CNBC Daily Open: Another Fed hike looms — but when?

Hello, this is Justina Lee writing to you from Singapore. Welcome to another edition of CNBC’s Daily Open.

Meeting minutes released Wednesday show that U.S. Fed officials expect an interest rate increase before the end of the year, but the meeting summary provides no indication of precisely when that would happen.

The auction of $39 billion in 10-year U.S. Treasuries sent yields tumbling from their highs, while the S&P also retreated from its record high on Wednesday.

South Korean tech giant Samsung reported preliminary third-quarter operating profit that topped 100 trillion won for the first time in its history, while Lululemon poached Athleta CEO Maggie Gauger.

Traders are bracing for another hike from the U.S. Federal Reserve this year, after meeting minutes released Wednesday showed Fed officials expected to raise interest rates before the end of the year to push back inflation that has been above target for more than five years.

However, the meeting summary did not indicate when the hike would occur – only that a stable labor market and consistently higher prices would likely lead to a second hike this year. Rates will be decided by the Fed on October 28, then again on December 9.

Meanwhile, U.S. Treasury yields fell after the Treasury sold $39 billion of 10-year notes in an auction. According to BMO, the sale was “strong,” with above-average bidding from non-dealers.

The benchmark 10-year Treasury yield hit its highest level since April 2002 at 5.365% on Wednesday. The 30-year bond yield also rose to its highest level since May 2002 at 5.732%.

Meanwhile, the S&P also fell from its record high on Wednesday. The Dow Jones Industrial Average fell 0.66%, while the S&P 500 slipped 0.22%. The Nasdaq Composite was down 0.22%.

In Asia, the Japanese Nikkei 225 closed down 0.92%. South Korea’s Kospi fell almost 2% and Australia’s benchmark S&P/ASX 200 finished flat. The mainland Chinese market remained closed on Wednesday for the Golden Week holiday.

Meanwhile, the spotlight is once again on South Korea’s technology sector, after Samsung Electronics reported preliminary operating profit of 107.4 trillion won ($80.2 billion) for the third quarter. This is the first time in its history that the company has exceeded 100 trillion won, propelled by the growing demand for AI. Samsung is expected to release its full third-quarter results, including a breakdown by business division, later this month.

In the consumer sector, Lululemon said Wednesday that Athleta CEO Maggie Gauger will join the company as president and chief product officer, effective at the end of the month. The news comes as the athletics industry becomes increasingly competitive.

In oil markets, concerns over supply disruptions eased slightly, after International Energy Agency member states agreed to help tackle rising fuel prices by prioritizing the release of diesel stocks.

—Justina Lee

Trump doesn’t think Russia plague incident is bioweapon, Putin call predicts Wednesday

President Donald Trump said Wednesday that the United States does not believe the death of a Russian lab worker from a suspected case of plague was the result of a biological weapon.

Trump also said he planned to call Russian President Vladimir Putin, who turned 74 on Wednesday, later in the day. Trump previously said this call would focus on the plague incident.

Trump’s comments came during an Oval Office event promoting Trump Accounts, the new tax-deferred savings and investment accounts that more than 60 million American children under 18 have been automatically enrolled in.

— Dan Mangan