The USD is mixed with the EURUSD down marginally (higher USD), the USDJPY lower (lower USD) and the GBPUSD the biggest moveer with a decline near -0.50% (higher USD) after weaker employment data. In the video above, I kickstart the trading day in the forex by taking a technical look at each of those 3 major currency pairs. What is the bias, what are the targets and the risks for each.
US House Speaker Mike Johnson said the ongoing federal shutdown could extend into the longest-ever on record and is scheduled to hold a press conference at 10:00 EDT, as Republicans prepare for further negotiations. Meanwhile, the White House is reportedly planning for a prolonged shutdown, identifying alternative funding streams to sustain key government programs during the impasse, according to officials cited by Punchbowl.
China has tightened oversight of export license applications for rare earth magnets, expanding its export control regime to require licenses even for products containing trace amounts of Chinese-sourced rare earths, particularly those used in defense and advanced semiconductor applications. In response, China’s Commerce Ministry urged the U.S. to correct “mistakes” and expressed hope for resolving the dispute through dialogue. Meanwhile, U.S. officials, including Treasury Secretary Bessent, have reportedly engaged in recent discussions with Chinese counterparts emphasizing a desire to de-escalate trade tensions, though countermeasures were not ruled out. Sources indicate Washington may ask Beijing to rescind the new rare-earth export restrictions. The rare earth issue is the “cryptonite” for the US tariff strategy with China. US needs China rare earth for defense, which it hopes to sell to high tension areas of the world, as well as to increase the US military arsenal. China might determine if that can happen.
The earnings calendar kicked off with some financials and J&J leading the charge. Overall, some of the bigger names beat estimates on the top and bottom lines
JPMorgan (JPM) Q3 2025 (USD): EPS $5.07 (BEAT; exp. $4.82), Revenue $46.4 bln (BEAT; exp. $45.16 bln)
Wells Fargo (WFC) Q3 2025 (USD): EPS $1.66 (BEAT; exp. $1.55), Revenue $21.44 bln (BEAT; exp. $21.15 bln); Net Interest Income $11.95 bln (MISS; exp. $12.01 bln)
Goldman Sachs (GS) Q3 2025 (USD): EPS $12.25 (BEAT; exp. $10.89), Revenue $15.18 bln (BEAT; exp. $14.42 bln)
Citigroup (C) Q3 2025 (USD): Adj. EPS $2.24 (BEAT; exp. $1.89), Revenue $22.1 bln (BEAT; exp. $21.14 bln); raises dividend to $0.60/share
Johnson & Johnson (JNJ) Q3 2025 (USD): Adj. EPS $2.80 (BEAT; exp. $2.75), Revenue $23.99 bln (BEAT; exp. $23.78 bln); raises FY sales guidance to $93.5–93.9 bln (from $93.2–93.6 bln) vs exp. $93.44 bln; intends to separate orthopaedics business
BlackRock (BLK) Q3 2025 (USD): Adj. EPS $11.55 (BEAT; exp. $11.24), Revenue $6.51 bln (BEAT; exp. $6.23 bln); AUM $13.464 tln (BEAT; exp. $13.37 tln)
Overall, a strong showing from financials — Goldman Sachs led with a sizable double beat, JPMorgan and Wells Fargo delivered solid gains, and BlackRock posted broad strength across EPS, revenue Johnson & Johnson also topped expectations and raised guidance, signaling a resilient earnings season kickoff. However, stocks are under pressure premarket as concerns about trade issues with China and the shutdown, (day 14) take precedence.
- Dow Industrial Average -262 points
- S&P -59 points
- Nasdaq -286 points
The US debt market is reopened after being closed for Columbus Day yesterday. A snapshot at the start of the NA session shows:
- 2 year yield 3.482%, -3.9 basis points
- 5 year yield 3.603%, -4.3 basis points
- 10 year yield 4.016%, -3.2 basis points
- 30 year yield 4.608%, -2.5 basis points.
Looking at other markets
- Crude oil $-1.24 or -2.08% at $58.25
- Gold up $16.70 or 0.41% at $4127
- Silver down -$0.92 or -1.75% at $51.41
- Bitcoin down -$3600 at $111,573
This article was written by Greg Michalowski at investinglive.com.
