Thursday’s Insights with FunderPro
- The Dow Jones Industrial Average closed Wednesday’s session in the red
- Fed Chair Jay Powell offered no insight into economic outlook during speech
Two Out of Three Ain’t Bad
The Dow Jones Industrial Average erased some of this week’s gains, closing Wednesday’s session 0.12% lighter. The loss snapped a 7-day winning streak, the longest victory run the rate-sensitive index has had since its 13-day sprint in July.
That said, whatever the Dow Jones lost, the S&P 500 found. The broad-based index pushed 0.10% higher by New York’s closing bell. The Nasdaq joined the S&P 500 in green territory, with a not-bad but not-great 0.03% gain, extending a winning streak for both indices unseen since 2021, albeit narrowly.
Piggybacking on the benchmark index’s drop comes fourth-quarter earnings reported by Walt Disney. The entertainment maestro posted better-than-expected earnings, topping profit estimates. Earnings per share (EPS) rose to $0.82, blowing analysts’ forecasts of $0.72 out of the water. The primary sources of revenue came from Disney’s streaming service, Disney+, which flexed with almost 7 million subscribers added in the last year. A 31% increase in the income generated from its theme parks and experiences sector further bolstered the stock to climb 3.3%. Revenue rose 5% to $21.24 billion.
The Full Scoop
To look at the broader scope of the market, it’s becoming clear that all that glitters isn’t gold. Gold prices have been slowly, but steadily, dropping as fears surrounding Middle East tensions seem to fade into the background. Currently changing hands at $1,948 per troy ounce, the yellow metal has hit its lowest price in 3 weeks. Spot gold is down almost 2% in the last week alone, and 3.32% in the last half year. The drop might be due to investors ditching the glitz of gold for the glam of Bitcoin.
Bitcoin itself has been dominating over the glimmering commodity, with the digital asset heating up to sell at $36K as of Thursday morning. As the market becomes more comfortable with fleeing to crypto during times of economic skepticism, investors seem to be turning to Bitcoin with high spirits as a way to limit their exposure to risk.
In currencies, EUR/USD is just going with the flow. With not much movement on either side, the major pair has been bouncing between $1.07 and $1.06 levels since Tuesday, presently leaning on the $1.068 side.
In Japan, the yen has gotten even weaker, trading at ¥151.13 against the US dollar, which may prompt a potential cash infusion from the Japanese government in a bid to prop up their currency.
Back stateside, Fed Chair Jay Powell delivered a speech on Wednesday at a conference to celebrate the Fed’s Division of Research and Statistics 100th anniversary. Investors were left out in the cold when Powell left out any comments on the current economic outlook and monetary policy insights. However, all hope may not be lost, as Powell is due to speak again today as a panelist at the 24th Jacques Polak Annual Research Conference.
Let’s break this down. With stocks mainly staying steady, Bitcoin rising while gold loses out and a weary Yen, FunderPro’s traders should take a minute to digest all of the information before making any market moves. Diversify wisely and stay nimble in an ever-changing market landscape.