Wall Street Today | Winning Streak For Equities While Investors Await DNC and Fed News
Indexes hit a five-day winning streak to start the week Monday as the Democratic National Convention began. But instead of any stock market-related news from the Harris campaign, investors focused on the wait for Federal Reserve Chair Jerome Powell to speak about monetary policy at Jackson Hole on Friday. Investors are hoping for a hint about rate cuts.
The S&P 500, Dow Jones Industrial Average, and Nasdaq were up 6-8% overall in the past ten sessions, rebounding from a red July in the hopes that the Federal Reserve will signal rate cuts soon.
Just past the close at 4 pm ET the $S&P 500 Index (.SPX.US)$ climbed 0.97%, the $Dow Jones Industrial Average (.DJI.US)$ climbed 0.58%, and the $Nasdaq Composite Index (.IXIC.US)$ climbed 1.32%.
MACRO
Investors are hoping to see some long-awaited changes to monetary policy this week, after last week's economic data hinted that inflation might finally have slowed down towards the Fed's 2% goal.
The annual Jackson Hole Symposium is held from August 22 to 24 in Wyoming. Fed Chair Jerome Powell will speak on the economic outlook at 10:00 a.m. ET on August 23. Markets expect him to provide monetary policy signals, potentially setting the stage for a rate cut in September.
Last year at the event Powell said the US central bank is prepared to raise interest rates further if needed and intends to keep borrowing costs high until inflation is on a convincing path toward the Fed's 2% target.
"Although inflation has moved down from its peak — a welcome development — it remains too high," Powell said in a speech Friday at the US central bank's annual conference in Jackson Hole, Wyoming. "We are prepared to raise rates further if appropriate, and intend to hold policy at a restrictive level until we are confident that inflation is moving sustainably down toward our objective."
SECTORS
Oil futures $Crude Oil Futures(DEC4) (CLmain.US)$ fell 2.25% Monday, their lowest position in two weeks. Marketwatch attributed the decline to tensions in the Middle East. Natural gas climbed 5% as the summer comes to a close in the U.S.
Traders were watching the DNC, and speculating on the outcome of the Jackson Hole speach form Powell. according to comments from portfolio manager Colin Cieszynski to MarketWatch
MOOVERS
Estée Lauder Cos. $Estee Lauder (EL.US)$ fell about 2% Monday after beating estimates for sales and EPS, but reporting it had begun a search for a new CEO. CEO Fabrizio Freda plans to retire at the end of fiscal year 2025 after 16 years in the job.
$HP Inc (HPQ.US)$ shares fell nearly 4%, after a Morgan Stanley analyst downgrade.
Zim Integrated Shipping $ZIM Integrated Shipping (ZIM.US)$ rose 16% Monday after the company lifted its guidance, driven by continued supply pressure from the Red Sea crisis, and achieved a record high level of carried volume for the second quarter. The firm swung a $213M loss in Q1 to a Q2 profit of $373M profit.
$Advanced Micro Devices (AMD.US)$ was leading AI semiconductor news after the firm agreed to pay $5B for data-center equipment designer ZT Systems. Wall Street Journal reported the firm is using a 75% cash/25% stock ratio, about $3.375 billion in cash and nearly 8.34 million shares valued at $1.125 billion, or around $134.96 apiece, well below the current trading p[rice of $150.
$Palo Alto Networks (PANW.US)$ shares rose 3% in extended trading after the cybersecurity company reported fiscal fourth-quarter earnings and revenue that beat analysts' estimates and provided a rosier-than-expected outlook.
$Fabrinet (FN.US)$ shares advanced 8.9% in extended trading after the company reported quarterly earnings and revenue that beat analysts' estimates. The company reported adjusted EPS of $2.41 per share which beat the analyst consensus estimates. Quarterly sales rose 15% to $753.261 million, surpassing consensus estimate of $732.220 million by 2.87 percent.
Investors are watching for a few retail-focused firms this week. $Lowe's Companies (LOW.US)$ arrives Tuesday, $Target (TGT.US)$ on Wednesday. There are tech firms aswell, with $Zoom Video Communications (ZM.US)$ and Wednesday.
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Word from the herd: Mooers, what are you watching?
Disclaimer: This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Indexes are unmanaged and cannot be directly invested in. Past performance is no indication of future results. Investing involves risk and the potential to lose principal. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information regarding your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. Moomoo makes no representation or warranty regarding its adequacy, completeness, accuracy, or timeliness for any purpose of the above content. See this link for more information.
Disclaimer: This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Indexes are unmanaged and cannot be directly invested in. Past performance is no indication of future results. Investing involves risk and the potential to lose principal. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information regarding your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. Moomoo makes no representation or warranty regarding its adequacy, completeness, accuracy, or timeliness for any purpose of the above content. See this link for more information.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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affable Blobfish_403 : What is the purpose of frantically boosting the stock market? A general election? Cut the chives? If something goes wrong, there must be a demon!
章允量 :![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
john song : k
Cypher : “…and speculating on the outcome of the Jackson Hole speach form Powell.” It’s speech* not speach. Just more typos from these moomoo articles bots. A daily occurrence
Cypher : “There are tech firms aswell, with $Zoom Video Communications (ZM.US)$ and Wednesday.” I’m sure they ment on* Wednesday. Those bots are out of control
Reggie123 : ok
Kevin Travers Cypher : I wrote this, we switch off every week on who writes it, wed is also $Snowflake (SNOW.US)$ is what it was supposed to say. We put up 20 articles a day in the JC office for our readers like you!
Cypher Kevin Travers : Maybe try slowing the pace if 20 articles a day is too much. It’s better to have 5 to 10 articles without typos than 20 articles with them
Kevin Travers Cypher : wow, have you worked in news before?
Cypher Kevin Travers : That’s irrelevant. I’m just applying common sense here. The less articles you write the more time you can dedicate to proofread them before publishing. And again I catch typos on a daily occurrence and I’m not exaggerating.
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