Wake Up Wall Street (SPX) (QQQ): More records, more vaccines and more memes
- G7 meeting arranges for global corporation tax deal.
- Meme stocks finish out the week strong.
- Dollar strengthens against Euro, while Gold and Bitcoin remain at weak levels.
Here is what you need to know on Friday, June 11:
Equity markets remain in a relief rally on Friday. Relief that it is Friday, relief that the vaccines work and mostly relief that Thursday's CPI wasn't too high. President Biden is gone on a traditional US-style summer tour of Europe to see the sights and take in some hard work. The G7 meeting promised over one billion vaccines for the developing world and the G7 agrees on a new global corporation tax deal.
Meme stocks make a comeback after a tough Thursday and Tesla moves into the super-fast lane with the launch of their Model S Plaid, a 200 mph electric vehicle with a 15-minute charge time. Just when you thought it was safe to go back in the water the covid shark returns as two passengers on one of the first Royal Caribbean Cruises (RCL) test positive for the virus. The passengers are in isolation and are reportedly asymptomatic. Memories of last year's cruise ship lock-ins will be firm in the minds of vacationers and cruise line investors so let's see how this one plays out.
Over in currency land, the dollar strengthens to 1.2130 versus the Euro, US Treasury 10 year yields are dead at 1.45%, Gold is weaker at $1,886 and Bitcoin is still steady at $37,700.
European markets are positive with the FTSE, DAX, and EuroStoxx all up +0.6%.
US Futures have decided to take a Friday lie in and are barely changed so far.
S&P 500 technical analysis
4,180 was a big level for the S&P 500 futures to get through, as can be seen from the volume profile bar on the right of the chart and also the relative balance between bulls and bears in this bar (red and green). Once through here, the index had to push higher. This will serve as a strong support zone on any retracement. A break below 4,050 should see a move through some light volume profile areas to 3,920, the point of control since September 2020 (i.e. the strongest and highest volume, fair value area).
Wall Street top news
President Biden heads to G7 meeting in UK where the EU and UK Northern Irish problem is discussed.
G7 also agree to purchase one billion covid vaccine doses for less developed nations.
G7 agree on corporate tax deal. G20 and EU nations have yet to decide though so it is not a done deal.
SNOW is falling but it's not Christmas. Snowflake Investor day not well received by investors as the stock drops 3% premarket as investors are said to be disappointed by 2029 targets. 2029 yes talk about not being in the present.
Chewy (CHWY) pet retailer and Gamestop (GME) big daddy beat estimates $0.09 versus -0.03 expected.
TSLA launched Model S Plaid at a live streaming event on Thursday evening.
Royal Caribbean (RCL) two cruise passengers test positive for covid.
American Airlines (AAL) to invest $250 million in electric flying taxi start-up Vertical Aerospace.
CVR Energy (CVI) announces a special dividend. Shares drop 19% premarket as the company says moving to renewables and not buying another crude refinery.
Vertex Pharma (VRTX) drops 12% premarket on news it will not advance one of its drug candidates.
Apollo Medical (AMEH) and Callaway Golf (ELY) to join S&P Midcap 400.
Morpho Systems (MOR) downgraded by JPMorgan. Shares down 4% premarket.
Crispr Therapeutics (CRSP) up 5% premarket on new data in a drug test.
Upgrades Downgrades Premarket movers
Source: Benzinga Pro
Economic data 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.
