Markets see a red day 06/12/2024

HOT stories for today

 

Stocks on the move:

• Ulta Beauty (ULTA) shares jumped 12% after the company exceeded expectations on both earnings and revenue in its fiscal third quarter. Ulta reported $5.14 per share on revenue of $2.53 billion.
• GitLab (GTLB) climbed 6% following a strong third-quarter earnings beat. The company also announced the appointment of a new CEO, effective Thursday.
• Docusign (DOCU) surged 15% after issuing optimistic fourth-quarter revenue guidance. According to LSEG, the company projected revenue in the range of $758 million to $762 million, surpassing analysts’ forecast of $756 million.
• Hewlett Packard Enterprise (HPE) gained 2% after reporting better-than-expected fiscal fourth-quarter results. The company posted adjusted earnings of 58 cents per share on revenue of $8.46 billion, compared to analyst estimates of 56 cents per share and $8.26 billion in revenue.
• UiPath (PATH) saw its stock slip about 3% after issuing fourth-quarter revenue guidance of $422 million to $427 million, slightly below analysts’ expectations of $424 million, as per LSEG.

Watchlist: ULTA, HPE, DOCU, PATH, LULU, IOT, MSFT, COIN

Today’s action

• Asia-Pacific markets showed a mixed trend on Friday following Wall Street’s decline. The Dow Jones Industrial Average dropped over 200 points, and the S&P 500 pulled back from record highs. In Japan, household spending fell 1.3% year-over-year in October, a smaller dip than the forecasted 2.6%, signaling ongoing caution among consumers amid inflationary pressures. Japan’s Nikkei 225 slipped 0.9%, while Hong Kong’s Hang Seng Index gained 1.3%.
• Meanwhile, U.S. stock futures hovered near unchanged levels early Friday as investors awaited the November jobs report, expected to increase 214,000 jobs. This labor data is anticipated to illuminate the strength of the U.S. job market and influence the Federal Reserve’s interest rate decisions at its December policy meeting.

Bitcoin

• Bitcoin crossed the long-anticipated $100,000 milestone for the first time late Wednesday, reaching a high of $103,844.05 before retreating to $99,140.00 by Thursday afternoon, according to Coin Metrics. The pullback followed some profit-taking by investors, leaving the cryptocurrency up 0.28% for the day and 133% year-to-date. The surge came after President-elect Donald Trump announced plans to nominate Paul Atkins as SEC chair. In a Truth Social post, Trump congratulated Bitcoin investors, attributing the milestone to his support for the crypto sector and pledging further initiatives such as a national Bitcoin reserve, tax-free crypto transactions, and more IPOs in the crypto equity market.
• Bitcoin’s rapid rise to six figures was widely expected after the U.S. election. Still, it happened faster than anticipated, hitting $99,849.99 as early as November 22. Investors remain optimistic about a pro-crypto administration and its potential to influence global adoption. “I’m bullish long-term,” said Mike Novogratz, noting that while corrections are inevitable, the new administration’s pro-crypto stance could drive further momentum. Since the election, Bitcoin has gained 42%, solidifying its role as a key asset in the crypto market’s resurgence.
  Watchlist: Bitcoin: 90 000-104 088, Ethereum: 3000-3956, Solana: 214.8-265

Forex

• EUR/USD slips to 1.0575 during Friday's early European session, down 0.10% for the day, as concerns over US tariff threats on European goods and growing expectations of European Central Bank (ECB) rate cuts weigh on the Euro. Traders are also eyeing the US Nonfarm Payrolls (NFP) report for November, set to be released later in the day, for fresh insights into the labor market.
• Meanwhile, the Japanese Yen trades within a narrow range against the US Dollar, supported by cautious risk sentiment, trade war fears, and geopolitical tensions. Despite a softer USD and declining US Treasury yields, USD/JPY bears remain hesitant to take strong positions ahead of the NFP data. The Yen benefits from the Bank of Japan's more hawkish policy stance, as it continues to signal further rate hikes while other central banks, including the Federal Reserve, are expected to ease monetary policy. This divergence bolsters the safe-haven currency amid shifting global market dynamics.
  Watchlist: EUR/USD: 1.0300-1.0650, USD/JPY: 150-157

Basic Materials

• Gold prices (XAU/USD) rebounded from a one-and-a-half-week low during Friday’s Asian session, climbing toward $2,640. A softer US Dollar, weighed down by expectations that the Federal Reserve might lower interest rates at its December meeting, supports the recovery. Geopolitical tensions from the ongoing Russia-Ukraine conflict, unrest in the Middle East, and concerns over potential US tariffs also bolster demand for the safe-haven metal. However, bets on a less dovish Fed and caution ahead of the US Nonfarm Payrolls (NFP) report cap significant gains.
• West Texas Intermediate (WTI) crude oil prices extended their slide for a third consecutive day, trading near $67.80 during the Asian session. Despite OPEC+ delaying plans to increase production, concerns about slowing demand in China overshadow geopolitical risks, keeping oil under pressure. Traders await the US NFP report for further clues on the USD’s direction and impact on crude oil prices.
  Watchlist: GOLD 2530-2790, US Oil: 65.00-73.00

The TEFS Analyst team wishes you a successful day!