Dow sank 296, decliners over advancers better than 3-1 & NAZ tumbled 409. The MLP index hardly budged in the 283s & the REIT index rebounded 4+ to the 434s. Junk bond funds fluctuated & Treasuries saw more selling which brought higher yields. Oil was off about 1 to just under 71 & gold tumbled 32 to 2727 (more on both below).
Dow Jones Industrials
The preview included with iOS 18.2 contains:
- New abilities to describe how the user wants AAPL Intelligence to rewrite a chunk of text.
- Genmoji, AAPL's image generator for new emojis.
- Image Playground, AAPL's AI image generator.
- Image Wand, a feature that allows users to remove objects or distractions from photos.
- Integration with OpenAI’s ChatGPT.
However, the long-awaited ability for Siri to take actions inside of apps isn't included in this update, but is expected soon. In Jun, AAPL announced its integration with ChatGPT. Although AAPL
Intelligence & Siri mostly rely on AAPL's chips inside its devices,
the company said at the time that for more sophisticated problems or
questions, users can get responses from OpenAI’s chatbot instead. The stock dropped 5.10.
Apple releases new preview of its AI, including ChatGPT integration
An escalation of trade & tariffs tensions between the US & China would have “costly” economic consequences around the world, Gita Gopinath, deputy managing director of the International Monetary Fund (IMF) said. “We are seeing geopolitically driven trade around the world, which is why when you look at overall trade to GDP that’s holding up fine, but who’s trading with whom is certainly changing,” she added. The US & China are trading with one another less, & some parts of their trade is being re-routed thru other countries, she noted. Trade tensions between the US & China & the European Union & China have been mounting this year, with both the US & EU implementing higher tariffs on some Chinese goods over what they claim are unfair trade practices from Beijing. China has also announced higher temporary tariffs on some imports from the EU as the tit-for-tat measures continue. If tariffs were escalated, modelling from the IMF suggests it would be “costly for everybody,” Gopinath said on the sidelines of the agency's annual meeting in DC. “Output is going to be much lower than what we are projecting for all countries in the world, there’s going to be pressure on inflation, so that’s not the direction in which we should be going,” she explained. Gopinath's comments come after IMF Managing Director Kristalina Georgieva said last week that intl trade would no longer be the “engine of growth” it once was & that “retaliatory” trade measures could hurt those imposing them as much as their targets.
U.S., China trade tariffs escalating would be ‘costly for everybody,’ IMF deputy director says
US economic activity was little changed from Sep thru early Oct while firms saw an uptick in hiring, continuing recent trends that have reinforced expectations the Federal Reserve will opt for a smaller 25-basis-point reduction in borrowing costs in 2 weeks. The central bank's latest temperature check on the health of the economy also showed that inflation pressures continued to moderate. The economy, & inflation in particular, remains a key issue among voters ahead of the presidential election. "On balance, economic activity was little changed in nearly all Districts since early September, though two Districts reported modest growth," the Fed said its "Beige Book," which polled the business contacts of each of its 12 regional banks through Oct 11. "Despite elevated uncertainty, contacts were somewhat more optimistic about the longer-term outlook." The central bank last month began an easing cycle with an unusually large ½-percentage-point cut in its policy rate, lowering it to 4.75%-5.00%, amid increasing concerns about the labor market. The Fed hiked rates by 525 basis points in 2022 & 2023 to quash high inflation. A string of stronger-than-expected economic data on consumer spending, job gains & inflation since then has caused investors to dial back bets on the pace & extent of rate cuts. US job gains increased by the most in 6 months in Sep & the unemployment rate fell to 4.1%, while retail sales increased solidly last month. The resilient economy has been underpinned by firm income growth & ample household savings. Though labor market momentum has slowed, the level of layoffs remains historically low, supporting wage gains. Investors currently expect the Fed to cut rates by a qtr of a percentage point at its Nov 6-7 policy meeting, with another reduction of the same size in Dec.
US economic activity little changed in recent weeks, Fed survey shows
Gold prices fell over 1% after hitting a record high today, as a stronger $ & a rise in Treasury yields countered support from safe-haven demand linked to the Nov 5 U.S. election & Middle East war. Spot gold was down 1.2% to $2714 per ounce after hitting a record high of $2758 earlier in the session & US gold futures settled 1.1% lower at $2729. Bullion, considered a hedge against political & economic uncertainty, has climbed more than 31% this year, shattering multiple record peaks as the Federal Reserve's interest rate cut last month combined with safe-haven demand set up a perfect storm for the precious metal. The $ index, rose 0.4% to near a 3-month high, making gold less appealing for other currency holders, while US bond yields climbed to a 3-month high. With the US presidential election less than 2 weeks away, VP Kamala Harris holds a marginal 46% to 43% lead over Rep former Pres Donald Trump.
Gold's Record Rally Pauses Due to Stronger Dollar, Higher Yields
Oil prices fell after industry data showed US crude inventories swelled more than expected, though crude futures were still up about 3% this week as traders factored in continuing conflict in the Middle East. Brent crude futures dropped 73¢ (1%) to $75.31 a barrel & West Texas Intermediate crude futures shed 74¢ (1%) to $71.00 a barrel. Oil had settled higher in the previous 2 sessions, paring the previous week's losses of more than 7%. Those declines stemmed from worries about Chinese demand & some easing concerns around Middle East oil supply being disrupted. Today's price drop came after data showed US crude stocks rose by 1.64M barrels last week. Analysts had expected an increase of 300K barrels. Official US gov oil inventory data is later today. But the inventories impact on prices was countered by stubborn concerns over potential risk to oil supply from conflict in the Middle East.
Oil slips on higher US crude stocks; market watches Middle East
Stocks paused as doubts about rate cuts weighed on investors dealing with a busy day of earnings. Investors are debating how quickly the Federal Reserve will cut interest rates next year. Gloom about the prospect of rates staying higher for longer has been a drag on bond prices in recent days, sending the 10-year Treasury yields to levels not seen in 3 months. Gold was caught up in the selling today.
No comments:
Post a Comment