This is what you need to know to trade today, Friday, November 18:
Stock markets pulled back on Thursday, but the moves were actually better than what Fed member James Bullard seemed to be aiming for with his 5% to 7% rate projections. Yields rose, and have remained largely elevated ever since, but the dollar and equity markets didn’t really react as expected. The Nasdaq barely closed in the red, and that’s supposed to be the rate-sensitive game.
On Friday, futures are positive as bond yields continue to rise. Some may be taking the inversion of the yield curve ever deeper into negative territory as a sign of a reverse pivot. The inversion of the yield curve is a harbinger of recession and reduced yields. This is a slightly counterintuitive argument when the yields themselves are rising.
This latest rally in stocks is at a critical time. The recent consolidation can be seen as a starting point for another push higher or buyers exhaustion. Normally I would lean on the fundamental side and make the argument for the downside, but there is something that doesn’t feel quite right to me about that argument. The pain of trading is higher, and the market is designed to inflict pain.
The dollar has also failed in its recovery attempts. The Dollar Index is flat at 106.61, while gold is also flat at $1,760. Oil has fallen on concerns about China and is at $80.56, while Bitcoin remains at $16,700.
The european markets go up Eurostoxx +0.5%, FTSE +0.45 and DAX +1%.
The US futures they also go up. Dow +0.5%, Nasdaq +0.9% and S&P +0.8%.
Top Wall Street News
ECB President Christine Lagarde sees an aggressive hike in interest rates.
Reuters headlines
Goal Platforms (GOAL) : Chief Executive Mark Zuckerberg told employees Thursday that WhatsApp and Messenger would fuel the company’s next wave of sales growth
Applied Materials (AMAT): The chip toolmaker on Thursday forecast first-quarter profit above market estimates
Gap (GPS) : The company beat Wall Street estimates for quarterly sales and profit
JD.com (JD): The e-commerce company posted an 11.4% increase in third-quarter profit, beating analyst estimates
Visa (V): The company named its president, Ryan McInerney, as its new CEO on Thursday
Activision Blizzard (ATVI) Y Alphabet (GOOGL) ): Google has closed at least 24 agreements with large application developers to prevent them from competing with its Play Store
Amazon.com (AMZN): The company said on Thursday there would be further feature reductions as its annual planning process extends into next year
BioNTech SE (BNTX) Y Pfizer (PFE): Drug makers said their Omicron-adapted vaccine produced higher virus-neutralizing antibodies in older adults
In other news
Foot Locker (FL) it shoots up 14% for its strong earnings.
Williams Sonoma (WSM) rises 8% for its good earnings.
Palo Alto Networks (PANW) goes up for his good earnings.
Ups and downs
Source: WSJ.com
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
