Worries About Interest Rates, Economy May Continue To Weigh On Wall Street

[ADVFN]( [[Global Email] World Daily Markets Bulletin]( Friday, 16 December 2022 09:05:56 [ADVFN Twitter]( [Monitor]( [Quote]( [Charts]( [News]( [Toplists]( [Boards]( [Will This Be the Most-Sought After Market Prediction Tool for 2023?]( Small tweaks to your trading attitude can set you up to benefit down the road. Learn why artificial intelligence should be on every investor?s mind as we start a new year. In fact, you can learn more about this revolutionary tool before 2023! [Save Your Seat for Your Free Live A.I. Training here.]( --------------------------------------------------------------- US Market Bitcoin [Bitcoin]( DAX [DAX]( Dow Jones [Dow Jones]( Nasdaq [Nasdaq]( The major U.S. index futures are currently pointing to a notably lower open on Friday, with stocks likely to extend the sharp pullback seen over the two previous sessions. The downward momentum on Wall Street comes amid ongoing concerns about the outlook for interest rates and the economy. The Fed?s hawkish tone in Wednesday?s monetary policy announcement has added to worries about the central bank?s aggressive rate hikes tipping the economy into a recession. While inflation has recently shown signs of slowing, the Fed signaled it plans to continue raising interest rates next year. A recent batch of disappointing economic data has led to fears the Fed?s fight against inflation is already taking its toll on the economy. Overall trading activity may be somewhat subdued, however, with a lack of major U.S. economic data likely to keep some traders on the sidelines. Next week, the Commerce Department is due to release its report on personal income and spending, which includes a reading on inflation said to be preferred by the Fed. With Fed Chair Jerome Powell saying the central bank will require ?substantially more evidence? inflation is on a sustained downward trend before halting its rate hikes, traders are likely to keep a close eye on the inflation reading. Stocks moved sharply lower during trading on Thursday, extending the pullback seen over the course of Wednesday?s session. With the sell-off on the day, the major averages slumped to their lowest closing levels in over a month. The major averages climbed off their lows of the session in late-day trading but remained firmly negative. The Dow tumbled 764.13 points or 2.3 percent to 33,202.22, the Nasdaq plunged 360.36 points or 3.2 percent to 10,810.53 and the S&P 500 dove 99.57 points or 2.5 percent to 3,895.75. Concerns about the outlook for interest rates continued to weigh on Wall Street after the Federal Reserve's monetary policy announcement on Wednesday was deemed more hawkish than expected. While the Fed raised interest rates by 50 basis points as widely expected, the accompanying statement and the central bank's latest projections led to worries about where rates will peak. A batch of disappointing U.S. economic data also added to concerns the Fed's aggressive interest rate hikes will push the economy into a recession. Before the start of trading, the Commerce Department released a report showing retail sales pulled back by more than expected in the month of November. The Commerce Department said retail sales slid by 0.6 percent in November after surging by 1.3 percent in October. Economists had expected retail sales to edge down by 0.1 percent. Excluding a steep drop in sale by motor vehicle and parts dealers, retail sales slipped by 0.2 percent in November after jumping by 1.2 percent in October. Ex-auto sales were expected to inch up by 0.2 percent. A separate report released by the Federal Reserve unexpectedly showed a modest decrease in U.S. industrial production in the month of November. The Fed said industrial production slipped by 0.2 percent in November after edging down by 0.1 percent in October. Economists had expected industrial production to inch up by 0.1 percent. The unexpected dip in industrial production came as manufacturing output fell by 0.6 percent and mining output slid by 0.7 percent. Meanwhile, a 3.6 percent spike in utilities output helped limit the downside amid unseasonably cold weather across much of the country. Separate reports from the New York and Philadelphia Federal Reserves also showed contractions in regional manufacturing activity in the month of December. "The 0.6% m/m falls in retail sales and manufacturing output in November suggest that the economy has lost some serious momentum, with the resilience of consumers to much higher interest rates starting to crumble," said Andrew Hunter, Senior U.S. Economist at Capital Economics. He added, "Solid gains in previous months mean real consumption growth should still be strong in the fourth quarter as a whole, but we expect the economy to slip into a mild recession in the first half of next year as the Fed's relentless hawkishness takes its toll." Computer hardware stocks showed a substantial move to the downside on the day, dragging the NYSE Arca Computer Hardware Index down by 5.4 percent to its lowest closing level in over a month. Western Digital (WDC) helped lead the sector lower, plunging by 10.1 percent after Goldman Sachs downgraded its rating on the data storage company stock to Sell from Neutral. Considerable weakness was also visible among gold stocks, as reflected by the 4.4 percent nosedive by the NYSE Arca Gold Bugs Index. The sell-off by gold stocks came amid a steep drop by the price of the precious metal. Semiconductor stocks also saw significant weakness on the day, dragging the Philadelphia Semiconductor Index down by 4.2 percent. Software, networking, steel and airline stocks also showed notable moves to the downside, reflecting broad based weakness on Wall Street. --------------------------------------------------------------- [New Battery Tech to "Eat Lithium?s Lunch"?]( The lithium-ion battery transformed Tesla from the laughingstock of the auto industry into the biggest car company in history. It can store energy up to 94% cheaper than a Tesla lithium-ion battery. It?s a "totally new approach to battery technology,"" says the U.S. Department of Energy. [Click here for the full story.]( --------------------------------------------------------------- U.S. Economic Reports CADUSD [CADUSD]( Oil [Oil]( Gold [Gold]( EURUSD [EURUSD]( San Francisco Federal Reserve President Mary Daly is scheduled to participate in virtual conversation on inflation, the economy and the Federal Reserve hosted by the American Enterprise Institute at 12 pm ET. --------------------------------------------------------------- [3 Tiny Stocks Primed to Explode]( The world's greatest investor ? Warren Buffett ? has a simple formula for making big money in the markets. He buys up valuable assets when they are very cheap. For stock market investors that means buying up cheap small cap stocks like these with huge upside potential. We've set up an alert service to help smart investors take full advantage of the small cap stocks primed for big returns. [Click here for full details and to join for free.]( --------------------------------------------------------------- Stocks in Focus Shares of Maxar Technologies (MAXR) are skyrocketing in pre-market trading after the satellite owner and operator agreed to be acquired by private equity firm Advent International for $53 per share or approximately $6.4 billion. Software company Adobe (ADBE) is also likely to see initial strength after reporting better than expected fiscal fourth quarter earnings and providing upbeat guidance. Meanwhile, shares of Guardant Health (GH) are seeing substantial pre-market weakness after result of a trial of the oncology company?s DNA blood test for colorectal cancers showed it was less effective than the Cologuard stool-based test made by Exact Sciences (EXAS). --------------------------------------------------------------- [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 are sliding on Friday, posting sharp losses for a second straight session, as rising fears of a recession following the latest rate hikes by global central banks and the hawkish tone of the Federal Reserve and a few other banks weigh on sentiment. Investors are also reacting to the latest batch of economic data from Europe and closely following Covid - related reports from China. While the German DAX Index has fallen by 0.5 percent, the U.K.?s FTSE 100 Index and the French CAC 40 Index are both down by 1.3 percent. In the U.K. market, Segro, Unite Group, Bunzl, Land Securities, British Land Co., ICP, Schrodders, Rolls-Royce Holdings, Persimmon, AstraZeneca Pharma and Experian are posting notable losses, while Standard Chartered shares have moved to the upside. Eurofins Scientific, Unibail Rodamco and Teleperformance are turning in some of the worst performances in the French market. Carrefour, Alstom, Saint Gobain, ArcelorMittal, Essilor, Kering, Dassault Systemes and LVMH have also come under pressure In the German market, Sartorius, Deutsche Wohnen, Vonovia, Bayer, Brenntage, Merck and Symerise are seeing significant weakness. Infineon Technologies, E.ON, RWE, Fresenius Medical Care, Continental, SAP and HeidelbergCement are also notably lower. In economic news, data from the Office for National Statistics showed U.K. retail sales declined unexpectedly in November, falling 0.4 percent from a month earlier, as the rising cost of living and weak consumer sentiment dragged down consumer spending. Sales were expected to rise by 0.3 percent in November after increasing by an upwardly revised 0.9 percent in October. France's private sector contracted for the second consecutive month, ending the year at the weakest pace in nearly two years, flash survey results from S&P Global showed on Friday. The composite output index unexpectedly fell to 48.0 in December from 48.7 a month ago. The score was forecast to rise to 48.9. At 48.1, the flash services Purchasing Managers' Index was down from 49.3 in November and also below economists' forecast of 49.1. The manufacturing PMI improved to 48.9 from 48.3. The expected score was 48.2. Germany's flash composite output index rose to 48.9 in December from 46.3 in November. The index was forecast to rise slightly to 46.5. The services Purchasing Managers' Index climbed to a 5-month high of 49.0 in December from 46.1 in the prior month. The score was forecast to increase to 46.3. The manufacturing PMI rose to a 3 -month high of 47.4 in December from 46.2 in November. The expected score was 46.3. Final data from Eurostat showed Eurozone inflation slowed for the first time since the middle of 2021, easing to 10.1 percent in November from 10.6 percent in October. However, inflation was slightly above the flash estimate of 10.0 percent. --------------------------------------------------------------- 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 markets traded lower on Friday as interest rate hikes and a hawkish posture by central banks worldwide spooked investors and triggered fears of a recession. Benchmarks in Japan, China, Australia, New Zealand and South Korea plunged into the red, while Hong Kong?s Hang Seng Index bucked the downtrend. China's Shanghai Composite Index closed marginally lower at 3167.86. The day's trading ranged between 3,151.61 and 3,175.35. The Shenzhen Component Index lost 63.08 points or 0.6 percent to close at 11,295.03. The Japanese benchmark Nikkei 225 Index shed 524.58 points or 1.9 percent to end trading at 27,527.12 amidst disappointment over the decrease by the manufacturing performance scorecard. The day's trading range was between 27,488.83 and 27,713.04. Earlier, data released showed the Jibun Bank Manufacturing PMI Flash for December dropping to 48.8 from 49 in the previous month. The services PMI reading, however, increased to 51.7 from 50.3 earlier. Tokyo Electron was the biggest loser with adecline of 4.47 percent. Hitachi Zosen Corp. also dropped more than 4 percent. CyberAgent, Softbank Group Corp and Sumitomo Metal Mining all shed more than 3 percent. Meanwhile, Kawasaki Kisen Kaisha gained 2.6 percent and was the top gainer. J. Front Retailing, Keio Corp, Chiba Bank and Odakyu Electric Railway followed with gains of less than one percent. The Hang Seng Index of the Hong Kong Stock Exchange added 82.08 points or 0.4 percent from the previous close to finish trading at 19,450.67. The day's trading range was between a high of 19,621.13 and a low of 19,130.53. The Korean Stock Exchange's Kospi Index edged down less than a tenth of percent to close at 2,360.02. The day's trading range was between 2,326.83 and 2,360.44. Australia's S&P/ASX200 Index closed trading at 7,148.70 after losing 56.10 points or 0.8 percent. The day's trading was between 7,117.60 and 7,204.80. Gold miner Silver Lake Resources dropped 6.4 percent. Global fintech company Block also shed more than 6 percent. Biotechnology company Imugene declined 5.7 percent. Alumina refinery Alumina Ltd and gambling business Tabcorp Holdings also slumped more than 3 percent. On the other hand, Sayona Mining was the biggest gainer with a surge of close to 5 percent. Transportation business Aurizon Holdings also gained more than 4 percent. Kelsian Group, another transportation business, and coking coal business Coronado Global Resources both rallied more than 3 percent. Energy business New Hope Corporation also added close to 3 percent. --------------------------------------------------------------- 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 plunging $2.07 to $74.04 a barrel after slumping $1.17 to $76.11 a barrel on Thursday. Meanwhile, after tumbling $30.90 to $1,787.80 an ounce in the previous session, gold futures are rising $7.10 to $1,794.90 an ounce. On the currency front, the U.S. dollar is trading at 137.08 yen versus the 137.78 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.0620 compared to yesterday?s $1.0628. --------------------------------------------------------------- To unsubscribe from this news bulletin or edit your mailing list settings click [here](. Registered Office/Accounts Dept: Suite 27, Essex Technology Centre, The Gable, Fyfield Road, Ongar, CM5 0GA. Customer Support +1 888-992-3836. Company registered in England and Wales: Number 2374988 VAT No. GB 549 2130 49