Here is what you need to know on Thursday, January 27:
The Fed is now out of the way, and this may open the door for a slightly more risk-on narrative. However, the Fed did strike a more hawkish tone that set equities swinging wildly yesterday. In the end, a dim view was taken, and both the NASDAQ and S&P 500 closed sharply lower from the highs. At least some uncertainty is now removed, and the path is clear from some earnings to perhaps stir a bounce. Apple (AAPL) certainly has the capability for that when it reports post-market. Tesla (TSLA) was a bit all over the place last night. Generally the EV maker was strong, but supply issues hit the stock before a recovery ensued. Demand is not a problem for Tesla.
The Fed opened the door for the possibility of 50bps hikes at any stage this year. We need to determine if markets will focus on the good or bad of that statement. The positive view is that the Fed may catch up from being behind the curve and it will hike 50bps as it thinks the economy can handle it. The negative side is that no one likes a 50bps rate hike, except maybe banks. We note the banking sector is strong in Europe this morning, helped also by Deutsche Bank earnings.
The dollar, meanwhile, has gone on a predictable hawkish charge and is down to 1.1160 now versus the euro. Gold is lower at $1,810, Bitcoin is flat at $37,000, and oil is slightly higher at $88.06.
European markets are mixed: Eurostoxx +0.6%, FTSE +0.9% and Dax -0.5%
US futures are mixed: S&P +0.1%, Dow -0.2% amd Nasdaq +0.3%.
Wall Street top news (QQQ) (SPY)
Money markets follow hawks higher. Now pricing in five US hikes, 1% hike in UK by summer.
Tesla (TSLA) beats on EPS and revenue, but supply issues hurt. Stock jumps around but ends largely flat.
Apple (AAPL) reports after the close.
AMD gets approval from China for Xilinx (XLNX) deal.
AMC in talks over debt restructuring, WSJ.
Deutsche Bank (DB) reports strong earnings, up 4% premarket.
Valero (VLO) beats on EPS and revenue.
Eagle Materials (EXP) beats on top and bottom lines.
Mccormick (MKC) beats on top and bottom lines.
Stellantis (STLA) to increase stake in China venture with GAC.
Brunswick (BC) beats on EPS and revenue.
McDonalds (MCD) earnings miss estimates.
Comcast (CMCSA) beats on top and bottom lines, but new customers disappoints.
Intel (INTC) beats earnings on top and bottom lines.
Levi Strauss (LEVI) pops 8% on strong outlook statement after earnings.
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Source: Benzinga Pro