The market shows a true bull run 11/11/2024

HOT stories for today

Stocks on the move:

• Tesla (TSLA) shares rose nearly 7%, extending their rally following Donald Trump’s re-election as U.S. president. The electric vehicle company, led by Elon Musk, saw its market capitalization surpass $1 trillion on Friday. Tesla’s stock has surged more than 26% over the course of last week.
• Five Below (FIVE), on the other hand, fell more than 4% as concerns over the potential impact of Trump’s proposed tariffs on Chinese imports continued to pressure the discount retailer’s stock.
• Airbnb (ABNB) shares dropped over 8% after the company reported mixed quarterly results. While Airbnb exceeded revenue expectations, its earnings fell slightly short of analysts' forecasts, weighing on investor sentiment.
• Affirm Holdings (AFRM) saw its stock decline by more than 10%, despite delivering first-quarter results that surpassed expectations on both revenue and earnings. The sell-off suggests that broader market factors or future growth concerns may be impacting investor confidence.
• DraftKings (DKNG) shares edged up 1%, despite the company reporting weaker-than-expected third-quarter earnings and providing a revenue outlook for the current quarter that fell short of expectations. The modest gain suggests investor confidence may be driven by long-term growth potential in the sports betting market.

Watchlist for today: COIN, TSLA, NVDA, AFRM, MNDY, MRNA, MSFT

Markets & today's action:

• Asia-Pacific markets declined on Monday after China’s latest stimulus measures failed to impress and October inflation data came in below expectations, sparking concerns about the recovery of the world’s second-largest economy. Beijing introduced a five-year, 10 trillion yuan ($1.4 trillion) stimulus plan on Friday aimed at addressing local government debt issues, but analysts are skeptical about its potential to significantly stimulate growth. Meanwhile, China’s inflation rate fell to 0.3% in October, missing the 0.4% forecast and lower than the 0.4% recorded in September.
• European markets are expected to open on a positive note Monday as global markets take a moment to consolidate following last week’s U.S. election. U.S. stock futures remained steady on Sunday night, with Wall Street eyeing the week ahead after a post-election rally pushed markets to record highs. Futures tied to the Dow Jones Industrial Average rose 19 points, trading slightly above breakeven, while S&P 500 futures showed little movement. Nasdaq 100 futures, however, managed to climb 0.2%.
• No significant economic data is expected Monday due to Veterans Day in the United States. While the stock market will operate as usual, the bond market will remain closed. Investors are turning their attention to key inflation reports scheduled for later in the week. On the corporate front, companies reporting earnings on Monday include Ticketmaster parent Live Nation Entertainment and food and facility service provider Aramark.

Bitcoin

• Bitcoin's price surpassed the $80,000 milestone for the first time on Sunday, continuing a rally driven by optimism in the cryptocurrency market following Donald Trump’s election victory. Bitcoin (BTCUSD) saw a 1.22% increase, initially climbing to $81,074 on Sunday afternoon before briefly dipping below $79,000. However, it regained momentum Sunday night, reaching $81,342 by 10 p.m. Eastern, according to data from CoinDesk. Over the past week, Bitcoin has risen by more than 14%, over the past month by 25%, and an impressive 112% over the last year.
• Trump’s victory in Tuesday’s presidential election has fueled hopes for favorable cryptocurrency regulations. Despite previously labeling cryptocurrency as “a scam,” Trump has shifted his stance, expressing strong support for digital assets. He has outlined promises to the crypto community, including reducing federal regulations, removing SEC Chairman Gary Gensler, establishing a U.S. crypto reserve, and making the U.S. the "crypto capital of the world." Why might Trump’s changing perspective and regulatory promises have a significant influence on the future of cryptocurrency?
  Watchlist: Bitcoin: 75 000-81 900, Ethereum: 2440-2790, Solana: 167.50-180.20

Forex

• The Japanese Yen extended its weakness as the Bank of Japan's (BoJ) summary revealed internal disagreements among policymakers regarding the timing of a rate hike.  Adding to the uncertainty, Japan's Prime Minister Ishiba faces a leadership challenge, which further weighs on the JPY.  Meanwhile, optimism surrounding Trump’s policies continues to bolster the US Dollar, supporting the USD/JPY pair's upward trajectory.  
• EUR/USD remains subdued as the US Dollar strengthens on expectations of Trump increasing import tariffs and implementing corporate tax cuts. Trump’s proposed fiscal measures could amplify inflation risks, potentially compelling the Federal Reserve to adopt a more aggressive monetary policy. In Europe, German Chancellor Olaf Scholz dissolved the ruling coalition, prompting new elections to address political instability, which further pressures the Euro.
  Watchlist: EUR/USD: 1.0680-1.0900, USD/JPY: 150-153.80

Basic Materials

• Oil prices fell during Friday’s session as fears of significant damage to U.S. Gulf oil and gas infrastructure from Hurricane Rafael eased. Adding to the downward pressure, concerns over weakening demand in China intensified after data revealed a 9% drop in crude imports for October. This marks the sixth consecutive month of year-over-year declines in oil imports by the world’s largest oil importer. As of 11:40 a.m. ET, Brent crude is trading around $70.28, with the $70 mark still serving as a strong support level.
• Gold prices remain under pressure, marking a decline for the second consecutive day due to a mix of influencing factors. Optimism surrounding Trump's trade policies continues to support the US Dollar, exerting downward pressure on the precious metal. Additionally, a positive market risk sentiment dampens the appeal of the safe-haven XAU/USD, despite growing expectations of potential rate cuts by the Federal Reserve.
  Watchlist: GOLD 2670-2770, US Oil: 68.70-72.50

The TEFS Analyst team wishes you a successful day!