Beat the street: 'Powell power'; Tesla’s Cybertruck; Alibaba; Chipotle Mexican Grill

(Partial Video Transcript)

Will Powell’s forecast be benign?

Hello, I'm Angeline Ong, and welcome to beat the street, the show that gives you all the tradeable news and data you need ahead of the Wall Street Open.

Coming up, ‘Powell power’: market caution ahead of Federal Reserve chair Jerome Powell's speech a little later on in the session. Will he tear the line and give a benign forecast, or is he going to give markets a bit of a shock?

And also watching Tesla after the EV-maker priced its Cybertruck significantly above its initial forecast in terms of prices. And Alibaba Alternate Focus Morgan Stanley has downgraded the e-commerce giant. We'll tell you why in just a second.

Indices on the up with rate-cut hopes

First, I'll get you across the markets. It's a really muted, sombre wait-and-see stance out there. However, it has to be said that markets, if I show you Wall Street here, which mirrors the S&P, the Dow Industrial, it has had a climb since the end of October.

Many of these indices showing quite stellar returns in the month of November ever since those expectations of a US rate cut started emerging. FedWatch tools indicating as soon as March. Also showing you the Tech 100. There we go.

This is the US Tech 100, which mirrors the NASDAQ. A similar trajectory there. Look at those gains in November. Real rebound, really. The NASDAQ finishing November with its biggest monthly gain since July 2022. And I can tell you that another index that had the same trajectory is the S&P 500, which is called the US 500 on the IG platform.

AO: Of course, all this could change in a heartbeat depending on what Jerome Powell says. Ahead of that, IG's Axel Rudolph has been taking a closer look at the technicals for the S&P 500 for us.

S&P 500: strongest November in over 40 years

AR: Yes, Angeline, what a rally we've seen in the S&P 500. It was the strongest November month since 1980 and also the strongest month this year. And basically, it took us back up again very close to the July high around the 4,600 mark, as we can see here.

And yes, we are losing upside momentum, which is pretty normal after having seen such a strong gain of the month of November. But ‘the trend is your friend’, still pointing higher.

And we have a few Fed speakers out later today, which may give us some more color with regards to the future monetary policy and potential rate cuts next year. But from a technical perspective, there's really not that much to say.

Basically, provided we stay above the last reaction, though, that's to say a low yesterday, which was made below the one seen on Wednesday and below today's intraday low at least at 4,537.

Provided we stay above there, the trend, your friend, that's still pointing higher. Now, if we were to take out this week's high around 4,587, then, as I said, the next upside target would be the July peak at 4,607, around which we may short-term stall because, after all, it's an important high.

It was a high going back several years into the past, if I zoom out here, going back to basically March of 2022. So, I wouldn't be surprised if we encountered some resistance there. Also, into the end of the year in December, you tend to get less volume going through the market.

So, therefore, we could see some muted sessions over the next few weeks. And even if we were to slide through 4,537, then we've got some pretty good support also coming in between the mid-September high at 4,516 and the psychological 4,500 area.

So, basically, it looks more likely that further upside is in store. Even the short term, we may stall around the 4,600 area once we get there.

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