Investing.com – At the end of a quiet week, no major economic data was released except for retail sales, which reinforced recession fears and gave markets an indication of what to do at its upcoming meeting and subsequent Jerome Powell press conference.
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US market and weekly performance
US economic indicators are trading higher today in late trade after yesterday’s decline, with earnings announcements from Tesla ( ) and Netflix bringing losses of 9% to both stocks, and falling 2% with them.
It is now up 0.20% at 35,297.07 points, and if it succeeds in reaching higher, it will be the tenth consecutive high for the Dow Jones Industrial Average.
After falling 0.68% in yesterday’s trade, it is now up 0.27% to trade at $4,547.01.
As for the Nasdaq index, which includes technology companies, after falling 2.05% in yesterday’s trade, today will settle around 14072 points with a sideways movement.
The movement of U.S. stock indexes posted strong weekly gains as the Nasdaq index rose nearly 0.25%, the S&P 500 index rose 1.02%, and the Dow Jones Industrial Average posted a gain of about 2.31% year-to-date.
Now the cost of goods and dollar
Now gold
Meanwhile, (futures) fell 0.39% to $1963.25 in today’s trade, while spot contracts fell 0.42% to $1961.28.
The Secret of Ascension
The dollar index rose 0.26% to 100.860 in today’s trade, while the 10-year Treasury yield fell 0.60% to 3.830%.
This helped the dollar to its first weekly gain in 3 weeks, which has reached around 1.34% so far. In addition to the support the dollar received from the data and looming interest rate hikes, the dollar gained more on the back of a report that the Bank of Japan will not change its monetary policy settings at next Friday’s meeting.
Now the oil
Oil contracts are on the rise today in week-end trading and are maintaining it above the $80 level, especially at $80.41, up 0.97%. Texas crude rose 1.08% to $76.45 a barrel.
The Secret of Gold’s Fall
The current decline, some believe, is a strong decline and profit-taking next week, which will witness the release of an interest rate decision from the Federal Reserve, which could see fresh interest rate hikes, which will push gold and risk against the rise in the US dollar and bonds.
Gold’s decline was also driven by data released in the US yesterday, a slowdown in US jobless claims, data that signaled optimism about the state of the labor market and the US economy, and a rise and fall in the dollar. In the week ended July 15, applications registered 228,000, the lowest since the first week of April, in nearly two months.
On the other hand, gold contracts also faced downward pressure as yields rebounded for a second day in a row, with the benchmark 10-year bond yield rising 0.22% to 3.84%, with investors eager to own them at the expense of low-yielding gold.
Look at the US stock market
The high-tech Nasdaq is up 34.4% so far this year, as optimism about artificial intelligence and expectations of a Fed rate hike have increased investor challenges in the sector.
Morgan Stanley raised its economic growth forecast for the year, citing strong manufacturing and infrastructure spending by the central government and saying it expects a soft landing for the economy.
American Express expectations remain the same
Shares of American Express Company ( ) fell 5% after record cardmember spending, but its full-year outlook remained negative.
Auto Nation ( {7865|AN}} ) fell 7%, hiding better-than-expected quarterly sales after the automaker reported a sharp drop in used car sales and a rise in costs.
Tesla is still in shock, and so is Lucite
Tesla shares are now down 0.56% after falling more than 9% yesterday on negative future expectations.
Shares of Lucid Electric Cars are now down 1.23%, up $8 to $6.84 on July 10.
Shares of NIO () Electric Vehicles are now up 2.57%.
With care
Futures traders expect the Fed to produce another quarter of a percentage point when it meets next week, and analysts will listen to Chairman Jerome Powell during a press conference on Wednesday for more clues about the Fed’s future moves.
The central bank wants to bring inflation down to its annual target of 2%, which remains a challenge amid a resilient economy with a tight labor market. Next week, in the form of the second quarter report and the latest reading on inflation.
A reading on consumer confidence is also scheduled for release next Friday.
Traders are hesitant about where the central bank will go after next week’s meeting, with some expecting a pause in September and another rate hike in November.
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