US Open: Wall Street tries to stop pressure from yields. Nvidia loses almost 5%

• US100 loses 0,5% and bulls are trying to stop 'risk off' rewind on Wall Street
• US 10-year treasuries hit new, year high at 4,85% level. Dolar gains after strong macro readings
• Treasury 2-Year Yield rises 10bp to 5.199% today - the highest level since 2006.
• Futures on VIX erases early 3% gains and are trading flat now
• According to WAPP US is sending marines to Israel on warships
• Nvidia loses more than 5% after US restricts AI chips export to China further

US indices try to move higher after sell off initiated by higher than expected US retail sales reading which may be a signal that Fed will not end rate hike cycle at current levels. At the same time some 'risk off' from geopolitics persist due to US army engagenemnt in Israel. US Deparment of Defence signaled that about 2,000 US military personnel places on heightened state of readiness, but no decisions have been made to deploy any forces at this time. At the same time it's worth noting that US army mission in Middle East may be  in fact 'de-escaation' and positive for situation in a region. US Dollar and 10yr treasuries yields gained after strong macro data.

Today US macro readings

• US retail sales m/m: 0,7% vs 0,3% exp and 0,6% previously
• US core retail sales m/m 0,6% vs 0,2% exp. and 0,6% previoulsy
• US industrial production: 0,3% vs 0,0% exp and 0,4% previously
• US Capacity Utilization: 79.7% vs 79.6% exp. and 79.7% previously
• US Manufacturing Output MoM: 0.4% vs  0% exp and  0.1% previously

Stocks from S&P 500 index. Pfizer loses more than 2% but Nvidia lead sello-off among large cap companies. Source: xStation5

US futures on US100 are trading lower today and on H1 interval we can see that demand tries to come back above SMA200 (the red line) above 15170 points. If bulls will be not strong enough to break this resistance we can see a drop to 14,900 level (61,8 Fibo retracement of the upward wave from 4 October). Source: xStation5

US business inventories rose 0,4% in August vs 0,1% revised reading in July. Source: US Census Cureau, Manufacturing and Trade Inventories and Sales

News from companies

• Bank of America Corp. (BAC.US) rises 1.5% after the firm reported trading revenue excluding debit valuation adjustment for the third quarter that beat the average analyst estimate. Net interest income wal also higher than expected;
• Dollar Tree (DLTR.US) gains up nearly 2% after Goldman Sachs raised its recommendation to buy from neutral based on its strong earnings growth potential.
• Goldman Sachs (GS.US) loses more than 2% depiste bank reported FICC sales and trading revenue for the third quarter that beat the average analyst estimate. 
• Johnson & Johnson (JNJ.US) is up after firm boosted its sales guidance range for the full year. Also Mondelez International’s (MDLZ.US) gains after company’s lower exposure to the US market. At the same time BNP Paribas writes in a note that upgrades its rating on the packaged-food company to outperform.
• SunPower Corp. (SPWR.US) shares fall 9.3% after analysts at Citi downgrade the energy company to sell from neutral seeing risks to market share and saying that strategic initiatives will take time to come to fruition.
• Nvidia (NVDA.US) loses almost 5% today after investors sold shares after new resctriction of US AI chips exports to China. At the same time the company claims that it does not expect any meaningful near term impact from US curbs. 

Source: xStation5