Markets close unchanged 21/11/2024

HOT stories for today

Stocks on the move:

• Snowflake (SNOW) shares jumped 18% after exceeding third-quarter earnings expectations and issuing strong guidance. The company reported adjusted earnings of 20 cents per share on $942 million in revenue, beating analyst estimates of 15 cents per share and $897 million in revenue.
• Palo Alto Networks (PANW) slipped 5% following the announcement of a two-for-one stock split. Its fiscal second-quarter guidance, with adjusted earnings of $1.54 to $1.56 per share on revenue of $2.22 billion to $2.25 billion, was in line with Wall Street forecasts.
• Jack in the Box (JACK) fell 5.6% after reporting fourth-quarter revenue of $349.3 million, below the consensus estimate of $356.7 million. However, adjusted earnings of $1.16 per share outperformed analysts' expectations by 7 cents.

Watchlist for today: NVDA, SNOW, PANW, JACK, PDD, BIDU, DE

Markets & today's action:

• Asia markets mostly declined as investors digested Nvidia's earnings and reacted to significant developments involving Indian stocks tied to billionaire Gautam Adani. Shares of Adani Group companies tumbled sharply, with Adani Enterprises dropping 20% after Adani and others were indicted in a New York federal court for an alleged bribery and fraud scheme.
• In the U.S., Nasdaq 100 futures fell 0.5%, S&P 500 futures dropped 0.4%, and Dow Jones Industrial Average futures slipped 49 points (0.1%) as markets reacted to Nvidia’s earnings and broader cautious sentiment. European stocks, meanwhile, pointed to a modestly positive open.
• Key economic reports due Thursday include data on jobless claims and existing home sales, alongside speeches from Federal Reserve officials Beth Hammack, Austan Goolsbee, and Jeff Schmid. On the earnings front, Gap and Intuit will release their results after the market closes, drawing further attention from traders.

Bitcoin

• Bitcoin has reached new all-time highs, but with surprisingly subdued volatility compared to previous bull runs. Why is this rally different? The answer lies in the maturing crypto market and the growing role of institutional investors.
• A key factor behind bitcoin's stability is the increased participation of institutions, supported by regulatory approval of exchange-traded funds (ETFs) investing directly in bitcoin and ether earlier this year. According to Bobby Zagotta, CEO of Bitstamp US, institutional involvement has a stabilizing effect on bitcoin's price. Unlike markets dominated by retail traders, which can be highly reactive to news and sentiment shifts, institutional participation helps create more sustainable growth patterns. This shift marks a turning point for bitcoin, potentially signaling a new era of reduced volatility and long-term resilience as the asset garners mainstream acceptance.
  Watchlist: Bitcoin: 85 000-97 852, Ethereum: 3000-3450, Solana: 228-249

Forex

• The Japanese Yen (JPY) regained ground against the U.S. Dollar (USD) on Thursday, reversing losses from the previous session. The USD/JPY pair dipped to a fresh daily low around the mid-154.00s as European trading began. While Bank of Japan (BoJ) Governor Kazuo Ueda refrained from directly addressing monetary policy, he signaled the possibility of an interest rate hike as early as next month. This, combined with persistent geopolitical risks, bolstered the safe-haven appeal of the yen, amid fears of potential market intervention.
• Meanwhile, the EUR/USD pair edged higher to near 1.0550 during Thursday’s Asian session, recovering slightly from prior losses. However, safe-haven demand stemming from geopolitical tensions continues to pose downside risks, potentially limiting further gains for the euro.
  Watchlist: EUR/USD: 1.0496-1.0610, USD/JPY: 151-156.9

Basic Materials

• Crude oil prices dipped following the U.S. Energy Information Administration's report of a 500,000-barrel inventory build for the week ending November 15. As of now, Brent crude is trading at $73.26 per barrel, while WTI stands at $69.50. Oil markets remain caught between escalating tensions in the Russia-Ukraine conflict and reports of increased U.S. inventories. Signs of improving Chinese crude demand are adding to the war premium, but this premium is far lower than the levels seen two years ago when any hint of disruption in Russian exports caused significant price spikes.
• Meanwhile, gold prices (XAU/USD) continue their upward trajectory, trading near $2,660, a one-and-a-half-week high. Geopolitical risks from the Russia-Ukraine war are driving strong safe-haven flows into the precious metal. Subdued U.S. Dollar (USD) performance further supports gold’s bullish trend, marking its fourth consecutive day of gains.
  Watchlist: GOLD 2530-2700, US Oil: 65.20-70.50

The TEFS Analyst team wishes you a successful day!