ASX set to rise despite Wall Street’s winning streak ending

Stocks ended lower across the board on Wall Street on Tuesday (US time), ending an extended winning streak for the market.

According to preliminary data, the S&P 500 lost 0.4 percent, the Nasdaq lost 0.6 percent and the Dow Jones fell 0.3 percent. Despite the negative lead, futures at 6.59 am AEDT point to a gain of 20 points, or 0.3 percent, for the Australian stock market this morning.

The benchmark S&P 500 index had risen to all-time highs for eight days in a row, tying its longest winning streak since April 2019.

Tesla plummeted again, losing 12 percent after its chief executive, Elon Musk, said over the weekend that it would comply with the results of a survey asking its millions of Twitter followers whether it should sell the 10. percent of your stake in the company.

Losses for a mix of tech companies and companies that rely on direct consumer spending outpaced gains elsewhere.

Bond yields fell and hurt banks, which depend on higher yields to charge more lucrative interest on loans. The 10-year Treasury yield fell to 1.43% from 1.49% on Monday night. Wells Fargo fell 1.9 percent.

PayPal plunged 10.5 percent after cutting its profit and revenue forecasts for the year. Robinhood fell 3.4 percent after the popular commercial app reported a data breach.

Auto and travel-related companies fell. Ford fell 0.2 percent and Carnival fell 1.7 percent.

Sectors that are considered less risky, including manufacturers of household products and utilities, held up better than the rest of the market.

Investors received another reminder from the Labor Department that rising inflation remains persistent. The agency reported that wholesale inflation rose 8.6 percent in October from a year earlier, matching September’s record annual gain.

A wide range of companies face higher raw material and energy costs while dealing with supply chain problems. That has been cutting back their operations and driving them up the prices of finished products, which in turn has made products and services more expensive for consumers.

The Labor Department will release its Consumer Price Index for October on Wednesday, giving a more detailed picture of how inflation is affecting consumers.

A combination of strong earnings and corporate updates helped drive several stocks. General Electric rose 2.7 percent after saying it would split into three companies. Zynga, which makes FarmVille and other online games, was up 9.4 percent after giving investors an encouraging revenue forecast.

The latest round of earnings is drawing to a close, but investors have yet to review several major corporate report cards. Walt Disney will report its results on Wednesday. Tapestry, owner of Coach and other luxury brands, will report its results Thursday.

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