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Tuesday, October 29

Some of the largest macro moves in the market today include: USD/CNH +0.2%. Ethereum +2.1%. US Dollar Index +0.3%. 

Recent market movements are significantly influenced by upcoming economic data releases and political events, particularly the U.S. presidential election on November 5. Investors are closely monitoring key indicators such as the Nonfarm Payrolls report due this Friday, which could impact Federal Reserve interest rate decisions amid rising bond yields that have reached levels near 4.30%. The anticipation surrounding these reports is contributing to a cautious sentiment in equity markets.

In Europe, consumer confidence has shown improvement with Germany's GfK Consumer Climate Indicator increasing unexpectedly to -18.3 for November from -21 previously. However, concerns about high prices and geopolitical uncertainties continue to weigh heavily on overall consumption prospects across major economies like Germany and the UK where mortgage lending fell more than expected in September despite an increase in approvals indicating potential future borrowing strength.

Additionally, China's consideration of a substantial fiscal stimulus package exceeding ¥10 trillion next week aims at bolstering its economy amidst global pressures while easing tensions related to recent Middle East conflicts may stabilize oil prices further influencing inflation expectations globally. These developments collectively shape investor outlook towards commodities including gold which remains attractive during periods of uncertainty but faces headwinds from strengthening Treasury yields linked with anticipated shifts post-election outcomes.

Bitcoin (BTC/USD) [+1.7%]
Bitcoin surged past 71,500 today, driven by record-breaking ETF inflows and increased derivatives activity, particularly linked to BlackRock's Bitcoin spot ETF. This rise coincides with growing interest in Bitcoin from BRICS countries and political factors, including Donald Trump's rising popularity ahead of the upcoming presidential elections. Additionally, overall market sentiment has been buoyed by expectations for potential economic shifts that could favor cryptocurrencies amid ongoing geopolitical tensions. In a related movement, Ethereum increased significantly, reflecting a strong correlation with Bitcoin and suggesting that both assets are influenced by similar market dynamics.

iShares Russell 2000 ETF (IWM) [-0.4%]
The iShares Russell 2000 ETF (IWM) is experiencing a slight pre-market decline of 0.4%. This follows a notable increase of 1.63% in the previous session, driven by positive sentiment in the small-cap sector. Social media discussions reflect a mix of optimism and skepticism, with some users highlighting bullish positions contingent on IWM breaking the 225 level, while others express doubts about small-cap performance. Significant movements among the ETF's holdings include sharp declines in shares of TransMedics Group, ATI, and Amkor Technology, which reported disappointing Q3 results. Conversely, Harmonic Inc. exceeded expectations, although Xerox Holdings reported substantial losses. Broader market dynamics are also at play, as the Russell 2000 Index's decline coincides with a 0.31% drop in the Dow Jones Index, amid rising Treasury yields and geopolitical tensions impacting market volatility.

F | -6.7% | -2.8B
Ford Motor Co | Automobile Manufacturers
Ford Motor Co reported third-quarter earnings with an adjusted EPS of 0.49, exceeding the estimate of 0.47, while revenue reached 46.2 billion, surpassing expectations of 41.88 billion. Despite these positive figures, net income fell to 900 million, down from 1.2 billion a year earlier. The company revised its full-year adjusted EBIT outlook to approximately 10 billion, a reduction from the previous forecast range of 10 billion to 12 billion. Additionally, Ford anticipates a loss of around 5 billion for its Model e segment and has maintained adjusted free cash flow guidance between 7.5 billion and 8.5 billion. Following the earnings announcement, shares of Ford fell significantly in after-hours trading and continued to decline in premarket trading, reflecting concerns over the company's weakened annual profit outlook and challenges in its electric vehicle segment.

GLW | +7.5% | +3.2B
Corning Inc | Electronic Components
Corning Inc. reported strong third-quarter 2024 results, with core earnings per share of $0.54, surpassing the consensus estimate of $0.52 and reflecting a year-over-year increase of 20%. Core sales reached $3.73 billion, slightly above expectations of $3.72 billion and marking a 7.9% increase from the previous year. The company forecasts fourth-quarter core sales of approximately $3.75 billion, exceeding the estimated $3.67 billion, and projects core EPS between $0.53 and $0.57. Notably, the Optical Communications segment saw a 36% year-over-year sales growth, driven by new products for generative AI. Additionally, Corning entered a multi-year purchase agreement with AT&T valued at over $1 billion to supply next-generation fiber cable, further enhancing its position in the connectivity market. Following the earnings report, Corning's stock moved significantly higher in pre-market trading.

PYPL | -3.9%| -3.3B
PayPal Holdings Inc | Transaction & Payment Processing Services
PayPal Holdings Inc (PYPL) has experienced a slight decline in pre-market trading, coinciding with a broader market downturn, as evidenced by the Dow Jones Index's drop. The company reported third-quarter results showing adjusted earnings per share of $1.20, surpassing the consensus estimate of $1.07. However, revenue of $7.85 billion fell short of the expected $7.88 billion. Total payment volume increased by 9% to $422.6 billion, while active accounts rose by 0.9% to 432 million. For the fourth quarter, PayPal anticipates low single-digit revenue growth and a decrease in adjusted earnings per share to between $1.03 and $1.07, attributed to heightened marketing expenditures. Despite raising its fiscal year 2024 adjusted EPS guidance to a high teens growth projection, shares declined by approximately 2% following the earnings announcement.

HSBC |+4.1%|+36.3B
HSBC Holdings PLC | Diversified Banks
HSBC Holdings PLC reached a six-year high, reflecting a notable increase. The bank reported third-quarter net income of $6.13 billion, up from $5.62 billion year-over-year, with adjusted earnings per share at $1.70, a significant rise from $1.45 in the same period last year. Revenue for the quarter was $17 billion, exceeding analyst expectations. HSBC's pre-tax profit also increased to $8.48 billion, marking a 9.9% rise driven by substantial growth in wealth fees and a surge of new customers in Hong Kong. In conjunction with these results, HSBC announced a stock buyback program of up to $3 billion and maintained an interim dividend of $0.10 per ordinary share, payable on December 19 to shareholders of record as of November 8.

DJT | +19.0% | +1.9B
Digital World Acquisition Corp
Digital World Acquisition Corp (DJT) has experienced a notable surge in its stock price, with shares increasing significantly in premarket trading. This follows a substantial rise in value over recent days, reaching a peak not seen since May. The stock's momentum is linked to discussions surrounding the political landscape, particularly the upcoming 2024 presidential election and former President Donald Trump's involvement. Social media activity reflects heightened interest, with users noting DJT's recent revenue report of $836.9K for the last quarter. Additionally, Trump's commitment to retain his shares is seen as a pivotal factor in driving the stock's performance. DJT's market capitalization stands at approximately $9.5 billion, supported by a significant trading volume of 105 million shares.

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