Looming Fed Meeting May Lead To Choppy Trading On Wall Street

[ADVFN]( [[Global Email] World Daily Markets Bulletin]( Monday, 01 May 2023 09:39:22 [ADVFN Twitter]( [Monitor]( [Quote]( [Charts]( [News]( [Toplists]( [Boards]( [Try AI Investing, Get 10 Free Shares]( Have you tried Magnifi Personal yet? With the world's first AI investing assistant, it's like having a co-pilot for your investing. You can get 24/7 personalized guidance, on-demand analysis, plus a commission-free investment marketplace. [Get started]( --------------------------------------------------------------- US Market Bitcoin [Bitcoin]( DAX [DAX]( Dow Jones [Dow Jones]( Nasdaq [Nasdaq]( The major U.S. index futures are currently pointing to a roughly flat open on Monday, with stocks likely to show a lack of direction after turning in a strong performance last week. Traders may be reluctant to make significant moves ahead of the Federal Reserve?s monetary policy announcement on Wednesday. While the Fed is widely expected to raise interest rates by another 25 basis points, traders will pay close attention to the accompanying statement for clues about the outlook for rates. Ahead of the meeting, CME Group's FedWatch Tool is indicating an 89.5 percent chance the Fed will raise rates by 25 basis points and a 67.1 percent chance the central bank will subsequently leave rates unchanged in June. The Labor Department?s closely watched monthly jobs report is also likely to attract attention later in the week, with the report due to be released on Friday. Meanwhile, shares of JPMorgan Chase (JPM) are moving sharply higher in pre-market trading after the financial giant announced the acquisition of the substantial majority of assets and assumed the deposits and certain other liabilities of troubled lender First Republic Bank (FRC). ?Our government invited us and others to step up, and we did,? said JPMorgan Chase Chairman and CEO Jamie Dimon. ?Our financial strength, capabilities and business model allowed us to develop a bid to execute the transaction in a way to minimize costs to the Deposit Insurance Fund.? After initially showing a lack of direction, stocks moved mostly higher over the course of the trading session on Friday. The major averages extended Thursday's rally, with the Nasdaq reaching a seven-month closing high, while the Dow and the S&P 500 reached their best closing levels in over two months. The major averages saw further upside going into the close, ending the session at their best levels of the day. The Dow climbed 272.00 points or 0.8 percent to 34,098.16, the Nasdaq rose 84.35 points or 0.7 percent to 12,226.58 and the S&P 500 advanced 34.13 points or 0.8 percent to 4,169.48. For the week, the tech-heavy Nasdaq shot up by 1.2 percent, while the Dow and the S&P 500 both jumped by 0.9 percent. The continued strength on Wall Street came following the release of a Commerce Department report that included readings on consumer price inflation that are said to be preferred by the Fed. The report said the annual rate of consumer price growth slowed to 4.2 percent in March from a revised 5.1 percent in February. Economists had expected the rate of growth to slow to 4.6 percent from the 5.0 percent originally reported for the previous month. The annual rate of growth by core consumer prices, which exclude food and energy prices, also slipped to 4.6 percent in March from a revised 4.7 percent in February. Economists had expected the rate of growth to slow to 4.5 percent from the 4.6 percent originally reported for the previous month. Despite the slowdown, FHN Financial Chief Economist Chris Low noted, "Prices are still rising faster than the Fed is comfortable with." "The FOMC will hike another quarter-point next Wednesday, and may indicate further hikes remain a possibility," Low said. Nonetheless, the inflation data helped offset a negative reaction to quarterly results from online retail giant Amazon (AMZN). Amazon (AMZN) tumbled by 4.0 percent, as the company's better than expected first quarter earnings and revenue were overshadowed by concerns about slowing growth for its Amazon Web Services cloud computing platform. Shares of Snap (SNAP) also moved sharply lower after the Snapchat parent reported first quarter revenue that fell short of expectations. On the other hand, shares of Intel (INTC) surged after the semiconductor giant reported a narrower than expected adjusted first quarter loss. Airline stocks moved sharply higher over the course of the session, with the NYSE Arca Airline Index soaring by 5.0 percent. SkyWest (SKYW) helped lead the sector higher, skyrocketing by 17.6 percent after reporting a narrower than expected first quarter loss on revenues that exceeded analyst estimates. The upbeat results from Intel also contributed to significant strength among semiconductor stocks, as reflected by the 1.8 percent gain posted by the Philadelphia Semiconductor Index. Oil stocks also saw considerable strength among a sharp price by the price of crude oil, driving the NYSE Arca Oil Index up by 1.8 percent. Networking, natural gas and computer hardware stocks also moved notably higher, reflecting broad based strength on Wall Street. --------------------------------------------------------------- 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]( --------------------------------------------------------------- U.S. Economic Reports CADUSD [CADUSD]( Oil [Oil]( Gold [Gold]( EURUSD [EURUSD]( The Institute for Supply Management is scheduled to release its report on manufacturing activity in the month of April at 10 am ET. The ISM?s manufacturing PMI is expected to inch up to 46.6 in April from 46.3 in March, although a reading below 50 would still indicate a contraction. Also at 10 am ET, the Commerce Department is due to release its report on construction spending in the month of March. Consumer spending is expected to edge down by 0.1 percent. --------------------------------------------------------------- [3 Tiny Stocks Primed to Explode]( The world's greatest investor ? 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On the other hand, shares of Exxon Mobil (XOM) may move to the downside after Goldman Sachs downgraded its rating on the energy giant to Neutral from Buy. --------------------------------------------------------------- [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 The major European markets remained closed on Monday in observation of May Day. --------------------------------------------------------------- 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 moved mostly higher on Monday amidst holidays in several countries, including China, Hong Kong and South Korea. The Bank of Japan continuing with its ultra-loose monetary policy and maintaining the status quo on the yield curve control policy helped sentiment. The mood was also supported by the view that Reserve Bank of Australia would be holding rates steady in its impending review due on Tuesday. The Japanese benchmark Nikkei 225 Index gained 266.74 points or 0.9 percent to end trading at 29,123.18. The day's trading range was between 29,016.83 and 29,145.89. NEC Corp. topped with a gain of more than 14 percent. Odakyu Electric Railway Co. gained 5.7 percent. SKY Perfect JSAT Holdings, Keisei Electric Railway Co. and Mitsubishi Electric Corp. all gained more than 4 percent. Z Holdings Corp. was the biggest laggard with a decline of 5.6 percent. Nippon Electric Glass Co. followed with a decline of 5.4 percent. Alps Electric Co. shed 4.1 percent. Sumitomo Dainippon Pharma Co. and Mitsui O.S.K. Lines both declined more than 3 percent. Australia's S&P/ASX 200 Index closed trading at 7,334.60 after gaining 25.40 points or 0.4 percent. Resmed surged 6.6 percent. Lithium producer Lake Resources followed with a gain of 6 percent. Imugene added 4 percent followed by Pinnacle Investment Management Group and HMC Capital, both of which added more than 3 percent. Syrah Resources dropped more than 10 percent following the graphite producer's quarterly update last week. Silverlake Resources shed 4.7 percent. Pilbara minerals declined 3.3 percent. Nanosonics and Life360 both declined more than 2 percent. Meanwhile, the NZX 50 Index of the New Zealand Stock Exchange shed 16.87 points or 0.1 percent to close at 12,002.97. Trading ranged between 11,933.44 and 12,019.84. Building materials business Fletcher Building and Property for Industry, a REIT, both gained more than 2 percent. Polymer business Skellerup Holdings, aquaculture farming business Sanford and software business Vista Group International all added more than 1 percent. Synlait Milk and Freightways both shed more than 2 percent. Skycity Entertainment Group, banking business Heartland Group Holdings and healthcare business Pacific Edge, all lost more than 1 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 tumbling $1.58 to $75.20 a barrel after surging $2.02 to $76.78 a barrel last Friday. Meanwhile, after inching up $0.10 to $1,999.10 an ounce in the previous session, gold futures are climbing $7.90 to $2,007 an ounce. On the currency front, the U.S. dollar is trading at 136.78 yen versus the 136.30 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is trading at $1.1025 compared to last Friday?s $1.1019. --------------------------------------------------------------- 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