Chips are down but banks and gold stocks hit new highs

Nvidia $NVIDIA (NVDA.US)$ fell 4.5% AMD $Advanced Micro Devices (AMD.US)$ lost 5%. While Tesla $Tesla (TSLA.US)$, Apple $Apple (AAPL.US)$ and Google $Alphabet-C (GOOG.US)$ all moved higher as did US banks and while Walgreens $Walgreens Boots Alliance (WBA.US)$ surged 16%.

Europe’s biggest tech company and chip maker ASML $ASML Holding (ASML.US)$, fell 15%, its biggest drop in 26 years after it guided for weaker sales ahead amid tighter chip sales due to restrictions. ASML sees net sales for 2025 coming in between 30 billion euros and 35 billion euros. This is at the lower half of its range previously provided. Lower than Wall Street estimates. So investors were spooked. Thinking what if - what if other chip companies see a similar fate?

The reality is this – we won’t results from US majors AMD $Advanced Micro Devices (AMD.US)$’s until October 31, Qualcomm $Qualcomm (QCOM.US)$ November 6. Nvidia $NVIDIA (NVDA.US)$ November 21.

Charles Schwab $Charles Schwab (SCHW.US)$ reported better than expected earnings - its shares jumped 6%. Health giant Walgreens $Walgreens Boots Alliance (WBA.US)$ a similar fate, its shares rose 16%. But they were just 11 out of the 12 S&P500 companies reported better than expected results overnight. This tells us US earnings seasons continues to roll out the stronger than expected carpet, echoing what we’re seeing in the US economy.

What else to watch? ASX Gold stocks are charging up. Buying into safe-haven metals, gold and silver, picked as investors are worried that US debt will rise regardless of who wins the US election. It comes as Donald Trump defended his proposals to grow US growth, which would add to debt levels. Local ASX gold stocks like Evolution $Evolution Mining Ltd (EVN.AU)$ hit 3.3 year high new year high after it reported better than expected gold production. Its shares are up 3.8%. Other gold stocks like Bellevue Gold $Bellevue Gold Ltd (BGL.AU)$ Westgold $Westgold Resources Ltd (WGX.AU)$ West African Resources $West African Resources Ltd (WAF.AU)$are following.

Meanwhile, local banks are starting to roll out earnings, Bank of Queensland $Bank of Queensland Ltd (BOQ.AU)$ reported stronger than expected profits, boosting its shares almost 4%.

So though broad Australian share market $S&P/ASX 200 (.XJO.AU)$ bull market rally pauses, with 145 stocks seeing selling, 55 stocks moving up.