Wake Up Wall Street (SPY) (QQQ): All eyes on Wyoming
Here is what you need to know on Thursday, August 25:
Markets do not have long to wait now before finally getting some direction from Jackson Hole. We feel it will be more of a wait-and-see approach from Chair Powell, but at least the path will be cleared for markets to put some risk back on either way. This week has seen bets of a 75 basis point increase as energy prices tick back up, and so prospects for inflation to moderate may be a bit too hasty. Earnings season has progressed in the retail sector, and the news so far has not been too positive.
Consumers appear to be scaling back, especially in the higher end brands. Investors may have gotten slightly ahead of themselves in predicting this quarter's earnings to be the washout, but it may be coming down the line if this trend continues. We have this week alone gotten pretty terrible PMI numbers from all developed economies. Where PMI goes, equities usually follow.
More stimulus though may be just the ticket bulls need, and so far news on this front looks good. Student loan forgiveness puts the US back in stimulus mode, and China is embarking on easing monetary policy to help the stuttering economy. All this stimulus has seen the Hang Seng move 3% higher overnight, while the Bank of Japan is also engaged in its loose policy. That is the left tail event though as it battles market forces to keep JGB yields to 0.25%. The dollar remains king though and is stable at 108.50, while Gold is a touch higher at $1,760. Oil is consolidating recent gains around $95 as investors bet Iran oil is far from returning to the market. Bitcoin remains stable at just over $21,000 as it awaits the next move in terms of risk assets.
European markets are higher: Eurostoxx +0.3%, FTSE +0.1% and Dax +0.4%.
US futures are also higher: S&P +0.6%, Dow +0.4% and Nasdaq +0.7%.
Wall Street top news (QQQ) (SPY)
Jackson Hole begins at 9AM EST.
Nvidia (NVDA) produces rotten Q3 guidance.
Peloton (PTON) collapses on bad earnings and outlook.
Snowflake (SNOW) is up on earnings.
Dollar Tree (DLTR) was down 6% on a weak outlook after earnings were slightly ahead.
Ambercrombie & Fitch (ANF) also has lower earnings.
Splunk (SPLK) down after earnings.
Autodesk (ADSK) is up on earnings.
Victoria's Secret (VSCO) is down on earnings as the outlook is weaker than expected.
Salesforce (CRM) is down on slowing growth.
Teledoc (TDOC) is up as Amazon is reportedly going to close its telehealth service.
Dollar General (DG) declares a $0.55 dividend as it beats on top and bottom lines.
Honda (HMC) is said to cut production by 40% due to supply chain issues for September-Reuters.
Upgrades and downgrades
Source: WSJ.com
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.
