Powell's speech shakes markets 15/11/2024

HOT stories for today

Stocks on the move:

• Domino’s Pizza (DPZ) Shares surged nearly 8% after Berkshire Hathaway disclosed a new investment in the company. According to a regulatory filing, Warren Buffett’s firm purchased over 1.2 million shares, valued at approximately $550 million as of the end of September.
• Ulta Beauty (ULTA) Ulta Beauty shares fell roughly 4% after Berkshire Hathaway revealed it had significantly reduced its stake in the beauty retailer, nearly dissolving its position.
• Applied Materials (AMAT) Shares of the semiconductor equipment maker declined 5% after issuing a weaker-than-expected revenue forecast for the current quarter.
• Palantir Technologies (PLTR) The defense tech company added nearly 4% following its announcement to move its stock listing from the New York Stock Exchange to the Nasdaq.
• Biotechnology stocks continued to slide in after-hours trading after Robert F. Kennedy Jr., a prominent vaccine skeptic, was announced as President-elect Donald Trump’s Secretary of Health and Human Services nominee. Moderna (MRNA) and Pfizer (PFE) were among the companies experiencing declines during extended trading.

Watchlist for today: PLTR, ULTA, MRNA, DIS, AMAT, DPZ, BABA, NVDA

Markets & today's action:

• Asia markets displayed a mixed performance on Friday as Wall Street declined following Federal Reserve Chair Jerome Powell’s speech. Investors in the region analyzed key Chinese economic data, including October retail sales, industrial production, and urban unemployment figures. China's retail sales exceeded expectations in October, but industrial production and investment data fell short of forecasts. The urban unemployment rate improved slightly, decreasing to 5% from 5.1% in September.
• In the U.S., S&P 500 futures edged lower Thursday night, reflecting uncertainty following a fading postelection rally. Dow Jones Industrial Average futures fell 91 points (-0.2%), while S&P 500 and Nasdaq 100 futures slipped 0.3% and 0.4%, respectively.On Friday, investors will closely monitor U.S. retail sales, import prices, and industrial production data, wrapping up a busy week marked by key inflation reports. On the corporate front, Alibaba is set to release its quarterly earnings, drawing attention from global markets. 

Bitcoin

• The speculative excitement around Bitcoin, which surged after Donald Trump's U.S. election victory, is cooling in both spot and derivatives markets. Bitcoin briefly dipped below $87,000 on Friday following Federal Reserve Chair Jerome Powell's comments suggesting no urgency for interest-rate cuts. The remarks appear to have tempered enthusiasm in the crypto market, with traders taking a more cautious stance.  
• Signals from the derivatives market also indicate reduced speculative activity, as investors assess the broader economic outlook and await further policy moves from the incoming administration. Bitcoin has retreated from its recent all-time high, reflecting this moderation in sentiment.
  Watchlist: Bitcoin: 85 000-93600, Ethereum: 3000-3180, Solana: 200-225

Forex

• The EUR/USD pair broke its five-day losing streak, trading near 1.0540 during the Asian session on Friday. The recovery comes as the US Dollar eases, influenced by Federal Reserve Chair Jerome Powell's comments highlighting the "remarkably good" performance of the US economy, which provides room for a gradual reduction in interest rates.
• Meanwhile, the USD/JPY pair extended its rally, reaching around 156.60, the highest level since July 2023. The broader strength of the US Dollar supports the pair's upward momentum. Market participants now await the release of US October retail sales data, which could f.urther influence trading dynamics
  Watchlist: EUR/USD: 1.0540-1.0800, USD/JPY: 151-156.6

Basic Materials

• Gold prices have fallen to near two-month lows as the dollar strengthens following Donald Trump’s election victory. This has halted the bullion’s rally after a year of record highs. Citi’s Maximilian Layton noted a pause in the gold and silver bull market, likely to last a few weeks. On Friday, gold (XAU/USD) hovered around $2,570 after recovering slightly from its lows. Still, it remained under pressure from a strong US Dollar and uncertainty over the Federal Reserve’s rate cut pace. Expectations of higher inflation under Trump’s policies have reduced prospects for rate cuts, making non-yielding assets like gold less attractive.
• U.S. crude oil prices edged higher on Thursday but closed below $69 per barrel as concerns about a significant supply surplus loomed. According to the International Energy Agency's (IEA) monthly report, global crude supplies are expected to exceed demand by over 1 million barrels per day in 2025, driven primarily by strong production growth in the U.S.The prospect of a large surplus has added pressure to oil prices, even as futures saw modest gains during the session.
  Watchlist: GOLD 2580-2700, US Oil: 65.20-73.20

The TEFS Analyst team wishes you a successful day!