US STOCKS: Paring Gains

• Major US equity indexes remain weaker but off lows at midday Tuesday, a general risk-off tone ahead of Nvidia's eagerly awaited Q3 earnings after tomorrow's close. Currently, the DJIA trades down 633.34 points (-1.36%) at 45951.26, S&P E-Minis down 72.75 points (-1.09%) at 6618.5, Nasdaq down 349.9 points (-1.5%) at 22354.33.
• Chip makers led declines in the first half followed by Consumer Discretionary names:
  • Western Digital -6.33%, Micron -5.12%, Advanced Micro Devices -4.22%, Microsoft -3.41% and NVIDIA -2.27%.
  • Amazon -4.23%, Home Depot -4.15%, Best Buy -1.70% and Lowe's Cos -1.63%.
• Meanwhile, Health Care and Consumer Staples sector shares led advances at midday:
  • Medtronic +5.95%, Merck +4.26%, Dexcom +3.25%, Biogen +3.16% and Gilead Sciences +1.96%.
  • Archer-Daniels-Midland +2.16%, Bunge Global +1.93%, Hershey +1.91% and Philip Morris International +1.81%.
• Larger names yet to announce earnings this week include: Target Corp, Valvoline Inc, Lowe's Cos, Williams-Sonoma, TJX Cos, NVIDIA, Palo Alto Networks, Jacobs Solutions, Bath & Body Works, Walmart, Copart, Gap, Intuit, Ross Stores and BJ's Wholesale Club.

There don’t look to be any surprises in BoE Dhingra's presentation, being the most dovish MPC member. Some highlights from her slides:

• Consumption growth has been consistently weaker than forecast
• The expected falling back in the saving ratio has failed to materialise
• Microdata points to disposable incomes being just as weak as consumption
• Spending microdata suggests household costs are less optimistic regarding a real wage recovery
• Only interest income has grown consistently during the “consumption puzzle period”
• The financial counterpart of savings shows a paying down of debts rather than an accumulation of liquid assets for future consumption
• And deposits have been stable except for the top quintile of households

• EUR/USD: Nov20 $1.1500(E2.0bln), $1.1630(E1.2bln), $1.1675-80(E1.5bln); Nov21 $1.1500(E1.4bln), $1.1675-80(E1.2bln)
• USD/JPY: Nov20 Y150.00($1.3bln), Y155.00($1.4bln)
• AUD/USD: Nov20 $0.6550(A$2.3bln)
• USD/CAD: Nov21 C$1.3950-70($1.3bln)
• USD/CNY: Nov20 Cny7.1080-89($2.0bln)