US shares weaker on tech forecasts. UK markets judge budget.
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Why are US shares weaker despite strong tech earnings?
US shares are weaker on tech forecasts despite strong earnings we were seeing this week. UK guilts have felt the hurt from their budget yesterday. Will it impact the rate of cuts by the Bank of England? The US economy holding up fairly well, but what will non-farm payrolls tell us tonight? More to the point. What about that election next week? It's Friday, it's the first of November 2024. It's the morning call from NAB. Good morning. And earnings results just happy. Justine for Apple, not so good. Q four revenue just under twenty five billion. The estimates were just shy of twenty five point three billion. Uh China is a chunk of that revenue eight hundred million below estimates. Their share prices down one point four percent in after hours trade.
Intel third quarter revenue thirteen point two eight billion, beating estimates of thirteen point zero two billion, but their margin was much lower than expected. Still shares in after hours trade, twelve percent up, although you know we saw that this time yesterday, and then uh as we'll see, uh shares took a hammering the uh the following day. Amazon sales ninety five point five billion. The estimate was ninety five point two billion, uh but their margins eleven percent against estimates of nine point three percent, their earnings per share, a dollar forty three against estimates of a dollar sixteen. They are up over five percent in after hours. Trade. But we did see today or overnight a massive fall in the Nasdaq.
It closed down two point eight percent. The S P lost one point nine percent, naught point nine percent off the Dow as well, the Russell two thousand down one point six percent. In Europe a one point two percent drop in the Euros stocks fifty, ten-year treasury yields are down three basis points. This morning, now down to four point two seven percent, European yields flat on the day. Except for the UK, where bond yields are up nine basis points for ten years, up to four point four four percent, up thirteen basis points for two year yields.
How did disappointing tech guidance trigger a Nasdaq sell‑off?
Uh Aussie ten year yields are up four basis points yesterday, uh today on futures, a few basis points higher than that, now around four point five three percent. The US dollar slightly up on the DXY, the uh Aussie is marginally up as well, just about sixty five point seven US cents now. The yen up naught point nine. nine percent, the pound down 0.6%. And oil is higher again. WTI actually has shot up in the last hour or so. Uh up two point eight percent today. Brent uh hasn't followed quite to the same extent. It's up 0.8%. Brent now over 73 a bound. Not quite sure why we've seen this sudden leap in WTI over the last hour or so. Nab Sky Masters is with me today. Let's look at Aussie data first of all. Let's go let's go back to yesterday.
Uh before we tackle uh what happened overnight, retail sales for September are up, but only just.
Yeah, look I think um, you know, if if you just look at the headline print of point one you could say, you know, not not not a not a great outcome, but you've got to look at it in in the context of um previous previous data data prints. So, you know, if you recall the um The August print was very strong at point seven. So the the point one gain in September is ac is is actually quite a quite a solid a solid outcome. Um expectations actually were for um well NAB was looking for a for a small, small decline. Um so I guess in i in terms of totality when you when you look at today's data on the re uh sorry, yesterday's retail sales data, um, you know, it it is a positive sign. that that is supporting that view that you know you you may may well be starting to see a modest pickup in growth.
Um yeah, recall that there was that expectation that in the second half of this year you would s start to see the consumer rebounding as as um, you know, as they get the positive impacts from from the tax cuts and and as inflation heads heads lower. So so maybe we are actually starting to see that. So actually a positive outcome on the on the retail sales front.
What does the September core PCE data reveal about US inflation?
So what about the US then?
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Chapters
8 chapters
1
Why are US shares weaker despite strong tech earnings?
0:01–1:50
2
How did disappointing tech guidance trigger a Nasdaq sell‑off?
1:50–3:50
3
What does the September core PCE data reveal about US inflation?
3:50–6:07
4
Why are low jobless claims influencing expectations for non‑farm payrolls?
6:07–8:44
5
How is the UK high‑spending budget affecting gilt yields and BOE policy?
8:44–11:22
6
Is the Bank of Japan likely to raise rates after the governor’s hawkish remarks?
11:22–13:47
7
What do stronger Chinese manufacturing PMI numbers signal for the economy?
13:47–15:49
8
What insights does the Core Logic housing market report provide for Australia?
15:49–17:15