Beat the street: Inflation; Eli Lilly-Amazon; ByteDance-TikTok
US stocks set for a muted start as traders eye US producer prices and retail, after warmer-than-expected US inflation. Eli Lilly partners with Amazon’s pharmacy unit to deliver Zepbound and other drugs.
Plus, the US House is set to vote to force ByteDance to divest TikTok or face a ban.
(AI Video Summary)
US economic data's influence on Fed rate cuts
In today's "Beat the street" video, Angeline Ong talks about important information that traders are paying attention to in the markets. She mentions data points like US producer prices and retail sales that will give clues about the Federal Reserve's decision on interest rates. To make things interesting, she also shares that a pharmaceutical company called Eli Lilly & Co has teamed up with Amazon to deliver drugs like Zepbound. On top of that, the US House will be voting on whether to force ByteDance to sell TikTok or face a ban.
Moving on, Ong shares that traders are closely watching the dollar basket, which saw a slight increase due to higher-than-expected inflation numbers. She also mentions the strength of the US dollar since the Federal Reserve is taking a wait-and-see approach.
Interview with Chris Versace
Ong interviews Chris Versace, the CIO of Tematica Research. They talk about upcoming economic data and Versace believes that the economy is in good shape, with earnings growth driving the stock market. He predicts that the expected rate cuts from the Federal Reserve will be postponed to June or July. They also discuss Oracle's recent stock boost and its potential partnership with NVIDIA. On top of that, they touch on the issues surrounding Boeing and the upcoming vote on TikTok.
Interview with Chris Vecchio
Ong also chats to Chris Vecchio, who talks about traders' expectations for the first rate cut. He suggests that there is a 66% chance of a rate cut in June, but he thinks that the markets may be too optimistic. Vecchio believes that the recent inflation data has been disappointing and the economy seems strong enough to not need a rate cut. He suggests that a rate cut may not happen until later in the year, possibly in December.
Commodities and company news
Lastly, Ong talks about recent news regarding copper and Dollar Tree. China's top copper smelters have agreed to production cuts, leading to higher copper prices. As for Dollar Tree, they reported lower sales and profits and plan to close almost 1,000 Family Dollar stores. Ong also mentions the partnership between Eli Lilly and Amazon to make it easier for people to buy weight loss medicine.
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