Summary:
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Philly Fed beats estimates
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US indices all called to open higher
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Equities fully recover post FOMC dip
After the major event for US indices of the Fed rate decision last night, the forthcoming US session is relatively quiet on the data front. Two releases before the cash open are worth mentioning with the weekly initial jobless claims coming in at 208k (vs 210k expected and a prior reading of 206k that was revised up by 2k.)
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Open real account TRY DEMO Download mobile app Download mobile appMore important than the unemployment indicator is the latest look at manufacturing and the Philly Fed survey provided some good news on this front, with the index for the current month coming in at 12.0 (vs 10.9 exp and 16.8 prior). This is the 3rd consecutive beat on the expected for this metric - and also the 4th in the past 5 months - and could be seen to suggest that US manufacturing is attempting to turn a corner and recover from its slump.
Selected subcomponents of the report are as follows:
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Employment index: 15.8 vs 3.6 prior
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Prices paid: 33.0 vs 12.8 prior - highest level since Dec ‘18
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New orders: 24.8 v 25.8 prior
The move lower in US stocks after what seemed to be a little bit supportive message from their central bank than many had hoped for proved to be short lived with the S&P 500 rallying into the closing bell last night. There’s been further gains seen since then and the index has made a new high for the week in the past hour and seemingly ended the consolidation period that has contained price in recent sessions.
US stocks have pushed higher with the dip seen after the FOMC announcement proving a nice buying opportunity. Price is not just around 16 points (0.5%) from its record peak of 3029. Source: xStation
