Wake Up Wall Street (SPY) (QQQ): Apple, Nike add to woes as PCE data flouts Fed

Ivan Brian FXStreet

Here is what you need to know on Friday, September 30:

Here we go again. Inflation remains high as the Fed's favoured inflation gauge is not so favoured. The Personal Consumption Expenditures index or PCE shows inflation remaining sticky, and it will take time to get this under control. That means more rate hikes and higher rate hikes for longer. The pivot from the Bank of England was an emergency anti-Lehman moment, not a pivot to celebrate for risk assets.

We remain with the same theme, the Fed has to have higher rates, and it will have to keep them high for longer. If it does not, then it means we are on the verge of another financial crisis. It is that simple in my view. Any pivot will actually be a worry for risk assets; but, and there is always a but, that does not rule out short-term rally opportunities.

Already we see risk assets shrug off this data. We approach the end of the quarter, and it is always a choppy time. Already risk assets and stocks are shrugging off the PCE data. The sentiment is terrible, and positioning is bearish, so that usually sets up a bear rally. Let's see!

The dollar though is higher as some easing noises from China and sterling back lower see the Dollar Index up to 112.53. Oil is lower at $80.70, and Bitcoin is at $19,200. Gold is now flat at $1,662.

See forex today

European markets are mixed: Eurostoxx flat, FTSE -0.25% and Dax +0.7%

US futures are flat: S&P, Nasdaq and Dow are all pancake flat.

Wall Street top news

US PCE is higher than expected. Equities fell but quickly went back to flat.

EU inflation reaches 10%.

Apple (AAPL) falls nearly 5% on Thursday.

Nike (NKE) beats on top and bottom lines, but dollar and inventories hit the stock.

Micron (MU) is cutting spending, and the outlook is lower than expected.

Meta Platforms (META) to freeze hiring.

Palantir (PLTR) gets $59m US Army contract.

Pepsi (PEP) could consider cost-cutting measures, according to FOX Business.

Aterian (ATER) guidance above estimates.

Rent a Centre (RCII) cut guidance.

Amylyx Pharma (AMLX) is up on FDA approval.

Carnival (CCL) misses on earnings.

Upgrades and downgrades

Source: WSJ.com

Economic releases

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.

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