591 days ago
#US economy shows continuous strength #markets #trading
Economic data are out and the Fed is not going to like it. Jobs market strong and PCE prices (Q2) higher. Treasury yields are ticking higher following the release.
704 days ago
Green signals for #stocks #Inditex #Vix #economy #trading #S&P500 #technicals #Nasdaq #inflation
It is difficult not to be affected by the negative headline news calling for severe deterioration in markets or the economy. However, investors continue to buy dips in the markets, and volatility (VIX) has come down to 24.4, from a May 9 high of 35, but still significantly up from where it entered the year at 16.6. Near-term risks continue to be inflation data, with a key US CPI report on Friday. But just how bad is the economy? Well, earnings from Zara's owner Inditex may surprise some. Net profit surged 80% as sales surpassed pre-pandemic levels, up 36% from a year ago. Encouraging signs from China lifting restrictions could also boost sentiment and reassure investors about global growth perspectives. But inflation needs to come down, as higher yields simply pressure valuation multiples, and the yield on the US 10-year still seats at 3%, from entering the year at just 1.6%. On a technical picture, the short-term trend remains positive for the S&P500, as long as it is able to hold above its support level at 4'076. A break above 4'189 to target 4'220 would be encouraging.
726 days ago
US retail sales impresses #economy #consumption #growth #trading $spy
US retail sales increased strongly, reflecting robust US consumer consumption capacity despite rising prices. Headline retail purchases rose 0.9% over the month, after an upwardly revised 1.4% gain in March. Stronger consumption means stronger GDP growth which is positive for stocks. Following the solid report, stocks are moving higher and Treasuries are pulling back.
835 days ago
Core PCE hits 4.9% for the month of December! #US #ECI #PCE #trading
Fed's closely watched inflation gauge hit the highest since the 1980s, but in line with estimates. More importantly, the Employment Cost Index rose less than expected 1% (vs. 1.2% expected) and lower than Q3's 1.5%, providing some hope that inflation might be cooling down from here on. The yield on the 2-year fell 5bps following the report, and stock markets reacted positively, reversing morning session losses.
