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.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Act on share opportunities today
Go long or short on thousands of international stocks with spread bets and CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take advantage while conditions prevail.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
