*Data showed U.S. durable goods orders fell 0.4% in October, compared with expectations for a 1% decline. “Core” orders rose by 0.8%. Separately, the government said the trade deficit widened in September.*
*The weakness in headline durable goods orders last month was driven by another fall in transport orders, which mostly reflects worsening supply problems in the auto market. The strong increase in underlying orders and shipments suggests that demand remains solid.*
*Elsewhere, Sino-U.S. tensions were in focus after the Federal Communications Commission gave China Telecom _ 60 days to leave the U.S. market. Regulators cited a potential national security threat from the company, such as the disruption of U.S. communications, amid rising tensions between the countries.*
*Mining and energy stocks led a retreat in the Stoxx Europe 600 index as prices of raw materials including aluminum and iron ore fell along with crude oil. Germany’s DAX underperformed after Europe’s biggest economy cut its 2021 growth forecast, citing the lingering effects of the pandemic and a supply squeeze. Bund yields dropped along with those on other European bonds.*
*Investors are counting on earnings to support equity prices, and so far the reporting season has been solid overall. But worries remain that over time rising raw material and wage costs and supply-chain snarls could crimp margins and weigh on the global economy recovery.*
*“Equities moved higher last week, fully recovering from the September dip. That said, in our view, last week’s positive performance does not create headwinds for performance ahead,” said Lauren Goodwin, economist and portfolio strategist at New York Life Investments. “Market positioning is still approximately neutral, which could point to further upside potential in equity markets. We believe recent positive market moves could be the beginning of a now-earlier ‘Santa Clause rally.’”*
*Bitcoin fell below $60,000. On the virus front, a Food and Drug Administration panel gave its backing to the Pfizer Inc. and BioNTech SE vaccine for young children.*
*The debt crisis in China’s property sector continues to hang over the market: authorities told billionaire Hui Ka Yan to use his personal wealth to alleviate China Evergrande Group’s woes. Meanwhile, a top Chinese regulator called on companies to make “active preparations” to meet payments on offshore bonds.*
“We see signs that there could be more gains to come in the final two months of the year,” said Ryan Detrick, chief market strategist for LPL Financial. “Seasonal tailwinds, improving market internals, and clear signs of a peak in the delta variant all provide potential fuel for equities heading into year-end, and we maintain our overweight equities recommendation as a result.”
*In Corporate News:*
*Boeing shares fell 1.5%*, after the aerospace and defense company reporting a big loss and revenue misses amid weakness in the commercial airplanes and defense, space and security businesses, while free cash flow was a lot less negative than projected.
*McDonald’s shares rose 2.7%* after the fast-food giant reported third-quarter earnings and sales that beat expectations.
*Shares of Coca-Cola Co. rose 1.9%*, after the beverage giant reported third-quarter profit and revenue that topped expectations, with all geographic regions seeing revenue and unit case volume growth. It also raised its full-year earnings growth view.
*General Motors Co. shares fell 5.4%*, despite the auto maker blowing past profit estimates for the third quarter and offered above-consensus guidance for the full year, offsetting a revenue miss.
*Shares of Robinhood Markets Inc. fell 10.4%* Wednesday, after the online trading platform reported a wider quarterly loss and lower-than-expected sales amid weak crypto-related revenue.
Shares of *Texas Instruments Inc. slumped 5%*, after the chip maker’s third-quarter results met Wall Street forecasts. It also noted “hot spots” of components shortages.
By: via @AlliesFin Serve Stock Market
