- Wall Street indexes post gains in 0.1 - 0.4% range after U.S. market opening
- S&P PMI preliminary data for November above forecasts; slightly weaker final consumer sentiment reading
- Nvidia (NVDA.US) shares lose more than 2% after yesterday's upbeat session following financial results
Sentiment in the U.S. stock market is fairly mixed in the last session of the week. Most indexes are up slightly, but the largest-cap companies are doing less well against the market. Yields on the 10-year bond retreated to 4.41%, but the dollar is gaining strongly; USDIDX is hitting new local peaks above 1.07. The rise in 5-year inflation expectations, coupled with much stronger services data, likely provides another 'hawkish' signal for the Fed, which may be considering whether an interest rate cut in December would be appropriate, given the recent strong US data and the inflation risks associated with the tariffs the new administration intends to implement in the US.
Macro data from the US
UoM consumer sentiment index: 71.8 (expected: 73.5; previous: 70.5)
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app- 1-year inflation expectations: 2.6% (expected: 2.6%; previous: 2.7%)
- 5-yr inflation expectations: 3.2% (expected: 3.1%; previously: 3.0%
Preliminary PMI for services: 57 (expected: 55.2; previous: 55.0)
- Preliminary PMI for industry: 48.8 (expected: 48.8; previous: 48.5)
Sentiment around mega-cap stocks is clearly mixed today; Alphabet, Amazon, Microsoft and Meta are losing but Nvidia is the strongest seller. The stocks of Intuit and Palo- Alto Networks are also losing. The oil and gas sector and pharmaceutical and biotech companies are doing better, with Abbvie shares gaining nearly 3%.... Source: xStation5
Looking at the short 15-minute interval, we see that selling volume has slightly prevailed in the last few sessions, which, combined with a potential bearish flag, may indicate pressure to break out of the formation at the bottom in the scenario of testing the lower limit of the price channel at 5930 points, where we also see the 38.2 Fibo retracement of the last upward impulse after the US election. A breakout above, 5980 could open the contract to new highs.
Source: xStation5
In the broader daily interval, the US500 is still trading at the upper range of the uptrend channel and more than 54% of the stocks of the index companies are trading above the 50-session simple moving average.
Source: xStation5
Company news
- Leerink Partners upgraded the drugmaker Abbvie (ABB.US) to outperform from market perform, saying recent setbacks create an upside opportunity
- Baidu (BIDU.US) dips 3% after the Chinese internet search engine was cut to equal weight from overweight by Barclays following disappointing results
- Gap (GAP.US) gains 15% after raising its full-year outlook as the apparel retailer attracts wealthier shoppers seeking value
- Intuit (INTU.US) falls 3.5% after the maker of the TurboTax tax preparation software provided a sales and profit outlook for the current quarter that fell short of analysts’ estimates
- NetApp (NTAP.US) climbs 5% as the tech-hardware firm boosted guidance following an earnings beat
- Roblox (RBLX) gains 1% after the video-game provider was added to the Raymond James current favorites list
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
