Here is what you need to know on Thursday, May 12:
Equity markets are once more on the precipice as futures look lower and European markets post more losses this morning. We have already digested Wednesday's inflation report, and it definitely left a sour aftertaste. The Fed has to raise and raise again, while the bond market looks like it is backing the recession theory. All that has left little place to hide for equity investors, and Wednesday saw a particularly ugly close. Losses accelerated toward the end of the session. This morning has not helped with the Bank of England saying inflation might not drop as hoped and ECB's members tweeting about July rate hikes. So far we have seen how US equity markets have reacted to the Fed pulling out its bond-buying rug and hiking rates. Now the ECB is about to pull the same trick on European markets. Great, more of the same then!
The dollar remains bid and is at 104.50 now for the dollar index. Oil is lower at $103.78, and Gold too is down to $1,842. Bitcoin is all over the place, but generally lower at $27,700 now.
European makrets are lower: Eurostoxx -0.8%, FTSE -1% and Dax -2%.
US futures are lower: S&P -0.8%, Dow -0.6% and Nasdaq -1.4%.
Wall Street Top News (SPY) (QQQ)
Bank of England says more hikes are on the way as inflation proves sticky.
ECB signals July rate hike.
US PPI 11% versus 10.7% expected. Core 8.8% versus 8.9% expected.
Stablecoins remain volatile as Luna and UST crack-up hit overall crypto sentiment.
Rivian (RIVN) earnings were in line with guidance reassured.
Tapestry (TPR) up on strong earnings.
Six Flags (SIX) reports strong revenue.
WeWork (WE) up 9% on strong earnings.
Disney (DIS) down 4% on earnings.
Beyond Meat (BYND) misses on top and bottom lines and slumps by 25%.
Lordstown (RIDE) to sell assets to Foxconn.
Bumble (BMBL) up on strong earnings.
Sonos (SONO) sees strong demand as earnings beat and stock pops 5%.
Dutch Bros (BROS) down nearly 40% after earnings. They were bad, in case you were wondering.
Microstrategy (MSTR) down 11% premarket as Bitcoin moves lower. COIN same story.
Coupang (CPNG) upgraded by Citi.
AppLovin (APP) up 8% on earnings.
Tesla (TSLA) nearing key $700 support level as recall and sentiment continue to worsen.
Apple (AAPL): Foxconn reports strong earnings, highest profit in eight years.
Upgrades and Downgrades
Source: Benzinga Pro
Economic releases
The author is short Tesla and Twitter.
Like this article? Help us with some feedback by answering this survey:
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 edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.