Wild market swings close out green September 01/10/2024

HOT stories for 01.10.2024

SMCI & AAPL stories:

• Super Micro Computer (SMCI) is making waves with its 10-for-1 stock split, set to take effect after Monday's market close, with post-split trading kicking off Tuesday. But what’s next for the company, whose shares have already plummeted 65% from their March high of $1,188.07? The stock faces even more uncertainty after Hindenburg Research’s August report accusing Super Micro of accounting red flags and other issues. While the company has denied the claims and delayed its 10-K filing, the Justice Department is now reportedly investigating. Could this investigation further shake investor confidence, or is a rebound on the horizon?
• Apple Inc. shares jumped Monday, pushing the stock into positive territory for the month, following J.P. Morgan's optimistic outlook on iPhone 16 availability. Analyst Samik Chatterjee noted shorter delivery times, suggesting the initial delays for Pro models were likely a supply mix issue. If improvements continue, it could mean stronger iPhone sales ahead, driven by anticipation for Apple’s AI software, Apple Intelligence.

US Pre-Market & today’s action:

• Stock futures opened flat Monday after September ended with gains. S&P 500 and Nasdaq 100 futures dipped 0.1%, while Dow futures fell 64 points. European markets are expected to start October positively, with focus on eurozone inflation data. Asia-Pacific markets were mixed after Fed Chair Powell suggested future rate cuts may be less aggressive.

• McCormick and Lamb Weston will report earnings Tuesday before the bell, while Nike releases results after the bell. Traders are also keeping an eye on the potential port strike. On the economic front, the U.S. Bureau of Labor Statistics will release the August Job Openings and Labor Turnover Survey (JOLTS) Tuesday morning. Additionally, the S&P Global U.S. Manufacturing PMI and ISM Manufacturing PMI are scheduled for release.

  
  Watchlist for today: LW, MKC, CALM, NKE, CVS, UNFI, COIN

Bitcoin:

• Bitcoin is ending one of its strongest September rallies on a down note, falling below $65,000. Technical indicators now signal headwinds, with large sell walls emerging at key levels.
• The cryptocurrency dropped 3.7% to $63,370 on Monday, trimming its monthly gain to 7.6%, still the largest September increase in 12 years. The decline follows a three-week rally, as traders took profits and added supply to the market.
  Watchlist: Bitcoin: 62 400-65 860, Ethereum: 2517-2710, Solana: 141.20 -158.10

Forex Market:

• The US Dollar Index (DXY), which measures the USD against six major currencies, continues to rise for the second consecutive day, trading around 100.80 during Tuesday's Asian session. The dollar strengthened following remarks from Federal Reserve Chairman Jerome Powell.
• Meanwhile, the EUR/USD remains flat, hovering around 1.1135-1.1140, as traders await Eurozone inflation data. The pair struggled to recover after a pullback from its 14-month peak above 1.1200.
• The Japanese Yen also weakened after the BoJ's summary showed no immediate plans for further rate hikes.
  USD/JPY trades around 144.10 on Tuesday, re-entering the ascending channel pattern, signaling a bullish trend. The 14-day RSI is just below 50, and a break above could confirm further upward momentum.
  Whatchlits: EUR/USD: 1.1099-1.1215, USD/JPY: 142-146.60

Basic Materials:

• Oil prices struggled for direction on Monday as analysts analyzed China's economic data for demand signals amid escalating geopolitical tensions, with Washington anticipating an Israeli ground assault on Lebanon. The Energy Information Administration (EIA) reported that U.S. oil demand reached its highest seasonal level since 2019, with total consumption rising 1.2% from June to July, hitting 20.48 million barrels per day.

• Gold prices rebounded early Tuesday, ending a two-day correction from record highs of $2,686. Buyers are seizing on heightened Middle East tension. Gold traders are eyeing $2,670 as geopolitical risks persist ahead of key US economic reports.
  Watchlist: GOLD 2600-2685, US Oil: 66.87-70.00

The TEFS Analyst team wishes you a successful day!