Wake Up Wall Street (SPX) (QQQ): Retail rally rides on, oil majors suffer climate vote blow
Here is what you need to know on Thursday, May 27:
It was meme stock day again on US exchanges on Wednesday as most went on a rampage, throwing valuations out the door in favour of the new holy grail of momentum. As they say, "If it ain't broke, don't fix it." With free money sloshing all over the system, what can one really expect? AMC popped nearly 20%; and GameStop, 15%. Crypto stocks saw gains between 5 and 10%. Ford (NYSE: F)also joined the party as its investor day was met with bullish enthusiasm, the shares closing 8% higher. Over in the oil space and some landmark decisions are being hailed as a boon to climate change supporters. Activist fund Engine Number 1 won two seats on the Exxon Mobil (XOM) board, a Dutch court ordered Royal Dutch Shell (RDS/A) to make larger cuts to its carbon emissions, and Chevron (CVX) also lost an investor climate change vote.
The dollar remains mired near 1.22 versus the euro, Gold remains upbeat just under $1900, Bitcoin is bubbling nicely just under $40,000, and the VIX and 10-year yield continue their slumber having been battered by Fed doves.
European markets are mixed: the Dax is -0.3%, the FTSE is -0.2%, while the EuroStoxx is +0.2%.
US futures are also mixed, the Nasdaq is -0.5%, the Dow is +0.2%, and S&P futures are -0.1%.
New highs seem likely for the S&P 500 (SPX) as it sits just below, having retraced above some key levels. The Moving Average Convergence Divergence (MACD) indicator is about to cross over into bullish territory, and really it would be rude not to at least try to make new highs with the Fed doves clearing the flight path.
Wall street top news
US jobless claims 406K, forecast 425K.
US GDP second estimate 6.4% versus 6.5% forecast.
US durable goods disappoint -1.3%, forecast 0.8%.
President Biden is to propose a $6 trillion budget to favour the middle class and infrastructure.
ECB says the increase in inflation is just temporary, fails to use the word "transitory"!
Bank of England says the first rate hike not likely be until far into next year.
Nvidia (NVDA) reported earnings per share (EPS) $3.66 versus the $3.28 forecast.
AstraZeneca (AZN) and Johnson & Johnson (JNJ) German researchers believe they have found the reason for blood clot issues.
Best Buy (BBY) EPS $2.23 versus $1.39 forecast.
HSBC exiting the US retail banking market.
Walmart (WMT) and GAP combine as Walmart is to sell some GAP home goods.
Boeing (BA) positive on freighter plane sales in China.
SNOW EPS -0.11 versus 0.16 forecast.
Organogenesis (ORGO) to join S&P small-cap 600 index.
Dollar General (DG) EPS $2.82 versus $2.19 forecast.
VIR Biotech gets FDA emergency approval for covid antibody drug.
Dollar Tree (DLTR) issues poor earnings outlook.
Anaplan (PLAN) EPS -$0.10 versus -$0.09 estimate.
Williams Sonoma (WSM) EPS $2.93 versus $1.83 forecast.
OKTA issued disappointing Q2 EPS guidance after the close on Wednesday, which seems to be hurting shares though the Q1 results beat estimates.
American Eagle (AEO) $0.48 EPS versus the forecast of $0.46.
UBER to recognize UK's GMB workers union.
Ups, downs, movers and groovers
Premarket movers
Source: Benzinga
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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.
