Ongoing Interest Rate Optimism May Lead To Rebound On Wall Street

[ADVFN]( [[Global Email] World Daily Markets Bulletin]( Wednesday, 22 November 2023 09:41:22 [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 Wednesday, with stocks likely to move back to the upside following the pullback seen in the previous session. Continued optimism about the outlook for interest rates may contribute to renewed buying interest on Wall Street amid a decrease in treasury yields. The yield on the benchmark ten-year note fell to its lowest level in two months earlier this morning but has regained some ground in recent trading. While the minutes of the latest Federal Reserve meeting failed to provide any indications the central bank plans to cut interest rates in the near future, CME Group?s FedWatch Tool still suggests the next move will be a rate cut in mid-2024. Stocks may also benefit from easing concerns about the conflict in the Middle East after Hamas and Israel agreed to a Qatar-mediated pause in fighting. Stocks moved to the downside during trading on Tuesday, giving back ground after ending the previous session mostly higher. Selling pressure remained relatively subdued, however, allowing the major averages to hang on to the bulk of their recent gains. The major averages all finished the day in the red, with the tech-heavy Nasdaq posting a more notably loss. While the Nasdaq slid 84.55 points or 0.6 percent to 14,199.98, the S&P 500 dipped 9.19 points or 0.2 percent to 4,538.19 and the Dow slipped 62.75 points or 0.2 percent to 35,088.29. The pullback on Wall Street came as some traders looked to cash in on the recent strength in the markets, which has lifted the major averages to their best levels in over three months. A negative reaction to some of the latest earnings news from major retailers also weighed on Wall Street, with shares of American Eagle Outfitters (AEO) plummeting by 15.8 percent. The steep drop by American Eagle came even though the apparel and accessories retailer reported fiscal third quarter results that exceeded analyst estimates on both the top and bottom lines. Department store operator Kohl's (KSS) also showed a steep drop after reporting fiscal third quarter revenues that fell short of analyst estimates. Lowe's (LOW) and Best Buy (BBY) also moved to the downside after both companies reported weaker than expected fiscal third quarter revenues and lowered their full-year sales forecasts. Meanwhile, shares of Dick's Sporting Goods (DKS) jumped after the sporting goods retailer reported better than expected fiscal third quarter results and raised its full-year guidance. The markets did not show much reaction to the minutes of the Federal Reserve's latest monetary policy meeting, which said Fed officials expect to keep interest rates at a restrictive level for "some time." The minutes of the October 31-November 1 meeting said participants agreed policy should remain restrictive until inflation is clearly moving down sustainably toward the Fed's 2 percent objective. Following the recent series of interest rate hikes, participants also agreed to proceed carefully and take a data-dependent approach to future policy decisions. "Participants noted that further tightening of monetary policy would be appropriate if incoming information indicated that progress toward the Committee's inflation objective was insufficient," the Fed said. The Fed also said participants expect data arriving in coming months to help clarify the extent to which the disinflation process was continuing. "Markets showed little reaction since the minutes did not contain any major surprises," Jeffrey Roach, Chief Economist for LPL Financial. "The Fed will keep talking tough on inflation as they patiently wait for the full effects of previous rate hikes." Airline stocks showed a substantial move back to the downside, with the NYSE Arca Airline Index tumbling by 2.7 percent after ending Monday's trading at a two-month closing high. Significant weakness was also visible among semiconductor stocks, as reflected by the 1.9 percent slump by the Philadelphia Semiconductor Index. The index finished Monday's session at its best closing level in well over three months. Computer hardware, oil and banking stocks also saw considerable weakness on the day, while gold stocks moved sharply higher along with the price of the precious metal. --------------------------------------------------------------- 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]( First-time claims for U.S. unemployment benefits fell by much more than expected in the week ended November 18th, the Labor Department revealed in a report released on Wednesday. The report said initial jobless claims fell to 209,000, a decrease of 24,000 from the previous week's revised level of 233,000. Economists had expected jobless claims to dip to 225,000 from the 231,000 originally reported for the previous week. The Labor Department said the less volatile four-week moving average also edged down to 220,000, a decrease of 750 from the previous week's revised average of 220,750. A separate report released by the Commerce Department on Wednesday showed new orders for U.S. manufactured durable goods pulled back by much more than expected in the month of October. The Commerce Department said durable goods orders plunged by 5.4 percent in October after surging by 4.6 percent in September. Economists had expected durable goods orders to tumble by 3.1 percent. The sharp pullback in durable goods orders came as orders for transportation equipment plummeted by 14.8 percent in October after spiking by 11.6 percent in September. Excluding the steep drop in orders for transportation equipment, durable goods orders were virtually unchanged in October after edging up by 0.2 percent in September. Ex-transportation orders were expected to inch up by 0.1 percent. At 10 am ET, the University of Michigan is scheduled to release its revised reading on consumer sentiment in the month of November. The consumer sentiment index for November is expected to be upwardly revised to 60.5 from a preliminary reading of 60.4, which was down from 63.8 in October. The Energy Information Administration is due to release its report on oil inventories in the week ended November 17th at 10:30 am ET. At 11 am ET, the Treasury Department is scheduled to announce the details of this month?s auctions of two-year, five-year and seven-year notes. --------------------------------------------------------------- [3 Tiny Stocks Primed to Explode]( The world's greatest investor ? 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On the other hand, shares of GoDaddy (GDDY) may see initial strength after Capital Markets upgraded its rating on the web domain company to Outperform from Sector Perform. Consumer products company Clorox (CLX) may also move to the upside after JPMorgan upgraded its rating on the company?s stock to Neutral from Underweight. --------------------------------------------------------------- [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 advanced on Wednesday despite the latest FOMC minutes offering no indication of possible interest rate cuts. Hamas and Israel have agreed to a Qatar-mediated pause in fighting, helping ease Middle East tensions. The deal includes the release of 150 Palestinian prisoners held in Israeli jails in exchange for 50 people held captive by Hamas in Gaza since the armed group that rules the enclave stormed southern Israel on October 7. The German DAX Index is up by 0.5 percent and the French CAC 40 Index is up by 0.4 percent, although the U.K.?s FTSE 100 Index has bucked the uptrend and edged down by 0.2 percent. British software firm Sage has jumped after reporting strong revenue growth in its full-year results and launching a share buyback. Germany's Fresenius Medical Care has also moved higher after raising its annual earnings outlook. The world's leading provider of products and services for individuals with renal diseases also resolved a legal dispute with the U.S. government. Thyssenkrupp has also surged. After reporting fiscal 2023 net loss of 2.0 billion euros, the industrial engineering and steel company said it sees a profit and higher sales in fiscal 2024. Meanwhile, home improvement retailer Kingfisher has slumped after cutting its profit outlook for the second time in three months. Retail company Casino Group has also moved to the downside after it warned of likely 2023 losses for its core French business. --------------------------------------------------------------- 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 turned in a mixed performance on Wednesday and the dollar steadied near its weakest level in almost three months after the Federal Open Market Committee meeting minutes largely reaffirmed the U.S. central bank's more cautious stance on interest rates. U.S. Treasury yields edged up slightly as investors pared down bets on interest rate cuts next year. Gold rose slightly to trade above the key $2,000 per ounce level in Asian trading, while oil prices were marginally higher ahead of this weekend's OPEC+ meeting. China's Shanghai Composite Index fell 0.8 percent to 3,043.61 following the arrest of DouYu chairman and CEO Chen Shaojie for allegedly hosting online gambling. Hong Kong's Hang Seng Index ended little changed at 17,734.60 after Nvidia warned that sales to China will decline significantly. The U.S. chipmaker's third-quarter earnings topped Wall Street expectations once again, but shares fell after U.S. market hours due to the company's downbeat Chinese sales outlook. Japanese markets rebounded from a one-week low as a weaker yen lifted exporter shares. The Nikkei 225 Index rose 0.3 percent to 33,451.83, while the broader Topix Index settled 0.4 percent higher at 2,378.19. Automakers Honda Motor and Mazda Motor rose about 1 percent each. Semiconductor test equipment supplier Advantest slumped 4.3 percent and Tokyo Electron shed 0.9 percent. South Korea's Kospi finished marginally higher at 2,511.70 after falling in early trading. LG Chem rose 0.6 percent and Korea Electric Power gained 1.1 percent, while LG Energy Solution and Korean Air both fell over 1 percent. Australian markets ended marginally lower, dragged down by tech and real estate stocks. The benchmark S&P/ASX 200 Index ended little changed at 7,073.40 ahead of an address by Reserve Bank governor Michele Bullock at the Australian Business Economists annual dinner. The broader All Ordinaries Index slipped 0.2 percent to 7,277.80. Across the Tasman, New Zealand's benchmark S&P/NZX-50 Index closed marginally higher at 11,169.80. --------------------------------------------------------------- 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 $3.02 to $74.75 a barrel after edging down $0.06 to $77.77 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $2,002.10, up $0.50 compared to the previous session?s close of $2,001.60. On Tuesday, gold jumped $21.30. On the currency front, the U.S. dollar is trading at 149.10 yen compared to the 148.39 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is trading at $1.0896 compared to yesterday?s $1.0911. --------------------------------------------------------------- To unsubscribe from this news bulletin or edit your mailing list settings click [here](. 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