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CFDs are complex instruments. 70% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

Beat the Street: PPI stronger than expected; Exxon-Pioneer; Birkenstock; Walgreens Boots Alliance

A stronger-than-expected rise in September US producer prices may give the Fed reason to keep interest rates elevated for longer. ExxonMobil is set to buy shale rival Pioneer for $59.5 billion. Birkenstock sets $46 IPO price.

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(Video Transcript Summary)

Inflation data, Fed minutes, Middle East conflict and Treasury yields dominate

Host Angeline Ong provides an overview of the latest news and data before the Wall Street market opens.

She mentions that US stocks are expected to open slightly higher, but investors are focused on inflation data, Federal Reserve (Fed) minutes, the situation in the Middle East, and Treasury yields.

Angeline then reports on ExxonMobil's purchase of shale rival Pioneer for a whopping $59.5 billion, making the largest producer in the biggest US oil field. She also mentions that flip-flop maker Birkenstock is planning to go public with a $46 IPO price.

PPI set to be higher than expected

Moving on to market updates, Angeline shares breaking news about the producer price index (PPI) numbers, which turned out to be higher than expected. This news might not be welcomed by the markets.

She provides updates on the US 500 and Dow Industrials, both of which have marginally increased just before the release of the PPI numbers. Angeline also mentions that the value of the dollar has remained stable compared to major currencies.

Fed doesn't need to raise borrowing costs

Angeline talks about recent comments from Fed officials, which have had a positive impact on equity markets worldwide. She cites Atlanta's Fed President and Minneapolis Fed President, who both expressed the view that the Fed doesn't need to raise borrowing costs any further.

However, she points out that there is a differing opinion from Christopher Waller, who has emphasised the Fed's determination to bring inflation down to its target of 2%.

Next, financial analyst Jeremy Naylor provides technical analysis on the S&P 500. He observes that the market has seen an upward trend after hitting the 200-day moving average, but he believes there is still room for the market to go down.

Naylor also mentions that the upcoming earnings season could influence trading volumes and impact the technicals.

Gold prices may continue to rally

Axel Rudolph discusses the price of gold, noting that recent comments from Fed officials have indicated a reduced need for further rate hikes, which has led to an increase in gold prices. He provides technical analysis, suggesting that gold prices may continue to rally but could encounter resistance at certain levels.

Angeline then reports on Birkenstock's upcoming IPO, with shares set to start trading on the New York Stock Exchange at a valuation of $9.3 billion. She also mentions ExxonMobil's acquisition of Pioneer Natural Resources, allowing Exxon to establish a presence in the cost-effective Permian Basin.

Lastly, Angeline mentions that Walgreens has appointed Tim Wentworth as CEO, replacing Rosalind Brewer. She notes that Walgreens' quarterly report is expected soon, along with earnings reports from Delta Air Lines, JP Morgan, Citigroup, Wells Fargo and UnitedHealth. Angeline concludes by stating that US stocks are seeing modest gains as the market opens, with a close eye on the situation in the Middle East and Treasury yields.

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