FX.co ★ 04.08.2022: Wall Street trading mixed, digesting jobless claims (S&P500, USD, CAD, Bitcoin).

04.08.2022: Wall Street trading mixed, digesting jobless claims (S&P500, USD, CAD, Bitcoin).

Three benchmark stock indices closed with confident gains yesterday. However, some assets lost their shine. How come? You will find it out from this video! Wall Street indices closed with notable gains on Wednesday. Having lost 400 points on Tuesday, the Dow Jones recouped all losses yesterday and closed 1.28% up. The Nasdaq closed with the biggest gains of 2.59%. The S&P 500 rose 1.56% to close at 4,155. All of them traded sluggishly in the New York pre-market. The indices perked up cautiously in the early American session. The S&P 500 is expected to trade in the intraday corridor between 4,120 and 4,210. As we expected, Wednesday was a lucky day for Wall Street. Upbeat economic data and strong corporate reports encouraged a moderate rally. Solid reports of Starbucks, CVS, and Moderna added to the overall optimism. Their revenues for the second quarter surpassed the market consensus. Besides, CVS and Moderna upgraded financial forecasts for the third quarter. As for the economic calendar, US durable goods orders expanded 2% in June, higher than expected. The ISM services PMI increased in July from a month ago. The index jumped to 56.7 against 53 in the consensus. Investors view these indicators as a sign of improving business activity. Nevertheless, the market is trading cautiously today, awaiting fresh weekly unemployment claims. Today the US Labor Department reported that the number of Americans claiming first-time insurance grew by 6,000 last week to 260,000, higher than the expected 259,000 new applications. On Thursday, ConocoPhillips upgraded annual yields for its stockholders by 5 billion dollars after its quarterly profit came in beyond the forecast. Now ConocoPhillips plans to refund 15 billion dollars to stockholders this year. Shares of the oil company surged 3% in the pre-market. Alibaba stock leapt 5.1% in the pre-market after the Chinese high-tech giant topped expectations in terms of profits and revenue. The company announced a flat growth in quarterly revenue, though analysts had projected a decline.The US dollar index failed to overcome the level of 106.9. Today it is trading lower. The index has consolidated at around 106.3. It is likely to trade in the corridor between 105.9 and 106.7. On Wednesday, the US dollar index rose a bit in light of statements by some Fed’s policymakers. They spoke about extra efforts needed to curb inflation. Fresh remarks did not change the fundamental picture. According to James Bullard, there are no clear-cut signs of a recession in the US economy because the labor market logged strong employment growth in the first half of the year. He reckons that the central bank would raise interest rates by another 1.5% to push down inflation that accelerated to 9.1% on year in June. Today the pound sterling has come under the spotlight as the Bank of England increased interest rates by 50 basis points for the same reason: to struggle with inflation. Inflation in the UK skyrocketed to 9.4% in annual terms in June. Now the Bank of England estimates it could conquer the peak of 13% at the year end. Today the regulator ventured into the sharpest rate hike since 1995 following the moves of the US Fed and the ECB. In this context, the pound sterling weakened against the greenback. The US dollar might receive a boost tomorrow because of strong nonfarm payrolls. The USD/CAD pair is losing ground despite a pause in the greenback’s rally. The intraday corridor for the pair is defined between 1.2820 and 1.2900. The loonie is affected today amid the storm in the oil market. The commodity-reliant currency was vulnerable to a fall in oil prices on Wednesday. Crude oil plummeted after weekly official inventories data showed that US stocks unexpectedly expanded by 4.5 million barrels to 426.6 million barrels. Under such conditions, WTI slipped 3.2% to trade at 91.41 dollars a barrel. Brent crude lost 3% to trade at 97.53 dollars a barrel. Now analysts foresee a possible breakout through 90. At the moment of recording this video, both benchmark grades are trading in the red. What is going on in the crypto market? On Wednesday, bitcoin climbed 1.78% to trade at 23,429 dollars. However, the crypto did not cross the key level of 23,500.


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