US futures are down, continuing the losses from yesterday, as treasuries experience a rout that has sent 10-year yields briefly above 4.22%. This is due to traders pricing in the increasing likelihood of a red sweep. The rout in the Treasury has had global effects, pushing interest rates higher worldwide. As of 8 am ET, S&P 500 futures have dropped 0.3%, indicating the first consecutive decline in about 30 sessions for the gauge. Nasdaq 100 futures are underperforming, dropping 0.4%, as tech stocks start to feel the pressure of surging rates. All the mega-cap tech stocks showed declines: TSLA -0.8%, GOOG -0.5%, AMZN -0.5%. The yield on 10-year Treasuries added one basis point to 4.21% after an 11 basis-point surge at the start of the week. The USD is flat after reversing a modest earlier loss. Commodities are mixed: Oil added 0.5%, base metals are lower, and precious metals are higher: silver rises +1% to $34.5, a new 12-year high. The only macro today are the October Philly Fed and Richmond Fed reports.
In premarket trading, Philip Morris rises 2% after lifting its profit outlook amid strong sales of tobacco alternatives such as Zyn and IQOS. 3M climbed 4% after increasing the low end of its 2024 profit forecast and reporting 3Q earnings that topped analyst estimates as a push to boost productivity gained traction. Polaris tumbled 7% after the automaker lowered its full-year earnings per share and sales guidance. Here are some of the biggest US movers today:
Cheesecake Factory (CAKE) gains 3% following a report that activist investor JCP Investment Management has built a stake in the restaurant chain.
Danaher (DHR) rises 2% after the life-sciences firm reported 3Q profit and sales that topped the average analyst estimate.
General Electric (GE) drops 4% as sales fell short of Wall Street’s expectations last quarter, tempering enthusiasm for its improved profit outlook as the jet engine maker grapples with supply-chain limitations that are weighing on deliveries.
General Motors (GM) ticks 1% higher after signaling solid US demand for its highest-margin vehicles even as the broader market softens, posting better-than-expected results for the latest quarter.
IRhythm (IRTC) jump 20% after the company said it received FDA 510(k) clearance for design updates to its Zio AT device.
Medpace (MEDP) drops 12% after the health care services company cut its revenue forecast for the full year.
Zions (ZION) rises 2% as 3Q earnings per share beat estimates.
Investors further pared paring back their expectations for Fed rate cuts after central bank officials indicated a preference for reducing rates at a slower pace after recent resilient economic data. The inflationary impact of a possible Donald Trump presidential win is also weighing, given his promised tax cuts and trade tariffs could ultimately entail higher rates.
“This is very clearly linked to trading a victory of the Republicans — and therefore to an agenda which would be much more inflationist than that of the Democrats. We’re in a market that is betting on Trump,” said Christopher Dembik, senior investment adviser at Pictet Asset Management. “The rise in yields is starting to threaten equity markets."
Elsewhere, exposure to the S&P 500 has reached levels that were followed by a 10% slump in the past, Citigroup Inc. strategists said. Still, despite the mounting risks, the current winning streak for US stocks ranks among the very best since 1928, according to data compiled by SentimenTrader. And even though US equities are expensive, going underweight is a tough call for investors in the environment where S&P 500 reached 47 record highs this year starting from January, said Vera Fehling, DWS Europe chief investment officer.
"If you said then: ‘things are looking quite stretched’ — you would have massively underperformed," she added. "It’s difficult to explain going into the end of such a year with a significant underweight in US equities."
European equities appear cheap by comparison and got even cheaper on Tuesday after the Stoxx 600 benchmark declined 0.8%, led by real estate and utilities sectors, which suffer when the cost of borrowing money rises. Major markets are all lower (UKX -0.6%, SX5E -0.4%, SXXP -0.7%, DAX -0.1%.) with Spain lagging. SAP is driving the tech sector to outperform after the German software giant delivered a beat on several key metrics in the third quarter and boosted some elements of its guidance for the full year. ING shares slip as Barclays downgraded the bank to equal-weight from overweight. Here are the most notable European movers:
SAP shares gain as much as 5.9%, reaching a record high, after the software giant delivered a beat on several key metrics in 3Q and boosted some elements of its guidance for the full year.
DNB Bank shares advance as much as 5.1% after Norway’s largest lender reported what Citi says were “impressive” quarterly results, with revenue beating estimates amid the best 3Q for fees.
ING shares decline as much as 1.7%, the worst-performing stock on the Stoxx 600 Banks Index, as Barclays cut the recommendation on the lender to equal-weight from overweight.
Traton shares rise as much as
US futures are down, continuing the losses from yesterday, as treasuries experience a rout that has sent 10-year yields briefly above 4.22%. This is due to traders pricing in the increasing likelihood of a red sweep. The rout in the Treasury has had global effects, pushing interest rates higher worldwide. As of 8 am ET, S&P 500 futures have dropped 0.3%, indicating the first consecutive decline in about 30 sessions for the gauge. Nasdaq 100 futures are underperforming, dropping 0.4%, as tech stocks start to feel the pressure of surging rates. All the mega-cap tech stocks showed declines: TSLA -0.8%, GOOG -0.5%, AMZN -0.5%. The yield on 10-year Treasuries added one basis point to 4.21% after an 11 basis-point surge at the start of the week. The USD is flat after reversing a modest earlier loss. Commodities are mixed: Oil added 0.5%, base metals are lower, and precious metals are higher: silver rises +1% to $34.5, a new 12-year high. The only macro today are the October Philly Fed and Richmond Fed reports.
In premarket trading, Philip Morris rises 2% after lifting its profit outlook amid strong sales of tobacco alternatives such as Zyn and IQOS. 3M climbed 4% after increasing the low end of its 2024 profit forecast and reporting 3Q earnings that topped analyst estimates as a push to boost productivity gained traction. Polaris tumbled 7% after the automaker lowered its full-year earnings per share and sales guidance. Here are some of the biggest US movers today:
Cheesecake Factory (CAKE) gains 3% following a report that activist investor JCP Investment Management has built a stake in the restaurant chain.
Danaher (DHR) rises 2% after the life-sciences firm reported 3Q profit and sales that topped the average analyst estimate.
General Electric (GE) drops 4% as sales fell short of Wall Street’s expectations last quarter, tempering enthusiasm for its improved profit outlook as the jet engine maker grapples with supply-chain limitations that are weighing on deliveries.
General Motors (GM) ticks 1% higher after signaling solid US demand for its highest-margin vehicles even as the broader market softens, posting better-than-expected results for the latest quarter.
IRhythm (IRTC) jump 20% after the company said it received FDA 510(k) clearance for design updates to its Zio AT device.
Medpace (MEDP) drops 12% after the health care services company cut its revenue forecast for the full year.
Zions (ZION) rises 2% as 3Q earnings per share beat estimates.
Investors further pared paring back their expectations for Fed rate cuts after central bank officials indicated a preference for reducing rates at a slower pace after recent resilient economic data. The inflationary impact of a possible Donald Trump presidential win is also weighing, given his promised tax cuts and trade tariffs could ultimately entail higher rates.
“This is very clearly linked to trading a victory of the Republicans — and therefore to an agenda which would be much more inflationist than that of the Democrats. We’re in a market that is betting on Trump,” said Christopher Dembik, senior investment adviser at Pictet Asset Management. “The rise in yields is starting to threaten equity markets."
Elsewhere, exposure to the S&P 500 has reached levels that were followed by a 10% slump in the past, Citigroup Inc. strategists said. Still, despite the mounting risks, the current winning streak for US stocks ranks among the very best since 1928, according to data compiled by SentimenTrader. And even though US equities are expensive, going underweight is a tough call for investors in the environment where S&P 500 reached 47 record highs this year starting from January, said Vera Fehling, DWS Europe chief investment officer.
"If you said then: ‘things are looking quite stretched’ — you would have massively underperformed," she added. "It’s difficult to explain going into the end of such a year with a significant underweight in US equities."
European equities appear cheap by comparison and got even cheaper on Tuesday after the Stoxx 600 benchmark declined 0.8%, led by real estate and utilities sectors, which suffer when the cost of borrowing money rises. Major markets are all lower (UKX -0.6%, SX5E -0.4%, SXXP -0.7%, DAX -0.1%.) with Spain lagging. SAP is driving the tech sector to outperform after the German software giant delivered a beat on several key metrics in the third quarter and boosted some elements of its guidance for the full year. ING shares slip as Barclays downgraded the bank to equal-weight from overweight. Here are the most notable European movers:
SAP shares gain as much as 5.9%, reaching a record high, after the software giant delivered a beat on several key metrics in 3Q and boosted some elements of its guidance for the full year.
DNB Bank shares advance as much as 5.1% after Norway’s largest lender reported what Citi says were “impressive” quarterly results, with revenue beating estimates amid the best 3Q for fees.
ING shares decline as much as 1.7%, the worst-performing stock on the Stoxx 600 Banks Index, as Barclays cut the recommendation on the lender to equal-weight from overweight.
Traton shares rise as much as
