Beat the street: PCE; Nike shares dunked; gold near three-week highs
US stocks indicated slightly higher after PCE data. Nike, all-sessions, shares fall after the company cut its sales forecast.
Gold climbs to near three-week high on Fed rate cut bets. We discuss where the next resistance levels are for gold with Eric Strand, founder and portfolio manager at AuAg Funds.
(AI Video Summary)
US stocks bounce back, Nike shares drop
In this today's episode of "Beat the street", the host, Angeline Ong, talks about various topics that may interest someone who is not familiar with trading. First, she mentions that US stocks are bouncing back, which means they are recovering after a decline. She then goes on to discuss how Nike's shares are dropping because the company has lowered its sales forecast. This means that Nike expects to sell fewer products than originally anticipated, which is not good for the company's profits.
PCE numbers
Next, Ong talks about the PCE numbers. These numbers are important to investors because they provide information about inflation, which is the increase in the prices of goods and services over time. According to the Fed, the PCE index, which is their preferred measure of inflation, showed a slight decrease of 0.1 percent. This was lower than what people were expecting, indicating that inflation might not be as high as anticipated.
Ong also mentions some other figures, such as the durable goods figures for November, which show that there has been a significant increase in the purchase of long-lasting products like cars and appliances. Moreover, she mentions that personal income figures for November were in line with expectations, suggesting that people's earnings are as projected.
RBC approved to acquire HSBC's domestic unit
Moving on to the banking sector, Ong reports that a Canadian bank called RBC has been given approval to acquire HSBC's domestic unit. This means RBC will take over HSBC's business in Canada, and they had to pay a hefty sum of $13.5 billion Canadian dollars for this deal. Additionally, she mentions that HSBC might distribute a special dividend to its shareholders using the money from this deal.
Boeing to deliever Dreamliner planes to China
Other topics discussed in the video include the delivery of Boeing's 787 Dreamliner to China, which could lead to the lifting of a freeze on their 737 MAX planes, and the anticipation of increased airline bookings for the holiday season. Furthermore, Ong mentions that new rules in China might affect the stock prices of gaming companies like NetEase and Roblox. Lastly, she briefly mentions that the price of gold is rapidly rising and may reach $2,100.
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