The Dow falls: Senate passes continuing resolution

The Dow Jones Industrial Average was lower Monday even after US legislators were able to come to a short-term agreement that staved off a government shutdown.

The 30-stock Dow declined 74.15 points, or 0.22 per cent, to 33,433.35. The S&P 500 inched higher by 0.01 per cent to close at 4,288.39. The Nasdaq Composite added 0.67 per cent to close at 13,307.77 and notch its fourth consecutive positive day.

The small-cap focused Russell 2000 fell 1.6 per cent on Monday, pulling it down 0.3 per cent year to date. This marked the first time the index turned negative in 2023, underscoring trouble among small-cap names. The Russell 2000 is often thought of as a better insight into the health of the broader economy due to its focus on smaller businesses.

Turning to large caps, Discover was the S&P 500′s top gainer Monday, with shares up nearly 5 per cent. Medical device manufacturer Insulet added 3.5 per cent, while chipmaker Nvidia rose nearly 3 per cent.

Tesla's deliveries declined due to factory closures, affecting production rates, but the electric-vehicle manufacturer remained committed to its 2023 goal of shipping 1.8 million cars.

The market action took place amid a backdrop of rising bond yields. The yield on the 10-year Treasury topped 4.7 per cent at its session high, marking its highest level since October 2007.

The Senate passed a continuing resolution with just hours to spare before a midnight deadline Saturday, which was then signed by President Joe Biden into law. The bill keeps the government open through mid-November, an extended period that lawmakers can use to finalise funding legislation.

In other news, the ISM reported a manufacturing PMI increase to 49.0 in September, the highest since November 2022, with 11 straight months below 50 indicating contraction; despite this, it exceeded economist expectations, crossing the 48.7 level for overall economic expansion, and some industries showed growth while others contracted.

In commodity-related news, Spain's energy minister and the head of the International Energy Agency (IEA) expressed support for the Netherlands' initiative to establish an international coalition aimed at phasing out fossil fuel subsidies, citing their role in increasing fossil fuel use, with IEA chief Fatih Birol emphasising the necessity of their elimination.

Technology, communications services and consumer discretionary were the only positive sectors in the broad market index. Communication services added 1.5 per cent, while the tech sector traded 1.3 per cent higher. Consumer discretionary gained 0.3 per cent.

Futures

The SPI futures are pointing to a 1.36 per cent fall.

Currency

One Australian dollar at 7:40 AM was buying 63.64 US cents.

Commodities

Gold has lost 1.20 per cent. Silver has dropped 5.39 per cent. Copper has fallen 2.47 per cent. Oil has lost 2.24 per cent.

Figures around the globe

European markets closed lower. London’s FTSE fell 1.28 per cent, Frankfurt lost 0.91 per cent, and Paris closed 0.94 per cent lower.

Turning to Asian markets, Tokyo’s Nikkei lost 0.31 per cent, Hong Kong’s Hang Seng and China’s Shanghai Composite were closed.

The Australian share market was closed on Monday.

Ex-dividends

GenusPlus Group Ltd (ASX:GNP) is paying 2 cents fully franked
Imperial Pacific Ltd (ASX:IPC) is paying 6.25 cents fully franked
London City Equ. Ltd (ASX:LCE) is paying 1.45 cents fully franked
Sims Limited (ASX:SGM) is paying 21 cents fully franked
WAM Active Limited (ASX:WAA) is paying 3 cents fully franked
WAM Strategic Value (ASX:WAR) is paying 2 cents fully franked
WAM Research Ltd (ASX:WAX) is paying 5 cents 60 per cent franked
WAM Microcap Limited (ASX:WMI) is paying 5.25 cents fully franked

Dividends payable

Australian Clinical Labs Ltd (ASX:ACL)
Enero Group Ltd (ASX:EGG)
Fleetwood Ltd (ASX:FWD)
Insignia Financial Ltd (ASX:IFL)
IPD Group Ltd (ASX:IPG)
NIB Holdings Ltd (ASX:NHF)
Peter Warren Automotive Holdings Ltd (ASX:PWR)
Propel Funeral Partners Ltd (ASX:PFP)
Qualitas Ltd (ASX:QAL)
Seek Ltd (ASX:SEK)
Supply Network Ltd (ASX:SNL)
Teaminvest Private Group Ltd (ASX:TIP)
Treasury Wine Estates Ltd (ASX:TWE)
Universal Store Holdings Ltd (ASX:UNI)

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.
Disclaimer

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