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U.S. stocks gave up earlier gains and closed in the red overnight as technology stocks were sold across the board.

The market underwent a somewhat ugly close where the declines in technology shares accelerated, dragging down the major indices in the final minutes of the session. The S&P 500 fell 0.6% after being up as much as 0.8%. The Nasdaq Composite dropped 2% to 12,961.89, closing at its session low. Apple, Facebook and Netflix all slid more than 2%, while Tesla fell 4.8%. Looks like technical (algo influenced) selling- nothing more.

Classic reopening plays like airlines and cruise operators also rolled over in afternoon trading. Cruise operators fell after the Center for Disease Control and Prevention said the sailing order limiting cruises will stay in place until Nov. 1. Norwegian Cruise Line dropped 4.9% following the news, while Royal Caribbean and Carnival fell 1.9% and 2.8%, respectively. Delta and United Airlines also ended the day lower.

Surprisingly, the tech sell-off came even as bond yields continued to recede from recent highs. The 10-year Treasury yield dipped 3 basis points to 1.61% Wednesday, falling for a third day in a row.

One sector to buck the day’s selloff trend was energy- which gained 2.5% as oil prices bounced back 6%. The material and financial sectors also outperformed, rising about 0.7% each.

Global markets mixed overnight. (1 day return local currency centre columns: 5 Day return far right) AUD nice tailwind for 5- day returns.

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Source: Bloomberg

APAC markets mostly lower yesterday. (Daily returns local currency middle column: 5 Day returns far right). AUD now very positive for 5- day returns.

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Source: Bloomberg

 

Other Overnight Market Data

AUD at .7587 -0.46 %.

Bonds

The yield on 10-year Treasuries lower today at 1.607% -0.06 on Powell testimony.

Commodities

West Texas Intermediate (WTI) crude pops 5.11% to $60.70.

Gold at US$1733.30 +0.22%.

 

Markets Department

Think people are flying again?

TSA data is soaring, so sure looks like it.

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A direct beneficiary: American Airlines (AAL) up 42% YTD

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Europe not doing a particularly good job on the covid front. Vaccination rates lag the world.

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“FANG" quietly back to the highs even though the broader tech sector has seen weakness.

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Source: Strategas

Core inflation by country: Hardly problematic.

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