US STOCKS: Midday Equities Roundup: Off Early Highs as Nvidia Reverses Gains
- Stocks are weaker at midday - well off early Thursday highs as investors looked past Nvidia's earnings and sales beat announced late Wednesday. Traders citing likely profit-taking on the opening gap and the reversal in Fed rate cut-pricing for December on that NFP print (trimmed to ~11bps from post-data levels of ~13bps).
- Stocks staged a strong rally early Thursday, SPX eminis marking an early session high of 6791.25 as Nvidia climbed 5% to an appr 196.0 high - before paring gains/reversing course around midmorning with the chip maker down -2.20% at the moment to appr 182.0.
- Currently, the DJIA down 365.56 points (-0.79%) at 45765.01, S&P E-Minis down 63.5 points (-0.95%) at 6594.75, Nasdaq down 283.1 points (-1.3%) at 22268.18.
- Nvidia's reversal dragged other majors with it: AMD, Oracle, Qualcomm and other AI- and chip-tied names are softer - meaning the headline index looks softer despite 3/5 names holding higher on the day.
- Leading declines: Micron Technology -8.35%, Palo Alto Networks -6.51%, Advanced Micro Devices -5.25%, Western Digital -5.15%, Teradyne -4.99%, Palantir Technologies -4.47%, Oracle -4.18% and Applied Materials -3.78%.
- Leading midday advances included a mix of retailers and pharmaceuticals: Walmart +5.84%, Regeneron Pharmaceuticals +5.27%, Solventum +4.45%, Solstice Advanced Materials +2.90% and Brown-Forman +2.72%.
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US: Americans Less Confidence GOP Is Party To 'Keep Country Properous' - Gallup
A new survey from Gallup has found that, “Americans continue to see the Republican Party as better than the Democratic Party for protecting the U.S. from international threats, 48% to 41%, though the margin has narrowed since last year.”
- The survey, which began before the government shutdown and the Israel-Hamas ceasefire deal, “also finds the GOP has lost its advantage as the party better for keeping the country prosperous.
- “In both cases, Republicans’ weaker position is mainly the result of fewer Americans than a year ago preferring the Republican Party for these responsibilities, not because of increased confidence in the Democratic Party to handle them.”
Figure 1: “Looking ahead for the next few years, which political party do you think will do a better job of ...?”
Source: Gallup
US: FED Reverse Repo Operation
RRP usage recedes to $4.699B with 10 counterparties this afternoon from $5.931B Monday. Compares to $3,516B on Tuesday, Oct 13 (lowest level since early April 2021) & this year's high usage of $460.731B on June 30.
GBPUSD TECHS: Monitoring Resistance Around The 50-Day EMA
- RES 4: 1.3613 76.4% retracement of the Sep 17 - Oct 14 bear leg
- RES 3: 1.3544 61.8% retracement of the Sep 17 - Oct 14 bear leg
- RES 2: 1.3527 High Oct 1 and a pivot level
- RES 1: 1.3487 50.0% retracement of the Sep 17 - Oct 14 bear leg
- PRICE: 1.3382 @ 15:21 BST Oct 21
- SUP 1: 1.3317/3249 Low Oct 15 / 14 and the bear trigger
- SUP 2: 1.3220 0.764 proj of the Sep 17 - 25 - Oct 1 price swing
- SUP 3: 1.3142 Low Aug 1 and a key support
- SUP 4: 1.3041 Low Apr 14
Recent gains in GBPUSD appear corrective - for now. However, price has recently pierced resistance around the 50-day EMA, currently at 1.3448. A clear break of this average would highlight a stronger reversal and expose resistance at 1.3527, the Oct 1 high and a pivot level. Clearance of this hurdle would be bullish. On the downside, key support and the bear trigger is 1.3249, the Oct 14 low.
