Morning Minutes

Markets Active Around US GDP, Big Tech Earnings and ECB Rate News




On a busy morning for business news US index futures are mixed with Dow Futures up 0.8% and NASDAQ futures down 0.6%, continuing a big divergence that opened yesterday when the Dow finished flat while the NASDAQ fell by 2.0%. Earnings week for Big Tech has been dragging on the NASDAQ lately, with Microsoft and Alphabet selling off yesterday. Today, Meta Platforms is in the spotlight, plunging 22.7% in premarket action after the social media company missed on earnings ($1.64 vs street $1.89) and issued disappointing guidance. Big Tech may remain in the spotlight through the rest of the week with Apple and reporting earnings after the close today.

The European Central Bank raised its benchmark rate by 0.75% increase to 2.00%, which had been widely expected. President Lagarde and colleagues also announced that they plan to maintain the ECB’s balance sheet at current levels through 2024 and are adjusting the interest rate of a pandemic stimulus plan to current levels. The street has taken this as dovish overall, driving the Euro back down under par and down 0.8% for the day. This news comes a day after the Bank of Canada announced a less hawkish than expected 0.50% (street 0.75%) interest rate increase to 3.75% (street 4.00%). Tonight, the Bank of Japan is meeting with investors particularly interested in what steps, if any, Governor Kuroda may take to shore up the Japanese Yen following recent interventions.

US Treasury Yields and the US Dollar are up again today with positive US economic reports supporting continued hawkishness at the Fed when it meets next week. Q3 GDP accelerated more than expected and snapped the US out of a two-quarter losing streak (2.6% vs street 2.4% and previous -0.6%). Durable goods orders (0.4% vs street 0.6%) and weekly initial jobless claims (217K vs street 220K) were mixed.  

SIA Wealth Market Outlook Webinar With Colin Cieszynski TODAY at 2:00 pm EDT

Please join us on Thursday Oct.27 @ 12pm MT / 2pm ET for this month’s Market Outlook webinar with Colin Cieszynski CFA, CMT.  He will address the top advisor questions over the past month, including inflation and central banks, stock market valuation, earnings season, the US Dollar and tactical investing.

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Colin Cieszynski, Chief Market Strategist

Colin Cieszynski, CFA, CMT
Chief Market Strategist
+1 (647) 282-4428

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