Wake Up Wall Street (SPY) (QQQ): Drive for five is on as stocks make it four for no score
Here is what you need to know on Thursday, September 1:
No end-of-month rally on Wednesday as an early higher open was quickly absorbed, and selling pressure resumed. The effect of Jackson Hole is still being washed through financial markets with a soaring dollar and falling equities the main themes. Equities did try to open positively on Wednesday but soon found sellers waiting. Equities do have some potential this morning with oil prices continuing their decline and risk appetites being lightened ahead of Friday's employment report.
The dollar though remains on a charge and is above 109 for the dollar index and aiming for 140 for the dollar-yen. The recent rise in bond yields is helping, and also fears over China's economy have not helped Asian currency pairs. Gold is at $1,702, and Bitcoin looks like it is losing its grip on $20k as it trades just under $19,900. Bitcoin holding $20,000 was the canary in the coal mine for the summer risk-on rally ending, so this is more significant than you might think.
European markets are lower: Eurostoxx -0.7% and both Dax and FTSE are -1%.
US futures are also lower: Dow and S&P both -0.4% and the Nasdaq -0.7%.
Wall Street top news (QQQ) (SPY)
Three Shenzen districts increase covid restrictions.
Chengdu is also under covid restrictions.
Walmart (WMT) raises the price of Sam's Club. CNBC.
NVIDIA falls as the US imposes restrictions on exports to China.
MongoDB (MDB) down sharply on earnings falling for H2.
Five Below (FIVE) misses on earnings, but bullish talk from CFO boosts shares. Really people?
BHP is down 8% likely on China lockdowns and restrictions.
Pure Storage (PSTG) is up on good earnings.
Signet Jewelers (SIG) is up on guidance being ahead of forecasts.
Microsoft (MSFT), Activision (ATVI): UK to have an in-depth look at potential deal.
OKTA is down despite strong earnings. CNBC.
Upgrades and downgrades
Source: WSJ.com
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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.
