\n\tBy Greg Peel<\/p>\n
\n\tThe Dow closed up 5 points, while the S&P rose 0.4% to 1460 and the Nasdaq<\/span> gained 0.1%.<\/p>\n \n\tNews came through after US markets had closed yesterday that after months of deliberation, ratings agency Moody's had decided not to downgrade Spanish debt one more notch to junk, thus leaving Moody's aligned with Standard & Poor's. Moody's kept Spain on negative watch however, and any further downgrade will cut off Spain's access to lending markets given its debt will no longer be investment grade. This is the point at which Spain would be forced to ask for a bail-out, if it hasn't done so already, so it's academic.<\/p>\n \n\tIndeed, last night the yield on Spain's ten-year bond fell 40 basis points to 5.46%.<\/p>\n \n\tThis should have been a positive impetus for Wall Street as the opening bell rang in New York, however domestic news overshadowed international news in the form of weak earnings reports. After the bell on Tuesday Dow stocks Intel and IBM posted results that were not well received, with IBM's in particular representing a solid miss. Intel shares fell 2.5% last night and IBM shares 5%. IBM's fall alone is worth 90 Dow points.<\/p>\n \n\tDow stock Bank of America reported last night before the bell. BofA<\/span> posted a huge drop in profit given litigation charges, but its underlying business managed to satisfy Wall Street on earnings. Revenue let BofA<\/span> down, however, and its shares closed slightly lower.<\/p>\n \n\tThe Dow was down 83 points from the open on earnings news, but just when all suddenly looked bleak, out came the housing starts numbers. New starts jumped 15% in September including an 11% increase in single family homes. It's the fastest pace of starts in four years, and the release lit a fire under the listed builders.<\/p>\n \n\tThe end result was a flat Dow. If we use, as we should, the broad market S&P as a gauge<\/span>, it was another solid day on Wall Street with the Nasdaq<\/span> lagging on the tech result disappointment, which to a large extent reflects the slow death of the PC.<\/p>\n \n\tThe housing starts numbers have only served to further fuel the inflation debate, as successive US economic data releases (retail sales, industrial production, housing) bring into question the need for a zero Fed rate and QE3<\/span>. It will nevertheless all come down to unemployment, but between Spain and starts last night the US ten-year yield jumped another 9bps<\/span> to 1.81%.<\/span><\/p>\n \n\tThe euro also rose further, sending the US dollar index down another 0.4%. Gold could not rustle up enough buyers and hence despite the currency it remains flat at US$1748.80\/oz. Beware the Aussie, however, which is beginning to look like it might be in one of its bullish moods again. It has jumped a cent over 24 hours to US$1.0384. What will the RBA's<\/span> bet be next month?<\/p>\n \n\tBase metals were all up a percent or more on the weaker greenback in light, LME<\/span> Week-affected trade. Brent crude rolled into the December delivery contract and in so doing lost about a dollar and then fell US78c<\/span> to US$113.22. West Texas, which will roll over next week, fell US10c<\/span> to US$91.99\/bbl<\/span>.<\/p>\n \n\tSpot iron ore rose US$2.80 to US$115.40\/t.<\/p>\n \n\tThe SPI<\/span> Overnight took its lead from the S&P 500, rising 17 points, or 0.4%.<\/p>\n \n\tAfter the closing bell in New York, online bellwether eBay posted its earnings results and largely matched expectations, while American Express (Dow) missed on the revenue line, but has not garnered any great reaction in the aftermarket.<\/p>\n \n\tIt's a busy day today for stocks on the local bourse. After its recent profit warning, Bank of Queensland ((BOQ<\/span>)) will add more colour<\/span> with its full-year result, and Network Ten ((TEN)) will also report its full-year, no doubt helping to highlight why private equity burned itself completely on rival Nine. You only get one CVC<\/span> in a lifetime.<\/p>\n \n\tWe'll also see September quarter production reports out today from BC Iron ((BCI<\/span>)), Newcrest<\/span> ((NCM<\/span>)), Santos ((STO<\/span>)) and Woodside ((WPL<\/span>)) and quarterly sales numbers from Woolworths ((WOW)). WorleyParsons<\/span> ((WOR<\/span>)) will hold an investor day amidst another raft of AGMs<\/span>.<\/p>\n \n\tAll of the above will no doubt be overshadowed, one presumes, by the release of China's September quarter GDP. China's growth rate has decelerated for seven quarters and consensus is for 7.4% growth in September, down from 7.6% in June.<\/p>\n \n\tBeijing will also dump monthly industrial production, retail sales and fixed asset investment numbers today.<\/p>\n \n\tRudi will tell you all about on Sky Business today at noon and later in the day on Switzer TV between 7-8pm.<\/p>\n \n\tAll overnight and intraday prices, average prices, currency conversions and charts for stock indices, currencies, commodities, bonds, VIX<\/span> and more available in the FNArena Cockpit. Click here<\/a>. (Subscribers can access prices in the Cockpit.)<\/em><\/p>\n \n\tAll paying members at FNArena are being reminded they can set an email alert specifically for The Overnight Report. Go to Portfolio and Alerts in the Cockpit and tick the box in front of The Overnight Report. You will receive an email alert every time a new Overnight Report has been published on the website.<\/em><\/p>\n