Beat the street: US retail sales under pressure
The dollar was seen falling as US January retail sales came in far weaker than expected. However the effect from this on the major Wall Street indices was to lift all boats.
Cisco Systems, which fell last night after its poor Q4 results was in among the better performers today although it is still expected to see a drop at th start of the cash session. Also looking ahead to Coinbase Global as it reports after the bell tonight.
(AI Video Summary)
US retail prices under pressure
The European markets and Wall Street are both expected to have a good day, bouncing back from a drop earlier in the week. This recovery is thanks to positive data about consumer prices. Investors are eagerly waiting for updates on US retail sales and jobless claims. However, the US dollar is not doing so well. After the markets close, Coinbase will release its earnings report, which will be especially interesting for people in the IT industry.
Unfortunately, US retail sales are not looking great, showing a larger decline than expected. This is important because it could affect the Federal Reserve's decision on interest rates. The dollar is also losing strength against the euro. Wall Street is predicted to start off strong, with the Dow Jones and the S&P 500 both doing well. The NASDAQ has already seen a rebound after better-than-expected consumer price data.
Cisco finacnial results are in
Cisco Systems, a company that focuses on artificial intelligence, has reported its financial results. They plan to cut some jobs but are looking to grow through partnerships. The stock initially fell after Cisco lowered its revenue forecast for this quarter, but some of those losses have been reversed. Another stock to keep an eye on is Coinbase Global, which is going to report its fourth-quarter earnings. Analysts expect a small loss per share but a decent increase in revenue.
Gold prices rise
The price of gold is directly affected by the performance of the dollar. After disappointing retail sales data, the weak dollar has caused gold prices to rise. As the US markets are projected to open strong, gold is currently valued above $2,000. Overall, market sentiment is positive, but investors are eagerly awaiting more economic data and earnings reports to better understand where things are going.
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