North American News
Major US stock indices close little changed on the day
- Small changes for the major indices today
The major indices are closing amid little change on the day.
The CBOE volatility index is down to 16.73 which is at the lowest level going back to January 2022.
The final numbers are showing:
- Dow industrial average fell -10.57 points or -0.03% at 33976.64
- S&P index up 3.55 points or 0.09% at 4154.86
- NASDAQ index down minus 4.32.4 -0.04% at 12153.40
- Russell 2000 -7.28 points or -0.40 percent at 1795.55
Netflix just reported earnings for Q1
- revenues $8.16 billion versus $8.18 billion expected
- EPS $2.88 versus $2.86 expected
- Net add subscriptions 1.75 million which is short of 2.06 million expected
- see Q2 EPS at $2.84 versus $3.05 expected
- see Q2 revenues of $8.24 billion versus $8.48 billion expected
Shares are down sharply in after-hours trading (-8.5%)
IN other earnings news, Intuitive Surgical announce their earnings:
- EPS $1.23 versus $1.20 expected
- Revenues $1.70 billion versus $1.59 billion
Atlanta Fed GDPNow for 1Q growth comes in unchanged at 2.5%
- Atlanta Fed GDPNow estimate for 1Q growth
The Atlanta Fed GDPNow estimate for Q1 growth remains unchanged at 2.5%. In their own words:
The GDPNow model estimate for real GDP growth (seasonally adjusted annual rate) in the first quarter of 2023 is 2.5 percent on April 18, unchanged from April 14 after rounding. After this morning’s housing starts report from the US Census Bureau, the nowcast of first-quarter real residential investment growth increased from -5.8 percent to -5.5 percent.
Feds Bostic: Inflation still remains too high
- Atlanta Fed president Bostic speaking on CNBC
- Sees one more rate hike and and then hold
- inflation still remains too high. There is a lot to do on inflation
- I don’t see inflation falling below 3 1/2% and 3 1/2 is still well above the 2% target
- Does not have a recession as his baseline outlook
- The economy continues to be extremely resilient
- We will economy that remains strong. We’re going to have to see some weakening
- We only moved into restrictive stance starting in the fall
- The banking system seems to be stable but never know when the next shoe may stop
- The uncertainty in the banking is going to cause bankers to be more cautious. That is going to do some work for the Fed in not having to raise rates more
- Monitoring situation around debt ceiling. Uncertainty is not helpful
- Shorter-term rise inflation expectations doesn’t really surprise me. People see prices at gas stations and grocery stores. The longer run inflation expectations have not moved as much.
- We’re going to do what we need to do to get inflation back down to 2%
- It is important that we get our balance sheet back down to a size that is appropriate
Fed Bowman: We are watching very closely for potential signs of more bank stress
- Feds Bowman speaking on banking
- difficult to imagine justification for direct access central bank digital currencies beyond interbank and wholesale transactions
- See some promise from wholesale central bank digital currencies
- Banks have a broad concern about disintermediation from a CBDC (central bank digital currency)
- we are watching very closely for potential signs of more bank stress
Feds Bullard: Sees restrictive policy rate between 5.5% and 5.75 range
- Fed bullard speaking in a Reuters interview
- US recession predictions ignore strength of labor market
- Pandemic savings still to be used
- Not much clear progress on inflation means interest rate needed to continue to rise
- Still sees adequately restrictive policy rate at 5.5% – 5.75% range, bias to hold for longer until inflation contained
- Risk of bank stress causing broad problems seems to have diminished
- Fed should avoid extensive forward guidance and next meeting, keep options open
Commodities
Silver Price Analysis: US Dollar´s bearish correction could still support, but bears are moving in
- Silver has corrected into a 61.8% Fibonacci area and bears are moving in.
- However, the confirming break-of-structure-point is not until $24.9332 to confirm a downside bias.
- US Dollar could continue to correct lower, bullish for Silver.
Gold rebounds from the 20-day SMA to $2,010
- Gold rises after a sharp correction on a quiet day.
- XAU/USD found support above the 20-day SMA.
- US Dollar falls across the board ending a two-day rally.
Gold price rose $2,011/oz after the beginning of the American session, reaching a fresh daily high. The yellow metal remains near the high, supported by a weaker US Dollar.
Global dairy trade prices up 3.2%
- The latest dairy prices out of New Zealand
The global dairy trade prices show a 3.2% gain to an average price of $3362. The gain is the 1st after 4 consecutive declines.
WTI crude all future settle at $80.86
- Up $0.03 or 0.04%
WTI crude oil futures are settling at $80.86, up $0.03 or 0.04%.. The high reach $81.52. Low extended to $79.91.
EU News
Major European indices close higher
- Gains across the board for the European indices
The major European indices close day with gains:
- German DAX 0.59%
- Frances CAC 0.47%
- UK’s FTSE 100 0.3%
- Spain’s Ibex 0.46%
- Italy’s FTSE MIB +0.69%
Goldman Sachs sees terminal ECB rate at 3.75%
- Up from 3.5%
Goldman Sachs has raised its terminal ECB rate to 3.75% from 3.5% previously. The ECB raise rates by 50 basis points at their last meeting on March 16.
Other News
US Treasury Secretary Yellen to deliver remarks on US China economic relationship
- Comments to be made on Thursday in Washington
- Yellen to detail US economic priorities on China, including 1st securing national security interests and protecting human rights
- Yellen to detail US desire for healthy and mutually beneficial economic, competition with China based on a level playing field
- Yellen to say US, China should cooperate on global issues such as climate change, debt distress (in developing countries) and macroeconomic communication
Cryptocurrency News
MATIC price breaching this key level could trigger a 50% rally and turn 1.15 billion MATIC profitable
- MATIC price is facing a supply wall at $1.24, where nearly 30,000 investors bought $1.34 billion worth of MATIC.
- Polygon whales have been active over the last month accumulating significantly, supporting the probability of recovery.
- On the other hand, network adoption has declined to suggest Polygon is losing traction among users.
MATIC price currently resides among the few altcoins that have failed to mark any growth over the last two months. The altcoin, in particular, has been facing a barrier for the last month and a half, clearing which is crucial to initiate a bounce back to a price point last tagged by the cryptocurrency in February 2022.
MATIC price needs to clear this
MATIC price, trading at $1.17, has been looking for a bullish signal since the beginning of March. A key reason behind the lack of growth is the uncertainty surrounding the long-awaited alt season as Bitcoin’s dominance continues to signal otherwise. However, over the last week, BTC dominance has dropped to 47.32%, which is reigniting hopes for the alt season.
Like our recently launched pages. Join our community and never miss a beat in the dynamic world of trading.
https://www.facebook.com/BilalsTechLtd
https://www.linkedin.com/company/bilals-tech/
