with a change of +1.60, indicating a 1.78% increase for Dec 2023. RBOB Gasoline (XB1:COM) is at 235.35 USd/gal. with a change of +6.90, reflecting a 3.02% increase for Nov 2023. Natural Gas (NG1:COM) is at 3.08 USD/MMBtu with a change of +0.02, representing a 0.79% increase for Nov 2023. Heating Oil (HO1:COM) stands at 313.82 USd/gal. with a change of -0.11, resulting in a -0.04% decrease for Nov 2023.

The Precious and Industrial Metals category displays data for Gold (GC1:COM) at 1,961.20 USD/t oz. with a change of -7.10, marking a -0.36% decrease for Dec 2023. Gold Spot (XAUUSD:CUR) is at 1,950.07 USD/t oz. with a change of +2.52, reflecting a 0.13% increase. Silver (SI1:COM) is at 23.01 USD/t oz. with a change of -0.09, resulting in a -0.41% decrease for Dec 2023. Copper (HG1:COM) stands at 358.20 USd/lb. with a change of -0.50, indicating a -0.14% decrease for Dec 2023. Platinum Spot (XPTUSD:CUR) is at 888.22 USD/t oz. with a change of +0.27, reflecting a 0.03% increase.

In the Agriculture section, we see data for various commodities. Corn (C 1:COM) is at 492.00 USd/bu. with a change of +3.00, indicating a 0.61% increase for Dec 2023. Wheat (W 1:COM) stands at 580.25 USd/bu. with a change of +9.75, marking a 1.71% increase for Dec 2023. Cocoa (CC1:COM) is at 3,639.00 USD/MT with a change of +4.00, reflecting a 0.11% increase for Dec 2023. Cotton #2 (CT1:COM) is at 84.24 USd/lb. with a change of +1.01, indicating a 1.21% increase for Dec 2023. Live Cattle (LC1:COM) is at 187.20 USd/lb. with a change of +0.33, marking a 0.17% increase for Dec 2023.

Tomorrow's economic data release schedule is as follows:

At 8:30 AM ET, the Jobless Claims report will be published, which includes Initial Claims - Change, Initial Claims - Level, and the 4-Week Moving Average. This data is considered high-impact. The previous report indicated no change, and the forecast suggests higher Initial Claims. There is no available data for the 4-Week Moving Average, and the actual figures will be updated once released.

Also at 8:30 AM ET, the Philadelphia Fed Manufacturing Index will be released. This index holds a high level of significance. The previous value was negative, and the forecast is negative as well. No actual data is available at this time.

At 10:00 AM ET, the Existing Home Sales report will be made public, including the Annual Rate, Year over Year change, and Month over Month change. This report is of high importance. The previous annual rate was above four million, with changes both year-over-year and month-over-month. The forecast for the annual rate is lower, with no available data for year-over-year and month-over-month changes. The actual figures will be updated upon release.

Also at 10:00 AM ET, the Leading Indicators report will be released, which is considered of low significance. The previous change was negative, and the forecast is also negative. No actual data is available at this time.

Finally, at 10:30 AM ET, the EIA Natural Gas Report will be published, showing a week-over-week change in natural gas storage. This report holds a medium level of importance. The previous report indicated a change, but there is no available forecast or actual data at this time.

• Market Caution Due to Rising Rates and Geopolitical Headlines: The stock market is likely to remain cautious due to the focus on higher interest rates and ongoing geopolitical concerns. Higher interest rates can put downward pressure on stock prices, so investors may continue to monitor the rates closely. Geopolitical developments, such as the situation in the Middle East, can add an element of uncertainty to the market, potentially leading to increased volatility.
• Sector Performance: Defensive sectors like consumer staples, utilities, and healthcare are expected to outperform, as they tend to be less sensitive to economic and interest rate fluctuations. Conversely, cyclical sectors, including small-cap stocks, may face more pressure. Investors may reallocate their portfolios based on this trend, favoring defensive stocks during uncertain times.
• Interest Rate Trends: The 10-year Government of Canada bond yields rising to 4.1% and U.S. 10-year Treasury yields hovering around 4.9% indicate a continued upward trend in interest rates. This trend is likely to persist as the Federal Reserve maintains its willingness to keep policy rates higher for an extended period. The market is also anticipating an increase in Treasury bond supply due to the elevated U.S. federal budget deficit. Investors should prepare for potentially higher borrowing costs and monitor how these rates impact different asset classes.
• Mixed Housing Market: The housing market is expected to show a mixed picture, with housing starts rising to their highest levels in recent months. Low unemployment and strong consumer spending are likely to support construction activity. However, the increase in 30-year mortgage rates may act as a headwind, potentially reducing housing investment. Building permits falling more than 4% suggest a potential slowdown in upcoming housing projects.
• Earnings Season: The earnings season for the third quarter, especially in the financial sector, is off to a strong start, with many banks reporting better-than-expected profits. The focus is now shifting to the tech sector, with companies like Netflix, Tesla, Microsoft, Alphabet, Meta, and Amazon set to announce their earnings. Despite interest rate challenges and high labor costs, S&P 500 companies are expected to continue delivering strong earnings, reflecting consumer resilience. The pace of profit growth through 2024, against a backdrop of slower GDP growth, will likely impact overall equity market returns for the year. Investors should closely follow earnings reports for these tech giants, as they can influence market sentiment and future investment decisions.