Futures Pointing To Extended Recovery On Wall Street

[ADVFN]( [[Global Email] World Daily Markets Bulletin]( Friday, 09 September 2022 10:24:22 [ADVFN Twitter]( [Monitor]( [Quote]( [Charts]( [News]( [Toplists]( [Boards]( [Markets are about to move. We can tell you why...]( We know the real themes driving the market. Get The Juice, our FREE daily newsletter that covers the most pressing stories you need to invest wisely. [Sign up today]( --------------------------------------------------------------- US Market Bitcoin [Bitcoin]( DAX [DAX]( Dow Jones [Dow Jones]( Nasdaq [Nasdaq]( The major U.S. index futures are currently pointing to a higher open on Friday, with stocks likely to extend the rebound seen over the two previous sessions. Stocks may continue to benefit from bargain hunting, as the major averages continue to recover from their worst levels in over a month. Traders seem to be coming to terms with the likelihood of another 75 basis point interest rate hike by the Federal Reserve later this month. Worries about the impact of the Fed?s aggressive interest rate hike strategy may continue to lead to some trepidation, but many feel higher rates have been priced into the markets following recent weakness. Overall trading activity may be somewhat subdued, however, as traders look ahead to next week?s reports on consumer and producer price inflation. While the Fed is widely expected to announce another 75 basis point increase in interest rates after its September meeting, the inflation data could impact expectations regarding future rate hikes. Reports on retail sales, industrial production and consumer sentiment are also likely to attract attention next week. Stocks saw significant volatility during trading on Thursday, with the major averages showing wild swings before eventually the day firmly positive. With the upward move on the day, the major averages extended the recovery rally seen on Wednesday. The major averages continued to recover after ending Tuesday's trading at their lowest closing levels in over a month. The Dow climbed 193.24 points or 0.6 percent to 31,774.52, the Nasdaq rose 70.23 points or 0.6 percent to 11,862.13 and the S&P 500 advanced 26.31 points or 0.7 percent to 4,006.18. The volatility on Wall Street came as traders digested comments from Federal Reserve Chair Jerome Powell, who reiterated the central bank's commitment to aggressively fighting inflation. "We need to act now, forthrightly, strongly as we have been doing," Powell said during a Q&A session at the Cato Institute's 40th Annual Monetary Conference. "And we have to keep at it until the job is done." Powell also once again warned about the dangers of allowing elevated prices to become entrenched, noting the Fed has a "responsibility" to bring inflation back down to 2 percent. "The longer inflation remains well above target, the greater the risk the public does begin to see higher inflation as the norm, and that has the capacity to raise the costs of getting inflation down," he said. The Fed chief's tone was similar to the speech he delivered at last month's Jackson Hole economic symposium, which helped trigger the recent sell-off on Wall Street. Powell's comments are seen as reinforcing expectations that the Fed will raise interest rates by another 75 basis points at its next meeting later this month. CME Group's FedWatch Tool currently indicates an 86.0 percent chance of a 75 basis point rate hike at the September 20-21 meeting and just a 14.0 percent chance of a 50 basis point rate hike. Some traders applauded the consistency of Powell's message, while concerns about higher interest rates and the impact on the economy continued to hang over on the markets. In U.S. economic news, the Labor Department released a report unexpectedly showing a modest decrease in initial jobless claims in the week ended September 3rd. The report showed initial jobless claims edged down to 222,000, a decrease of 6,000 from the previous week's revised level of 228,000. Economists had expected jobless claims to inch up to 240,000 from the 232,000 originally reported for the previous week. With the unexpected dip, jobless claims fell to their lowest level since hitting 202,000 in the week ended May 28th. Biotechnology stocks turned in some of the market's best performances on the day, driving the NYSE Arca Biotechnology Index up by 3.4 percent. Vaccine maker Moderna (MRNA) posted a strong gain after Deutsche Bank upgraded its rating on the company's stock to Buy from Hold. Substantial strength was also visible among banking stocks, as reflected by the 2.8 percent surge by the KBW Bank Index. The index continued to rebound after ending Tuesday's trading at its lowest closing level in well over a month. Healthcare, semiconductor and brokerage stocks also saw notable strength on the day, while telecom and airline stocks moved to the downside. --------------------------------------------------------------- [Our Best Stock Pick Every Day]( Stop wasting time scouring for stock picks. Get daily crystal-clear RANKINGS from 1-10 and EXPERT ANALYSIS of the most popular stocks to rare finds directly to your inbox when you sign up for The Spill. [Sign up today]( --------------------------------------------------------------- U.S. Economic Reports CADUSD [CADUSD]( Oil [Oil]( Gold [Gold]( EURUSD [EURUSD]( The Commerce Department is scheduled to release its report on wholesale inventories in the month of July at 10 am ET. Wholesale inventories are expected to increase by 0.8 percent. Also at 10 am ET, Chicago Federal Reserve President Charles Evans is due to give welcome remarks before the Exploring Career Pathways in Economics and Related Fields Conference hosted by the Chicago Fed. Federal Reserve Board Governor Christopher Waller is scheduled to speak on the economic outlook before the Vienna Macroeconomics Workshop 2022 at 12 pm ET. Also at 12 pm ET, Kansas City Federal Reserve President Esther George is due to speak on the economic outlook before a virtual Peterson Institute event. --------------------------------------------------------------- [Sell every Stock except ONE]( Markets are down... But Jeff Clark couldn't care less because he ignores almost every stock in the market except ONE. He lives financially free trading this One Stock Once per month... [Ticker Revealed.]( --------------------------------------------------------------- Stocks in Focus Shares of DocuSign (DOCU) are moving sharply higher in pre-market trading after the electronic signature company reported better than expected fiscal second quarter results and providing upbeat guidance. Cloud security company Zscaler (ZS) is also seeing significant pre-market strength after reporting fiscal fourth quarter results that beat analyst estimates on both the top and bottom lines. On the other hand, shares of Zumiez (ZUMZ) are likely to see initial weakness after the apparel retailer reported weaker than expected fiscal second quarter results. --------------------------------------------------------------- [Sell every Stock except ONE]( Markets are down... But Jeff Clark couldn't care less because he ignores almost every stock in the market except ONE. He lives financially free trading this One Stock Once per month... [Ticker Revealed.]( --------------------------------------------------------------- Europe European stocks have moved sharply higher on Friday, a day after the European Central Bank raised interest rates by a record 75 basis points and signaled further hikes to tame runaway inflation. The ECB must raise interest rates further to prevent record euro-zone inflation from spilling over into wages, Governing Council member Klaas Knot said. Separately, Slovakia's Peter Kazimir called for "resolute hikes" to tackle "painfully" high inflation. Meanwhile, investors shrugged off data showing that French industrial production fell for the first time in three months in July. Industrial production declined 1.6 percent from June, when output was up 1.2 percent, statistical office Insee said. Economists had forecast a moderate 0.5 percent drop for July. The focus now shifts to a meeting of European Union countries' energy ministers later in the day, when they will attempt to forge a united response to shield citizens from sky-high energy prices as winter approaches. Currently, The German DAX Index, the U.K.?s FTSE 100 Index and the French CAC 40 Index are all up by 1.5 percent. Banks, which would benefit from higher interest rates, have advanced on expectations that the ECB will deliver another supersized interest rate increase in October. Telecom Italia has also surged on reports that the telecommunications company is close to kicking off a process to sell a minority stake in its enterprise service arm. Miners Anglo American, Antofagasta and Glencore have also soared as copper prices rise on a weaker dollar. Cineworld Group shares have also jumped. The entertainment conglomerate and its subsidiaries have received approval for "first day" relief from a U.S. bankruptcy court, giving it immediate access to around $785 million from a $1.94 billion line of credit to support operations. Self-storage firm Big Yellow Group has also moved to the upside after refinancing its £120 million debt facility. Vesuvius has also moved higher. The ceramics company said that its Chief Financial Officer Guy Young has resigned to pursue a new opportunity. --------------------------------------------------------------- Do you have a full view of the market? Level 2 lets you see all of the orders to buy and sell shares, allowing you to see what is really going on in the market. If you don?t have this in your trading toolkit, you?re at a serious disadvantage. [Learn More / Upgrade]( --------------------------------------------------------------- Asia USDCAD [USDCAD]( USDEUR [USDEUR]( USDGBP [USDGBP]( USDJPY [USDJPY]( Asian stocks rose on Friday as investors digested Federal Reserve Chair Jerome Powell and ECB President Christine Lagarde's comments advocating for higher rates to combat runaway inflation. Chinese shares finished notably higher as data showed inflation slowed more than expected in August. The benchmark Shanghai Composite Index advanced 0.8 percent to 3,262.05, while Hong Kong's Hang Seng Index rallied 2.7 percent to 19,362.25. China's consumer inflation rose an annual 2.5 percent in August, the National Bureau of Statistics said earlier today. That was shy of forecasts for 2.8 percent and down from 2.7 percent in July. The bureau also said that producer prices were up 2.3 percent year-on-year, below forecasts for 3.1 percent and down sharply from the 4.2 percent gain a month earlier. Japanese shares advanced, led by gains in the energy and healthcare sectors. The Nikkei 225 Index gained 0.5 percent to close at 28,214.75, while the broader Topix ended 0.4 percent higher at 1,965.53. South Korea's financial markets were closed for a local holiday. Australian markets extended gains for a second day running and closed at their highest level this month, with mining and energy stocks leading the surge. The benchmark S&P/ASX 200 Index rose 0.7 percent to 6,894.20, while the broader All Ordinaries Index climbed 0.8 percent to settle at 7,139. Mining heavyweights BHP and Rio Tinto rose around 3 percent each as iron ore prices hit two-week highs. Woodside Energy and Santos rose over 1 percent in the oil & gas sector. Gold miners outperformed, with Newcrest jumping nearly 4 percent. Mineral Resources soared 13.6 percent on reports of a potential demerger of its lithium operations. --------------------------------------------------------------- Do you day trade? Trader Alerts streams stocks reaching new highs and lows as well as stocks breaking out of previous volume highs as they happen. It?s a powerful tool for day trading ideas. [Learn More / Upgrade]( --------------------------------------------------------------- Commodities Crude oil futures are jumping $1.57 to $85.11 a barrel after surging $1.60 to $83.54 a barrel on Thursday. Meanwhile, after slipping $7.60 to $1,720.20 an ounce in the previous session, gold futures are climbing $10.40 to $1,730.60 an ounce. On the currency front, the U.S. dollar is trading at 142.33 yen versus the 144.11 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.0048 compared to yesterday?s $0.9997. --------------------------------------------------------------- To unsubscribe from this news bulletin or edit your mailing list settings click [here](. 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