Wake Up Wall Street (SPX) (QQQ): Fed hints at taper, markets shrug
Here is what you need to know on Thursday, June 17:
The Fed did its best to avoid another taper talk tantrum, and it appears to have done the trick. Market fears over inflation running out of control have been calmed and the 10-year yield is even falling this morning despite the Fed bringing forward talk of rate hikes and a likely but as yet unmentioned tapering of its bond purchases. The VIX remains below 20, so all is calm in equity land. Perhaps the Fed can work its magic after all and keep the booming economy and stock market going without overheating either. Curevac is a big loser in the premarket as the stock drops 40% after the company's covid vaccine candidate showed it was only 47% effective against covid.
The dollar went on a tantrum of its own on Wednesday and Thursday with its value continuing to rise, up to 1.1935 now versus the euro. Oil is at $71.80, Gold at $1,784 and Bitcoin is at $38,700.
European markets are mixed, the Dax is flat, FTSE is -0.2%, and the EuroStoxx is +0.25%.
US futures are negative, S&P and Dow futures are both down by 0.3%, while the Nasdaq drops 0.5%.
Wall Street top news
Fed pencils in two rate hikes in 2023, previously the Fed had seen 2024 as most likely for rate hiking.
US jobless claims 412K versus 360K forecast.
Kremlin says President Biden, President Putin summit was a success.
Norway says it may be time to soon raise rates.
Eurozone CPI in line at +0.3% monthly.
Curevac (CVAC) drops 40% in the premarket on covid vaccine results.
Magnolia Oil & Gas (MGY): Keybanc raises the price target to $17.
Tenet Healthcare (THC) announces the sale of five hospitals for over $1 billion. Shares up 3% premarket.
DELL chosen by DISH for key parts of its 5G infrastructure-CNBC.
Prothena (PRTA) upgraded by Jefferies on Wednesday, up 3% premarket after multi-year high on Wednesday.
Fisker (FSR) signs an agreement with Magna (MGA) for manufacturing.
Two Harbours Investment (TWO) to join S&P Small Cap 600. Shares up 4% premarket.
AON and Willis Tower Watson (WLTW): US Justice Department sues to block proposed deal.
Novavax (NVAX) up 3% premarket as Curevac competition less likely and Serum Institute of India is reportedly starting trials of Novavax vaccine on children this summer.
Jack in the Box (JACK) RBC rates as outperform as it starts coverage on the stock.
Upgrades, downgrades and premarket movers
Source: Benzinga Pro
Economic releases due
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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.
