The session on Wall Street opens on a positive note following the accumulation of key macroeconomic data. The compilation of the latest PMI and CPI readings creates a mixed, yet still optimistic picture for the markets regarding the economic situation in the United States. This is sufficient to push the main indices towards new historical levels right at the start of trading. US100 contracts are up by approximately 0.8%, US500 is up by 0.6%. Contracts on the Russel2000 index are performing better, rising by 1.3%.
Today’s session remains under the influence of macroeconomic readings. Consumer inflation turned out to be lower than expected, which strengthens the narrative of the Federal Reserve’s progress in combating price pressure and increases the likelihood of faster and potentially deeper monetary policy easing.
At the same time, a very good PMI signals a solid condition of the economy, which may prompt the Fed to adopt a more cautious schedule for rate cuts, especially if economic activity maintains its pace without further deterioration in the labor market.
An additional piece of the puzzle is the University of Michigan consumer sentiment reading, noticeably weaker than forecasts, but still above the neutral threshold of fifty points, which can be interpreted as sustained, albeit cautious, optimism among households.
In such an environment, investors will closely monitor bond yields, the dollar, and sector rotation, as these indicators may point the market towards the final conclusion from today’s data.
US100 (D1)
Source: xStation5
On the chart, a successful breakout of the peak can be observed after many attempts over the past week. The price defended the lower boundary of the upward trend, and the EMA averages indicate the continuation of the upward price direction. In the event of a temporary loss of initiative by buyers, the nearest support is at the level of 25270, determined by the last peak. Below, support can be observed at around 24720 where EMA25 runs and the FIBO level 23.6.
Company News:
Ford (F.US) — The automotive company is experiencing a huge increase, by as much as 9%. This is due to news from the company’s management that the damage caused by the production halt at one of the company’s plants will not be as deep and lasting as initially thought. The CEO assures that losses from this year will be recovered next year.
Deckers Outdoor (DECK.US) — The footwear manufacturer is losing about 12% at the opening. This follows announcements by subsidiaries UGG and Hoka that net sales will be below market consensus.
Newmont (NEM.US)— The gold mining company announced that production will remain unchanged next year. This disappointed the market, which expected the company to take advantage of high commodity prices. As a result, the company is down by 6%.
Target (TGT.US) — The large US retailer announced a significant reduction in positions. Over 1800 positions, which constitutes 8% of the company’s workforce. The stock remains unresponsive.
Kodiak Sciences (KOD.US)— The pharmaceutical company is up by as much as 15% at the session’s opening, following a recommendation from JP Morgan. However, as trading continues, the stock erases most of the gains.
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