Wake Up Wall Street (SPX) (QQQ): Equities rally as yields fall, but energy spikes to stall more gains
Here is what you need to know on Thursday, March 3:
Equity markets took a much needed break Wednesday as the main US indices closed up near 2%. The recent sharp fall in yields helped as did Powell basically outlining the meeting minutes for the March FOMC meeting. This at least removed some uncertainty, and equities moved up accordingly. However, the big picture remains ominous. Inflation is set to skyrocket.
Already the EU saw a record CPI print, and that does not take into account the recent near doubling of gas prices and the further 20% hike to oil prices. Stagflation is at hand. This is reflected in the continued weakness of the euro, which is down to 1.1077 now versus the dollar. Bond markets rarely get it wrong on the macro front and the threat of a US recession is rising as the yield curve flattens further.
The dollar remains on the front foot at 97.61 in the Dollar Index. Gold is at $1,931, Oil is up another 1% to $112.53, and Bitcoin is trading near $43,700.
European markets are lower: Eurostoxx -0.15, Dax -0.7% and FTSE -0.5%.
US futures are higher: S&P +0.2%, Dow +0.2% and Nasdaq is flat.
Wall Street (QQQ) (SPY) News
Best Buy (BBY) up on strong earnings, dividend and buyback.
BJ Wholesale (BJ) down on revenue miss.
Costco (COST) out after the close.
SNOW down 20% on earnings.
Bilibili (BILI) up 9% after earnings.
GRAB down 9% on earnings.
Anaplan (PLAN) up 9% on earnings.
BOX up 6% on earnings.
Kroger (KR) up on outlook, earnings.
Weibo (WB) up on earnings.
Upgrades and Downgrades
Source: Benzinga Pro
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.
