Last Night's Market Recap
Friday – Strong bank earnings support DOW as Tech weighs
Equities finished generally lower on Friday on continuing geopolitical pressure weighing on the market into a weekend.
The DOW salvaged its day as the major Wall Street banks including JPMorgan Chase and Wells Fargo rallied after reporting better-than-expected quarterly results. JPMorgan rose more than 2% after reporting a 35% jump in earnings for third quarter, underpinned by a surge in rates that bolstered its retail banking unit’s profits. Citigroup, however, gave up gains to close lower.
Energy stocks rose more than 2% following a surge in oil prices after the U.S. imposed sanctions on two tankers carrying Russia oil for breaching the G7’s $60 a barrel Russian oil price cap at a time when geopolitical tensions are rising as Israel prepares for a ground assault in Gaza.
Big tech including Apple, Meta, Alphabet, and Microsoft pressured the broader market, while chip stocks including Nvidia added to the pressure amid concerns about fresh U.S. restrictions on chip exports to China. The White House is weighing up additional options to prohibit Chinese companies from accessing artificial intelligence chips from U.S. companies, Reuters reported, citing unnamed sources.
Earnings are expected to dominate moves in the broader market, overshadowing geopolitical tensions and the recent move in rates.
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The Day Ahead
ASX SPI 7045 (-0.50%)
The ASX is likely to fall on the open in line with the US lead then recover as our indexes large weightings to materials, financials and healthcare find support. The rally in gold, energy and commodities will help the materials sector while better than expected bank earnings in the US should help the financials. Healthcare will also be buoyed by US healthcare giant, United, beating earnings forecasts, lifting the sector to be one of the better performing in the session.
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