Log in
Show password
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 

North American Morning Briefing: Stock Futures Edge Up After Nasdaq Hits Record

06/23/2021 | 06:08am EDT


Watch For:

U.S. Current Account for 1Q; U.S. New Home Sales for May; EIA Weekly Petroleum Status Report; Canada Retail Trade for April.

Opening Call:

Stock futures ticked higher Wednesday, signaling that the major indexes may inch toward all-time highs ahead of data on growth in the service and manufacturing sectors.

Stocks and bonds have steadied after the Federal Reserve whipsawed markets last week by signaling it might raise interest rates sooner than previously expected to ward off higher inflation. A scramble to adjust portfolios in response to that guidance has subsided, investors say. Fed Chairman Jerome Powell said Tuesday he has "a level of confidence" inflation will abate, bolstering the view that it will be many months yet before the central bank shifts its monetary policy stance.

"We should expect markets to show a heightened sensitivity to economic data from here on, now that investors have embraced the idea the monetary cycle is turning," said Paul O'Connor, head of the multiasset team at Janus Henderson Investors. "We should expect markets in the months ahead to be more volatile and more uncertain than they have been maybe over the past six months."

Surveys of purchasing managers at U.S. manufacturing and service firms are due to be released at 9:45 a.m. ET. Analysts polled by FactSet expect them to show the economy has continued to grow at a fast clip in June.

Data on sales of new homes are scheduled for 10 a.m.

Some investors have viewed the shake-up that followed the Fed's pivot as an opportunity to add to positions in value stocks and commodity markets such as copper. Sectors such as banking and energy, along with industrial metals, slid last week after benefiting from bets on higher growth and inflation for much of the year.

"There was an overreaction in bond yields and, as a second derivative of that, in bank stocks," said Matthew Quaife, heat of multiasset investment management for Asia at Fidelity International. "Growth will be pretty strong over the medium term."


The dollar was broadly steady, edging higher against the euro and yen but falling against riskier commodity-linked and emerging-market currencies after Federal Reserve Chair Jerome Powell played down inflation risks. While acknowledging short-term risks of higher inflation, he stressed Tuesday that these would be temporary.

"After the hawkish surprise from the Fed last week, this should further help to stabilize the market and translate into a supportive environment over the summer for those cyclical currencies where local central banks have opted for meaningful tightening cycles," said ING.

These include the Brazilian real, Russian ruble, Hungarian forint and Norwegian krone, it said.

Bitcoin rose 3.3% from its 5 p.m. ET Tuesday level to $33,973.61. The cryptocurrency briefly dropped below $30,000 on Tuesday, erasing all of its gains for 2021.

The euro could struggle to rise above key psychological resistance at $1.2000, said Steen Jakobsen, chief investment officer at Saxo Bank.

A level of $1.2100 or higher would be needed to indicate a reversal of the euro's recent selloff. The rebound in the euro from last week's 2.5-month low of $1.1847 "looks modest," he said.

"The growing theme of tightening central banks globally sees little anticipation that the European Central Bank is about to send any strong message on that front."


The yield on 10-year Treasury notes ticked up to 1.472% from 1.471% on Tuesday.

The U.S.-German 10-year government bond yield spread doesn't seem to be correctly pricing a disparity between central-bank support in the eurozone and the U.S., UniCredit said.

The Italian bank expects this spread to widen in the coming months to reflect the difference in central-bank support, especially once the U.S. Fed starts a formal discussion on tapering of its asset purchases.

In the near term, UniCredit expects Bund yields to remain at current levels on the back of the European Central Bank's continuing accelerated pace of asset purchases, while strong data are likely to drive 10-year U.S. Treasury yields higher and the 10-year UST-Bund spread wider.

The 10-year UST-German Bund yield spread is just below 169 basis points, according to Tradeweb.


Oil prices rose after data showed U.S. crude oil stockpiles shrank last week. API's weekly data on U.S. oil inventories released Tuesday showed stocks fell by 7.2 million barrels last week. The decline was larger than the consensus estimates, said Helge Andre Martinsen, senior oil analyst at DNB Markets.

Focus is on OPEC+'s July 1 meeting, amid reports that some cartel members are considering advocating increasing supply.

"A potential supply hike of 0.5 million barrels a day from OPEC+ for August, will probably be too little too late, as the oil market will continue in undersupply and further erode OECD oil inventories," he said.

Copper prices rose as fears of tightening from the Federal Reserve ease while China outlines plans to sell its metals reserves.

Three-month copper on the LME was up 0.9% at $9,353.00 a metric ton. China's state reserve body said it would auction 20,000 tons of copper, 30,000 tons of zinc, and 50,000 tons of aluminum. The details helped ease uncertainty about the planned sales which had been weighing on metals markets.

Gold inched higher in early European trade. However, OCBC noted the precious metal may break the crucial support at $1,770 this week if U.S. Fed officials produce more hawkish rhetoric in the coming days.


Amazon and Other Tech Giants Race to Buy Up Renewable Energy

The race to secure electricity deals for power-hungry data centers has tech companies reshaping the renewable-energy market and grappling with a new challenge: how to ensure their investments actually reduce emissions.

Amazon.com Inc. said it planned Wednesday to announce commitments to buy 1.5 gigawatts of production capacity from 14 new solar and wind plants around the world as part of its push to purchase enough renewable energy to cover all of the company's activities by 2025.


Vizio Looks to Boost Software Business With IPO Cash

Vizio Holding Corp. is ramping up investment in its software business amid growing consumer demand for streaming content.

Vizio, which was founded in 2002, earns the bulk of its revenue-about 90%-from selling hardware such as internet-connected TV sets and sound bars, but its software business promises fatter margins. The software unit's profit margin was 73.7% for the quarter ended March 31, substantially higher than Vizio's hardware business, at 10.6%.


Apple's Fight for Control Over Apps Moves to Congress and EU

Apple Inc. is stepping up its fight to maintain tight controls over which apps can be installed onto customers' iPhones, as political pressure grows in Washington, D.C. and Brussels to upend those restrictions.

In a report released Wednesday, the company argues that allowing users to download apps directly onto their iPhones without having to use Apple's App Store would harm customers by threatening privacy protections, complicating parental controls and potentially exposing users' data to ransomware attacks.


South Korea's Answer to Robinhood and Venmo Lands a $7 Billion Valuation

A South Korean company whose app lets users transfer money, take out loans, trade stocks and check their credit scores has raised funds at a valuation of more than $7 billion, making it one of the world's most valuable financial-technology startups.

Viva Republica Inc., which operates the multifunction app Toss, said Wednesday it completed a round of fundraising worth 460 billion Korean won, the equivalent of $406 million, with investors including Alkeon Capital Management, Altos Ventures and Greyhound Capital.


Electric Car Maker XPeng Gets Approval for Hong Kong Listing

Electric car maker XPeng Inc. has secured approval for an initial public offering from Hong Kong regulators, making it the latest U.S.-listed Chinese company looking toward its home market, a person familiar with the situation said.

XPeng, which is already listed on the NYSE stock exchange with a market capitalization of over US$30 billion, is planning to raise up to US$2 billion in the offering, the person said.


Zohar Funds Seek Answers on Defunct Company's $16 Million Cash Pile

The bankrupt Zohar investment funds are again at odds with their creator, Lynn Tilton, over another of the companies to which they lent money, this time clashing over the proceeds of the 2016 wind-down of former textile manufacturer Galey & Lord LLC.

The Zohar funds have asked the U.S. Bankruptcy Court in Wilmington, Del., to remove an affiliate of Ms. Tilton's Patriarch Partners LLC investment firm as the loan agent responsible for collecting from the now-defunct Galey & Lord, according to court papers filed earlier this month and made public on Tuesday.


FDA Approved Biogen Alzheimer's Drug Despite Some Staff Concerns

The U.S. Food and Drug Administration approved the first new Alzheimer's drug in decades over the objection of agency statisticians who said there was insufficient evidence to support approval, according to newly released internal memos.

In the internal memos released Tuesday, FDA officials discussed whether to approve the drug from Biogen Inc. over objections from the agency's drug statistics office, which said that clinical trial data fell short of the proof typically required to put a new product on the market.


Fed's Powell Plays Down Inflation Threat

WASHINGTON-Federal Reserve Chairman Jerome Powell said it's highly unlikely that inflation will rise to levels seen in the 1970s but acknowledged significant uncertainty as the economy reopens.

(MORE TO FOLLOW) Dow Jones Newswires

06-23-21 0607ET

Stocks mentioned in the article
ChangeLast1st jan.
APPLE INC. 0.06% 146.92 Delayed Quote.10.72%
AUSTRALIAN DOLLAR / EURO (AUD/EUR) -0.35% 0.6192 Delayed Quote.-1.34%
AUSTRALIAN DOLLAR / US DOLLAR (AUD/USD) -0.51% 0.7258 Delayed Quote.-5.16%
BIOGEN INC. -0.51% 291.71 Delayed Quote.19.74%
BITCOIN - EURO -0.06% 36397.61 Real-time Quote.61.73%
BITCOIN - UNITED STATES DOLLAR -0.17% 42631.27 Real-time Quote.55.13%
BRITISH POUND / EURO (GBP/EUR) -0.22% 1.1661 Delayed Quote.4.45%
BRITISH POUND / US DOLLAR (GBP/USD) -0.37% 1.36698 Delayed Quote.0.34%
CANADIAN DOLLAR / BRAZILIAN REAL (CAD/BRL) 0.68% 4.2173 Delayed Quote.2.67%
CANADIAN DOLLAR / EURO (CAD/EUR) 0.25% 0.674459 Delayed Quote.4.53%
CANADIAN DOLLAR / US DOLLAR (CAD/USD) 0.01% 0.7897 Delayed Quote.0.57%
DJ INDUSTRIAL 0.10% 34798 Delayed Quote.11.93%
EURO / BRAZILIAN REAL (EUR/BRL) 0.47% 6.2556 Delayed Quote.-1.87%
EURO / NORWEGIAN KRONER (EUR/NOK) -0.04% 10.06207 Delayed Quote.-3.93%
EURO / US DOLLAR (EUR/USD) -0.18% 1.1718 Delayed Quote.-3.88%
INDIAN RUPEE / EURO (INR/EUR) 0.18% 0.011559 Delayed Quote.2.98%
INDIAN RUPEE / US DOLLAR (INR/USD) -0.01% 0.013548 Delayed Quote.-1.04%
JANUS HENDERSON GROUP PLC -0.19% 41.88 Delayed Quote.28.82%
LONDON BRENT OIL 0.94% 78.01 Delayed Quote.46.73%
NASDAQ COMP. -0.03% 15047.699032 Real-time Quote.15.58%
NEW ZEALAND DOLLAR / US DOLLAR (NZD/USD) -0.73% 0.7012 Delayed Quote.-1.60%
ROBINHOOD MARKETS, INC. -2.24% 44.91 Delayed Quote.0.00%
S&P GSCI ALUMINUM INDEX -0.52% 185.37 Delayed Quote.49.19%
S&P GSCI CRUDE OIL INDEX 0.69% 405.4586 Delayed Quote.48.97%
S&P GSCI INDUSTRIAL METALS INDEX 0.18% 486.9438 Delayed Quote.27.46%
US DOLLAR / BRAZILIAN REAL (USD/BRL) 0.66% 5.3377 Delayed Quote.2.10%
US DOLLAR / EURO (USD/EUR) 0.18% 0.853388 Delayed Quote.4.04%
WASHINGTON FEDERAL, INC. 1.61% 33.42 Delayed Quote.29.84%
WTI 0.93% 73.961 Delayed Quote.49.32%
XPENG INC. -3.99% 35.34 Delayed Quote.-17.49%
Latest news "Markets"
05:47pDow Jones Industrial Average : S&P 500 edges higher after bumpy week, Nike drags
05:36pThe WSJ Dollar Index Rises 0.12% to 87.90 -- Data Talk
05:35pADRs End Lower; WPP, BioNTech Among Companies Actively Trading
05:29pS&P/TSX Composite Index Ends the Week 0.43% Lower at 20402.66 -- Data Talk
05:29pBOVESPA Index Ends the Week 1.65% Higher at 113282.67 -- Data Talk
05:29pIPC Indice de Precios Y Cotizaciones Ends the Week 0.39% Lower at 51105.71 -- Data Talk
05:29pS&P MERVAL Index Ends the Week 5.52% Lower at 74180.20 -- Data Talk
05:13pCANADA STOCKS - TSX falls 0.29% toá20,402.66
05:02pWALL STREET STOCK EXCHANGE : Dow, S&P 500 end with gains up after bumpy week, but Nike drags
04:55pCHINA EVERGRANDE : S&P 500 edges up, European shares slump amid Evergrande fears, US yields rise
Latest news "Markets"