New records on Dow and S&P 500 10/10/2024

Hot stories for today
10.10.2024.

Stocks on the move:

Norwegian Cruise Line (NCLH) – Shares surged about 11% after Citi upgraded the stock from neutral to buy, citing expectations for significant earnings per share growth that could drive further gains and margin expansion.

Reddit (RDDT) – The stock increased after Jefferies initiated coverage with a buy rating. Analyst John Colantuoni highlighted strong user growth and the potential to close its monetization gap, which could give Reddit an advantage over competitors.

GitLab (GTLB) – Shares jumped over 7% following Morgan Stanley's new overweight rating. The firm believes GitLab's extensive product lineup positions it well to become a key player in the software delivery market.

Boeing (BA) – Shares fell 3% on Wednesday as a machinists' union strike continued. After failed negotiations, Boeing withdrew its contract offer, and S&P Global Ratings issued a negative outlook for the company's credit rating.
 

Watchlist for today: DAL, COIN, AAPL, SMCI, AFRM, DPZ, PDD

Markets & today's action:
 

• Asia-Pacific markets mainly opened higher on Thursday, following Wall Street's gains as investors brushed off geopolitical concerns. Traders in the region focused on Japan's producer price data, which rose 2.8% year-over-year in September, exceeding the 2.3% forecast and up from 2.5% in August.
• European markets are also set for a positive start, with investors eyeing US inflation data for signs of easing price pressures. Meanwhile, US stock futures were flat primarily Wednesday night, with Dow futures trading near the flatline, S&P 500 futures down 0.03%, and Nasdaq 100 futures slipping 0.04%. 
• The spotlight is on September's Consumer Price Index (CPI) report, due Thursday morning, as investors seek further evidence of cooling inflation. Other key releases include weekly jobless claims, and Wall Street will also watch Delta Air Lines' quarterly earnings before the market opens.

Bitcoin

• Bitcoin experienced a tough session on Wednesday, starting above $62,000 but quickly sliding to a low of $60,541. This drop triggered over $40 million in Bitcoin long liquidations, while total crypto market liquidations reached $169.45 million across both long and short positions in the past 24 hours. A key factor in the selling pressure was the Coinbase Premium Gap, which fell to—$48.4, indicating a decline in buying interest on the platform. 
• Market analyst Maartunn, using data from CryptoQuant, noted that the “Coinbase Premium has fallen to -$41, signaling strong selling pressure from US institutions.” This trend suggests that institutional investors may be behind the recent slide in Bitcoin's price, amplifying market volatility.
  Watchlist: Bitcoin: 59,700-63,510, Ethereum: 2320-2550, Solana: 133 -152.50

Forex Market
 

• The GBP/USD pair traded with a slight positive bias around 1.3075 during the Asian session on Thursday but lacks strong bullish momentum. It remained close to the nearly one-month low reached the previous day.
• Meanwhile, the EUR/USD struggles to find significant buyers amid a strong USD, consolidating around the lower 1.0900s after recent heavy losses to a two-month low.
• The Japanese Yen (JPY) remains under pressure due to uncertainty around BoJ rate hikes. This has pushed the USD/JPY pair above the mid-149.00s, reaching its highest level since early August during Thursday's Asian session.
  Whatchlits: EUR/USD: 1.0947-1.1.1000, USD/JPY: 146-149.50

Basic Materials
 

• Crude oil futures dipped on Wednesday, following a sharp selloff the day before as uncertainty looms over Israel's potential response to Iran. US crude settled at $73.24 per barrel, down 33 cents (0.45%), while Brent, the global benchmark, closed at $76.58 per barrel, down 60 cents (0.78%)
• The Gold price (XAUUSD) struggles to hold gains from a modest Asian session rise, lingering near a three-week low. However, caution is warranted, as Gold has repeatedly found support in the $2605-$2604 range. The upcoming CPI data could further influence the price direction.
  Watchlist: GOLD 2604-2685, OIL: 71.35-77.50

The TEFS Analyst team wishes you a successful day!