News

Credo’s stock has more than doubled this year after soaring 245% in 2024 as the AI boom makes its way downstream.

Eli Lilly and Novo Nordisk shares dropped after President Donald Trump said he wants a $150 price tag for GLP-1s.

The FAA had capped Boeing’s production at 38 a month in early 2024 after a door plug blew out of a nearly new 737 Max 9.

• Trump on China trade: We’ll see what happens
• Trump: I think Putin wants to end the war
• WH Adviser Hassett on China: Confident we can get back to place that is good for both
• BOC’s Macklem: We’re putting more emphasis on risk when it comes to the next rate decision
• Fed’s Musalem: I could support a path with another cut if more risks to jobs
• BOE Greene: Core and services inflation are going sideways
• Atlanta Fed GDPNow estimate ticks up, despite the lack of economic data
• WTO chief: Urged de-escalation with officials from the US and China

Markets:

• Gold down $79 to $4245
• US 10-year yields up 3.5 bps to 4.01%
• WTI crude oil up 14-cents to $57.63
• CAD leads, EUR lags
• S&P 500 up 0.5%

The mood changed in markets early in US trading as Trump and his deputies did the rounds to repeatedly state that they expected a positive outcome with China. That sort of thing underscored the TACO trade and ultimately led to dip buyers winning. It wasn’t easy though as heavy selling hit at various times and trading as choppy.

The big loser on the day was gold as it fell by as much as $120 at open point before recovering to leave a loss of just under 2%. It’s the biggest retracement we’ve had yet and unnerved parts of the market.

An undercurrent in equities was a better mood on bank stocks. Yesterday, a $50 million writedown at Zions Bancorp was seen as something of a cockroach in the system but a second look put that into perspective on the banks $89 billion loan book, let alone the financial system. Credit card companies had dumped in the downdraft but were some of the biggest winners today.

In FX, the dollar wasn’t a big mover as the drought of economic data continues. Yen strength early in the day reversed as nerves calmed while euro strength also reversed. The Canadian dollar benefited despite dovish comments from Macklem but all the moves in FX were limited to 30 pips.

Have a great weekend.

This article was written by Adam Button at investinglive.com.

EUR/USD dives 0.17% during the North American session on Friday as the Greenback trims its earlier losses as US President Donald Trump tempered his trade rhetoric on China. The pair trades at around 1.1666 after hitting a daily high of 1.1728.

In a post on X, Salesforce CEO Marc Benioff said he regrets comments he made in support of President Trump sending federal troops to San Francisco.

The Canadian Dollar (CAD) caught a fresh bid on Friday, reclaiming some lost ground against the US Dollar (USD), although the Loonie still remains trapped near six-month lows against the Greenback.

Stock futures were deeply negative at one point but the market made an impressive turnaround helped by more TACO comments from the President.

On the day:

• S&P 500 +0.5%
• Nasdaq Comp +0.6%
• DJIA +0.6%
• Russell 2000 -0.6%
• Toronto TSX Comp -1.0%

On the week:

• S&P 500 +1.7%
• Nasdaq Comp +2.1%
• DJIA +1.6%
• Russell 2000 +2.5%
• Toronto TSX Comp +1.0%

It was a positive week for stocks but the entire set of price action was within last Friday’s range, as we wait for trade clarity.

This article was written by Adam Button at investinglive.com.

Later this month, Honeywell will separate its Solstice Advanced Materials unit.

No one looks smart calling for stock markets to go up, but you can look smart or you can be right so here’s what I’m thinking:

The market got skittish in October.

To me, it wasn’t any single thing but a whole bunch at once:

1. September saw an intense rally in stock markets
2. Trump and China picking a new trade fight
3. The government shutdown
4. The regular geopolitical uncertainty

Let’s skip ahead to the end of the month and think about what’s possible.

1. Stocks have consolidated and October seasonals are good (getting even better in Nov/Dec)
2. Trump continues to insist China is fine and leaders will meet Nov 1
3. The government shutdown will inevitably end
4. There is the tail risk of a ceasefire in Ukraine

Now I’m not saying any of those things are going to happen, and the timeline on others could bleed into November but I think the risks to all of those are positive developments. The drag could be corporate earnings reports, which will really start to heat up but so far companies have been fairly upbeat. At worst I think it’s a two-way risk.

This article was written by Adam Button at investinglive.com.