Wall Street Closes Sharply Higher as Investors Await Inflation Data
On Monday, Wall Street closed sharply higher as investors awaited inflation data likely to hint at the path of the Federal Reserve's future interest rate hikes. Meta Platforms gained after a report that the Facebook parent was planning fresh layoffs, and tech-related heavyweights such Microsoft, Nvidia, Apple, and Amazon each rose over 1%. Stifel raised its price target on Microsoft and said it is clearly looking to upend Alphabet's Google search dominance through its integration with ChatGPT. The S&P 500 climbed 1.15% to end the session at 4,13.
The sentiment of the paragraph is positive. Investors are looking to the upcoming inflation data to reassess their bets on the central bank's monetary policy path, while tech-related stocks are rising and Microsoft is looking to upend Google's search dominance.
Dow Rallies on Dip-Buying Ahead of Inflation Report
The Dow Jones Industrial Average, S&P 500, and Nasdaq all rose on Monday as investors took advantage of dip-buying opportunities in tech stocks. Meta Platforms and Microsoft were the biggest beneficiaries of the buying, with Meta jumping 3%. The rebound in tech comes a day before the inflation report, which is expected to show a reacceleration in price pressures. Matt Kennedy, portfolio manager at Angel Oak Capital Advisors, believes that the report could surprise to the upside and encourage the Federal Reserve to remain committed to further rate hikes. Fidelity National Information Services Inc reported quarterly results that beat expectations, but weaker guidance caused its shares to fall 12%.
The sentiment of this paragraph is positive. Investors are taking advantage of dip-buying opportunities in tech stocks, which is expected to encourage the Federal Reserve to remain committed to further rate hikes. Despite weaker guidance from Fidelity National Information Services Inc, the overall sentiment is positive.
U.S. Air Force Shoots Down Unidentified Flying Objects, Adani to Reduce Capital Expenditure
The U.S. Air Force has been shooting down unidentified flying objects over North America, while Indian conglomerate Adani plans to reduce capital expenditure. Wall Street is set for a cautious open ahead of Tuesday's key inflation data, while the European Commission published its latest forecasts, predicting the European Union will avoid recession this year.
The U.S. military confirmed that it shot down another flying object on Sunday, the fourth such entity to be downed over North America by a U.S. missile in a little more than a week. While Washington was quick to describe the first object as a suspected Chinese surveillance balloon, there appears to be more mystery around the latest items. U.S. Air Force General Glen VanHerck said the military had been unable to identify the three latest objects, even refusing to rule out aliens as an explanation. China responded by claiming that U.S. high-altitude balloons had flown over its airspace without permission more than 10 times since the beginning of 2022.
Adani Group plans to cut its revenue growth target as well as capital expenditure. The group has suffered a drastic selloff since U.S. short-seller Hindenburg Research accused it of stock manipulation in late January. Bloomberg reported, citing sources, the group will now aim for revenue growth of 15% to 20% for at least the next financial year.
Overall, the news is a mixed bag of positive and negative sentiment. The U.S. Air Force is taking steps to protect North America, while Adani is reducing capital expenditure. The European Commission's latest forecasts predict the European Union will avoid recession this year, but Wall Street is set for a cautious open ahead of Tuesday's key inflation data. #AirForce #UFO #Adani #CapitalExpenditure #InflationData #EUForecasts
Oil Prices Edge Higher on Russia's Production Cut Plans
Oil prices edged higher on Monday, rebounding from early losses, as investors weighed Russia's plans to cut crude production and short-term demand concerns ahead of U.S. inflation data this week. Brent futures for April delivery rose 22 cents, or 0.3%, to $86.61 a barrel, while U.S. crude rose 42 cents, or 0.5%, to $80.14 per barrel gain. Phil Flynn, analyst at Price Futures Group, noted that the fundamental backdrop for oil is still very strong, with China reopening leading to more demand and Russia and OPEC having the same or less supply, which is bullish.
The rise in oil prices was further buoyed by Russia's announcement to cut crude production in March by 500,000 barrels per day (bpd), or about 5% of output, in retaliation against Western curbs imposed on its exports in response to the Ukraine conflict. The United Arab Emirates' energy minister also said there was no need for the OPEC+ group of oil-producing nations to meet earlier than scheduled as the market was balanced.
Both the Brent and WTI contracts rose more than 8% last week, due to optimism over demand recovery in China after COVID curbs were scrapped in December. U.S. main stock indexes also rose on Monday. The U.S. Federal Reserve has been raising interest rates to rein in inflation, leading to concerns the move would slow economic activity and demand for oil. Matthew Ryan, head of market strategy at financial services firm Ebury, noted that it is difficult to overstate the importance of this single data point, as traders and the Fed look for confirmation of the gradual downward trend of the past few months.
Overall, the sentiment surrounding oil prices is positive, as the market is being supported by Russia's production cut plans, OPEC+ group's decision to not meet earlier than scheduled, and demand recovery in China. Additionally, supply concerns were relieved somewhat as a cargo of Azeri crude set sail from Turkey's Ceyhan port on Monday.
U.S. Equities Move Lower Ahead of CPI Release
As the U.S. equities moved lower last week, investors are now awaiting the release of the Consumer Price Index (CPI) for January. The S&P 500 (SPX) closed 1.1% lower, Nasdaq Composite Index (IXIC) fell 2.4%, while Dow Jones Industrial Average (DJI) had another uneventful week (-0.17%). The headline inflation is expected to drop to 6.2% year-over-year (YoY) from 6.5% reported for December and the core inflation (excluding food and energy) is expected at 5.5% and 0.4%, YoY and MoM, respectively. Analysts have warned of a “growing” risk that the January CPI report could overshoot, which could bring the markets back in-line with one another.
#WallStreet #InflationData #TechStocks #Microsoft #Google #PositiveSentiment
#DowJonesIndustrialAverage #S&P500 #Nasdaq #MetaPlatforms #Microsoft #InflationReport #FederalReserve #RateHikes #FidelityNationalInformationServicesInc
#AirForce #UFO #Adani #CapitalExpenditure #InflationData #EUForecasts
#OilPrices #Russia #OPEC #DemandRecovery #Inflation #Ebury #AzeriCrude
#USEquities #CPI #Inflation #SPX #IXIC #DJI #YoY #MoM
No comments:
Post a Comment