Stocks Settle Mixed as Fed Comments Suggest a Rate Cut Pause

Economic Indicators - China's October industrial production rose by +4.9% year-on-year, which is below expectations of +5.5% and marks the smallest increase in 14 months [1] - New home prices in China fell by -0.45% month-on-month, representing the largest decline in a year and the twenty-ninth consecutive month of price decreases [1] Federal Reserve Outlook - Hawkish comments from Federal Reserve officials suggest a reduced likelihood of interest rate cuts at the upcoming FOMC meeting, with the probability of a rate cut dropping to 43% from 70% [2][14] - Kansas City Fed President Jeff Schmid and Dallas Fed President Lorie Logan expressed skepticism about the need for further rate cuts, citing concerns over inflation and labor market conditions [2][13] Stock Market Performance - US stock indexes showed mixed results, with the S&P 500 closing down -0.05%, the Dow down -0.65%, and the Nasdaq up +0.06% [5] - The Magnificent Seven technology stocks experienced a recovery from early losses, contributing to the overall market's mixed performance [4][16] Cryptocurrency Market - Bitcoin's price fell more than -4% to a 6.25-month low, continuing a five-week sell-off and down -24% from its record high last month [6] Corporate Earnings - Q3 corporate earnings season is nearing completion, with 82% of S&P 500 companies exceeding forecasts, leading to a +14.6% increase in earnings, significantly above the expected +7.2% [10] Sector Performance - Energy producers saw gains as WTI crude oil prices rose by more than +2%, with companies like Valero Energy and Diamondback Energy closing up more than +3% [17] - Semiconductor stocks faced pressure, with several major companies, including Lam Research and ON Semiconductor, closing down more than -2% [18] Notable Company Movements - Stubhub Holdings saw a significant decline of more than -20% after reporting a Q3 loss per share that was wider than consensus estimates [19] - Cidara Therapeutics surged more than +105% following an acquisition agreement with Merck & Co. valued at approximately $9.2 billion [20]