U.S. Indexes fell on Monday, driven primarily by a renewed afternoon sell-off in Tech, despite optimism surrounding US-Iran diplomacy. The majority of sectors finished in the green, while the equal-weighted S&P 500 also gained, highlighting positive market breadth. Tech and energy led the downside, while Health Care and Communication Services also finished lower. Within the tech sector, Oracle (ORCL) came under pressure after announcing a USD 10 billion debt offering and USD 10 billion equity offering, while Marvell (MRVL) and Lumentum (LITE) both tumbled after MRVL agreed to acquire LITE in a USD 115 billion all-stock deal. On geopolitics, there were numerous constructive updates regarding US-Iran talks, with the latest being an ILNA report, citing Al Shanara, that Tehran and Washington are on the verge of a preliminary agreement. Meanwhile, US Vice President Vance also touted progress in talks with Iran. Oil prices tumbled 8% on the reports, while precious metals and Treasuries gained, and the Dollar softened. G10 FX performance was mixed against the Dolar, with the Swiss Fran the clear outperformer and the Australian Dollar lagging ahead of the RBA decision overnight. In the US, ISM Manufacturing PMI was the highlight, with the headline topping expectations and Prices Paid falling more than anticipated, while New Orders and Employment were little changed M/M. Meanwhile Apple (AAPL) reported flat earnings after-hours, which could provide the next catalyst for the tech sector following largely underwhelming earnings in the space this quarter, ahead of Tuesday’s midterm elections. The headline ISM Manufacturing PMI rose to 55.5 from 54.5, above the 54.6 forecast. New Orders rose to 55.5 from 55.3. Production rose 2.3 points to 59.0, the highest since November 2021. Backlog of Orders fell 1.8 points to 54.6, while the Supplier Deliveries Index edged up 0.1 points to 59.1 (a reading above 50 indicates slower deliveries, which can reflect stronger demand or supply constraints). Regarding employment and prices, the Employment Index eased to 52.4 from 52.7, while the Prices Index declined to 75.2 from 77.9. Within the report, general sentiment deteriorated for a third consecutive month, with 34% of comments positive and 66% negative. Among negative comments, pricing volatility was mentioned in 62%, longer lead times in 41%, tariffs in 25%, and the Iran war in 21%, with most comments citing multiple factors. Regarding growth in the manufacturing economy, 6% of the sector’s GDP contracted in October, compared with 2% in September, while 6% was in strong contraction (defined as a composite PMI of 45 or lower), also up from 2% in September. Following the report and construction spending data, the Atlanta Fed GDPNow estimate for Q4 was revised up to 3.7% from its initial 3.2% estimate. ING writes that “The manufacturing sector continues to power ahead, boosted by a strong US economy. Other factors are supportive. There is a clear split in performance between fast-growing tech, pharma and transportation sectors versus more labour-intensive, commoditised sectors. Construction activity suggests interest-rate-sensitive sectors are struggling”. Elsewhere, Oil closed lower by a whopping 7% while Gold ended Monday’s session with a gain of 1.5%.
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For anyone following my Platinum Service it made 594 points yesterday on the first trading session for November, after closing October with a gain of 3975 points after ending September with a nice gain of 7767 points, after ending the month of August with a gain of 2645 points after closing July with a gain of 8031 points, after ending June with a new record of 10527 points after ending May with a loss of 1104 points, having ended April with a gain of 1730 points, after ending March with a massive gain of 9002 points, having closed February with a strong gain of 5482 points after ending January with a gain of 4757 points, having closed December with a gain of 2599 points, after ending the month of November with a gain of 4542 points, after ending October with a nice gain of 5110 points after closing September with a gain of 3774 points while ending August with a gain of 3362 points after closing July with a gain of 3753 points after closing June with a gain of 3530 points, having closed May with a gain of 3606 points, after closing April with a gain of 7685 points after closing March with a gain of 2254 points while closing February with a gain of 4180 points. January ended with a gain of 2768 points while 1997 points were gained in December. October ended with a gain of 2179 points, after closing September with a gain of 4402 points, following a loss of 301 points in August. July gained 1908 points while June saw a gain of 2074 points. The Platinum Service made a previous record 9619 points in October 2022. Since I started this New Platinum Service in June 2015 it has averaged a monthly gain of over 2300 points. I have a YouTube Channel which contains recent interviews I have given This can be viewed by clicking HERE Please subscribe to this for new interview notification
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