Things were starting to turn ugly as the first hour of trading progressed and Kaplan spoke of at some stage thinking about thinking of ending the taper. VIX popped back above 20 and stocks wobbled. But the bulls came back in and everything is rosy again in Cinderalla stock land. The Fed has our back so we can just keep buying dips. If it ain't broke then don't try and fix it.
Sectors: Consumer Staples (XLP) +0.8%, Energy (XLE) -0.7% and Health (XLV) -0.7%.
Selected stocks: PLTR -4%, AMC +1.6%, CCIV -1.4%, RKT -15%, ETSY -13%, Kellog (K) +7%, UBER -7%, LYFT -6%, BUD +5%, GOLD +5%.
Here is what you need to know on Thursday, May 6:
Equity markets are again looking for direction but are unlikely to find it ahead of Friday's employment report. AMC might provide retail traders with some interest after the close as it releases Q1 results. President Biden gives pharma stocks a little wobble as he backs a plan to waive intellectual property rights to increase vaccine supply to poorer nations. Shares in Pfizer are down 3% in the premarket.
Bears continue to talk of a correction as it feels like the Nasdaq is collapsing after a few days of losses. To put things into context, the Dow closed at a new record high on Wednesday. Not exactly a bear market, but then as we keep saying the Fed has decided things never go down anymore and we all live in Cinderella stock land. It will all end in tears someday, but it may take a few years of further bubble growth.
The dollar loses some ground as risk on, risk off switches to on. Gold is targetting $1,800 and Bitcoin is at $57,700 now as the bulls return. Yields remain steady at 1.58% for the 10-year, and the VIX is back below 20. All in all, it is on: buy the dip, and let it rip.
European markets are flat, the Dax is -0.1%, FTSE +0.1%, and EuroStoxx +0.1%.
US futures are also trading in a tight range, the Nasdaq is -0.1%, S&P -0.1%, and the Dow is +0.1%.
Wall Street top news
US Jobless claims 498k versus 538k forecast.
BoE Governor Bailey says the increase in inflation in 2021 will not continue. He fails to use the word transitory.
BoE leaves rates unchanged, need we mention it.
Toyko stretches the state of emergency to May 31.
SEC Chairman to testify before House Financial Committee on short selling.
ETSY: warns of slower user growth, shares dump 9%.
Rocket (RKT) Posts worse than expected results, shares dump 13% premarket.
Pfizer (PFE) shares drop 3% premarket as President Biden backs IP waiver.
Moderna (MRNA) down 8% premarket as Q1 revenue miss and Biden IP plans.
Kellogg (K) beats on earnings, up 4% premarket.
Paypal (PYPL) earnings beat estimates, shares up 3% premarket.
Peloton (PTON) recalls treadmills on Wednesday, down 3% again in today's premarket. Results after the close Thursday.
Viacom (VIAC) earnings beat shares up 2% premarket.
Cardinal Health (CAH) misses earnings estimates, shares drop 3% premarket.
Builders First Source (BLDR) results beat estimates, shares up 6% premarket.
Twilio (TWLO) beats on EPS but guidance disappoints, shares down 6% premarket.
Zynga (ZNGA) shares are up 6% premarket after raising earnings guidance.
Anheuser-Busch (BUD) results beat analyst expectations, shares up 5% premarket.
Ceridian Holdings (CDAY) results in line on EPS revenue beats, shares up 5% premarket.
Ambev (ABEV) beats on earnings, shares up 5% premarket.
Wayfair (W) beats on earnings, shares up 4% premarket.
PENN EPS and sales beat estimates, shares down 2% premarket.
Norwegian Cruise (NCLH) EPS loss ahead of estimates, but revenue missed, shares down 1% premarket.
Ups and downs
Restaurant Brands (QSR): Argus Research upgrades.
Alcon (ALC): Citigroup upgrades.
Zynga (ZNGA): Bank of America upgrades.
Peloton (PTON): Bank of America downgrades. Credit Suisse reiterates as outperform.
Pfizer (PFE): Mizuho downgrades.
DELL: Morgan Stanley raises price target.
Dine Brands (DIN): Raymond James, Wedbush and Keybanc all raise price target.
Hubspot (HUBS): BMO, Morgan Stanley, Piper Sandler, Raymond James and Needham all raise price target.
Neurocrine Bio (NBIX): Barclays upgrades, Morgan Stanley and SVB lower price target.
UBER Technologies (UBER): Morgan Stanley, MKM Partners, Susquehanna, Piper Sandler cut price target. JP Morgan and Deutsche raised price target.
Economic releases
-637559036079210126.png)
At the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author is short SPY. The author has not received compensation for writing this article, other than from FXStreet.
This article is for information purposes only. The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice. It is important to perform your own research before making any investment and take independent advice from a registered investment advisor.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to accuracy, completeness, or the suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. The author will not be held responsible for information that is found at the end of links posted on this page.
Errors and omissions excepted.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.