Markets Mixed as US Midterm Election Day Arrives

US midterm election day has arrived, and markets are mixed. NASDAQ futures are bouncing back from Monday’s loss, while Dow futures are giving back some of Monday’s gain. Investors also continue to digest yesterday’s mixed Manufacturing PMI reports for North America and disappointing US construction spending data.

Crude Oil is rebounding following a US attack on Qeshim Island, which Iran has been using to disrupt traffic in the Strait of Hormuz. Meanwhile, earnings season continues with companies struggling to keep pace with market expectations and valuations. Despite beating earnings expectations, Apple* and Palantir Technologies* are down 4.0% and 7.20% in premarket trading, respectively, with investors focusing on margin and bookings forecasts. These declines appear moderate compared with some of the sharp losses companies such as Intel and Reddit experienced last week.

The Reserve Bank of Australia raised its benchmark interest rate by 0.25% to 4.85%, as widely expected. Apple* ($2.10 vs Street $1.99), Palantir Technologies* ($0.44 vs Street $0.41) and DuPont ($2.09 vs Street $1.87) all beat sales and earnings expectations.

NASDAQ futures are up 0.3%, while Dow futures are down 0.7%.

In Asia, the Nikkei fell 0.3% and the KOSPI declined 3.6%, while the Hang Seng gained 0.6%. In Europe, the DAX is down 0.6%, while the FTSE is up 0.7%.

Crude Oil is up 0.6%, trading below $97.50/bbl, while Brent Crude is up 0.2%, trading near $105.00/bbl. Gasoline is up 1.2%, trading below $3.00/gallon. Metals are under pressure, with Gold down 1.2%, falling towards $3,925/oz, Copper down 2.9%, falling towards $6.35/lb, and Silver down 3.3%.

The US 10-year Treasury note yield is trading near 4.90%, while the US 30-year Treasury note yield is near 5.25%. The USD Index is up 0.1%, the Euro is down 0.1% and the Loonie is up 0.1%.

US factory orders are due at 10:00 am EST, with US midterm election results expected overnight. Wednesday brings US ADP Payrolls and Services PMI reports. Earnings over the remainder of the week are dominated by the Energy, Insurance and Technology sectors, alongside peak reporting week for Canadian large caps.

Other earnings headliners today include Shopify*, Pfizer, Thomson Reuters*, Suncor Energy* and Super Micro Computer. Wednesday brings McDonald’s, Cenovus Energy*, Manulife, MetLife, Great-West Life, Nutrien, Qualcomm and Sun Life. Canadian Natural Resources*, TC Energy, ConocoPhillips*, Bombardier and Airbnb report on Thursday, followed by Brookfield, Telus, Enbridge and Constellation Software on Friday.

*Shares of Apple, Palantir Technologies, Shopify, Thomson Reuters, Suncor Energy, Cenovus Energy, Canadian Natural Resources and ConocoPhillips are held in some portfolios managed by SIA Wealth Management.

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