Large-cap indices closed somewhat lower on Tuesday in a tame session, as investors adopted a wait-and-see approach to today's key start to the earnings season. The S&P 500, Nasdaq and Dow Jones were down on average but the Russell 2000 rose 0.6%.
This was the third straight day US equities ended on a lower note especially driven by losses in communication services falling 1.73%--on the other hand, Real Estate did well ending the session up 1.34%. The same could not be said of Chinese real estate however, which continues to concern investors.
Overall, market news were quite mixed. We saw strong Q3 sales figures from LVMH and signs of a peak in corporate supply chain strains, but in the latest NY Fed survey, inflation expectations rose and the IMF then suggested vigilance around inflationary risks to global central banks.
Inflation was not the only big story since longer dated Treasury yields settled lower and WTI crude futures settled higher--something that could be altered once CPI figures come out. The JOLTs job report also came out showing that 3% of people quit their jobs.
In Washington, investors say they are prepared for higher taxes but worry about a negative reaction once the bill is passed with corporate, wealth tax and capital gains rates set to rise to 25%, 39.6% and 25% respectively.
In China, exports surge to a record high despite power shortages, Chinese coal prices hit record highs as floods added to supply woes and the real estate crisis continues to weigh in heavily on a bearish short term outlook.
Today's key events as a reminder include Q3 earnings results from JPM, the CPI for September and the FOMC minutes from last month's meeting. See below for more information and events listed.