Us market shrugs off bleak economic data 25/09/2024

HOT STORIES

Middle East tension: Israeli President Isaac Herzog has issued a warning of further military action against Hezbollah, just a day after Israel carried out airstrikes in Lebanon, resulting in over 550 deaths—making it the country's deadliest day in nearly 20 years. This signals a significant escalation in the conflict between Israel and Hezbollah, the Iranian-backed Lebanese militant group, which has intensified after nearly a year of strikes following the onset of the Israel-Hamas war in Gaza. The growing tensions have raised concerns about the possibility of a broader regional conflict.

Stocks on the move: Shares of Netflix Inc. (NFLX) outperformed its competitors on Tuesday amid robust trading activity. Similarly, Tesla Inc. (TSLA) stock rose 1.71%, closing at $254.27, during an overall positive trading session for the broader market, especially the NASDAQ. Deere (DE) rose 0.5% after Donald Trump threatened a 200% tariff on its Mexico-made equipment if elected. Freeport-McMoRan (FCX) jumped 7.9%, leading the S&P 500, as copper prices surged on hopes of stronger Chinese demand following stimulus measures. Boeing (BA) slipped 0.3% after offering workers a 30% wage hike to end a machinists strike. Meanwhile, Moody’s downgraded Alaska Air’s credit rating to junk status, citing concerns over the airline's plan to take on additional debt.

US Pre-Market & today’s action:

Stock futures remained steady Tuesday evening as Wall Street aimed to build on its September gains. S&P 500 futures showed little movement, Nasdaq 100 futures edged up by less than 0.1%, and Dow Jones Industrial Average futures dipped 0.1%. Investors are awaiting key economic reports, including August's new home sales on Wednesday and weekly jobless claims on Thursday. KB Home (KBH) shares fell 6% in extended trading after the company reported fiscal third-quarter earnings that missed analysts' expectations.
Watchlist for today: MU, CTAS, KBH, NVDA, DE, AZO, FCX, PINS
Bitcoin

Bitcoin's recent surge has brought it close to its August high, which analysts see as a potential launchpad for new all-time highs. As of Tuesday's trading session, Bitcoin is priced at $63,710, marking a 0.4% rise in the past 24 hours and a 9% gain over the past week, according to CoinGecko data.
In their Cryptocurrency Compass report, Fairlead Strategies noted that Bitcoin is extending its rally, now testing resistance near its 200-day moving average (~$63.9K), aligning with its August peak. However, they warned that "short-term overbought conditions" may trigger a pullback before a possible breakout.
Watchlist: Bitcoin: 62 180-64 900  Ethereum: 2520-2706, Solana: 140.00 -150.80


Forex Market

The USD/JPY remains strong above 143.00, despite being rejected at 143.50, supported by risk-on sentiment that weakens the safe-haven Japanese Yen. However, the upside is limited by recent US Dollar weakness. Meanwhile, the Chinese yuan strengthened to 7.01 per USD, its strongest level since May 2023. GBP/USD is consolidating just below 30-month highs, buoyed by risk flows that favor the Pound. EUR/USD is nearing its August high, trading around 1.1200, as increased expectations for significant Fed rate cuts outweigh concerns over slowing Eurozone growth.
Whatchlits: EUR/USD: 1.1099-1.1201, USD/JPY: 139.88 -144.50

Basic Materials

Oil futures recorded their first rise in three sessions on Tuesday after China unveiled a series of stimulus measures aimed at revitalizing the economy of the world's largest oil importer. Analysts also noted that ongoing tensions in the Middle East, along with the looming threat of another hurricane impacting the U.S. Gulf Coast, provided additional support for prices. Meanwhile, OPEC remains highly optimistic about long-term growth in oil demand, though not all expertsshare this outlook.
Watchlist: GOLD 2550-2600, US Oil: 69.40-72.75

The TEFS Analyst team wishes you a successful day!