Wake Up Wall Street (SPY) (QQQ): Markets wake up to higher yields, higher oil, but not higher stocks

Ivan Brian FXStreet

Here is what you need to know on Monday, October 18:

Monday is not a great day for stocks. Historically, it is one of the worst-performing days. Thursday is the best, and this Monday is proving that theory with more losses likely. The reasons are pretty obvious and will not take a lot of searching through macro research papers. Oil is nearing $84 this morning, yields are back above 1.6% for the US 10-year, and the dollar is higher again. This is not exactly a bullish cocktail for stocks then. Added to this is the likely default of Chinese developer Sinic, and you have a hangover before the week has even begun. Maybe earnings season can change. T his week sees another big slate with Tesla (TSLA) and Netflix (NFLX) probably the highlights.

The dollar is higher at 1.1590 versus the euro. Oil is surging to nearly $84, Bitcoin is lower at $60,900, Gold is at $1,766, and the 10-year yield is 1.6%.

See forex today

European markets are lower: Eurostoxx -1%, FTSE -0.5% and Dax -0.6%.

US futures are lower: S&P -0.3%, Dow -0.4% and Nasdaq -0.3%.

Wall Street (SPY) (QQQ) news

Chinese industrial output and GDP miss economist estimates.

Zillow (Z) down 5% premarket on a Bloomberg report that it has stopped home-buying services.-CNBC

Apple (AAPL) is set to unveil new Mac laptops today.

Walt Disney (DIS) down nearly 2% premarket as Barclays downgrades it.

Amazon (AMZN): "Five members of the U.S. House Judiciary committee wrote to Amazon.com’s chief executive on Sunday and accused the company's top executives, including founder Jeff Bezos, of either misleading Congress or possibly lying to it about Amazon's business practices."-Reuters

Netflix (NFLX) puts the value of Squid Game at $900 million, according to a Bloomberg report.

Facebook (FB) to add up to 10,000 jobs in the EU over the next five years as it builds out a metaverse.

NetApp (NTAP) is downgraded by Goldman Sachs.

Square (SQ) Chief Executive Officer Jack Dorsey said on Friday that the fintech company will build a B itcoin mining system.-Reuters

Corsair (CRSR): Cowen&Co cuts price target.

Baidu (BIDU) up 4% premarket on a report that China is considering rules making some content accessible in Baidu's search engine.

Upgrades, downgrades and premarket

Source: Benzinga Pro

Economic releases

Author

Ivan Brian

FXStreet

Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.

GBP/USD advaces beyond 1.3450 after BoE decision, US Q2 GDP

GBP/USD gains positive momentum on Thursday, surpassing 1.3450 and trading at fresh multi-week highs. The Bank of England decided to maintain the benchmark rate unchanged at 3.75%. The MPC voted 6-3 to keep rates on hold, with the 3 dissenters favoring a rate hike. US Q2 GDP missing expectations helped the pair advance, while renewed US Dollar weakness across the FX board pushed the pair further up ahead of the monthly close.

EUR/USD confortable around 1.1530, highest in six weeks

The EUR/USD pair trades around 1.1530 in the American session on Thursday, reaching fresh six-week highs. The US Dollar is in sell-off mode, with multiple factors weighing on the American currency. Not only did the Federal Reserve vote divided to keep rates on hold on Wednesday, creating doubts about a September hike, but US Q2 GDP missed expectations. A suspected JPY intervention adds pressure on the Greenback.

Gold recovers the $4,100 level as US Dollar weakens further

Gold trades just above $4,100 amid a US Dollar sell-off. The Greenback enjoyed some near-term demand following Wednesday's post-FOMC downfall, but was unable to retain its gains. The preliminary estimate of the US Q2 GDP showed the economy grew at an annual rate of 1.5%, missing the market's expectations of 2.1%.

Ripple Price Forecast: XRP builds recovery momentum as whales increase exposure

Ripple (XRP) rises toward the pivotal $1.10 resistance on Thursday, marking three consecutive days of gains. This neutral-to-slightly bullish outlook follows the Federal Reserve (Fed) decision to leave interest rates unchanged in the 3.50%-3.75% range.

The FOMC: Rates left on hold; dollar falls as Warsh fails to vote for hike

The Fed kept interest rates on hold today, defying a 30% chance in the Fed Funds Futures market that rates would rise. The Committee voted 9-3 to keep rates on hold, with governors Kashkari, Hammack and Logan all voting to hike rates due to concerns about inflation. The immediate market reaction has been a sharp drop in the USD on a broad basis.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.