Gonet: Market news of August 26th

Dow +0.98%, S&P 500 +1.41%, Nasdaq +1.67%, Russell 2000 +1.52%, SOX +3.66%, Eurostoxx +0.19%, SMI +0.46% .

It’s time to laugh and sing… If you recognized something in that first sentence, you’re younger than many. Well, last night it’s a bit like the atmosphere that prevails on Wall Street, a touch of optimism rises, oh a gentle breeze, not too strong but enough to catch a light chill for the service bears. The session is held in a tight range until the last half hour, the bulls fail to prevent coming back quite strongly in this market, we position ourselves in the idea of ​​a conciliatory Jerome Powell this afternoon. Even the bond market is getting involved, taking the yield on the US 10-year bond down to 3.05% from 3.12% earlier in the day. Remember, the S&P500 (SPX) index should hit the 4200 level, the market, that never-ending teaser, puts it at 4199.12 by the bell, so it’s just missing. Trading volume is low with 9.49 billion shares traded on the NYSE, volatility eased slightly, the VIX fell 4.5% to 21.78, the dollar stopped rising but made little gains, the EUR/USD -pair is moving at 0.9952 this morning. Industry wise, the day’s SPX podium is made up of materials, communications services and technology, with the latter being led by ratings giants Amazon and Apple. As a side note, Chinese stocks listed on Wall Street were in great shape yesterday. It appears regulators in Washington and Beijing are close to finalizing an agreement that would resolve disagreements over auditing practices. Alibaba takes off 8% and returns just below $100.

The bargain hunt was released yesterday on the trading floor, for example we come to fish for Salesforce stock. The stock lost as much as 8% in the session to close 3.3%. Quarterly results released Wednesday night are good, but Salesforce is downgrading its annual revenue guidance while confirming its margin target and announcing the first $10 billion share buyback program in its history. If we delve a little into these numbers we find that the company is doing well, also we know that it tends towards prevention rather than cure, Salesforce very often prefers to announce once a year in advance that it repeating the same exercise several times. Nvidia opens lower, ending its session up 4%. News of below-consensus third-quarter sales is generating buying interest, with weak forecasts suggesting the bottom for the semiconductor industry is near. And the overall SOX index celebrates with a remarkable AMD +4.80%, INTC +3.04%, TXN +2.97%, MU +4.96%, ACLS +12.90%, NVTS +17.28.

We can see some return to risk-taking yesterday, but neither are players naïve, who know that Jerome Powell cannot and will not tell them that inflation is a solved problem and that everything is fine, folks. In the last two days, investors have sunk $1 billion in ETFs (Exchange Traded Funds) such as the SPDR Bloomberg 1-3 Month T-Bill ETF (ticker BIL, which weighs $17 billion), the Vanguard Short-Term Treasury ETF (VGSH, $15 billion) and the Vanguard Short-Term Bond ETF (BSV, $38 billion). At the same time, there have been historical withdrawals of $2 billion from the SPDR S&P 500 ETF Trust (SPY, $378 billion, the first ETF in record history) and the Invesco QQQ Trust Series 1 (QQQ, $174 billion U.S. dollar). a couple of days.

The stock market remains inexorably optimistic, its big bond brother remains skeptical, even if the US 10-year bond yield falls. The 2/10 year US spread widens again to -33 basis points. Several Fed officials are back on track, saying the Federal Reserve still has work to do to fight inflation. St. Louis Fed Chairman James Bullard (votes FOMC) in particular believes that inflation could be more persistent than many on Wall Street are expecting and that markets are undervaluing this risk.

On the macro front, initial jobless claims for the week ended August 20 fell 2,000 to 243,000 yesterday. The key takeaway is improving this stat. A read below 250k certainly indicates that labor market conditions remain tight, meaning the potential for wage-based inflationary pressures also remains tight, and that’s probably not a comforting sign for Fed officials.

On Friday’s macro menu, markets await July PCE inflation at 2:30 p.m. and then University of Michigan Consumer Confidence Index at 4:00 p.m. Jerome Powell will begin his speech at 4:00 p.m.

WATCH WHERE YOU STEP! Gap up 7% after the quarterly results release. SpaceX and T-Mobile US want to put an end to the “white zones” thanks to satellites. Novartis is temporarily suspending a study with branaplam. According to Bloomberg, Xiaomi is in talks with BAIC to discuss electric car manufacturing. A Delaware court orders Twitter to give Elon Musk more information about spam and bot accounts. Meanwhile, at least half a dozen Twitter lawyers have left the company in the past two months. Dell loses 7.8% in aftermarket trade as executives predict quieter times in second half. Tesla fell 0.4% after splitting its shares 3-for-1.

I’m fine, I’m fine, I’m fine, I’m fine… LastPass, a password manager with 33 million users, says it was recently hacked but doesn’t believe passwords were stolen. I like the words “but I don’t think so”, you feel reassured immediately… I say that I won’t say anything…

Tonight and this morning, indices are trading slightly higher in Asia with the exception of Shanghai which is up 0.24%. Tokyo snapped 0.57% at the bell, Hong Kong gained 0.69% and Seoul rose 0.15%. SPX futures fell 6 points and Europe opened 0.4%. All on deck at 4:00 p.m. for the speech by Dr. J!

A word on oil a barrel of WTI Light Crude is back at $93.62 so can’t break its 200 day moving average at the moment it’s at $95.43 and that’s a key point for the market there the last release of the US consumer price index showed a slowdown in inflation, mainly thanks to the fall in energy prices, so watch closely…

#Gonet #Market #news #August #26th

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