US equity markets are non-directional today, relying on anticipation for Fed Chair Powell's speech this afternoon. S&P 500 has retreated 0.12%, The Dow Jones is 0.02% weaker, and the Nasdaq 100 is 0.090% down. Momentum traders are going for longs in liquidation and profit-taking because positive economic figures fuel fears that the Federal Reserve will refrain from significantly cutting interest rates. The 10-year T-note yield reached a 4.5-month high before slipping lower, with weekly initial unemployment claims falling to a 5.5-month low, while October producer prices unexpectedly increased.
Given these market adversities, appreciable fundamental development news is holding up the markets. Walt Disney (DIS, Financial) was up $7% after the firm reported that it had beaten Q4 EPS estimates while lifting its growth figure for the end of fiscal 2025. Also, semiconductor shares increased after ASML Holding (ASML, Financial) expressed confidence in achieving its long-term targets. Shares in airline companies also rose higher as Barclays pointed to the industry's robust fundamental and moving average convergence, leading to the belief that it may be able to push for a rally in 2024.
The economic overview indicated a persistent employment landscape, wherein the weekly unemployment claims reduced to 217000 from 221000, Expected 220000. On the other hand, the October PPI figure also rose from expectations by climbing 2.4% year-over-year. During this last week of earnings season, over 50 companies will release their results. Some 76 percent of S&P 500 firms, which have now released third-quarter earnings reports, have reported double-digit Digit Earnings per Share beat rates, and actual Q3 reported EPS growth is eight point four percent y/y, outpacing initial predictions.
They have also assigned a 76% likelihood of the FOMC cutting yet another 25 basis points in the December meeting.
