- Wall Street indices gain after today session opening
- US100 gains 0.5%, trading in the 16,050 point zone
- Nvidia (NVDA.US) loses 3.3% as AMD (AMD.US) shares post a 3% rally
- Deere (DE.US) loses 6% after company sees lower demand from US farmers
- Today's readings from the US economy point to 'higher for longer rates' Fed policy
- Oil loses heavily, signalling stock investors that risk of another inflation spike from fuel prices is unlikely
U.S. indexes gain today despite more than 3% declines of Nvidia shares, where we see profit-taking after record Q3 earnings for the year. Stronger-than-forecast readings of consumer sentiment according to the University of Michigan, higher annual and five-year inflation expectations and much lower-than-expected unemployment claims suggest that the US economy remains strong, signaling the risk of a return of price pressures if monetary policy were loosened prematurely.
Today key US macro data:
- US jobless claims: 209 k vs 227,5 k exp and 231 k previously
- University of Michigan consumer sentiment: 61,3 vs 61 exp. and 60,04 previously
- 1yr inflation expectations: 4.5% vs 4.4% exp. and 4.4% previously
- 5yr inflation expectation: 3.2% vs 3.1% exp. and 3.2% previously
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Create account Try a demo Download mobile app Download mobile appPercentage change in stocks from the S&P 500 index. The weakest sentiment is seen among oil and gas companies, mining sector stocks and pharmaceuticals. Source: xStation5
The US100 index started today's session higher and rose above the psychological zone of 16,000 points, which is now a local support zone. The 16,060-point zone (local peaks, from the second half of July 2023) was defeated, potentially heralding a rally near the 2021 record levels. Source: xStation5
Company news
- Semiconductor manufacturers ASM International (ASMIY.US) and Applied Materials (AMAT.US) were upgraded to 'buy' by Redburn Atlantic, which indicated that the chip sector is nearing a bottom and is close to a situation where earnings are likely to be the last to prove below consensus with a potentially favorable low base effect in calendar 2024
- Baidu Inc. (BIDU.US) gains 3% after Nomura updated its outlook for the Chinese internet search engine provider to buy from neutral previously
- Deere (DE.US) shares lose nearly 6% after the farm equipment maker estimates lower-than-expected net profit in 2024, citing disappointing farmer investments
- Dlocal (DLO.US) is trading down 10% as the payment solutions provider reported third-quarter earnings per share below analysts' estimates. It also indicated that the company's CFO will step down, signaling uncertainty around the future of the company's business growth
- Clothing and footwear maker Guess (GES.US) loses 13% as the company reported third-quarter net income and revenue that fell short of Wall Street expectations, putting a question mark over the momentum of the historically record fourth quarter of the year
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