Dow sets new highs on Friday 23/09/2024

                                                             HOT stories for today


Us-China : The U.S. Commerce Department is set to propose banning Chinese software and hardware in autonomous and connected vehicles on U.S. roads due to national security concerns, sources told Reuters. The Biden administration is concerned about data collection by Chinese firms and the potential manipulation of connected vehicles. The regulation would ban the import and sale of Chinese vehicles with key communication or automated driving system components.
Stocks on the move: FedEx Corp. dropped 15% after missing profit forecasts and warning of a slowdown in its operations, signaling potential economic weakness. Lennar Corp. also declined as its quarterly home orders fell below Wall Street predictions. Intel Corp. was one of the session’s gainers following news of a potential takeover bid by Qualcomm Inc., while Constellation Energy Corp., the largest U.S. reactor operator, reached a record high with plans to reactivate Three Mile Island.
This week’s highlight: This week’s highlights include a range of earnings reports, economic data, and the Fed’s preferred inflation measure. On Monday, S&P Global will release its Manufacturing and Services PMI for September, followed by the Consumer Confidence Index on Tuesday, and the durable goods report on Thursday. On Friday, the Bureau of Economic Analysis will publish the personal consumption expenditures price index for August. Earnings reports will feature Micron (MU), AutoZone (AZO), Costco (COST), and more. Stay tuned for daily updates.

Watchlist for today: AZO, CTAS, NVDA, INTC, AFRM, NKE

US Pre-Market

Futures: The S&P 500 is up 0.17 %, the Dow Jones Industrial Average is up 0.06%, and the Nasdaq 100 is up 0.26%.
Dow Jones Industrial Average futures remained relatively unchanged on Sunday night after enthusiasm from last week's interest rate cut pushed the blue-chip index to a record-high close. Futures linked to the 30-stock index dipped by only 12 points, staying nearly flat. Similarly, S&P 500 and Nasdaq 100 futures showed minimal movement. Investors will be paying attention to Monday's economic reports on the service and manufacturing sectors. Additionally, speeches from Atlanta Fed President Raphael Bostic, Chicago Fed President Austan Goolsbee, and Minneapolis Fed President Neel Kashkari will be closely followed for clues on the Federal Reserve's next steps.
SPY keeps trading near All Time High, forming a bull flag ont he daily chart.
Watchlist for today: AZO, CTAS, NVDA, INTC, AFRM, NKE

Bitcoin

Bitcoin saw a strong surge following the Fed's rate cut, hovering around the $63,000 mark. Growing optimism among investors and analysts is driven by several factors. One major reason is the U.S. Securities and Exchange Commission's approval for Nasdaq to list and trade options on BlackRock’s iShares Bitcoin Trust. According to the official filing from Sept. 20, the SEC’s decision came after a thorough review process that began on Jan. 9, 2024, when Nasdaq submitted its proposal to trade options on exchange-traded products. Another positive indicator is the divergence between Bitcoin's (BTC) price and its hashrate, or the network's total computing power, which could signal a potential price rally. Historically, these divergences have occurred only a few times in the last three years, often marking a local price bottom followed by a rally as the market aligns with the increasing hash rate.
Watchlist: Bitcoin: 62 180-64 820  Ethereum: 2520-2700, Solana: 140.00 -150.80

Forex Market

The key question for the currency market this week is: Can the US dollar maintain its range support, or will it finally give way? The DXY is barely holding above crucial support at 100.60. Meanwhile, EURUSD is nearing a bullish breakout above 1.1140 as the DXY struggles to rebound. A weekly close above 1.1140 could open the door to testing August highs and possibly the 2023 peak at 1.1275. GBPUSD is also rising on USD weakness, with last week’s close above the key 1.3100 level making this week's rally unsurprising. USDJPY is recovering on a weaker yen but continues to face strong resistance at 144.00, which remains a key level for next week.
Whatchlits: EUR/USD: 1.1099-1.1194, USD/JPY: 139.88 -144.50

Basic Materials

Oil prices ended lower on Friday but notched a second consecutive week of gains, supported by a U.S. interest rate cut and a decline in domestic supply. Despite a flat close on Friday, WTI crude hovered at $71.9 per barrel amid rising Middle East tensions and reduced U.S. supply. Concerns over potential supply disruptions grew after renewed tension between Israel and the Hezbollah.
Additionally, U.S. refineries are planning their lightest maintenance in three years, potentially driving up oil demand. The Federal Reserve’s larger-than-expected rate cut also boosted hopes for increased economic activity and fuel consumption. However, China's sluggish refinery output and weak industrial demand continued to weigh on the market.
Watchlist: GOLD 2550-2634 US Oil: 68.70 -71.70

The TEFS Analyst team wishes you a successful day!