CPI data stirs market movements 11/10/2024

HOT stories for today
11/10/2024.
 

Stocks on the move:

• Nvidia's (NVDA, +1.63%) stock has surged, breaking out of a bullish 'pennant' pattern. Some analysts are eyeing a rally above $170. Demand for its Blackwell chip lineup is strong, with orders already backlogged until late 2025, which could drive further stock gains.
• Eli Lilly & Co. (LLY, -0.98%) is intensifying its legal efforts against companies that were briefly permitted to produce and sell generic versions of their weight-loss drugs during a recent US shortage, which ended last week. 
• Meanwhile, Domino's Pizza Inc. (DPZ, +1.08%) has reduced its 2024 forecasts for sales growth and new store openings, citing the impact of slower consumer spending on the restaurant industry.
• AMD's stock dropped over 4% after its Advancing AI keynote, a stark contrast to last year's event, which significantly boosted shares. This time, it appears that investors were expecting more from the announcements.

Watchlist for today: NVDA, JPM, WFC, MSFT, FAST, RBLX, TSLA

Markets & today's action:
 

• Asia-Pacific markets mostly rose on Friday, diverging from Wall Street's decline after a sticky US inflation report. Investors in the region reacted to the Bank of Korea's decision to cut its benchmark interest rate by 25 basis points to 3.25%, marking its first cut since 2020 and ending a multi-year tightening cycle that peaked at a 15-year high in 2023.
• Stock futures remained relatively stable on Thursday evening, with investors anticipating a wholesale inflation report and earnings from central banks. S&P 500 futures edged up 0.1%, while Nasdaq 100 futures also rose 0.1%. Dow Jones Industrial Average futures gained 43 points.
• Another critical catalyst awaits on Friday morning: the producer price index (PPI), a gauge of wholesale prices. Economists surveyed by Dow Jones expect the PPI to rise 0.1% in September, with a 0.2% increase excluding food and energy costs. Additionally, JPMorgan Chase and Wells Fargo will report quarterly earnings before the market opens, potentially impacting Friday's trading.

Bitcoin

• Bitcoin dipped to $58,867 on Thursday before rebounding above $60,000 by 8:50 pm The initial drop was marked by heavy selling, while the slower rebound suggests a potential recovery. During the sell-off, trading volume surged but then gradually eased as prices recovered, indicating reduced market activity or cautiously buying. The one-hour chart signals mainly remained neutral.
• Bitcoin's market cap stood at $1.19 trillion, accounting for over 56% of the total $2.11 trillion crypto market, while the crypto fear and greed index reflected a “fear” score of 37. Traders remain cautious, balancing optimism with uncertainty amid ongoing market volatility.
  Watchlist: Bitcoin: 58,867-64,700, Ethereum: 2320-2550, Solana: 133.50 -152.70

Forex Market

• The EUR/USD pair remains under pressure, struggling to gain traction below the 1.0950 level as traders await the release of German inflation data. The outcome could influence market sentiment and provide direction for the euro against the US dollar.
• The Japanese Yen edged lower against the US Dollar, staying near a more than two-month low as markets awaited the US Producer Price Index (PPI) data. The outcome could influence the USD/JPY pair's direction, potentially impacting monetary policy expectations.
• The GBP/USD pair is consolidating around the mid-1.3000s, with a vulnerable outlook as traders await upcoming UK economic data. The release could significantly impact the British pound's direction if it influences expectations around the Bank of England's policy stance.
  Whatchlits: EUR/USD: 1.0947-1.1.1000, USD/JPY: 147-149.50

Basic Materials

• Oil prices are on a rollercoaster, rebounding after a two-day decline as traders closely monitor the situation between Israel and Iran. Brent trades near $77 a barrel, while West Texas Intermediate sits around $74. Tensions are high amid fears of a broader conflict. Iran has been warned of launching thousands of missiles if provoked, adding to the market's anxiety.
• In the US, crude stockpiles surged by 5.8 million barrels, the largest increase since April, while gasoline inventories dropped. President Biden has discouraged strikes on Iran's oil infrastructure, holding discussions with Israeli Prime Minister Netanyahu. At the same time, concerns over China's economy and the lack of fresh stimulus from Beijing have fueled recent market volatility, triggering a broad selloff earlier in the week.
• Gold prices extended Thursday's gains, driven by mixed US economic data, edging closer to $2,650. The data fueled expectations of a more dovish stance from the Federal Reserve, boosting demand for gold as a safe-haven asset.
  Watchlist: GOLD 2600-2685, US Oil: 71.40-77.60

The TEFS Analyst team wishes you a successful day!