Wall Street trades slightly weaker, with tech/growth stocks leading the losses after software giant Oracle reported disappointing cloud sales. The energy sector manages to outperform again with oil prices at their highest level since November last year.
Tech stocks are in focus today after Oracle reported disappointing earnings, Apple prepares to announce a new product lineup and SoftBank-owned chip designer Arm prepares for its biggest IPO of the year. Oracle's declining cloud sales raise questions about when generative AI demand will translate into more revenue, and whether analysts are being overly optimistic here in the short-term.
In Europe, the EUR and GBP turned lower again. UK wage growth remained at a record high in the three months to July. This is a sign of persistent inflation, which will keep pressure on the Bank of England to raise interest rates again, while at the same time unemployment continued to rise, reinforcing expectations of an easing labor market. Investor confidence in the German economy improved slightly, but remains deep in pessimistic territory. Confidence in the Eurozone economy fell further and more sharply than expected.
Overall, we are in for another rather quiet day in terms of economic data and no major earnings reports. Ahead of tomorrow's important U.S. inflation report, we will see mainly sideways movements. Rising concerns about stubborn inflation, higher oil prices, a strengthening USD, slightly worsening risk sentiment, and Oracle's disappointing earnings report will be headwinds for Wall Street – which will likely slightly outweigh buying today.
👁 ROB'S MARKET OVERVIEW:
September 12, 2023 (🇺🇸🕊)
🇺🇸 US Markets ➡️/↘️
Cyclical Stocks ➡️/↘️
Tech/Growth Stocks ➡️/↘️
Financial Stocks ➡️/↘️
Defensive Stocks ➡️
Energy Stocks ➡️/↗️
USD ↗️ (tailwinds on concerns of sticky inflation data)
CHF, CAD ➡️/↗️
EUR, GBP, AUD ➡️/↘️ (losing yesterday's gains)
⚒ Commodity Markets ↕️
Oil prices ↗️/➡️ (most of today's gains already in early US trading)
Natural Gas prices ↗️
Metal prices ↕️ (iron ore / stell higher – but some headwinds ahead also from stronger USD)
Precious Metal prices ➡️/↘️ (stronger USD concerns about sticky inflation = increased rate hike expectations weighs on gold)
⚡️Cryptos ↗️/➡️/↘️ (temporary gains cause short-squeeze – cryptos remain under pressure)
(*↗️ bullish, ↘️ bearish, ➡️ sideways / stable, ↕️ mixed / volatile)