Beat the street: Inflation; Cenbank chorus; Airbnb; Epic vs Google
US stocks inch cautiously higher after November CPI data was bang in-line with expectations.
Attention now turns to a trio of central banks, including the Fed meeting, on interest rates this week. Airbnb shares fall after Barclays downgrade. Plus, Alphabet slips after Epic Games wins antitrust lawsuit against Google.
(AI Video Summary)
An important week ahead
In today's episode of Beat the street, Angeline Ong talks about recent economic and market news. She starts by saying that this week is important because there are updates on inflation and debt decisions from central banks. One topic she discusses is the downgrade of Airbnb shares by Barclays, which caused the stock price to fall. She also mentions the ruling in the Epic Games versus Google antitrust lawsuit, where Google was found guilty of having an illegal monopoly.
The release and impact of important inflation figures
Ong then talks about the latest inflation figures, which were as expected. She explains how this might impact the Federal Reserve's decision on interest rates. The money markets are already expecting a pause in rate hikes and anticipate rate cuts in March and May 2024.
Next, Ong discusses the performance of different indices and the US dollar after the inflation figures were released. She notes that there wasn't a significant movement in these markets. She then introduces IG trading expert, Axel Rudolf, who analyses the NASDAQ 100 index. Rudolf suggests that if the inflation data doesn't disappoint and the Federal Reserve sticks to its rate cut expectations for the next year, the NASDAQ 100 could reach new highs. He also mentions that even if there's some consolidation in the short term, as long as the index stays above the December low, the overall trend remains positive.
Current stock performances
The video then focuses on specific stocks, starting with Oracle. The company's stock price has gone down due to concerns about inflation and high borrowing costs, which affected the demand for its cloud services. Oracle's revenue growth forecast is lower than what analysts expected. Alphabet, which owns Google, also saw a drop in stock price after losing the antitrust lawsuit. The video briefly mentions Lucid, an electric vehicle company, which has seen some positive price movement since November.
Finally, Ong wraps up the video by summarizing the market's reaction to the inflation figures. She mentions that traders are being cautious ahead of the Federal Reserve meeting, as well as upcoming decisions from the Bank of England and the European Central Bank.
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