Markets falter following CPI release 14/11/2024

HOT stories for today

Stocks on the move:

• Cisco Systems (CSCO): The stock slipped by less than 1% despite the company exceeding expectations on revenue and earnings in its fiscal first quarter.  
• Sonos (SONO) Shares dipped slightly, falling less than 1%, after the audio equipment manufacturer reported fourth-quarter results. Sonos recorded a loss of 44 cents per share on $255.4 million in revenue, though comparisons were limited due to sparse analyst coverage.  
• CNH Industrial (CNH) shares soared approximately 8% in after-hours trading following Greenlight Capital's David Einhorn announcing at CNBC’s Delivering Alpha conference that he has taken a medium-sized stake in the agricultural equipment manufacturer.
• Beazer Homes USA (BZH) shares jumped approximately 12% after the Atlanta-based homebuilder announced October sales had increased over 30% year-over-year, attributed to a “growing community count,” according to the company.  

Watchlist for today: CSCO, BZH, SMCI, NVDA, SONO, TSLA, COIN, CNH, DIS

Markets & today's action:

• Asia-Pacific markets showed a mixed performance on Thursday following the U.S. October consumer price index (CPI) data, strengthening expectations for another Federal Reserve rate cut in December. Meanwhile, European stocks faced declines on Wednesday.
• In the U.S., stock futures saw little movement Wednesday night, suggesting the recent postelection rally may be losing momentum. Dow Jones Industrial Average futures dropped 56 points, S&P 500 futures dipped 0.12%, and Nasdaq 100 futures fell 0.21%. On the economic calendar, the October producer price index (PPI) is set for release on Thursday, with the retail sales report following on Friday. Fed Chair Jerome Powell is also scheduled to speak Thursday in Dallas, Texas. Additionally, Disney will report its earnings ahead of Thursday's market opening.

Bitcoin

• Bitcoin surpassed $93,000 for the first time on Wednesday, extending its postelection surge as traders analyzed October inflation data. The leading cryptocurrency last traded up over 1%, at $91,201.09, after hitting a new all-time high of $93,469.08. Bitcoin has gained momentum recently, fueled by a post-election rally in risk assets and its perception among investors as a hedge against potential inflation driven by fiscal policy.
• In contrast, Ether dropped 3%, while XRP declined by 4%. Dogecoin, however, rose by 2%, continuing its strong performance since the election. Its rally has been attributed to Tesla CEO Elon Musk’s involvement in President-elect Donald Trump’s campaign and his forthcoming role in the administration, which was confirmed Tuesday night. Could Bitcoin's record-breaking rally signal sustained growth, or will inflation fears temper its momentum? And how might Elon Musk’s political connections influence the future of Dogecoin and the broader cryptocurrency market
  Watchlist: Bitcoin: 85 000-93600, Ethereum: 3000-3470, Solana: 200-227

Forex

• The Japanese Yen (JPY) continues to face strong selling pressure during Thursday's Asian session, pushing the USD/JPY pair above the 156.00 level for the first time since July 23. This persistent weakness in the JPY is largely attributed to mounting skepticism about the Bank of Japan's ability to tighten further its monetary policy, compounded by concerns about the potential impact of U.S. President-elect Donald Trump’s trade tariffs on Japan’s economy.
• Meanwhile, the EUR/USD pair extended its losing streak to a fifth consecutive day, hovering near 1.0550 and hitting new yearly lows. The decline is primarily driven by a strengthening U.S. Dollar, fueled by "Trump trades" linked to expectations of pro-growth U.S. policies. Traders are now focusing on the release of Eurozone Gross Domestic Product (GDP) data later on Thursday. 
  Watchlist: EUR/USD: 1.0550-1.0800, USD/JPY: 151-156.4

Basic Materials

• Gold prices declined on Wednesday after October’s inflation report matched expectations. The precious metal reached a daily high of $2,618 but pulled back as U.S. Treasury yields rose and the U.S. Dollar strengthened to a new year-to-date high, as measured by the Dollar Index (DXY). XAU/USD is currently trading at $2,581, down over 0.60%. Could the upward momentum in U.S. Treasury yields and the Dollar continue to pressure gold prices, or might renewed inflation fears reignite demand for the safe-haven asset?
• Oil prices climb on unexpected crude draw. Crude oil inventories in the United States dropped by 777,000 barrels for the week ending November 1, according to data from the American Petroleum Institute (API). This defied analyst expectations, which had predicted an increase of 1.0 million barrels. In the previous week, the API had reported a larger build of 3.132 million barrels in crude inventories. According to API figures, crude oil inventories have seen a net decline of nearly 4 million barrels year-to-date. Could this unexpected draw in crude inventories signal tightening supply conditions, or are broader market factors, including SPR trends, likely to weigh on prices
  Watchlist: GOLD 2550-2700, US Oil: 65.20-73.20

The TEFS Analyst team wishes you a successful day!