NDW Morning Pulse

Below are highlights from the NDW Morning Update Video for the morning of 9/30. Access the video on the NDW Morning Update Video page. 

• US equity futures up slightly this morning after the final estimate of Q2 US GDP came in 70 basis points above the prior estimate.
• Most major US indices were lower yesterday. The S&P fell 17 bps, while the Dow was down 26 bps. The Nasdaq-100 eked out a 21 bps gain.
• US Treasury yields have continued to rise. The 10-year US Treasury Yield Index (TNX) now sits at 5.25% on its default chart.
• The rise in yields has driven significant weakness in bonds. The iShares Barclays 20+ Year Treasury Bond ETF (TLT) now sits at its lowest level since the early 2000s.
• We continue to see significant volatility in crude oil (CL/). Crude was down 3.5% yesterday and now sits against notable short-term support at $89.
• The US Dollar Index (DX/Y) reached 101.50 yesterday. DX/Y would break a spread triple top and return to a positive trend on its P&F chart with a move to 102.
• The rise in yields and the dollar has been a headwind for precious metals over the short term. Gold (GC/) has fallen 4.5% over the last week, while silver (SI/) has lost 8%.
• Micron (MU) is expected to report earnings this afternoon. MU is currently a 5 for 5’er and ranks eighth out of 74 names in the semiconductor sector matrix. Major support and resistance levels to watch are $1248, MU’s all-time high and $744, its July low.