- US indices finished the day marginally higher and well off their intraday lows following a dovish speech by NY Fed President Williams, when he noted that it was “better to take a preventative approach than to wait for disaster.” Traders increased bets on a 50bps “double” rate cut later this month as a result.
- Financials (XLF) were the strongest sector on the day; Communication Services (XLC) were the weakest, dragged down by yesterday’s disappointing earnings from Netflix (NFLX, -10%).
- Gold surged to test $1445, its highest level in more than six years. Oil dropped 2% on the day, despite weakness in the US dollar.
- Stocks on the move:
- Morgan Stanley (MS) reported $1.33 in EPS, well above expectations of $1.17. The stock finished the day 1.5% higher.
- Microsoft reported better-than-expected earnings after the bell, though growth in its cloud computing division Azure fell to “just” 64%. The stock is trading up 1% after hours.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.