Wake Up Wall Street (SPY) (QQQ): Meme stocks maintain gains as market waits for peace
Here is what you need to know on Monday, March 27:
Equity markets are set for more gains on Monday as the recent rally and short squeeze look set to continue. This is a slap in the face for bears but not as bad as that dished out at the Oscars last night. Ouch! We have the usual news flow on Monday of hopes for peace in Ukraine, but so far this looks a bit off. Bond markets continue to surge, well rather yields do, as participants look to test the Fed's mettle this year. The US 10-year is heading toward a move above 2.5% this week, but so far equity markets remain more focused on the US economy.
We will get some data this week to confirm or deny if indeed the Goldilocks scenario of a soft landing is possible. Nonfarm payrolls on Friday, April 1, will be no joke and will be key for the future direction of the markets. A strong number is required. The stronger the better. There is not much downside to an inflationary, better-than-expected number as equity markets are banking on the Fed reigning in inflation while keeping employment and the economy afloat. No downside from an upside surprise, therefore, but all the risk is to the downside in our view.
The currencies are mixed this morning, but the dollar index remains strong at 99.5. Euro/dollar is at 1.0960 now, and the closer to the party we get, the stronger the magnetism of the number becomes. Bitcoin is stronger at $47,100, and Gold is lower at $1,941. Oil is $5 lower on more Chinese lockdowns at $108.
European markets are higher: Dax +25, FTSE +0.3% and Eurostoxx +1%.
US futures are also higher: Nasdaq +0.2% and Dow and S&P both +0.1%.
Wall Street Top News
Bank of England Governor says the impact of inflation is the greatest since the 1970s.
Kremlin says no progress on Putin-Zelensky meeting.
Germany says G7 will not pay in Roubles for Russian energy.
Shanghai enters lockdown.
Tesla (TSLA) surges on asking shareholders to vote on the stock split.
Apple (AAPL): Nikkei reports Apple will cut production by 20% next quarter.
Barclays (BCS) loses $592 in bond trades.
AMC CEO heads to the Oscars, bulled up for more deals after HYMC.
UBER wins a new 30-month license to operate in London.
Mullen Automotive (MULN) says it will have $65 million in cash.
Tilray (TLRY), Canopy Growth (CGC) are both down 7% premarket.
RIOT and MARA are up 7% premarket.
Sonos (SONO) to be added to S&P SmallCap 600.
Upgrades and Downgrades
Source: Benzinga Pro
Economic Releases
The author is long puts on HYMC, MULN and AMC.
Premium
You have reached your limit of 3 free articles for this month.
Start your subscription and get access to all our original articles.
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.
