Beat the Street: good US GDP steering a higher start for the Dow
Better-than-expected US GDP and expected durable goods orders steered the Dow to a stronger start with equities there enjoying a lift. Not so for tech stocks. Jeremy Naylor has this and more.
(Video Transcript Summary)
Keeping close tabs on inflation
In today's edition of Beat the Street, host Jeremy Naylor shares some important news about the US economy. He talks about the third-quarter gross domestic product (GDP) numbers and durable goods orders, which are even better than expected.
This suggests that the economy is growing nicely and could have an impact on the value of the US dollar and inflation. So, if you're interested in trading currency or keeping an eye on inflation, this news is really important.
Jeremy also talks about the European Central Bank (ECB) and their decision to keep interest rates unchanged. This could have an impact on the value of the euro compared to other currencies, especially the British pound.
The host also mentions some interesting company news. Meta (which owns Facebook) is expected to see a 7% drop in its stock due to concerns about advertising revenue.
Another company to watch is Ford Motor, which might face some financial challenges because of a tentative agreement with the United Auto Workers (UAW) and the costs associated with strikes.
Jeremy looks at the performance of the US dollar using a chart called ‘Andrew's Pitchfork’. It shows that the dollar has been trading with a positive trend. The host recommends trading long, which means buying the US dollar in this case. He also talks about the EUR/USD pair and how to analyse it using support and resistance levels.
There's also a mention of upcoming earnings reports for some big companies like IBM, Amazon, Intel and Ford Motor.
Meta had better than expected results, but concerns were raised about advertising revenue due to conflicts in the Middle East.
IBM's stock may see gains
IBM, on the other hand, had great earnings and is expected to see some stock gains. Amazon's report is expected to show increased revenue, but some worries about their online stores and Amazon Web Services.
Intel might be overshadowed by a competitor, NVIDIA, which is working on their own central processing units (CPUs) for Windows PCs.
The video wraps up with a discussion about the performance of the US indices. The host thinks that the Dow might have a strong start because of the good economic growth, but tech stocks on the S&P 500 and NASDAQ might face some challenges due to expectations of higher interest rates.
If you're interested in trading and keeping an eye on the stock market, this is definitely some information to consider.
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