Stocks Down, with Yields Up Again, after Mixed Data and Earnings


Macroeconomic/ geopolitical developments

  • Mixed Results from Big Tech –, Alphabet (Google’s parent), Meta Platforms (the owner of Facebook), and Microsoft generally reported robust growth that surpassed market expectations, but hints of rising expenses, which cast a shadow on their stock performance.
Magnificent seven results
  • Mixed Macro Data – GDP Hotter Than Expected, US Flash PMI Edges Higher, US PCE Mixed.
US Flash PMI
  • ECB Rates Unchanged – a unanimous choice to leave the key deposit rate untouched at 4%.
  • Yields Continue Higher – the 10-year U.S. Treasury yield surged past the 5% threshold, a level unseen for 16 years.

Global financial market developments

  • US and global equity index futures sold off again, and technically remain vulnerable.
  • US and global yields moved significantly higher, with USTs again hitting multi-year high yields.
  • The US Dollar Index consolidated again last week having previously dipped back from multi-month highs.
  • Gold futures pushed still higher last week to new multi-month highs.
  • Oil futures posted a negative consolidation last week, damaging bullish forces.

Key this week

General: UK and EU Daylight Saving Time ended at the weekend, so for this week there is only a 4-hour time difference between London and New York. Daylight Saving Time ends in the US next weekend, 4/5 November.

Central Bank Watch: The Bank of Japan interest rate decision, FOMC and Bank of England interest rate decisions are on Tuesday, Wednesday, and Thursday respectively.

Macro Data Watch: German and EU GDP and CPI are released on Monday and Tuesday respectively, ADP Employment change is released Wednesday, plus S&P Global and ISM Manufacturing, then Services and Composite PMI data are out Wednesday then Friday respectively, with the US Employment report also out Friday.,

Earnings Watch: The key standout this week will be Apple reporting on Thursday.

DateKey Macroeconomic Events
10/30/2023UK and EU Daylight Saving Time ended at the weekend; German GDP and CPI
10/31/2023Bank of Japan interest rate decision; EU GDP and CPI; Canada GDP
11/01/2023ADP Employment change; S&P Global and ISM Manufacturing PMI; FOMC interest rate decision
11/02/2023German Employment report; Bank of England interest rate decision
11/03/2023US Employment report; S&P Global and ISM Services and Composite PMI
DateKey Macroeconomic Events
10/31/2023Pfizer; AMD; Caterpillar
11/01/2023Qualcomm; CVS Health Corp

Editor in chief

Steve Miley is the Market Chartist and has 32 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Mar... Continued

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