Here is what you need to know on Friday, May 27:
Equity markets got their rally on during Thursday's session as finally there was some positive news on the earnings front. Retail was the en vogue sector following the shock of Walmart and Target's downbeat commentary last week. However Dollar Tree, Dollar General and Macy's all posted strong gains with double-digit advances, and Macy's and Dollar Tree closed nearly 20% higher. Interest rate markets also priced out 25 basis points of Fed hikes, a curious move in our view but one that further emboldened equity investors to return to risk assets.
GameStop popped as the retail army showed it still has legs and pushed the stock 13% higher on top of Wednesday's 25% gain. We feel this move may be running out of steam though. Fridays Michigan sentiment, as well as personal consumption data, will give us more clues as to who is correct, Walmart/Target or DollarTree/General. Is the US consumer holding up or slowing down? The big miss (excuse the pun), but Big Lots (BIG) now puts another cloud over the sector.
The dollar is now holding after recent losses, at 101.80 now for the dollar index. Oil is at $113, and Gold is at $1,860. Bitcoin is also flat at $28,800.
European markets are higher: Eurostoxx +1%, FTSE +0.2% and Dax +0.8%.
US futures are also higher: S&P +0.3%, Dow +0.1% and Nasdaq +0.4%.
Wall Street Top News (QQQ) (SPY)
Costco (COST) beats on top and bottom lines, but shares fall.
Alibaba (BABA) closed up on strong earnings.
Pinduoduo (PDD) beats on top and bottom lines. Stock up 6%.
NIO may be looking to expand operations manufacturing to US according to report in Yicai.
Big Lots (BIG) down 12% on earnings miss.
McDonalds (MCD) declares dividend of $1.38, 2.2% yield.
DELL up 12% on earnings beat.
Workday (WDAY) down 8% on earnings.
Marvell Tech (MRVL) up 5% on earnings.
Economic releases
The author is short Tesla and Twitter.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD steady below 1.0800 after US PCE meets expectations
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair barely reacted to US PCE inflation data, with the Greenback shedding some pips. Fed Chair Jerome Powell set to speak ahead of the weekly close.
GBP/USD hovers around 1.2620 in dull trading
GBP/USD trades sideways above 1.2600 amid a widespread holiday restraining action across financial markets. Investors took a long weekend ahead of critical United States employment data next week. Fed Chair Powell coming up next.
Gold price sits at all-time highs above $2,230
Gold price holds near a fresh all-time high at $2,236 in thinned trading amid the Easter Holiday. Most major world markets remain closed, although the United States published core PCE inflation, the Federal Reserve’s favorite inflation gauge.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.