Beat the street: strong PPI data takes USD up
Confirming the strong US consumer price data earlier on in the week, today’s producer prices in the States telling the same story, that inflation is far from being beaten out of the system.
So long as this remains there’s no chance that US rates will be down in the first half of the year. IGTV’s Jeremy Naylor looks across the numbers and the effect on the start of today’s session. Equity indices are under pressure and money is going into the dollar against all other currencies. Also taking a look at Coinbase Global after the company produced a strong set of earnings for the fourth quarter.
(AI Video Summary)
Coinbase Global sees 16% shares increase
In today's edition of "Beat the street", Jeremy Naylor talks about what's happening in the US market leading up to President's Day, which means there won't be any trading on Monday. So far, it looks like there will be gains across the board, with Coinbase Global seeing a big 16% increase in shares. He also mentions the Producer Price Index (PPI) data, which shows that prices have gone up more than expected. This is similar to the Consumer Price Index (CPI), which suggests that inflation is something to be concerned about in the US economy.
Forex and equity updates
Next, Naylor gives an overview of different things happening in the currency and equity markets. He says that the euro is down compared to the US dollar (see EUR/USD), while the US dollar is stronger compared to the Japanese yen (see USD/JPY). He also talks about how the Dow Jones, S&P 500, and Nasdaq stock markets are all doing well. The Dow and S&P 500 are getting close to breaking records, and the Nasdaq keeps going up. However, there's one market index, the Russell 2000, that's not doing as well as the others.
Company updates
The video focuses on a few specific companies like Coinbase, NVIDIA, Walmart, and Home Depot. Coinbase has been making a lot of money lately because of the rebound in cryptocurrency. NVIDIA is a company that some people think might be overpriced, so it's worth keeping an eye on. Walmart and Home Depot are both going to release their earnings reports soon.
Impact of US dollar strength on gold
Naylor also mentions that because the US dollar is getting stronger, it's affecting other currencies and things like gold. Gold has dropped in value when measured in US dollars, but it's gone up when measured in British pound.
Overall, the video says that there's a chance the market will do well, but it's important to be cautious because of inflation and interest rates. Naylor advises keeping an eye on the market for any changes.
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