Beat the street: Fed speakers; bond auction; Uber, Rivian, Bumble, eBay earnings
Investors eye Fed speakers and large bond auctions this week as optimism over potential US rate cuts next year wane. Uber, all-sessions, is indicated higher on its Q4 outlook.
(Video Transcript Summary)
Volatility decreasing, US Treasury bonds rising
In this video of beat the street, Angeline Ong talks about the latest happenings in the market before Wall Street opens. She reveals what investors are keeping an eye on, such as US policymakers and new bond auctions happening over three days. Angeline also mentions the upcoming earnings reports of eBay and Bumble.
There are a few things to note about the market right now. The volatility index, which measures how uncertain the market is, has been steadily decreasing. Although stocks are predicted to decrease, the yields on US Treasury bonds and the value of the dollar are slowly rising. This means that people are paying close attention to the demand for US government debt.
Angeline also highlights important speeches from members of the Federal Reserve (Fed), including chairman Jerome Powell. One member, Neal Kashkari, doesn't think there will be any early interest rate cuts.
Uber’s revenue takes a dip
On a different note, Uber's revenues for the third quarter are slightly lower than expected, but their bookings for the fourth quarter and adjusted call profit are better than expected. As a result, the company's shares are increasing in value.
Other news includes General Motors putting a temporary halt on the production of their fully autonomous cruise Origin van, due to concerns from California regulators.
Rivian Automotive is expected to have higher sales for the third quarter, while WeWork has filed for bankruptcy protection in the US because many corporate clients prefer remote working. The majority of WeWork's lenders have agreed to turn their debt into equity.
In Switzerland, UBS shares are going up after reporting a better-than-expected underlying net profit and showing signs that its core wealth business is stabilising.
Intel gunning for secure chip funding
Lastly, Angeline mentions that Intel is a top contender to receive government funding for secure defence chip facilities. She also discusses the expected revenue growth for eBay and the transition of Bumble's CEO.
To sum it up, the market is currently in a wait-and-see state as everyone waits for the speeches from the Fed later in the week.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Act on share opportunities today
Go long or short on thousands of international stocks with spread bets and CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take advantage while conditions prevail.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
