Here’s what you need to know on Friday, September 9:
Risk assets are bullish on Friday as investors rush back into high-growth, high-beta names, pulling stocks higher. But not just shares. Arguably the leading indicator, Bitcoin is up a whopping 9% as it regains the important $20,000 level and pushes higher. The rationale is multifaceted.
Mostly though we can again say that things are too bearish. Investors are taking some profits on short positions and mostly choosing to trust their man Powell that inflation won’t get out of hand. Interesting, when it seems like it’s out of control, but the market wanted to recover, it does. It needs no reason. We just have to come up with one! Sure, we can say that sentiment and positions are too bearish and that’s why we have a rally. However, it goes downhill from there.
bitcoin as mentioned, it is surging 9% to $21,200. Oil is also higher as the Iran nuclear deal is once again off the table and there are rumors of more OPEC cuts. The price of oil is now 85 dollars. Gold it is at $1,720 and the greenback finally stopped with the dollar index at 109.05. The hawkish talk was overshadowed by positioning and profit-taking, not to mention the Bank of Japan’s intensifying rhetoric about a weaker yen.
European markets are higher: Eurostoxx +2%, FTSE +1.3% and Dax +1.5%.
US futures are also higher: Nasdaq +2% and Dow and S&P +1.3%.
Top Wall Street News (QQQ) (SPY)
EU Seeks 10% Electricity Cut from Member States – WSJ
The US Secretary of State’s latest offer to Iran takes us back – Financial Juice.
Tesla (TSLA) is considering building a lithium refinery in Texas.
Zscaler (ZS) is up more than 10% on strong earnings.
DocuSign (DOCU) it also has strong earnings and strong guidance, up 15%.
Virgin Galactic (SPCE) was reduced by Bernstein.
Intel (INTC) establishes two new chip factories in Ohio.
Digital World (DWAC) until the company postpones the vote on the merger.
Smith and Wesson (SWBI) lower after earnings, top and bottom line errors.
Kroger (KR) increases EPS guidance.
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