Wake Up Wall Street (SPY) (QQQ): Risk-off trade may fade, but limited catalysts exist until next week
Here is what you need to know on Wednesday, December 7:
Equity markets gave up more ground on Tuesday as investors continued to brace themselves for higher rates from the Fed. While the 50bps hike next week is a done deal, the dot plot is not, and traders are starting to worry that maybe the Fed was telling the truth after all and rates are going higher for longer. That saw oil take a serious leg lower on Tuesday, hitting energy stocks while tech also was hit hard by higher rate projections. We do not have many catalysts this week, so the move lower may now consolidate with perhaps the odd stretch down this morning. In truth, strong moves are unlikely at this juncture.
The US Dollar held much of its gains, and DXY is at 105.50. Gold remains flat at $1,770, while Oil is steady at $74, having failed so far to break support just above $73. Bitcoin is trading at $16,700.
European markets are lower: Eurostoxx, Dax and FTSE are all down about 0.4%.
US futures are also lower: Nasdaq is the worst at -0.6%, while Dow and S&P 500 are both -0.3%.
Wall Street Top news (SPX) (QQQ)
BOC rate decision at 1500 GMT.
Reuters headlines
Microsoft (MSFT) has entered into a 10-year commitment to bring the gaming title "Call of Duty" to Nintendo platforms, the chief executive officer of Microsoft Gaming, Phil Spencer, said in a post on Twitter.
Tesla (TSLA) offers additional discount to Chinese buyers on some models.
Barclays (BCS): The company said it had appointed Alistair Currie as chief operating officer.
BlackRock Inc (BLK): Tiny activist investor Bluebell Capital Partners is taking aim at BlackRock and wants to replace longtime CEO Larry Fink, criticizing the world's largest asset manager as being inconsistent in its focus on environmental, social and corporate governance (ESG) issues.
Boeing Co (BA) & Lockheed Martin Corp (LMT): U.S. lawmakers late on Tuesday declined to add an extension to an annual defense bill of a looming deadline that would impose a new safety standard for modern cockpit alerts for two new versions of Boeing's best-selling 737 MAX aircraft.
Chevron Corp (CVX): The company on Tuesday said its 269,000-barrel-per-day El Segundo, California, refinery experienced a mechanical issue at one of its operating units, and said it was working to remedy the issue as soon as possible.
GSK PLC & Sanofi SA (SNY): Shares of GSK and Sanofi surged in early trading, following the dismissal of thousands of U.S. lawsuits claiming that the heartburn drug Zantac caused cancer.
Mosaic Co (MOS): The Fertilizer producer said on Tuesday that it has temporarily curtailed potash production at its Colonsay, Saskatchewan, mine in Canada, citing slower-than-expected demand.
Pinterest Inc (PINS): The company on Tuesday said it reached a deal with Elliott Management, the activist investment firm that has offered up ideas on how to improve operations at the image sharing and social media service company.
Southwest Airlines Co (LUV): The company reinstated its quarterly dividend program more than two years after suspending it in wake of the coronavirus pandemic.
Taiwan Semiconductor Manufacturing Co Ltd (TSM): The Taiwanese chipmaker TSMC on Tuesday said it would more than triple its planned investment at its new Arizona plant to $40 billion.
Uber Technologies (UBER): The U.S. ride-hailing firm Uber and driverless tech-maker Motional have launched their public robotaxi service in Las Vegas.
Upgrades and downgrades
Should rename it to upgrade and downgrades!
Economic releases
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Author
Ivan Brian
FXStreet
Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.
