Wake Up Wall Street (SPY) (QQQ): Back to the future as stocks rally like its meme time
Here is what you need to know on Friday, November 11:
Yet another crazy day to add to the growing list of crazy trading days so far in 2022. This is proving to be one of the wildest years for all markets in decades, and we still have nearly two months left! The weaker-than-expected CPI print on Thursday saw one of the largest rallies for bonds and equities combined in decades. This will have helped the crisis-hit pension industry for sure. Has inflation been tamed and we can all go back to partying like it's 1999? Or 2007 or 2021? Let's wait and see, but this was welcome news.
This is the first sign that inflation may finally be slowing. China this morning has added to optimism with restriction reductions for covid, and commodities are soaring on the back of this news. Ironically, commodities soaring will only add to the inflation conundrum, so good news/bad news in one respect.
The dollar collapsed Thursday on the CPI print. We sometimes can explain the huge moves in equity markets as, "Oh, well, there goes the equity crowd again," while the bond and FX markets return to more normalized processes. It seems all markets are increasingly interconnected these days, and options, algos and retail combine to make for extreme volatility moves across the board. The dollar today is continuing lower and is at 106.94 for the Dollar Index. Gold is higher at $1,759, Oil is up 3% on China hopes to $88.80, and even Bitcoin got its rally on by reaching $17,400 now.
European markets are mixed: Eurostoxx flat, Dax +0.3%, and FTSE -0.6%.
US futures are positive: Nasdaq +0.7%, and S&P and Dow both +0.5%.
Wall Street top news
China relaxes covid restrictions.
UK GDP is negative but better than expected.
Apple (AAPL): Reuters reports Foxconn is to quadruple workers at its Indian plant.
US Bancorp (USB) is being sold by Berkshire Hathaway, according to a CNBC report citing filings.
Disney's (DIS) new Black Panther movie set for 2022 record opening.
DuoLingo (DUOL) down on lower revenues.
Beazer Homes (BZH) up on earnings.
Wynn Resorts (WYNN) up on China restrictions news.
Elon Musk raises the possibility of Twitter going bankrupt!
Polestar (PSNY) up 16% on sales growth.
United Airlines (UAL) set to give pilots 5% pay rise.
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.
