Wake Up Wall Street (SPX) (QQQ): Bitcoin bounces, Fed talks about talking about tapering
Here is what you need to know on Thursday, May 20:
Equity markets continue to tread cautiously as Bitcoin nervousness flowed through to equity markets on Wednesday. Retail and meme names were hit hard by the collapse of the crypto leader, while big tech names all rallied strongly from early losses. The Fed is rumoured to be rumoured about thinking about tapering its monster bond purchase program, but the dollar and yields are ignoring this for now with both remaining weak. Germany looks to get ahead of the curve though, with the 10-year Bund yield spiking to near zero again, a 16% rise on the day, underpinning the euro.
Buy the dip seems to be still in fashion as S&P 500 (SPX) call volume increased 40% more than put volume on Wednesday.
Elon Musk rides to the crypto rescue as Bitcoin and Doge rally 12% and 22%, respectively, with Bitcoin breaking above $40,000.
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The dollar as mentioned remains weak at 1.22 versus euro, gold is flat at $1,869.
European markets are higher, the FTSE is flat, while the EuroStoxx is +0.5% and Dax +0.8%.
US futures are weak: Nasdaq is flat, S&P is down 0.1%, and Dow is down 0.3%.
There is a small potential double bottom in the S&P 500 with a small gap to fill from Tuesday to Wednesday, 4,127 to fill. Gaps in SPX are not really significant as the futures (ES) lead the cash and trade continuously. 4,058 holds the bullish trend for now. A break of that, and trend line support at 4,035 is likely. The number of stocks trading above their 200-day moving average remains elevated.
Wall Street top news
US Jobless claims 444k versus 450k forecast.
US Philly Fed Business Index 31.5 versus 41 forecast.
EU fines Nomura UBS and Unicredit with $453 million fine over trading cartel, CNBC.
ECB says price increase caused by bottlenecks is not really inflation.
Facebook (FB): Ireland high court to lift a freeze on a probe into Facebook's EU to US data flows.
Cisco (CSCO) gives weaker than expected guidance after results, shares drop sharply in the premarket.
Intel (INTC) shareholders did not approve an executive compensation plan, according to filings on Wednesday, Reuters.
Pfizer (PFE) to begin producing covid vaccine in Ireland.
Virgin Galactic (SPCE) announces the timeline for the next test flight.
Kohl's (KSS) earnings beat on EPS and revenue but shares fell sharply in premarket.
Petco (WOOF) (now that is a ticker) beat earnings estimates, shares rise $1 premarket.
Cisco (CSCO) beat earnings estimates on EPS and revenue, but guidance was below estimates so the shares dropped sharply in premarket.
L Brands (LB) beat estimates on EPS and revenue.
GDS Holdings down nearly 10% in premarket after results miss on revenue.
BEKE KE Holdings down 9% as earnings miss on EPS.
DoorDash (DASK): Bloomberg reports that JPMorgan is offering a share block. Shares down 4% premarket.
VIAComCBS (VIAC) up 4% premarket as Bank of America upgrades.
SolarEdge (SEDG) up 4% premarket as Goldman upgrades.
Ups and downs
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source Benzinga
Economic releases
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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.
