U.S. MARKETS:
After moving mostly higher early in the session, stocks saw further upside over the course of the trading day on Wednesday. The Dow closed higher for the third consecutive session, climbing further off last Friday’s seven-month closing low.
The major averages pulled back off their highs going into the close but held on to strong gains. The Nasdaq surged 210.23 points or 1.6 percent to 13,061.47, the S&P 500 jumped 44.06 points or 1.1 percent to 4,237.86 and the Dow advanced 221.71 points or 0.7 percent to 33,274.58.
Stocks saw continued strength later in the session amid a positive reaction to the Federal Reserve’s widely expected decision to leave interest rates unchanged.
The Fed said it decided to maintain the target range for the federal funds rate at 5.25 to 5.50 percent, marking the third time in four meetings that the central bank has refrained from raising rates.
The accompanying statement suggested the Fed is still considering additional rate hikes in an effort to return inflation to its 2 percent objective, but traders seem optimistic the recent cycle of increase is over.
“The Fed tried to deliver a hawkish hold but Wall Street is not believing additional tightening will happen this cycle,” said Edward Moya, senior market analyst at OANDA.
The latest statement also said, “Tighter financial and credit conditions for households and businesses are likely to weigh on economic activity, hiring, and inflation.”
The Fed’s September statement only cited “tighter credit conditions,” with the inclusion of “financial” coming amid the recent surge in treasury yields.
“Some might take this as a sign that the bond market will continue to help them with this tightening cycle, which could support the argument that a peak in rates is in place,” said Moya.
The early strength on Wall Street came as the release of some weaker than expected U.S. economic data eased concerns about the outlook for interest rates.
Payroll processor ADP released a report before the start of trading showing private sector employment in the U.S. increased by less than expected in the month of October.
The report said private sector employment climbed by 113,000 jobs in October after rising by 89,000 jobs in September. Economists had expected employment to jump by 150,000 jobs.
A separate report released by the Institute for Supply Management showed manufacturing activity in the U.S. unexpectedly contracted at a faster rate in the month of October.
The ISM said its manufacturing PMI fell to 46.7 in October from 49.0 in September, with a reading below 50 indicating a contraction. Economists had expected the index to come in unchanged compared to the previous month.
Housing stocks moved sharply higher over the course of the session, resulting in a 3.5 percent spike by the Philadelphia Semiconductor Index.
Substantial strength was also visible among semiconductor stocks, with the Philadelphia Semiconductor Index surging by 2.3 percent. The index climbed further off the five-month closing low set on Monday.
Advanced Micro Devices (AMD) led the way higher after reporting better than expected third quarter earnings and providing upbeat guidance for its AI chip business.
Computer hardware stocks also saw considerable strength on the day, as reflected by the 1.9 percent jump by the NYSE Arca Computer Hardware Index.
Software, retail and biotechnology stocks also showed strong moves to the upside, while networking, telecom and tobacco stocks bucked the uptrend.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Wednesday. Japan’s Nikkei 225 Index surged by 2.4 percent, while South Korea’s Kospi jumped by 1.0 percent.
The major European markets also moved to the upside on the day. While the U.K.’s FTSE 100 Index rose by 0.3 percent, the French CAC 40 Index and the German DAX Index advanced by 0.7 percent and 0.8 percent, respectively.
In the bond market, treasuries moved notably higher early in the session and remained firmly positive throughout the day. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, slid 8.6 basis points to 4.789.
Looking Ahead
Trading on Thursday may continue to be impacted by reaction to the Fed announcement, while reports on initial jobless claims, labor productivity and factory orders may also attract attention.
SPX HIT LOWER BAND SUPPORT ON THURSDAY AND IS NOW BOUNCING. MIDDLE CHANNEL AT 4322.
https://www.howestreet.com/2023/10/will-the-plunge-protection-team-boost-stock-markets-mark-leibovit/
CRYPTO UPDATE AS OF NOVEMBER 1, 2023:
Dot-Com Bubble Redux? Charles Schwab Begins Layoffs Amid “Challenging Year” -Zero Hedge
by Tyler Durden
A Charles Schwab spokesperson confirmed to Bloomberg that up to 6% of its 35,900-member workforce (or about 2,154 employees) were recently laid off.
“These were hard but necessary steps to ensure Schwab remains highly competitive, with industry-leading levels of efficiency, well into the future,” the spokesperson said in an emailed statement, adding, “We worked diligently to ensure
affected employees were treated with care and respect throughout this difficult process.”
The cuts were first reported by The Wall Street Journal on Monday night (read the previous update below).
The last time Schwab went on a hiring – then firing spree was the Dot Com bubble. It appears the pattern is repeating.
According to the layoff tracker website Layoffs.FYI, hundreds of thousands of tech employees have been fired in the last two years.
The latest ADP print shows the labor market has slowed.
* * *
Charles Schwab, the largest publicly traded US brokerage firm, began laying off employees on Monday in an effort to streamline its business model by reducing expenses ahead of next year, which could be full of turbulence in financial
markets. This comes as the market’s excitement in meme stocks, SPACs, IPOs, and crypto, which soared in 2020-21, has since plunged due to a rising interest rate environment.
Gold could reach $3,000 in 2024 predicts commodity expert -Finbold
by Vahid Karaahmetovic
In the midst of escalating geopolitical tensions in the Middle East and mounting fears of a recession in European economies, spot gold prices have surged impressively in the past month.
Gold’s value has climbed more than 10%, starting at $1,815 in early October and now around $2,000 per ounce, marking its highest level since May 2023.
What’s even more intriguing is the possibility that this remarkable rally is far from over. According to senior Bloomberg commodity strategist Mike McGlone, the precious metal may have the potential to ascend to as high as $3,000 in
2024.
On October 30, McGlone released a post titled “Copper $3, Gold Toward $3,000: US Recession Could Be 2024 Path.”
Notably, the commodity guru explained how the precious metal reached the highest-ever average annual price of $1,930 per ounce in the period from January 1 to October 27, 2023, in spite of a tough macroeconomic environment marked by
robust dollar, resurgence in stocks, and high rates.
The war in Ukraine, along with the unprecedented attacks in Israel by Palestinian militant group Hamas last weekend, may have “far-reaching impacts on energy and food markets, global trade and geopolitical relationships,” Dimon said in a statement accompanying the bank’s third-quarter earnings release. “Thismay be the most dangerous time the world has seen in decades,” Jamie Dimon said. – Megan Henney, “JPMorgan CEO Jamie Dimon warns: ‘This May be the Most Dangerous Time the World has seen in Decades’: Sounds Alarm over Economic Outlook Amid Israel-Hamas War,” www.foxbusiness.com,
October 13, 2023.
Billionaire investor Ray Dalio said there’s a 50-50 chance a world war will break out in light of the Israel-Hamas conflict.
“In my opinion, this war has a high risk of leading to several other conflicts of different types in a number of places, and it is likely to have harmful effects that will extend beyond those in Israel and Gaza,” Dalio wrote in an essay titled “Another Step Toward International War,” which he posted Thursday on LinkedIn.
“Primarily for those reasons, it appears to me that the odds of transitioning from the contained conflicts to a more uncontained hot world war that includes the major powers have risen from 35% to about 50% over the last two years.”
https://tinyurl.com/3mfhf7zf
https://tinyurl.com/2rd9wv52
OPPORTUNITY TO ACCESS MARK LEIBOVIT’S PROPRIETARY VOLUME REVERSAL INDICATOR – THIS IS THE ONLY PLACE TO DO IT!
https://www.metastock.com/
COME ON, DAD. IT’S TIME TO EAT
DISCLAIMER:
WE ARE NOT FINANCIAL ADVISORS AND DO NOT PROVIDE FINANCIAL ADVICE
The website, LeibovitVRNewsletters.com, is published by LeibovitVRNewsletters LLC.
In using LeibovitVRnewsletters.com (a/k/a LeibovitVRNewsletters LLC) you agree to these Terms & Conditions governing the use of the service. These Terms & Conditions are subject to change without notice. We are publishers and are not registered as a broker-dealer or investment adviser either with the U.S. Securities and Exchange Commission or with any state securities authority.
All stocks and ETFs discussed are HYPOTHETICAL and not actual trades whose actual execution may differ markedly from prices posted on the website and in emails. This may be due internet connectivity, quote delays, data entry errors and other market conditions. Hypothetical or simulated performance results have certain inherent limitations as to liquidity and execution among other variables. PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE FORECASTING ACCURACY OR PROFITABLE TRADING RESULTS.
All investments are subject to risk, which should be considered on an individual basis before making any investment decision. We are not responsible for errors and omissions. These publications are intended solely for information and educational purposes only and the content within is not to be construed, under any circumstances, as an offer to buy or to sell or a solicitation to buy or sell or trade in any commodities or securities named within.
All commentary is provided for educational purposes only. This material is based upon information we consider reliable. However, accuracy is not guaranteed. Subscribers should always do their own investigation before investing in any security. Furthermore, you cannot be assured that your will profit or that any losses can or will be limited. It is important to know that no guarantee of any kind is implied nor possible where projections of future conditions in the markets are attempted.
Stocks and ETFs may be held by principals of LeibovitVRNewsletters LLC whose personal investment decisions including entry and exit points may differ from guidelines posted.
LeibovitVRNewsletters.com cannot and do not assess, verify or guarantee the suitability or profitability of any particular investment. You bear responsibility for your own investment research and decisions and should seek the advice of a qualified securities professional before making any investment. As an express condition of using this service and anytime after ending the service, you agree not to hold LeibovitVRNewsletters.com or any employees liable for trading losses, lost profits or other damages resulting from your use of information on the Site in any form (Web-based, email-based, or downloadable software), and you agree to indemnify and hold LeibovitVRNewsletters.com and its employees harmless from and against any and all claims, losses, liabilities, costs, and expenses (including but not limited to attorneys’ fees) arising from your violation of this agreement. This paragraph is not intended to limit rights available to you or to us that may be available under the federal securities laws.
For rights, permissions, subscription and customer service, contact the publisher at mark.vrtrader@gmail.com or call at 928-282-1275 or mail to 10632 N. Scottsdale Road B-426, Scottsdale, AZ 85254.
The Leibovit Volume Reversal, Volume Reversal and Leibovit VR are registered trademarks.
© Copyright 2023. All rights reserved.
[/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]