Slowdown In Consumer Price Growth May Lead To Strength On Wall Street

[ADVFN]( [[Global Email] World Daily Markets Bulletin]( Friday, 28 July 2023 09:10:42 [ADVFN Twitter]( [Monitor]( [Quote]( [Charts]( [News]( [Toplists]( [Boards]( Breaking: Price of Gold & Silver set to EXPLODE in 2023! Read Now... Attention investors and retirement savers...Investment experts and even mainstream news publications are predicting a windfall for gold and silver prices in 2023! This could be the year we see the value of precious metals like gold and silver EXPLODE! You won't want to miss out! [Reserve Your FREE Gold & Silver Kit 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 move back to the upside following the downturn seen over the course of the previous session. Early buying interest may be generated in reaction to a report from the Commerce Department showing a slowdown in the annual rate of growth in consumer prices in the month of June. The report showed the annual rate of growth by consumer prices slowed to 3.0 percent in June from 3.8 percent in May. Economists had expected the pace of growth to slow to 3.1 percent. The annual rate of growth by core consumer prices, which exclude food and energy prices, also slowed to 4.1 percent from 4.6 percent. The slowdown in the annual rate of consumer price growth may ease concerns about the outlook for interest rates following yesterday?s better-than-expected economic data. After showing a strong move to the upside early in the session, stocks showed a significant downturn over the course of the trading day on Thursday. The major averages pulled back well off their best levels of the day and into negative territory. The tech-heavy Nasdaq fell 77.17 points or 0.6 percent to 14,050.11 after surging as much as 1.7 percent in early trading. The S&P 500 also slid 29.34 points or 0.6 percent to 4,537.41, while the Dow slumped 237.40 points or 0.7 percent to 35,282.72, snapping a 13-day winning streak. The early strength on Wall Street partly reflected a positive reaction to upbeat earnings news, with Facebook parent Meta Platforms (META) leading the rally by the Nasdaq. Shares of Meta pulled back off their best levels but still surged by 4.4 percent after the company better than expected second quarter results and provided upbeat guidance. Fast food giant McDonald's (MCD) also jumped by 1.2 percent after reporting second quarter results that beat analyst estimates on both the top and bottom lines. Meanwhile, a steep drop by Honewell (HON) weighed on the Dow, with the conglomerate plunging by 5.7 percent after reporting mixed second quarter results. Stocks also initially benefitted from the release of a batch of upbeat U.S. economic data, including a Commerce Department showing an unexpected acceleration in the pace of economic growth in the second quarter. The report said real gross domestic product surged by 2.4 percent in the second quarter after jumping by 2.0 percent in the first quarter. Economists had expected the pace of GDP growth to slow to 1.8 percent. The Commerce Department said the unexpected acceleration in GDP growth primarily reflected an upturn in private inventory investment and an acceleration in nonresidential fixed investment. The positive contributions were partly offset by a downturn in exports and decelerations in consumer spending, federal government spending, and state and local government spending. However, the upbeat data subsequently raised some concerns about the outlook for interest rates following Wednesday's monetary policy decision by the Federal Reserve. "The Fed will likely see the second quarter's solid GDP growth as a little too strong," said Bill Adams, Chief Economist for Comerica Bank. "The Fed wants the economy to grow in low gear for a time to open up a margin of slack capacity and calm price pressures." He added, "On balance, the second quarter's better than expected GDP growth makes the Fed more likely to raise interest rates again in the second half of 2023, likely at the November first decision." The Labor Department also released a report unexpectedly showing a modest decrease in first-time claims for U.S. unemployment benefits in the week ended July 22nd. The report said initial jobless claims slipped to 221,000, a decrease of 7,000 from the previous week's unrevised level of 228,000. Economists had expected jobless claims to inch up to 235,000. A separate report released by the Commerce Department showed new orders for U.S. manufactured durable goods soared by much more than expected in the month of June. Gold stocks moved sharply lower over the course of the session, dragging the NYSE Arca Gold Bugs Index down by 4.1 percent. The sell-off by gold stocks came amid a steep drop by the price of the precious metal, with gold for August delivery tumbling $24.40 to $1,945.70 an ounce. Substantial weakness was also visible among airline stocks, resulting in a 3.4 percent nosedive by the NYSE Arca Airline Index. The index tumbled to its lowest closing level in over a month. Shares of Southwest Airlines plummeted by 8.9 percent despite the airline reporting better than expected second quarter results, as traders worry about higher costs. Interest rate-sensitive commercial real estate stocks also came under pressure as the day progressed, as reflected by the 2.2 percent slump by the Dow Jones U.S. Real Estate Index. Steel, telecom, and utilities stocks also moved notably lower over the course of the session, while significant strength remained visible among semiconductor stocks. --------------------------------------------------------------- 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]( Personal income in the U.S. increased by less than expected in the month of June, according to a report released by the Commerce Department on Friday. The report said personal income rose by 0.3 percent in June after climbing by an upwardly revised 0.5 percent in May. Economists had expected personal income to increase by 0.5 percent compared to the 0.4 percent advance originally reported for the previous month. Meanwhile, the report said personal spending climbed by 0.5 percent in June after inching up by an upwardly revised 0.2 percent in May. Economists had expected personal spending to rise by 0.4 percent compared to the 0.1 percent uptick originally reported for the previous month. At 10 am ET, the University of Michigan is scheduled to release its revised reading on consumer sentiment in the month of July. The consumer sentiment index for July is expected to be unrevised at 72.6, which was up sharply from 64.4 in June. --------------------------------------------------------------- [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.]( --------------------------------------------------------------- Europe European stocks traded mixed on Friday, with U.K. markets outperforming on the back of encouraging corporate earnings. German and French markets were seeing modest losses after a slew of strong U.S. economic data and the BOJ's tweak to its yield curve control policy sent bond yields soaring. The pan-European STOXX 600 was down 0.3 percent at 470.31 after rallying 1.4 percent to hit a 17-month high on Thursday. The German DAX slipped 0.2 percent and France's CAC 40 dropped half a percent while the U.K.'s FTSE 100 was up 0.2 percent. Austrian sensor maker AMS Osram climbed 10 percent after the company said it plans to exit noncore semiconductor businesses. Swiss specialty chemicals maker Clariant added 1.3 percent after second-quarter core profit beat estimates. Capgemini shares plummeted 7 percent in Paris. After posting higher half-year sales, the IT consulting group said it would invest 2 billion euros ($2.19 billion) in AI over three years. Drug maker Sanofi tumbled 3 percent despite lifting its earnings outlook. Birkin bag maker Hermes rose about 2 percent after first-half earnings and second-quarter sales growth beat analysts' estimates. Stock and derivatives exchange Euronext jumped 7 percent after it launched a 200-million-euro ($219.88 million) share buyback program. AstraZeneca shares jumped nearly 4 percent in London after the drug maker delivered better-than-expected profits and sales in the second quarter. Also, its unit Alexion has agreed to buy Pfizer's early-stage rare disease gene therapy portfolio for up to $1 billion. Lender Standard Chartered soared more than 6 percent after posting better-than-expected first-half earnings and announcing a new $1 billion share buyback. NatWest Group advanced 1.7 percent after reporting a jump in first-half profit, benefiting from higher interest rates. British-Airways owner IAG rallied 3.6 percent after quarterly profit beat analyst forecasts. In economic news, official data showed that the German economy stabilized in the second quarter after two consecutive contractions. GDP remained flat in the second quarter, following a 0.1 percent drop in the first quarter and 0.4 percent decline in the fourth quarter of 2022, Destatis reported. GDP was expected to climb 0.1 percent. The French economy grew more than expected in the second quarter, underpinned by a rebound in exports while consumption decreased, and investment growth was modest, preliminary data from the statistical office INSEE showed. Gross domestic product rose 0.5 percent from the first quarter, when the second biggest economy in the euro area expanded 0.1 percent, which was revised down from 0.2 percent. Separate data from the European Commission revealed that confidence among business and consumers declined further in the euro zone in July. --------------------------------------------------------------- [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.]( --------------------------------------------------------------- Asia USDCAD [USDCAD]( USDEUR [USDEUR]( USDGBP [USDGBP]( USDJPY [USDJPY]( Asian stocks ended mixed on Friday, as bond yields crept up after the release of upbeat U.S. economic data and a shift in BOJ policy. The dollar held near a three-month high as signs of a resilient U.S. economy revived fears that U.S. interest rates will stay higher for longer. Japan's benchmark bond yield soared to a nine-year high and the yen rallied after the Bank of Japan adjusted its bond purchase policy -marking a step toward allowing interest rates to rise. Gold edged up slightly on risk aversion while oil prices fluctuated in Asian trade after settling sharply higher on Thursday. Chinese shares logged strong gains on stimulus hopes after state media quote the housing minister as saying that the country needs measures such as lower home mortgage rates to help spur home purchases. The benchmark Shanghai Composite index rallied 1.84 percent to 3,275.93 while Hong Kong's Hang Seng index jumped 1.41 percent to 19,916.56. Japanese shares ended lower while the yen rose after the Bank of Japan unexpectedly tweaked its monetary policy framework to allow long-term yields to move 0.5 percent in both directions. The Nikkei average dropped 0.40 percent to 32,759.23 while the broader Topix index slipped 0.20 percent to 2,290.61. Official data showed earlier in the day that Tokyo's core consumer price inflation rose 3 percent in July, slightly ahead of forecasts of 2.9 percent. Seoul stocks edged up slightly, with the Kospi average settling 0.17 percent higher at 2,608.32 on China stimulus hopes. Investors shrugged off data showing that South Korea's factory output fell more than expected in June. POSCO Holdings and SK Hynix soared 3-4 percent while Samsung Electronics fell 1.5 percent and LG Chem shed 1.2 percent. SK Innovation rose 1.3 percent after reporting improved yields from battery manufacturing in the second quarter. Australian markets fell notably as traders booked profits after three straight sessions of gains. The benchmark S&P ASX 200 slipped 0.70 percent to 7,403.60, with real estate, material and consumer discretionary stocks leading losses after data showed retail sales unexpectedly fell in June. The broader All Ordinaries index ended down 0.74 percent at 7,616.10. --------------------------------------------------------------- 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]( --------------------------------------------------------------- Commodities Crude oil futures are edging down $0.05 to $80.04 a barrel after surging $1.31 to $80.09 a barrel on Thursday. Meanwhile, after tumbling $24.40 to $1,945.70 an ounce in the previous session, gold futures are climbing $9.10 to $1,954.80 an ounce. On the currency front, the U.S. dollar is trading at 139.70 yen versus the 139.48 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.1012 compared to yesterday?s $1.0979. --------------------------------------------------------------- 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