Stocks set for green open after recovering Fed dip

2:14 PM 19 September 2019

Summary:

  • Philly Fed beats estimates

  • US indices all called to open higher

  • 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.) 

 

More 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:

  • Employment index: 15.8 vs 3.6 prior

  • Prices paid: 33.0 vs 12.8 prior - highest level since Dec ‘18

  • 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

Share:
Back

Join over 1 600 000 XTB Group Clients from around the world

The financial instruments we offer, especially CFDs, can be highly risky. Fractional Shares (FS) is an acquired from XTB fiduciary right to fractional parts of stocks and ETFs. FS are not a separate financial instrument. The limited corporate rights are associated with FS.
This page was not created for investors residing in Brazil. This brokerage is not authorized by the Comissão de Valores Mobiliários (CVM) or the Brazilian Central Bank (BCB). The content of this page should not be characterized as an investment offer in Brazil or for investors residing in that country.
Losses can exceed deposits