MARKET REPORT
(Unburdened by what has been)
NYF District
Day in Review:
Today:
(Kamalanomics: Govt-manipulated data with un-reported historic downward revisions to make the economy look more favorable):
DATA:
– July the number of job openings plunged sharply to 7.673 Million – the lowest since January 2021 – from a prior month unrevised June print of 8.184 Million
– JOLTS beneath all analyst expectations, with vacancy rate falling & quits rate rising
– BoC cuts rates, as expected, more expected
– OPEC+ discussing delaying planned output hike
– Biden prepared to block Nippon Steel purchase of US Steel
COMPANIES:
– Dollar Tree plummeted 20% after it missed second-quarter revenue estimates and trimmed its full-year forecast.
– The budget-friendly retailer earned 67 adjusted cents for the quarter ended August 3, falling short of the $1.06 estimated by analysts. Revenue of $7.37 billion also missed analysts’ $7.5 billion forecast.
– Dollar Tree now expects full-year net sales of $30.6 billion to $30.9 billion and adjusted earnings per share of $5.2 to $5.6, down from prior guidance of $31 billion to $32 billion and $6.5 to $7 per share
– US Steel plummets 20% on word government will block Nippon takeover
GENERAL:
– Equities down, Treasuries up, Crude down, Dollar down
GOLD/SILVER:
– Gold erased earlier losses after US job openings data added to signs of a cooling labor market, setting the stage for the Federal Reserve to start lowering borrowing costs soon. There may be some price correction in gold in the near term as the overall positioning is higher than at the same period in any prior rate-cutting cycle, according to Suki Cooper, an analyst at Standard Chartered. Yet she expects bullion to rise toward $2,700 an ounce in 2025 on the central bank’s rate cuts.
Money managers’ bullish wagers in the week ending Aug. 27 on gold stood at the highest since March 2020, latest CFTC data showed.
Bullion fell earlier as some investors sold gold to raise cash to pay margin calls in the equities markets amid a selloff triggered by Nvidia Corp., according to Naeem Aslam, chief investment officer at Zaye Capital Markets.
Traders will now eye jobs data due Friday, which is expected to show payrolls in the world’s largest economy increased by about 165,000 last month, based on the median estimate in a Bloomberg survey of economists. Any signs of labor-sector weakening are likely to support a more aggressive pivot to easing by the Fed, potentially aiding gold.
Gold has rallied by more than a fifth this year, supported by growing optimism that the Fed will start cutting rates from this month. Lower borrowing costs typically benefit the metal, which doesn’t pay interest. Robust over-the-counter purchases and haven demand have also underpinned the advance.
GOLD DOWN: $2524 -0.2% (2538 – 2506) MID
BONDS:
– Treasuries jumped on Wednesday — led by shorter-maturity notes that are more sensitive to the Fed’s monetary policy — after US job openings fell in July to the lowest since the start of 2021. That pushed the US two-year note’s yield momentarily below the 10-year note’s for only the second time since 2022 as traders built up wagers on a super-sized rate reduction this month.
– Interest-rate swaps showed traders have fully priced in a quarter-point rate cut at the Fed policy meeting this month — and a more than 30% chance of a half-point reduction. A total of 107 basis points of easing is expected for the remaining three meetings this year.
CRYPTO
CRYPTO: BTC/ETH down/DOWN: 58163 1.68%, 2462 -3.5%
KEEP DOING WHATS WORKING, STOP WHAT ISNT
Best of luck out there. Let the market come to you
Post of the day:
https://www.youtube.com/watch?v=llB-hINZ7gk
&
https://www.youtube.com/shorts/hh0EIf4h6RA
Song of the day:
https://www.youtube.com/watch?v=ff0oWESdmH0
Joke of the Day:
https://www.youtube.com/watch?v=EffPnse4WQs
(Seize all assets of Duke and Duke enterprises)
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