Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

Sign in to follow this  
Guest Michal Vajcik

S&P Steps Up Amid Frozen Retail Sales, Abating Dollar Concerns

Recommended Posts

Guest Michal Vajcik

http://bit.ly/1HResiq

 

Wall Street posted solid gains on Thursday amid weak retail sales in February and temporarily shook off worries of a strong US dollar. Meanwhile, financials celebrated a pass mark from the Federal Reserve's (Fed) stress test.

 

"At least on a one-day basis we have a reprieve from the (strong dollar) - very much analogous to the decline we saw in oil prices," said Art Hogan, chief market strategist at Wunderlich Securities.

 

The Standard & Poor's 500 Index closed 1.26% elevated at 2,065.94 points.

 

 

Meanwhile, the Nasdaq Composite finished with a gain of 0.89% at 4,893.29 points and the Dow Jones Industrial Average rallied 1.47% to 17,895.28 points on Thursday.

 

''The market rebound is probably in response to a lot of folks who think the Fed will not be raising rates. The US economy seems to be cooling," RW Baird strategist Bruce Bittles noticed

 

Frozen retail sales

 

Headline retail sales in February saw the worst streak in nearly three years as severe weather conditions in February impacted daily life in the US. Retail sales missed expectations in February, as the latest report showed a deterioration of 0.6% month-on-month, although slightly better than the 0.8% fall posted in January.

 

Later in the day, the number of initial jobless claims hit 289,000 for the week ending March 7, sliding from an upwardly revised 325,000 seen in the previous week, while business inventories remained flat in January.

 

Finally, the monthly budget statement revealed a deficit of $192.3 billion for February, much wider than the gap of $17.5 billion in the first month of the year.

 

Bank's pass test

 

In the banking sector, the shares of Bank of America, Goldman Sachs and JPMorgan Chase were trading elevated ahead of the opening bell after the Federal Reserve approved the capital plans for 29 out of 31 global banks. The units of Deutsche Bank and Santander were the only exceptions.

 

Intel was one of the biggest losers in the morning, with the firm's shares plummeting 4.95% to finish at $30.73 after the company downwardly revised its revenue outlook for first quarter due weak demand for business personal computers.

 

PC maker Hewlett-Packard saw its shares unchanged at $32.60 as Barclays downgraded its shares to ''equal weight'' from ''overweight''. Barclays forecast that Hewlett-Packard's performance would be more severely impacted by the weak euro than originally assumed.

 

Retailer Dollar General issued a weaker-than-expected outlook for the current trading year amid increased competition. Its shares rose 3.81% to $74.18.

 

Drug maker Acadia Pharmaceuticals slumped 21.90% to $35.50 per share, after the company delayed seeking approval of its new Parkinson's drug.

 

Shares of software company Box dived 15.29% to $17.22 after posting late Wednesday a wider-than-expected loss for the fourth quarter.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  

  • Topics

  • Posts

    • Thank yyou guys much needed
    • #analysis #forex #followme #socialtrading The #GBPUSD is trading at 1.2410 due to no positive Brexit developments and an on-going Parliament deadlock at the UK. The #UK #PM Boris Johnson’s Luxembourg visit failed to provide any key updates. The EU President criticized the Tory leaders’ depth of details while British Foreign Secretary Dominic Raab reiterated the PM”s pledge to leave on October 31 and also passing the bucket of criticism back to the EU. The #USD stays on the front foot as the recent rise in #safe-haven demand, mainly due to the attacks of Saudi Arabia, joins hands with optimism surrounding the US-China trade talks, up for early October. While the absence of data, except the US Industrial Production for August, is likely in support of carrying the previous move forward, any positive to the UK PM during the first day of hearings at the UK’s Supreme court could help the Cable recover some of its latest losses. #TechnicalAnalysis Unless providing a daily closing beyond 100-day simple moving average (DMA) level near 1.2510, the quote is less likely to rise towards mid-July highs surrounding 1.2580, which in turn highlights the importance of 1.2380 and 50-DMA level of 1.2280 during further declines.  
    • Another Best Broker award for HotForex! Dear Client, We are thrilled to announce that International Finance Awards has named HotForex the Best Forex & Commodities Broker in Latin America! A HotForex spokesman said: “This new award is an excellent addition to our 25+ existing awards and demonstrates our continued success in establishing ourselves as a market leader with global reach, committed to providing our clients with the best possible client-centric trading experience.” Thank you for all your support, and for choosing us as your broker of choice! Kind regards, The HotForex Team
    • #WeekAhead  #forex  #news  #followme  #socialtrading Hey friends! Happy new week. Here are the data highlights for this week: (GMT+8) Monday: 10:00      Chinese industrial production, fixed asset investment and retail sales     Tuesday: 09:30   RBA Meeting Minutes 17:00     German ZEW economic sentiment and 21:15     US industrial production   Wednesday 16:30     UK Consumer Price Index (YoY) (Aug) 20:30     Canada BoC CPI   Thursday: 02:00   US FOMC Economic Projections 02:00   US Fed's Monetary Policy Statement REPORT 02:00   US Fed Interest Rate Decision 02:30   US FOMC Press Conference SPEECH 06:45   AUD Gross Domestic Product (QoQ) (Q2) 09:30   AUD Employment Change s.a. (Aug) 09:30   AUD Unemployment Rate s.a. (Aug) 10:00   JPY BoJ Interest Rate Decision 10:00   JPY BoJ Monetary Policy Statement REPORT 14:00   JPY BoJ Press Conference SPEECH 19:00   UK BoE Asset Purchase Facility 19:00   UK BoE Interest Rate Decision 19:00   UK BoE MPC Vote Hike 19:00   UK Bank of England Minutes REPORT 19:00   UK BoE MPC Vote Cut 19:00   UK BoE MPC Vote Unchanged   Friday: 20:30   Canadian Retail Sales (MoM) (Jul)   #FederalReserve is expected to cut rate about 25-basis point. It would be a major shock if the Fed doesn’t deliver. But some, including Donald Trump, want more than just 25 basis points. In fact, the US President has called for “boneheads” Fed to cut rates to zero or lower in a tweet this week. Understandably, with US data not deteriorating as badly as, say, Germany, the Fed is reluctant to cut aggressively and rightly so. The risk therefore is that the Fed refuses to provide a dovish outlook for interest rates. In this potential scenario, a rate cut might only weigh on the dollar momentarily. With most other major central banks already being or turning dovish, the Fed will also need to be super dovish for the dollar to end its bullish trend. Otherwise, the greenback may find renewed bullish momentum, even if the Fed cuts by 25 basis points.     The #Swiss National Bank will have to say about the #ECB’s decision to resume bond buying, given the recent appreciation of the franc against the shared currency. The #BoJ is unlikely to respond to the #ECB’s resumption of bond buying. It may keep the current policy of controlling the yield curve. For one, the global economy hasn’t deteriorated too significantly to exacerbate deflationary pressures in the export-oriented Japanese economy. For another, the there’s only limited number of policy options left at the BoJ's disposal. Thus, cutting short-term interest rates further into the negative may be an option, but to be used on another occasion.
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.