Weak Canadian data diminishes chances of a hawkish turn from the Fed

admin June 9, 2023

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Wall Street gains early in the session
Quotations are supported by good sentiment around Tesla and Netlix
Citi puts pressure on Target shares
Weak Canadian data diminishes chances of a hawkish turn from the Fed

This week’s final trading session on Wall Street began with Wall Street indices rallying, responding positively to powerful rallies in Tesla and Netlix shares. Moreover, technology companies are benefiting from the overtones of the weak Canadian labour market report, which also reduces the chance of hawkish phrases from the Fed. The macro calendar for today’s US session is empty.

Stocks from the S&P 500 index categorised by sector and industry. Size represents market capitalisation. Source: xStation5

The S&P 500 Index (US500) gains at the start of the session and struggles to break above the resistance zone set by the recent local maxima of the uptrend. Source: xStation 5

Company news:

Highlights from the companies recording the highest volatility at the start of the New York session. For the moment, investors’ attention turns to Tesla (TSLA.US), which is rising on the wave of the agreement with General Motors (GM.US) and good recommendations from Wedbush, which added TSLA to its best ideas list. Netflix (NFLX.US) and Adobe (ADBE.US) are also reporting good sentiment. Source: Bloomberg

Tesla (TSLA.US) and General Motors (GM.US) are announcing a collaboration on electric car charging, boosting sentiment around both listed companies. At this point, Tesla’s shares are gaining more than 6% and GM’s nearly 3.5%

TSLA.US share price chart, D1 interval. Source: xStation 5

Netflix (NFLX.US) shares are also off to a strong start to the session, gaining 4% on a surge in subscribers after the company introduced measures to end or significantly reduce the sharing of account passwords, WSJ journalists reported, basing their conclusions on data from the Antenna platform.

Netflix (NFLX.US) stock chart, D1 interval. Source: xStation5

Planet Labs (PL.US) shares are losing more than 16% as the company slashed its full-year earnings forecasts in the face of uncertain forecasts around the industry.

Shares in retail giant Target (TGT.US) lose nearly 1.5% following a downgrade recommendation from Citi. The bank sees signs of a peak in terms of sales momentum.

Also catching investors’ attention is Adobe (ADBE.US), whose shares are gaining more than 3.5%. Recent updates to the tools provided by the company have enabled AI tools, somewhat offsetting previous concerns around the company. Analysts at Wells Fargo and a number of other investment banks have raised their recommendations for the company.

Companies that were significantly upgraded in analyst recommendations: