S&P 500 hits longest win streak in two years

The S&P 500 gained for an eighth consecutive day on Wednesday, extending its longest win streak in two years.

While upcoming inflation and economic prints are likely to factor into equity gains from here, data continues to signal that the economy is slowing but not falling off a cliff.

The broad market index added 0.1 per cent to finish at 4,382.78, while the Nasdaq Composite inched up 0.08 per cent to end at 13,650.41. The Dow Jones Industrial Average lost 40.33 points, or 0.12 per cent, to close at 34,112.27.

In company news, the tail end of earnings season pressed on. Rivian slipped 2.4 per cent even after posting better-than-expected results, while Robinhood sank 14.3 per cent after posting significant declines in trading volumes. Warner Bros. Discovery sank nearly 19 per cent for its worst day since March 2021, after posting a wider-than-expected loss. Roblox popped 11.8 per cent on strong results.

These gains come as earnings season winds down. About 88 per cent of companies in the broad-based index have posted results, with more than 88 per cent beating earnings estimates. Slowing demand, however, translates to only 62 per cent topping revenue expectations.

Earnings season continues after the bell with results from Walt Disney, Affirm Holdings, and MGM Resorts.

Eli Lilly shares closed 3 per cent higher after the Food and Drug Administration approves the company’s treatment for obesity. Since the drug is already approved as a type 2 diabetes treatment, the decision was highly anticipated.

US sectors closed mostly higher overnight. Tech was the best performer, while Energy lagged behind. Energy has also fallen the most of any sector since the week began with a tumble of more than 4 per cent. EQT has led the index lower on the week, shedding more than 10 per cent. Marathon Oil followed with a dip of 9.5 per cent.

Droughts in the US have driven beef prices to record highs, with average prices in stores at $8 per pound and live cattle prices in Chicago near all-time highs at $1.79 per pound. These elevated prices are a result of ranchers cutting the national cattle herd to a 61-year low due to feed costs and shrinking pastures caused by years of drought.

October broke temperature records with a 0.85C increase above the average, signalling a likely record-setting year for Earth's temperature. Governments were criticised by the UN for failing to reduce fossil fuel production.

Ongoing truckers strike in Congo disrupts copper and cobalt supplies, potentially shifting the market from surplus to deficit in 2023. Battery metals like lithium and nickel face price declines due to slower EV sales and increased supply, leading to expected oversupply in the coming years.

Futures

The SPI futures are pointing to a 0.4 per cent gain.

Currency

One Australian dollar at 8:25 AM was buying 64.04 US cents.

Commodities

Gold lost 0.90 per cent. Silver added 0.16 per cent. Copper fell 1.11 per cent. Oil dropped 2.26 per cent.

Figures around the globe

European markets closed mixed. London’s FTSE fell 0.11 per cent, Frankfurt added 0.51 per cent, and Paris closed 0.69 per cent higher.

Turning to Asian markets, Tokyo’s Nikkei lost 0.33 per cent, Hong Kong’s Hang Seng fell 0.58 per cent while China’s Shanghai Composite closed 0.16 per cent lower.

The Australian share market closed 0.26 per cent higher at 6,995.

Ex-dividends
Acorn Capital Investment Fund (ASX:ACQ) is paying 4.25 cents fully franked
NAOS Ex-50 Opportunities Company (ASX:NAC) is paying 1.5 cents fully franked
NAOS Small Cap Opportunities Company (ASX:NSC) is paying 1.25 cents fully franked
Waterco Limited (ASX:WAT) is paying 5 cents fully franked
Westpac Banking Corp (ASX:WBC) is paying 72 cents fully franked

Dividends payable
Dexus Industria REIT (ASX:DXI)
Dexus Convenience Retail REIT (ASX:DXC)

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.

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