Here is what you need to know on Thursday, May 27:
It was meme stock day again on US exchanges on Wednesday as most went on a rampage, throwing valuations out the door in favour of the new holy grail of momentum. Well if it ain’t broke don’t fix it and with free money sloshing all over the system what can one really expect. AMC popped nearly twenty percent and GameStop fifteen percent. Crypto stocks saw gains between five and ten percent. Ford also joined the party as its investor day was met with bullish enthusiasm, the shares closing eight percent higher. Over in the oil space and some landmark decisions are being hailed as a boon to climate change supporters. Activist fund Engine Number 1 won two seats on the Exxon Mobil (XOM) board, a Dutch court ordered Royal Dutch Shell (RDS/A) to make larger cuts to its carbon emissions and Chevron (CVX) also lost an investor climate change vote.
The dollar remains mired near 1.22 versus euro, Gold remains upbeat just under $1900, bitcoin is bubbling nicely just under $40,000, and the VIX and ten-year yields continue their slumber, having been battered by Fed doves.
European markets are mixed, the Dax is -0.3% the FTSE is -0.2% while the EuroStoxx is +0.2%.
US futures are also mixed, the Nasdaq is -0.5%, the Dow is +0.2% and S&P futures are -0.1%.
New highs seem likely for the S&P 500 (SPX) as it sits just below, having retraced above some key levels. MACD about to crossover into the bullish territory and really it would be rude not to at least try to make new highs with the Fed doves clearing the flight path.
Wall street top news
US jobless claims 406k forecast 425k.
US GDP second estimate 6.4% versus 6.5% forecast.
US durable goods disappoint -1.3% forecast 0.8%.
President Biden is to propose a $6 trillion budget to favour the middle class and infrastructure.
ECB says the increase in inflation is just temporary, fails to use the word transitory!
Bank of England says the first rate hike not likely be until far into next year.
Nvidia (NVDA) reported earnings per share (eps) $3.66 versus the $3.28 forecast.
AstraZeneca (AZN) and Johnson and Johnson (JNJ) German researchers believe they have found the reason for blood clot issues.
Best Buy (BBY) eps $2.23 versus $1.39 forecast.
HSBC exiting the US retail banking market.
Walmart (WMT) and GAP combine as Walmart is to sell some GAP home goods.
Boeing (BA) positive on freighter plane sales in China.
SNOW EPS -0.11 versus 0.16 forecast.
Organogenesis (ORGO) to join S&P small-cap 600 index.
Dollar General (DG) eps $2.82 versus $2.19 forecast.
VIR Biotech gets FDA emergency approval for covid antibody drug.
Dollar Tree (DLTR) issues poor earnings outlook.
Anaplan (PLAN) eps -$0.10 versus -$0.09 estimate.
Williams Sonoma (WSM) eps $2.93 versus $1.83 forecast.
OKTA issued disappointing Q2 EPS guidance after the close on Wednesday which seems to be hurting shares as the Q1 results beat estimates.
American Eagle (AEO) $0.48 eps versus the forecast of $0.46.
UBER to recognize UK’s GMB workers union.
Ups, downs, movers, and groovers
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