The DOW JONES returned 0.04% to 33,650 points, while the S&P 500 gained 0.01% to 4,268 points. The NASDAQ 100 rose more significantly by 0.23% to 13,143 points.
The S&P 500 and Nasdaq Composite both turned down yesterday Wednesday, while the Dow Jones stood out to finish up 0.27%.
“We are in a kind of news vacuum: “The results are in, the debt ceiling has been decided and we’re waiting for the Fed next week,” recalls Barbara Doran, CEO of BD8 Capital Partners in statements to CNBC. “They are widely expected to take a break but it will really matter what their forecast is and what the number will be on Tuesday. [del índice de precios al consumo]“.
In fact, investors seem to be waiting for it the next Federal Reserve monetary policy meeting on June 13-14. Economic signs suggest that inflation is falling, although it remains above the 2% target set by the central bank. For example, wage growth is slowing. According to data from Indeed, wages rose 5.3% annually in May, down 0.4 percentage points from April.
According to CME’s FedWatch tool, markets are pricing in a 66% chance that the Federal Reserve will hold interest rates at its next meeting.
However, yesterday’s unexpected decision by Canada’s central bank to raise interest rates has investors on high alert. The move “led many investors to believe that while the Fed might “stop the way” and not raise its benchmark interest rate at next week’s Federal Open Market Committee (FOMC) meeting, it’s also important to do so later.” do when inflation is high.” more cautious than expected about going under,” he stresses. Juan J. Fernández-Figares, of Link Management. “What we think Investors were already largely assuming that there would be no rate cuts in 2023 Neither in Europe nor in the USA.
In the macroeconomic part, they met this Thursday just before the opening Initial jobless claims hit highest level since October 2021which indicates a slowdown in the labor market.
Claims rose 28,000 to 261,000 in the week ended June 3, which included the Memorial Day holiday, according to the Labor Department report. The rise was the largest since July 2021, beating analyst forecasts that had predicted a figure of 235,000.
One of the negative protagonists of the day in the business is GameStop, which collapses by more than 20%. The company announced this yesterday the dismissal of its CEO, Matthew Furlong, without giving reasons for the dismissal. GameStop said board chairman Ryan Cohen will take on the role of CEO. A company filing with the Securities and Exchange Commission said Furlong was fired Monday but will continue to receive pay and benefits in connection with a “quit termination without reason.”
Shares of GameStop, one of the most popular meme stocks for retailers, are up more than 40% year-to-date.
Carvana shares surge 25% after the online auto dealer announced an upgrade to its financial outlook. The company expects total gross profit per unit in excess of $6,000 for the second quarter, which would mean more than 60% above the level of the prior-year quarter. The previous forecast was more than $5,000.
“Our record-breaking first quarter of 2023 is a testament that our strategy is working and our updated second quarter 2023 outlook shows that our progress continues to have a positive impact on the business, even faster than expected,” said Ernie García, Founder and CEO of Carvana.
As for analyst recommendations, there’s bad news for Wynn Resorts and Las Vegas Sands. Both casino operators are down nearly 2% after Jefferies downgraded ratings from buy to hold. The Wall Street firm says Macau’s recovery is already priced into shares.
Cryptocurrency companies remain at the center of the storm after the SEC filed lawsuits earlier this week. Lawyers for cryptocurrency firm Binance have resigned, alleging that SEC Chairman Gary Gensler offered to advise the company’s parent company in 2019. Coinbase, also in the bullseye, fell 1.3% in the pre-opening today, undoing yesterday’s attempted recovery.
Investors also need to pay attention to Meta (Facebook) after learning that the company plans to open a new broadcast feature called Channels for its WhatsApp messaging service.
The social media giant has noted that the new Channels feature is similar to a “private broadcast service,” where individuals and organizations can send messages and updates to followers that reflect the types of interpersonal communication common among WhatsApp users take place, are separate.
Admins who oversee a WhatsApp channel can send text, photos, videos, stickers, and polls to their followers, but they cannot reply to the messages.
In fixed income, bond yields remained higher through last week’s meeting. For the 10-year bond, the secondary market yield increases by one point up to 3.7973%, while the 2-year bond offers a yield of 4.565%.
In commodity markets, oil prices have edged up and investors are still torn between expectations of lower demand and promises by Saudi Arabia to cut production. U.S. oil futures rose 0.65% to $73.17 a barrel, while benchmark European Brent crude rose 0.58% to $77.56.