Wake Up Wall Street (SPY) (QQQ): Equities run into resistance as UK runs into trouble
Here is what you need to know on Thursday, November 17:
The main event today is not the US data but the UK mini-budget and comments from the Fed's Bullard. The UK is on a sticky wicket as they would say over there. As in "between a rock and a hard place." The economy is in trouble, and the government needs to cut spending. Not a great look. Sterling weakened, and that momentum was added to when St. Louis Fed President James Bullard stepped up to the pulpit. He shockingly spoke of rates between 5% and 7%, spooking risk assets accordingly. Retail earnings continued to be mixed with Kohls's pulling guidance and Macy's beating. Overall, the rally as we have been banging on is long in the tooth, and the risks are to the downside.
The US Dollar is stronger after Bullard's comments, up to 107 now for the Dollar Index. Gold is lower to $1,760, while oil (WTI) is also lower at $83.96 as covid cases in China keep rising. Bitcoin is lower at $16,400.
European markets are lower: Eurostoxx -0.8%, FTSE -0.3%, and Dax -0.4%.
US markets are lower: Nasdaq -1.3%, S&P -1.2%, and Dow -1%.
Wall Street top news
UK budget is as expected but OBR forecasts a harsh reality check.
Fed Bullard talks very hawkishly, yields up, dollar up equities down.
Republicans win the US House majority.
Elon Musk says he will find a new leader for Twitter.
Alibaba (BABA) quarterly revenue misses expectations as spending slows.
China's NetEase (NTES) tumbles after ending 14-year gaming deal with Activision Blizzard.
Cisco Systems (CSCO): The company raised its full-year revenue and profit forecast amid easing supply chain hurdles.
Nvidia (NVDA): The chip designer and computing firm beat expectations for third-quarter revenue on Wednesday.
Sonos (SONO): Grappling with weak demand for its high-end speakers, company is counting on easing supply chain bottlenecks and a rare set of promotions to lift sales in the holiday quarter.
Diamondback Energy (FANG): The oil and gas producer said on Wednesday it has agreed to buy all leasehold interest and related assets of Lario Permian.
Starbucks (SBUX): Workers at more than 100 US company-owned Starbucks locations plan to strike for one day.
Tesla (TSLA): James Murdoch, a Tesla director, testified in court on Wednesday that CEO Elon Musk has in the last few months identified someone as a potential successor to head the electric carmaker.
Macy's (M) beats on earnings.
Kohls (KSS) pulls guidance as new CEO needed.
BJ Wholesale (BJ) up on strong earnings.
Bath&Body Works (BBWI) up strongly on raising forecasts.
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.
