- FED: latest data do not indicates pause in current Fed rate hike cycle
- Jobless Claims, Philly FED and Existing Home Sales data
Wall Street opens higher today and extends gains from the previous day as optimism around Washington’s debt-ceiling talks prevailed and finally gave some clarity.
Today, FED member Lorie Logan expressed concern about the pace of declining inflation and emphasized the need for price stability, stating that the current data does not justify skipping a rate hike at June’s meeting. Next comments came from Jefferson, Fed, he that recent banking stress has resulted in only modest tightening of credit conditions and core services inflation excluding residential real estate remains stubbornly high.
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Create account Try a demo Download mobile app Download mobile appToday's macro data publication reveals that jobless claims experienced a decline, largely driven by a significant decrease in fraudulent claims in Massachusetts, which had previously inflated the national numbers. However, aside from this anomaly, the increase in unemployment claims suggests a gradual easing of labor-market conditions, aligning with a broader range of indicators. Additionally, the Philly FED Index contracted for the ninth consecutive month, signaling ongoing contraction and persistent high levels of inflation. The Federal Reserve Bank of Philadelphia's index for current general activity improved slightly but remained in negative territory, falling below economists' expectations.
US500 index, the current price is at 4187 points, reflecting a 0.43% increase Today. The index is approaching a resistance zone located around 4200 points, which historically has acted as a barrier to further upward movement. Additionally, the index is also near the upper range of a bear market channel, marked by a blue line, indicating a potential level of resistance.
It is worth noting that the price has risen significantly over the last two days, suggesting a potential short-term bullish momentum. However, caution is warranted as the index approaches the 4200 zone, which could result in a reversal or consolidation.
Company News
- Netflix (NFLX.US) shares edge higher, up 2%, following the company's announcement that it has broken through the 5 million active users' barriers with a new version of the platform that supports external advertising. Analysts viewed the company’s updates at its first-ever appearance at the upfronts as incrementally positive and were reassured by the management that the paid sharing feature will roll out more broadly in 2Q.
- Procter & Gamble (PG.US) shares dip 0.9% after Truist Securities downgrades the multinational consumer goods company to hold from buy, saying the current valuation of the stock now reflects its turnaround efforts.
- Micron (MU.US) rises 1.1% following news, citing people familiar with the matter, that Japan is poised to provide about ¥200 billion ($1.5 billion) in incentives to help the semiconductor company make next generation memory chips in the country.
- Boot Barn (BOOT.US) shares tumble 11% after the cowboy-boot seller reported fourth-quarter net sales that missed estimates and provided a forecast for the year that failed to match expectations.
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