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Morning Research Notes - 13.11.24
US markets retreated yesterday as the S&P 500, Dow, and Nasdaq edged lower, pressured by rising treasury yields ahead of tonight's CPI data. Major commodities faced headwinds: Spot gold decreased by 0.8% to $US2597.56 per ounce, Brent crude fell by 0.3% to $US72.03 per barrel and iron ore dropped by 0.01% to $US100.65 per tonne.
On Tuesday, Wall Street closed lower as the S&P 500, Dow and Nasdaq pulled back, pressured by a surge in treasury yields. The Dow Jones Industrial Average fell 382 points (0.6%), the S&P 500 dropped 0.3% and the Nasdaq slipped 0.1%. Rising yields on the 10-year treasury note heightened caution, with investors awaiting Wednesday's CPI report for signs of inflation that could influence the Federal Reserve's rate decisions. Corporate earnings continued, with Home Depot falling 1.3% despite a positive sales forecast, while Shopify surged 20% after an upbeat revenue forecast. Netflix gained 2% following announcing 70 million active users for its ad-supported streaming tier.
On Tuesday, the Australian stock market closed lower, with the ASX 200 declining by 0.13%. This downward trend extended across major indices, as Materials and Healthcare sectors dropped by 1.42% and 0.12%, respectively. In contrast, Financials, Info Tech, and Utilities managed to close in the green, gaining 0.16%, 1.40%, and 0.57%. Major commodities also experienced a bearish day, with Aluminium, Copper and Nickel decreasing by 1.75%, 0.77%, and 1.21%, respectively. Zinc was the only major commodity to end positively, gaining 0.47%.
Chart of the day
Similarly to 2016, Wall Street has reacted positively to Donald Trump’s re-election as US President. Once again President-elect Trump ran his campaign on a ticket promoting an ‘America first’ agenda. Back in 2016, expectations around these policies – such as deregulation, a tougher stance on China and corporate tax cuts led the S&P 500 to post significant gains in the first 100 days after the election. A similar pattern seems to be taking hold this time.
Source: Livewire
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