Wake Up Wall Street (SPY) (QQQ): Market not yet giving in to Fed
Here is what you need to know on Tuesday, August 30:
Equity markets held firm on Monday as the feared capitulation did not materialize. Instead, we got an early test of lows before the market flatlined to the close.That has already led to a relief rally on Tuesday as European equity markets cheer after Asia was mixed. What exactly Europeans are cheering for facing into this winter is beyond me, but markets are irrational. I suppose one could argue that European power prices fell on Monday. Hey, maybe it will be a really mild winter!
Equities liked the lack of capitulation and now are likely to go on hold until Friday's jobs report. A high number is probably bad news, and a low number is also bad news. Here's hoping for a flat calm, in line report. Equities are currently unsure where to go, and even the VIX looks bored. Bitcoin has also demonstrated a lack of selling pressure as it recovers back above $20,000. Oil too is back on the bull case after Iraq and Libya see clashes and OPEC+ talk of supply cuts still looms large. Oil gained 4% on Monday and is at $95.50 now. The dollar is weaker, based on the lack of equity fear, as positioning is all one way here. The dollar index is back to 108.40 now, and Gold is at $1,733. Bitcoin is trading around $20,450.
European markets are higher: Eurostoxx +1.3%, FTSE + 1.1% , Dax + 1.2%.
US futures are higher: S&P +0.7% , Dow + 0.6%, Nasdaq + 1%.
Wall Street top news (QQQ) (SPY)
Gazprom to begin reducing gas deliveries.
QT steps up this week to $95 billion per week.
Evergrande (remember that one!) bondholders submit a plan for restructuring.
First Solar (FSLR) announces new US factory.
Big Lots (BIG) beats on top and bottom lines.
Best Buy (BBY) beats on top and bottom lines.
Moderna (MRNA) gets Australian approval for the omicron variant vaccine.
Baidu (BIDU) beats on top and bottom lines.
AstraZeneca (AZN): Japan approves Evushield covid treatment for kids 5-11.
Twitter (TWTR): Elon Musk files another notice to terminate Twitter deal -CNBC.
Upgrades and downgrades
Source: WSJ.com
Economic releases
The author is short TWTR and TSLA.
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.
