A daily market update from FS Insight — what you need to know ahead of opening bell
“I will seize fate by the throat; it shall certainly never wholly overcome me.” ~ Ludwig van Beethoven
Overnight
US rolls out ‘open banking’ rules to make sharing financial data easier FT
World’s largest sovereign wealth fund posts $76 billion in quarterly profit as interest rates fall CNBC
Four Fed policymakers favor more rate cuts, but differ on pace RT
Retail space is going fast and pushing out local shops WSJ
‘Blade Runner 2049’ producers sue Elon Musk, Tesla and Warner Bros. Discovery, alleging AI-based copyright infringement VAR
Hizbullah’s sprawling financial empire looks newly vulnerable EC
HSBC splits East and West in major revamp and appoints first female finance chief RT
GM raises 2024 earnings guidance after easily topping Wall Street’s third-quarter expectations CNBC
Wegovy maker Novo Nordisk says new pill shows 14% reduction in heart attacks, strokes in diabetic patients WSJ
SAP shares hit all-time high after upbeat cloud business outlook RT
Disney to name CEO Iger’s replacement in early 2026 CNBC
Maersk boosts guidance for fourth time in six months amid Red Sea attacks BBG
Son of Singapore founder Lee Kuan Yew granted UK asylum FT
Chart of the Day
| Overnight |
| S&P Futures -26
point(s) (-0.4%
) Overnight range: -29 to +4 point(s) |
| APAC |
| Nikkei -1.39%
Topix -1.06% China SHCOMP +0.54% Hang Seng +0.1% Korea -1.31% Singapore -0.75% Australia -1.66% India -1.23% Taiwan -0.03% |
| Europe |
| Stoxx 50 -0.33%
Stoxx 600 -0.62% FTSE 100 -0.64% DAX -0.16% CAC 40 -0.62% Italy -0.69% IBEX -1.06% |
| FX |
| Dollar Index (DXY) -0.1%
to 103.91 EUR/USD +0.06% to 1.0821 GBP/USD -0.02% to 1.2983 USD/JPY -0.01% to 150.83 USD/CNY -0.0% to 7.1207 USD/CNH -0.04% to 7.1339 USD/CHF -0.1% to 0.8653 USD/CAD +0.01% to 1.3832 AUD/USD +0.36% to 0.6683 |
| Crypto |
| BTC -1.29%
to 66847.23 ETH -2.16% to 2617.15 XRP -2.45% to 0.5332 Cardano -0.66% to 0.359 Solana -1.27% to 164.02 Avalanche -1.18% to 27.41 Dogecoin -1.52% to 0.1421 Chainlink +1.62% to 11.96 |
| Commodities and Others |
| VIX +4.63%
to 19.22 WTI Crude +0.54% to 70.94 Brent Crude +0.52% to 74.68 Nat Gas +1.34% to 2.34 RBOB Gas +0.46% to 2.024 Heating Oil +0.93% to 2.204 Gold +0.42% to 2731.15 Silver +1.11% to 34.17 Copper +0.58% to 4.385 |
| US Treasuries |
| 1M -1.6bps
to 4.749% 3M -1.2bps to 4.61% 6M -4.2bps to 4.446% 12M -0.3bps to 4.2457% 2Y +1.1bps to 4.0431% 5Y +1.3bps to 3.9993% 7Y +1.3bps to 4.0972% 10Y +1.0bps to 4.2056% 20Y +0.8bps to 4.5688% 30Y +0.8bps to 4.5073% |
| UST Term Structure |
| 2Y-3
M Spread widened 0.0bps to -60.9
bps 10Y-2 Y Spread narrowed 0.1bps to 16.0 bps 30Y-10 Y Spread narrowed 0.2bps to 30.0 bps |
| Yesterday's Recap |
| SPX -0.18%
SPX Eq Wt -0.85% NASDAQ 100 +0.18% NASDAQ Comp +0.27% Russell Midcap -0.92% R2k -1.6% R1k Value -0.89% R1k Growth +0.33% R2k Value -2.1% R2k Growth -1.11% FANG+ +0.62% Semis +0.53% Software -0.03% Biotech -1.68% Regional Banks -2.93% SPX GICS1 Sorted: Tech +0.93% Comm Srvcs -0.07% SPX -0.18% Energy -0.21% Indu -0.35% Utes -0.36% Cons Disc -0.64% Materials -0.8% Cons Staples -0.81% Fin -0.88% Healthcare -1.19% REITs -2.08% |
| USD HY OaS |
| All Sectors -1.6bp
to 335bp All Sectors ex-Energy -1.4bp to 310bp Cons Disc -1.4bp to 293bp Indu +1.5bp to 246bp Tech -0.7bp to 329bp Comm Srvcs -4.2bp to 538bp Materials -3.3bp to 310bp Energy -1.6bp to 322bp Fin Snr -1.5bp to 292bp Fin Sub -2.5bp to 201bp Cons Staples -1.5bp to 310bp Healthcare +0.7bp to 365bp Utes -0.8bp to 215bp * |
| Date | Time | Description | Estimate | Last |
|---|---|---|---|---|
| 10/23 | 10AM | Sep Existing Home Sales | 3.89 | 3.86 |
| 10/23 | 10AM | Sep Existing Home Sales m/m | 0.65 | -2.53 |
| 10/24 | 9:45AM | Oct P S&P Manu PMI | 47.5 | 47.3 |
| 10/24 | 9:45AM | Oct P S&P Srvcs PMI | 55.0 | 55.2 |
| 10/24 | 10AM | Sep New Home Sales | 720.0 | 716.0 |
| 10/24 | 10AM | Sep New Home Sales m/m | 0.6 | -4.7 |
| 10/25 | 8:30AM | Sep P Durable Gds Orders | -1.0 | 0.0 |
| 10/25 | 10AM | Oct F UMich 1yr Inf Exp | n/a | 2.9 |
| 10/25 | 10AM | Oct F UMich Sentiment | 69.2 | 68.9 |
MORNING INSIGHT
Good morning!
This week is arguably the “heart” of 3Q24 EPS season this week, with more than 20% of the index reporting. So far, this has been a good quality EPS season. There are few major macro events this week, but the same macro issues linger (war, election, jobs).
Click HERE for more.
TECHNICAL
- SPX, QQQ look vulnerable through November and 5900-5950 looks important.
- SPX Cycle composite shows weaker SPX trend in November.
- Treasury yields getting close to initial peaks of the rally from September.
Click HERE for more.
CRYPTO
- The recent breakout of IWM and the broadening out of the equity market rally is a positive sign for crypto.
- Grayscale’s GDLC, along with Bitwise’s similar fund, BITW, present a compelling opportunity ahead of the election.
- We view now as a good time to deploy the rest of the stablecoins in our Core Strategy and think that SOL is a good place to park this capital.
Click HERE for more.
First News
Much has been written about the Technology sector’s rising demand for electricity, driven in large part by AI research and deployment and the growth of hyperscalers and other data centers. A significant share of that demand stems from the electricity used to cool the servers, which generate massive amounts of heat. How much heat? Well, when Meta opened its 50,000 square-meter (540,000 square feet) data center in Odense, Denmark, it was able to recover enough excess heat to warm 6,900 homes in the local community, roughly 100,000 MWh worth of energy.
Heat recovery is all well and good, but for operators of hyperscale data centers, the higher priority is to dissipate the heat generated by all those expensive, bleeding-edge chips to keep them from malfunctioning – or even being destroyed. For optimal performance, data centers need to be kept at between 65 and 80 degrees (18 – 27 degrees Celsius). Effective cooling means not just energy savings, but also increased server density – the ability to install more servers into a smaller space.
As many who have had to quickly chill a six-pack or a bottle of champagne can attest, liquid cools far more quickly than air does. It is therefore not surprising that hardware manufacturers are increasingly turning to liquid-based cooling solutions. As Nvidia’s Jensen Huang put it: “The future of liquid cooling is going to result in everything from better performance to lower infrastructure and lower operating costs.”
Recently, two industry leaders announced advances in this endeavor. SMCI 10.19% unveiled what it described as a new “comprehensive liquid cooling solution” that could lead to a 40% energy savings as well as the “highest GPU per rack density” in the industry, with up to 96 of Nvidia’s B200 chips per rack.
Meanwhile, at its AI day event, Hewlett Packard Enterprise (HPE 2.45% ) touted direct liquid cooling advances (likely built on technology it obtained through its 2019 acquisition of Cray Research), announcing what it claims to be an industry first: a completely fanless, direct-liquid cooling system that will be used with its new HPE ProLiant Computer XS685 AI server solution. HPE claims that the system will enable a 90% reduction in cooling-related power consumption when compared to traditional fan-based air-cooling systems. (IBD, MW, RT)
