- US indices finished the day marginally higher and well off their intraday lows following a dovish speech by NY Fed President Williams, when he noted that it was “better to take a preventative approach than to wait for disaster.” Traders increased bets on a 50bps “double” rate cut later this month as a result.
- Financials (XLF) were the strongest sector on the day; Communication Services (XLC) were the weakest, dragged down by yesterday’s disappointing earnings from Netflix (NFLX, -10%).
- Gold surged to test $1445, its highest level in more than six years. Oil dropped 2% on the day, despite weakness in the US dollar.
- Stocks on the move:
- Morgan Stanley (MS) reported $1.33 in EPS, well above expectations of $1.17. The stock finished the day 1.5% higher.
- Microsoft reported better-than-expected earnings after the bell, though growth in its cloud computing division Azure fell to “just” 64%. The stock is trading up 1% after hours.
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