The EUR is the strongest and the NZD and AUD are the weakest as the North American session begins. Earlier today, Australia announced softer than expected job growth with a gain of 6.7K versus expectations of 20.6K. Although softer, the unemployment rate did dip to 3.6% from 3.7%.

Looking at the ranking of the major currencies, the USD is sitting in the middle of the table. The greenback is stronger versus the AUD, NZD, CAD and GBP and weaker versus the EUR, JPY and CHF.

US stocks in premarket trading are mixed as the earnings dump continues with mixed results. After the close yesterday Netflix beat expectations while Tesla did not.

US yields are higher once again with the 30-year back above 5% to 5.056%. The 10-year yield is approaching the 5% level (both are at multi-decade highs) . The high yield reached 4.983% so far today. Yield spreads continue to move back toward flat.

The schedule of Fed speakers continues today highlighted by Fed Chair Powell who will speak at noon to the New York Economic Club. Markets are anxious about the possibility of a hawkish tone in his speech due to recent strong economic data in the United States. While the Fed had hinted at the possibility of ending its rate-hiking cycle, rising yields have helped cool the economy by restricting credit. However, recent data shows that the labor market remains robust, and inflation remains persistent. New York Federal Reserve President John Williams has taken a more hawkish stance, suggesting that the Fed may keep rates higher for an extended period to combat inflation and work towards its 2% target.

Other Fed officials scheduled to speak include:

• Vice chair Jefferson at 9 AM,
• Chicago Fed Pres. Goolsbee at 1:20 PM ET,
• FOMC member Barr at 1:30 PM ET,
• Atlanta Fed President Bostic at 4 PM ET and
• Philadelphia Fed Pres. Harker at 5:30 PM ET .

Tomorrow is the last day before the blackout period ahead of the Fed’s November 1 policy meeting.

Oil prices are lower as markets await developments in the Israel-Hamas conflict and assessed global supply outlook. Prices surged 2% yesterday due to concerns of supply disruptions following Iran’s call for an oil embargo on Israel and a larger-than-expected U.S. inventory draw. OPEC showed no immediate response to Iran’s call, easing supply worries.

On Capitol Hill, the GOP failed to elect a Speaker of the House yesterday and that process continues without any work getting done at the “House of the People.”

A snapshot of the markets as the NA session gets underway shows:

• Crude oil is trading up down $-0.84 or -0.96% at $86.45. At this time yesterday the price is trading at $87.45.
• Spot gold is trading up $4.25 or 0.22% at $1951.40. At this time yesterday the price was trading at $1945.77.
• Spot silver is trading up 3.7 cents or +0.16% at $22.88. At this time yesterday the price was trading at $23.20.
• Bitcoin is trading at $28,443. At this time yesterday the price is trading at $28,381.

In the US stock market, the major indices are trading mixed currently after yesterday’s sharp decline which is all the NASDAQ index tumble -1.60%.

The earnings dump has continued with some up some down. Yesterday after the close Netflix and Tesla announced earnings. Tesla missed. Its shares are trading down -$17.57 or -7.20%, and at lowest level since August 21. Netflix beat and its shares are trading up $47.11 or 13.60%.

In earnings releases this morning:

Philip Morris International Inc (PM) 03 2023 (USD):

• Adj. EPS: 1.67 (exp. 1.61) – BEAT
• Revenue: 9.14 billion (exp. 9.17 billion) – MISS
• Raises FY adj. EPS outlook

Blackstone Inc (BX) 03 2023 (USD):

• Adj. EPS: 0.94 (exp. 1.01) – MISS
• Revenue: 2.54 billion (exp. 2.51 billion) – BEAT
• AUM: -6% to 1.007 trillion

Filth Third Bancorp (FITB) 03 2023 (USD):

• EPS: 0.91 (exp. 0.82) – BEAT
• Revenue: 2.16 billion (exp. 2.15 billion) – BEAT
• Nil FTE: 1.45 billion (exp. 1.43 billion)
• NIM: 2.98% (exp. 3.02%)
• Provision for Credit Losses: 119 million (exp. 173.8 million)

KeyCorp (KEY) 03 2023 (USD):

• EPS: 0.29 (exp. 0.27) – BEAT
• Revenue: 1.57 billion (exp. 1.56 billion) – BEAT
• Nil FTE: 923 million (exp. 934.4 million)
• Provision for Credit Losses: 81 million (exp. 122 million)
• Deposits: 144.83 billion (exp. 144.62 billion)

AT&T Inc (T) 03 2023 (USD):

• Adj. EPS: 0.64 (exp. 0.62) – BEAT
• Revenue: 30.35 billion (exp. 30.19 billion) – BEAT
• Subscriber numbers top estimates
• Raises FY FCF view

Alaska Air Group Inc (ALK) 03 2023 (USD):

• Adj. EPS: 1.83 (exp. 2.27) – MISS
• Revenue: 2.8 billion (exp. 2.88 billion) – MISS

Truist Financial Corp (TFC) 03 2023 (USD):

• EPS: 0.80 (exp. 0.82) – MISS
• Revenue: 5.73 billion (exp. 5.7 billion) – BEAT
• Nil: 3.62 billion (exp. 3.514 billion)
• Net Income: 1.1 billion (exp. 1.12 billion)
• NIM: 2.95%
• Guides Q4 revenue: -1% to flat

A snapshot of the stock futures currently shows a mixed picture

• Dow Industrial Average futures are implying a decline of -58 points. Yesterday the index tumbled -332.57 points 13.11 points
• S&P index futures are implying a decline of -7.4 points. Yesterday the index fell -58.62 points
• NASDAQ futures are implying a gain of 12 points. Yesterday the index tumbled -219.44 points or -1.62%

In the European equity markets, the major indices are trading lower

• German DAX, -0.24%
• France’s CAC, -0.64%
• UK’s FTSE 100, -0.92%
• Spain’s Ibex, -0.66%
• Italy’s FTSE MIB, -0.93% (10 minute delay)

In the Asia Pacific market, major indices were mixed:

• Japan’s Nikkei index, -1.91%
• China’s Shanghai Composite Index, -1.74%
• Hong Kong’s Hang Seng index, -2.46%
• Australia’s S&P/ASX index, -1.36%

In the US debt market, yields are moving higher as the yield curve continues to steepen:

• US 2Y T-NOTE: 5.239%, +2.2 basis points. At this time yesterday the yield was at 5.188%
• US 5Y T-NOTE: 4.984% up 6.0 basis points. At this point yesterday the yield was at 4.845%
• US 10Y T-NOTE: 4.977% up 7.5 basis points. At this point yesterday the yield was at 4.821%
• US 30Y BOND: 5.064% up 7.0 basis points. At this point yesterday the yield was at 4.933%
• 2 – 10-year spread is at -27.8 basis points. At this time yesterday the spread was at -36.4 basis points. That is near the steepest it reached this month at -26.4 basis points
• 2 – 30 year spread is at -18.8 basis points. The steepest the spread reached this month was -8.3 basis points back on October 9

In the European debt market, benchmark 10-year yields are trading mixed:

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