Minor market pullback ahead of Thanksgiving 28/11/2024

HOT stories for today

Stocks on the move:

• Nordstrom (JWN): Shares fell 8.1% after CEO Erik Nordstrom reported a slowdown in sales starting in late October. Despite this, the company’s third-quarter revenue of $3.46 billion beat the $3.35 billion LSEG consensus.
• Urban Outfitters (URBN): The stock jumped 18.3% after reporting third-quarter earnings of $1.10 per share, exceeding the 86 cents expected by analysts polled by LSEG. Revenue also topped estimates, reaching $1.35 billion versus the $1.34 billion consensus.
• CrowdStrike (CRWD): Shares dropped 4.6% following slightly weaker-than-expected guidance from the cybersecurity company.
• Workday (WDAY): The stock declined 6.2% as the human resources software company issued disappointing guidance for the fourth quarter.

HAPPY THANKSGIVING!

Bitcoin

• Bitcoin (BTC) rose nearly 4% on November 27, climbing back above $96,000 after briefly nearing weekly lows. The recovery was fueled by buyers stepping in as key U.S. macroeconomic data, including jobless claims and the Federal Reserve’s preferred inflation gauge, the PCE Index, aligned with expectations.
• The data bolstered market confidence in a potential 0.25% Federal Reserve interest rate cut next month, with CME Group’s FedWatch Tool showing a 66% probability of the move. Bitcoin, often seen as a digital alternative to gold, frequently trades in tandem with the stock market and mirrored its slight recovery on Wednesday as it aimed to solidify support near $95,000.
  Watchlist: Bitcoin: 90 000-99 590, Ethereum: 3000-3500, Solana: 220-265

Forex

• The Japanese Yen (JPY) pulled back on Thursday after hitting a one-month high against the US Dollar (USD) earlier this week. Strengthened US Treasury yields, supported by resilient US economic data and stalled inflation progress, boosted USD demand. This pushed the USD/JPY pair above the mid-151.00 level during the Asian session. Speculation that the Federal Reserve may adopt a cautious approach to future rate cuts added momentum to the USD rebound, while the JPY, a traditionally lower-yielding currency, faced additional selling pressure. However, lingering geopolitical risks, trade tensions, and expectations of a potential December rate hike by the Bank of Japan may cap JPY losses.
• Meanwhile, EUR/USD edged back toward the 1.0600 level on Wednesday, benefiting from a broad pullback in demand for the Greenback rather than specific Euro strength. As holiday trading thins out volumes, will the Yen find support, or will USD momentum continue to dominate?
  Watchlist: EUR/USD: 1.0300-1.0650, USD/JPY: 150-157

Basic Materials

• Gold prices (XAU/USD) softened during the Asian session on Thursday, pressured by rising US Treasury yields and a recovering US Dollar. However, the precious metal found support around the $2,620 level, trimming some intraday losses. Recent US economic data highlighted a resilient economy and limited progress on inflation, prompting speculation that the Federal Reserve might proceed cautiously with further rate cuts. These factors bolstered USD demand, weighing on the appeal of non-yielding assets like gold. Nonetheless, trade war concerns and geopolitical tensions are expected to limit gold’s downside, particularly in thin trading volumes due to the US holiday.
• Oil prices also slipped slightly in Asian trading, with Brent crude futures down 0.1% to $72.79 per barrel. A surprise increase in US gasoline inventories ahead of Thanksgiving raised concerns about demand in the world’s largest fuel consumer. Will safe-haven demand and geopolitical risks support gold, or could stronger USD momentum push prices lower?
  Watchlist: GOLD 2530-2790, US Oil: 65.00-73.00

The TEFS Analyst team wishes you a successful day!