Dow pressured by Amgen, drops 300 points 26/09/2024

HOT stories for today

China:

The Chinese market is still facing challenges, as recent stimulus efforts may fall short of sparking an equities rebound, according to Krishna Mohanraj, portfolio manager at Diamond Hill. Chinese stocks came under pressure on Wednesday, with the iShares China Large-Cap ETF (FXI) slipping more than 2% at midday, despite a brief lift from Beijing’s previous stimulus announcement. Analysts remain skeptical that measures such as interest rate cuts, even for existing mortgages, will be enough to revive China's economy, which continues to grapple with sluggish demand.

Stocks on the move:

Notable declines came from General Motors and Ford, both sliding over 4% after being downgraded by Morgan Stanley. A 5.5% drop in Amgen put pressure on the Dow. Hewlett Packard Enterprise surged more than 5% after Barclays upgraded the stock, pointing to robust demand for artificial intelligence data centers as a key driver. Chip giant Nvidia gained 2.2%, pushing its market value beyond the $3 trillion threshold. Chevron shares dipped more than 2%.
 

US Pre-Market & today’s action:

Asia-Pacific markets rose on Thursday, led by a 3% surge in Hong Kong’s Hang Seng index, its highest since May.  Japan’s Nikkei gained 2.12%, and the Topix rose 1.65% after the Bank of Japan released minutes from its July meeting. European stocks are set to open higher, buoyed by gains in Asian markets.
In the U.S., Dow futures climbed 105 points (0.25%), while S&P 500 and Nasdaq 100 futures rose 0.52% and 0.96%, respectively, with Micron Technology shares contributing to the Nasdaq’s gains. Traders await key economic data, including jobless claims and GDP, along with speeches from several Federal Reserve officials.
Watchlist for today: MU, KMX, COST, ACN, JBL, SNX, NVDA, AMGN

 

Bitcoin

Recent data showed Bitcoin briefly falling below $64,000 after reaching a one-month high of $64,795.Despite the higher lows and highs on shorter timeframes, the price movement hasn't provided enough confidence for a potential major breakout. Analyzing the market structure, it seems the $65,000 level, a key point of sell-side liquidity, remains firm. There's ongoing passive selling around $65K, reinforcing the idea that this level is a significant resistance point for the market.
Watchlist: Bitcoin: 62 180-64 900  Ethereum: 2520-2706, Solana: 140.00 -150.80



Forex Market

The US dollar saw a sharp intraday reversal. The euro initially climbed to its highest level since July at 1.1213, only to drop 90 pips in a steady decline. This pattern was mirrored across other currency pairs as the dollar gained strength. USD/JPY edged higher, rising from 143.30 to 144.30. While there wasn’t a clear catalyst, US yields have stayed slightly elevated, with 2-year Treasury yields, which hit a two-year low yesterday, ticking up by 2 basis points to 3.54%.
Whatchlits: EUR/USD: 1.1099-1.1201, USD/JPY: 139.88 -144.50

 

Basic Materials

Oil futures closed lower on Wednesday, reversing the strong gains from the previous day, when China's aggressive monetary stimulus plan had fueled a broad commodities rally. Despite a second consecutive weekly drop in U.S. crude inventories and energy production disruptions in the Gulf of Mexico, these factors were unable to prop up prices. Gold futures hit another record high on Wednesday, following silver’s highest settlement in over 11 years the day prior. However, both metals could be due for a pullback in the coming weeks, as technical indicators on daily charts suggest "upside exhaustion," according to one analyst.
Watchlist: GOLD 2550-2600, US Oil: 69.40-72.75

The TEFS Analyst team wishes you a successful day!