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Gold Futures Settle Lower As Dollar Rises Ahead Of U.S. Inflation Data

Absolute Software Slides 15% On Wider Q1 Loss

Absolute Software Corp. (ABST) shares are sliding more than 15 percent on Wednesday morning after the company reported first-quarter net loss, wider than the prior year.

The company’s quarterly loss was $9.5 million, compared to loss of $7.6 million a year ago. On a per-share basis, earnings were $0.18, compared to $0.15 in the previous year.

MicroStrategy Continues To Trade Down

Shares of business intelligence company MicroStrategy Inc. (MSTR) are down 3 percent on Wednesday’s trading continuing their down ward trend since the past few days. The stocks of all crytocurrency companies like MicroStrategy were on a negative spiral, following rumors of solvency of large crypto exchange FTX.

Currently at 201.98, the stock has traded between $134.09 and $880.00 during the past 52 weeks.

Target Hospitality Stock Gains 16% On Quarterly Results

Shares of Target Hospitality Corp. (TH) are gaining over 16% on Wednesday morning after reporting third-quarter results.

TH is currently trading at $12.78, up $1.81 or 16.50%, on the Nasdaq, on a volume of 1.7 million shares, above average volume of 675 thousand. The stock has traded between $2.72 and $15.67 in the past 52-week period.

The company reported net income of $19.0 million or $0.20 per share, up from $6.7 million or $0.07 per share last year. Revenues surged to $159.6 million from $89.2 million last year.

Analysts polled by Thomson Reuters expected earnings of $0.55 per share on revenues of $158.2 million for the quarter.

The company also authorized up to $100 million stock repurchase plan.

Apple To Begin Production Of AR Headset In March Next Year

Tech giant Apple Inc. (AAPL) is reportedly planning to start production of its AR (augmented reality)-MR (mixed reality) headsets from March next year.

This device, codename N301, will be exclusively assembled by Pegatron, according to DigiTimes.

According to MacRumors, initial production is said to be very limited, with a high price point limiting Apple’s first headset mainly to commercial markets. Previous estimates said that the annual shipment for this device would reach 2.5 million units. However, the estimates have been downgraded to around 0.7 to 0.8 million units.

Although the initial production will be low that will affect profitability, Apple’s manufacturing partners are willing to work with on the project to be well positioned for future AR/VR products.

Apple has been working on augmented reality, virtual reality, and mixed reality headsets for a number of years, but hasn’t revealed much about its project. However, the company has recently trademarked “RealityOS,” “Reality Processor,” and “Reality One” names which are expected related to its AR headset project.

Ten-Year Note Auction Attracts Well Below Average Demand

The Treasury Department continued this week’s series of announcements of the results of its long-term securities auctions on Wednesday, revealing this month’s auction of $35 billion worth of ten-year notes attracted well below average demand.

The ten-year note auction drew a high yield of 4.140 percent and a bid-to-cover ratio of 2.23.

Last month, the Treasury sold $32 billion worth of ten-year notes, drawing a high yield of 3.930 percent and a bid-to-cover ratio of 2.34.

The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.

The ten previous ten-year note auctions had an average bid-to-cover ratio of 2.46.

On Tuesday, the Treasury revealed this month’s auction of $40 billion worth of three-year notes attracted above average demand.

The Treasury is due to announce the results of this month’s auction of $21 billion worth of thirty-year bonds on Thursday.

European Economics Preview: BoE Likely To Hike Rates By 75 Bps

The Bank of England is set to join its global counterparts on Thursday with a 75 basis point rate hike.

Markets widely expect the BoE to raise the Bank Rate to 3.00 percent from 2.25 percent. This would be the biggest hike since 1989. The announcement is due at 8.00 AM ET.

The BoE is also scheduled to release its monetary policy report that provides the monetary policy committee’s economic analysis and inflation projections.

On Wednesday, the U.S. Federal Reserve had lifted its benchmark rate by 75 bps for the fourth straight meeting but signaled more moderate moves ahead.

Other than the monetary policy decision, unemployment from Spain and euro area and final services Purchasing Managers’ survey results from the UK are due today.

At 4.00 am ET, Spain’s labor office publishes monthly unemployment data for October.

At 5.00 am ET, unemployment figures are due from Italy. Economists expect the jobless rate to remain unchanged at 7.8 percent in September.

In the meantime, Norges Bank announces its monetary policy decision. The bank is forecast to lift its key rate to 2.75 percent from 2.25 percent.

At 5.30 am ET, UK S&P/CIPS final services Purchasing Managers’ survey results are due. The services PMI is seen at 47.5 in October, unchanged from the flash estimate, and down from 50.0 in September.

At 6.00 am ET, Eurostat is slated to issue euro area unemployment data. The jobless rate is forecast to remain at 6.6 percent in September.

Gold Futures Settle Lower As Dollar Rises Ahead Of U.S. Inflation Data

Gold prices drifted lower on Wednesday as the dollar firmed against most of its major rivals ahead of the crucial U.S. inflation data, due on Thursday.

Traders also looked ahead to the outcome of the U.S. midterm elections.

According to reports, the Republicans are likely to earn a narrow majority in the House. Several candidates backed by former President Donald Trump have reportedly underperformed.

The consumer price data, due tomorrow, might provide clues about the path for interest rates ahead.

Economists expect the data to show a modest slowdown in the annual rate of consumer price growth, which could add to optimism about a slowdown in the pace of rate hikes.

The dollar index climbed to 110.50 gaining nearly 0.8%.

Gold futures for December ended lower by $2.30 or about 0.1% at $1,713.70 an ounce.

Silver futures for December ended down $0.175 at $21.327 an ounce, while Copper futures for December settled at $3.7000 per pound, up $0.0175 from the previous close.

Data from China showed consumer prices in the world’s second largest economy increased by 2.1% (year-on-year) in October. Economists had expected China’s consumer price inflation to rise 2.4% in the month, down from 2.8% a month earlier.