Beat the street: US trade data; Cisco; Walmart; peak interest rate optimism wanes
Investors turn their attention to retail and earnings as optimism around peaking interest rates waned.
Cisco and Walmart deliver underwhelming forecasts. Alibaba will scrap the spin-off of its cloud unit in response to export curbs by the United States on chips used in artificial intelligence applications. Plus, US trade and jobless claims data on deck.
(AI Video Summary)
Retail sector shares decline
In this news video, Angeline Ong shares the latest updates on the stock market and provides a summary of the key information. She starts by mentioning that investors are eagerly awaiting more information on stocks and trade numbers. She also explains that optimism about a pause in interest rate hikes is fading.
Ong goes on to talk about Walmart, a popular retailer, which has raised its sales and profit forecast for the second time in a row. They have focused on offering cheaper items to attract shoppers. Surprisingly, despite this positive news, Walmart's shares have dropped by 6.4%. On the other hand, Cisco and Palo Alto have also experienced a decline in their shares due to weak forecasts.
NASDAQ 100 updates
Moving to the tech industry, Ong highlights that the NASDAQ 100, a stock market index, has reached its highest level in three months. Traders are now fully expecting that the Federal Reserve (Fed) will not raise interest rates in December and are even pricing in the possibility of a rate cut in May.
Dow Jones updates
Ong also talks about the Dow Jones, another stock market index. She explains that it has broken through important levels and is inching closer to its highest point from July. She predicts that the positive trend will continue and that the Dow will rise further.
Retail secor updates
In the retail sector, Gap is expected to report a decrease in revenues, while Target's positive forecast has boosted the shares of Macy's and Kohl's. Alibaba's decision to cancel the spinoff of its cloud unit has caused a decline in its share prices.
Ong also mentions the recent takeover of Hotel Chocolat by Mars, stating that this move allows Mars to expand its presence in the premium chocolate market.
Lastly, she brings up talks between US President Joe Biden and Chinese President Xi Jinping, which have negatively affected the shares of Chinese companies listed in the US.
Oil trading updates
Regarding oil, Ong emphasizes that there are various factors impacting the market, including a slowdown in Chinese oil refinery runs and higher-than-expected US crude stocks. However, concerns about decreasing demand from countries like the US and China offset these factors.
In conclusion, Ong notes that the market is starting off quietly as investors analyze the implications of important economic data on US interest rates. She invites viewers to learn more by watching market-leading videos on tastylive.com and following her on Twitter.
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