The ASX looks set to open flat this morning — futures are down 3 points following falls on Wall Street overnight.
The Nasdaq closed 1.8% lower, the S&P 500 fell by more than 1% and the Dow lost 0.8%.
The falls in the US were led by the tech stock giants, whose valuations have taken a hit after reporting results.
US economy runs hot
US GDP grew at a 4.9% annual rate in the three months to September — the fastest pace in almost two years and more than double the second-quarter’s 2.1%.
The pick up in inflation, that is well above the Fed’s 2% target level, resulted from higher wages from a tight labour market that helped fuel consumer spending.
Consumer spending rose 4%, the most since the fourth quarter of 2021. That was seen in Amazon’s quarterly revenue that beat estimates as sales rose in its retail and cloud computing units. Amazon shares rose by about 4% in after hours trading.
However, analysts have tipped a weaker fourth quarter for the US economy. How well the economy holds up is something the Fed will be closely watching when deciding whether to again raise rates.
In Europe, the European Central Bank kept interest rates unchanged at 4.5%, ending a streak of 10 consecutive rate rises. The FTSE declined.
ResMed reports strong growth
The first quarter of 2024 has delivered "strong revenue growth" for ResMed. The health giant’s revenue lifted 16% during the quarter to US$1.1 billion, yet higher costs have squeezed gross margins by 2.5% to 54.4%.
Harvey Norman sales down
Harvey Norman profit and revenue took a major hit in the September quarter. The home retailer revealed this morning that quarterly sales revenue was down 9.1% from a year ago and that profit after tax had taken a 49.1% hit, down to $86.23 million from $169.45 million.
Commodities
Oil prices are down more than 2%. Brent crude is trading near US$88.08 per barrel and the US WTI at around US$83.38 per barrel.
Gold futures are flat near US$1994.30 an ounce.
The ABS is due to release PPI figures today, which should shed more light on the state of inflation.
On the small cap front
The S&P ASX Small Ordinaries fell 1.2% yesterday, while the ASX 200 fell 0.6%.
You can read more about the following throughout the day.
Forrestania Resources Ltd (ASX:FRS) has remobilised its lithium exploration crew to undertake exploration fieldwork at the Volta sub-project at Hydra Lithium Project in James Bay, Canada.
Auric Mining Ltd (ASX:AWJ) is set to commence a grade control drilling program at Munda Gold Project on November 1 — a significant step towards open-pit mining at the gold deposit near Widgiemooltha, Western Australia.
Lotus Resources Ltd (ASX:LOT)’s acquisition of A-Cap Energy Ltd, including its flagship Letlhakane Uranium Project in Botswana, has been approved by the federal court.