SPDR S&P 500 ETF Trust SPY: More records as the grind higher continues

Ivan Brian FXStreet

Here is what you need to know on Friday, August 13:

Friday the 13th does not seem too scary for equity investors and why should it as markets just keep going up, teaching all new traders the benefits of buying and holding. Also perhaps teaching some bad lessons about risk management in the process, but the time to learn that will also come! Thursday saw the 47th all-time high record close for the S&P 500 in 2021, a number only beaten in 2017, 2014, and then back to 1998, 1997 and 1995 over the last 50 years. We still have plenty of time to set some more. It is a bit worrying to see the series in the mid to late '90s being matched as that set the tone for the huge tech bubble explosion, and there are a lot of correlations we see today. Also worth mentioning is the record-high number of closes from 1995, but it took another five years for the bubble to pop. Those calling a current bubble should take note. It may take longer than expected to pop.

The Delta variant may be the catalyst for a small pullback as yesterday Southwest Airlines (LUV) commented on booking cancellations and today AirBnB (ABNB) cautions about bookings being impacted by the covid variant. Disney (DIS) once again impressed overnight with strong results and as mentioned yesterday the FDA authorized booster shots for certain sectors of the population, which helped gains in the vaccine makers PFE, MRNA, BNTX and JNJ with Dr. Faucci saying everyone will likely need a booster shot.

The dollar is a bit weaker this morning as yields drop, at 1.1760 now versus the euro. The 10-year yield fell down to 1.34%. Gold is at $1,758. Bitcoin is 4% higher at $46,355, and Oil is unchanged at $69.European markets are higher: Dax +0.4%, FTSE +0.2% and Eurostoxx +0.1%.US futures are flat: S&P +0.04%, Dow +0.1% and Nasdaq -0.1%.

SPY stock forecast and news

US Punchbowl reports that nine congressional members have asked for a vote on infrastructure before the budget is passed.

Toyko governor says now facing disaster level virus problem.

FDA approves booster shots for certain sectors of the population.

Disney (DIS) beats on earnings after the close, Disney+ subscribers ahead of estimates. Shares up 4% premarket.

AIRBNB (ABNB) down 3% as the company warns on Delta variant impact.

DoorDash (DASH) misses on EPS, down 4% premarket.

Rocket (RKT) up 4% premarket on results.

Upstart (UPST) upgraded by Barclays, up 3% premarket.

CVAC, MRNA, PFE, BNTX, JNJ, NVAX up premarket on Faucci comments.

Kansas City Southern (KSU) rejects a new offer from Canadian Pacific (CP).

Activision (ATVI) up 1% premarket as Citi upgrades.

Upgrades, downgrades, premarket movers

Economic releases

Like this article? Help us with some feedback by answering this survey:

Author

Ivan Brian

FXStreet

Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.

USD/JPY eyes August swing low, near 155.20 ahead of US NFP

USD/JPY retests the August monthly swing low during the Asian session on Friday as a more hawkish repricing of BoJ rate-hike bets and a suspected intervention continue to underpin the Japanese Yen. Meanwhile, the US Dollar is seen consolidating the previous day's heavy losses amid soft US bond yields, further weighing on the currency pair as traders keenly await the US NFP report.

AUD/USD consolidates above 0.7200; US NFP awaited

AUD/USD holds steady above 0.7200, near its highest level since mid-May, as bulls await the US NFP report for more cues on the Fed's policy path before placing fresh bets. Meanwhile, the recent decline in US bond yields keeps the US Dollar depressed near its lowest level in over a week and acts as a tailwind for the Aussie amid the RBA's hawkish tilt.

Gold tumbles as blockbuster US NFP lift US Dollar, Treasury yields

Gold (XAU/USD) falls sharply on Friday, snapping a two-day recovery after the US Nonfarm Payrolls (NFP) report surprised strongly to the upside. The metal briefly climbed above $4,500 on Thursday, gaining nearly 2%, but has since erased a large part of that advance.

Crypto’s $638 million buyback boom may not be as bullish as it looks

Decentralized Finance (DeFi) protocols reportedly spent $638 million to buy back their native tokens in August, up 17% from a year earlier. On the surface, the buyback trend suggests the cryptocurrency industry is maturing fast, adopting one of Wall Street’s oldest tools to bolster valuations and distribute revenue. The headline becomes less impressive once the number is opened up.

Why hawkish Bank of Japan expectations aren't enough to sustain the Japanese Yen rally

The Japanese Yen (JPY) experienced a sudden burst higher after falling back below the 160.00 psychological mark against the US Dollar (USD) earlier this week amid a more hawkish repricing of Bank of Japan (BoJ) rate hike expectations.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.