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Wall Street Today (S&P 500) (Nasdaq): Apple woes, Bank of England change…another quiet day

This is what you need to know to trade today Wednesday September 28:

The volatility it has no limits as we truly navigate through unprecedented times. This author has been in the markets through the DotCom crash, the launch of the euro, the Great Financial Crisis, and the coronavirus pandemic, but I’m having a hard time remembering a time when the markets were so nervous and uneasy. The dollar resumed its uptrend overnight, but this morning we had the intervention in the UK bond market by the Bank of England. A curious maneuver to buy the long part of the curve to suppress long-term interest rates, while at the same time they are likely to raise short-term interest rates by up to 100 basis points at the next monetary policy meeting.

The pound sterling reacted madlyrising initially before collapsing. gold skyrocketed as comparable returns fell, while stocks initially tried to rise on the back of a major central bank exchange rate. As a Bloomberg analyst said, we have gone from QE (quantitative easing) to QT (quantitative tightening) and now to QC (quantitative confusion). The market is certainly confused, and (as I always insist) markets hate uncertainty. This will cause a further drop in liquidity as sterling books are closed across the city. This makes volatility even more likely. In my old life, this is when my boss comes up and says “nothing stupid in sterling”. In other words, if you have a position and it costs you money, get out of it. This is likely to happen in many trading rooms this morning, so the logical conclusion is to move away from sterling risk.

Oh yeah, and while we’re at it, according to a Bloomberg report, Apple (AAPL) is telling suppliers not to increase production because there is no demand for the new iPhone 14. Apple is the general, and in a war the generals always come last. So when Apple finally crashes, then maybe we can say we’ve hit rock bottom.

The dollar index, as a result of this chaos, has strengthened to 114.22, gold has risen to $1,635 and oil is back above $80. Bitcoin is flat at $19,000.

European markets down:

  • Eurostoxx: -0.3%
  • FTSE: -0.3%
  • Dax: -0.4%

US futures rise:

  • S&P500: +0.3%
  • Dow-Jones: +0.5%
  • Nasdaq: +0.1%

Wall Street News (SPY) (QQQ)

The Bank of England will buy long-term bonds.

The ECB says there will be more rate hikes.

Biogen (BIIB) rises 45% after positive news about an Alzheimer’s drug.

LYFT will freeze hiring.

Blackberry (BB) exceeds its maximum and minimum results.

Canopy Growth (CGC) will sell its retail operations in Canada.

Walt Disney (DIS) closes some parks due to the proximity of the hurricane in Florida.

Docusign (DOCU) will reduce your workforce.

Apple (AAPL) asks its suppliers not to increase production.

Ocugen (OCGN) agrees a license with the University of Washington for the coronavirus vaccine.

Merck (MRK) reaches an agreement with Sinopharm for the oral treatment of coronavirus in China.

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evictions

Source: WSJ.com

Economic data

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Source: Fx Street

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