Expecting Fed Rates Hike To End Soon? π§
β οΈ Looking at puts under 319 and calls above 321.2 as price action could be overbought expecting AMZN to perform but the results shown otherwise. Just be cautious and scale down π
Taking a breather soon perhaps?
Even as slower GDP growth reflected a drag from weak inventory investment, the Federal Reserve still is expected to raise interest rates by another 25 basis points next week.
βGenerally the economy looks like its decelerating. We think as the Fed continues with maybe one more rate hike next week weβll start to see some more deceleration. Our base case is for a mild economic downturn in the second half,β said Edward Jones' Mahajan.
While the S&P and the Dow registered their biggest daily percentage gains since Jan 6, the Nasdaq boasted its biggest single-day advance since March 16.
Of the S&P 500's 11 major sectors the biggest gainer was communications services followed by consumer discretionary, up 2.8% while smallest gainer was energy, which advanced just 0.5%.
Correction over recession fears
Chris Zaccarelli, chief investment officer at Independent Advisor Alliance in Charlotte, North Carolina noted that economic data released on Thursday told a less positive story than earnings reports.
It showed U.S. economic growth slowed more than expected in the first quarter as an acceleration in consumer spending was offset by businesses cutting back on inventory investment.
"All things being equal the macro data this morning were very negative. With the market up this much after that data it shows that investors are looking past macro ... Earnings reports have been very good. Its definitely not irrational exuberance," said Zaccarelli.
Expectations for first-quarter earnings have drastically improved, with analysts projecting a 2.4% year-over-year drop for profits at S&P 500 companies versus the 5.1% decline forecast at the start of the earnings season, according to analyst estimates gathered by Refinitiv.
Even as slower GDP growth reflected a drag from weak inventory investment, the Federal Reserve still is expected to raise interest rates by another 25 basis points next week.
Trade #1
π¨ If you find the info useful, I'd appreciate if you could click on Like π, Comment π¬ & Repost π this article found at the bottom of your screen. Follow me for the latest news, trading ideas & strategies to ride the market daily with profits! π€
@Daily_Discussion @CaptainTiger @TigerStars @MillionaireTiger
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
The current situation is a bit confusing to me. I will keep waiting for good opportunities.
What is all about that AMZN pump and dump after hours? π―