Here is what you need to know on Wednesday, October 26:
Equity markets rallied on Tuesday as investors remain confident of lower interest rates. We had the “Fed pause” article from The Wall Street Journal, which got the market’s hopes up. This then has continued with some stronger-than-expected earnings.
Overall,129 companies have so far reported from the S&P 500, and 73.6% have beaten admitedly lowered estimates, according to Refinitiv. That view was challenged afterhours with a shocker from Alphabet (GOOGL), which is currently trading some 6.4% lower in the premarket. Stocks are less hopeful this morning based on that, especially the tech-heavy Nasdaq. The consumer remains in good shape, though it would appear at least at the lower end of the spectrum. Inflation is being passed on, and this is further reinforced by Kraft Heinz this morning posting solid earnings.
The dollar, meanwhile, continues to step back as a combination of sterling optimism (misplaced in my view), yen caution and hawkish Australian inflation all combine to send the dollar index back to 110.20. Oil is boosted by the weaker dollar to $86.20, while Bitcoin is the big mover up to $20,300. Gold too is taking the risk on the mandate and pushing to $1,670.
See forex today
European markets are mixed: Eurostoxx is flat, FTSE -0.4%, and Dax +0.2%.
US futures are negative: Dow is flat, S&P -0.8%, and Nasdaq -1.8%.
Wall Street (SPY) (QQQ) top news
UK fiscal plan is delayed.
US mortgage demand continues to fall.
Boeing (BA) misses on top and bottom lines.
Alphabet (GOOGL) is down nearly 6% on poor earnings.
Microsoft (MSFT) posts strong cloud revenue as it beats on top and bottom lines but is dragged lower by PC demand and the dollar.
Kraft Heinz (KHC) beats on top and bottom lines.
Bed Bath & Beyond (BBBY) names CEO.
Hilton (HLT) travel remains strong as it lifts profit forecasts.
Visa (V) sees solid consumer spending as it beats on EPS and revenue.
Mobileye (MBLY) self-driving division of Intel (INTC) set to IPO today at $21.
Barclays (BCS) earnings are strong.
Deutsche Bank (DB) also reported strong earnings.
Spotify (SPOT): EPS misses, revenue beats, mentions slow advertising growth.
Canopy Growth (CGC) to create a holding company to fast-track entry to US market.
Upgrades and downgrades