Wake Up Wall Street (SPY) (QQQ): Risk back in play as market grows comfortable with Powell pledge
Here is what you need to know on Friday, September 9:
Risk assets are in a bullish mood on Friday as investors rush back into high-growth, high-beta names and drag equities higher. Not just equities though. Bitcoin is probably a leading indicator, and it is up a whopping 9% as it retakes the important $20,000 level and pushes higher. The reasoning is multi-faceted.
Mostly though we can again say things got a bit too bearish. Investors are taking some profits on short positions and mostly are choosing to believe in their man Powell that inflation will not get out of control. Interesting, when it appears to me that he let it get out of control, but the market wanted to rally, so it does. It does not need a reason. We just need to make one up! Certainly, we can say sentiment and position got a bit too bearish and hence we have the rally. From here though, it gets choppy.
Bitcoin as mentioned is soaring up 9% to $21,200. Oil is also higher as the Iran nuclear deal is once again off the table and OPEC rumors of more cuts do the rounds. Oil is at $85 now. Gold is up at $1,720, and the dollar has finally paused with the dollar index at 109.05. The hawkish talk was overshadowed by positioning and profit taking not to mention increasing rhetoric from the Bank of Japan about the yen's slide.
European markets are higher: Eurostoxx +2%, FTSE +1.3% and Dax +1.5%.
US futures are also higher: Nasdaq +2% and Dow and S&P +1.3%.
Wall Street top news (QQQ) (SPY)
EU looking for electricity reductions of 10% from member states-WSJ.
US Secretary of State Iran's latest offering takes us backwards-Financial Juice.
Tesla (TSLA) looking into building a lithium refinery in Texas.
Zscaler (ZS) is up over 10% on strong earnings.
DocuSign (DOCU) also has strong earnings and strong guidance, up 15%.
Virgin Galactic (SPCE) was downgraded by Bernstein.
Intel (INTC) starts two new chip plants in Ohio.
Digital World (DWAC) up as company postpones merger vote.
Smith and Wesson (SWBI) lower after earnings, misses on top and bottom lines.
Kroger (KR) raises EPS guidance.
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.
