Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

The US indices finished the session on Thursday sideways, with persisting confusion on the rising consumer and producer prices. The blue chips recovered a major downfall on Wednesday, as fears arose on the sooner than expected rising of the base interest rate and larger-scaled than expected tapering of the USD150B monthly QE by the Fed. It is interesting to note that the VIX /Bats: VXX/ is falling, indicating that investor sentiment is cooling down, processing all the available macro and corporate information. Today at 12:10 pm EST, the FOMC member William speaks, perhaps with more insight as weather the Fed is viewing the hot inflation figures as temporary or long-prevailing, considering the driving factors behind it.

The trend this week is paying more attention to macroeconomic data or events, something which was widely neglected during the euphoria at the start and extension of the earnings season. A hot topic right now is the Russian stationing of troops along the Ukraine border – again, which self-will could turn into a cornerstone for a short-term broader market correction. According to Skynews, “The United States’ Secretary of State Antony Blinken is concerned Russia may be attempting to rehash its 2014 invasion of Ukraine…the Ukraine’s Defense Ministry says about 90,000 Russian troops are stationed there. In 2014, Russian troops annexed the Crimean Peninsula and supported a pro-Russian separatist insurgency in eastern Ukraine”, with the broad-based disapproval and sanctions imposed from most of the G8 leaders.

Considering market movers, the consumer cyclicals are shedding off market value in times of economic uncertainty, while consumer defensives are logically favored by investors:

A big market mover was the Walt Disney Company /NYSE: DIS/, drawing attention to the Communication Services – Entertainment sector:

The entertainment giant shed off some 7% from its market cap, after posting disappointing figures on its streaming Disney+ subscription service. Wall Street analysts’ estimates were set for a growth of 9.3M subscribers, while Disney reported a 2.1M only. The costing base of entertainment companies and content producers is composed of fixed costs mostly, so the most important figure watched by analysts is the growth rate of subscribers. In this way the sector is relatively easy to analyze even by nonprofessionals. As it could be seen from the list of peers above, all of the major companies of the sector have reported so far. Netflix on the other hand, surprised with an extremely positive growth rate in almost all of its segments, and the company continues to reap rewards even long after the financial reports release date. Logically, the sector in general is favored in covid-pandemics times, and it depends on inter-competitive results on whether the company is suitable for a short or a long position.

Successful trading!

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News

  • Oil rallies on China data, supply disruptionsOil rallies on China data, supply disruptions Both West Texas Intermediate and Brent benchmarks surged in early European trade on Monday as an expanding services sector in China and persisting supply disruptions in North Africa and the Middle East supported prices. Gains however remained […]
  • USD/CAD eases off 4-1/2-year highs as Canadian inflation accelaratesUSD/CAD eases off 4-1/2-year highs as Canadian inflation accelarates The loonie, as the Canadian dollar is best known, eased off 4-1/2-year lows against its US counterpart, after data showed Canadian inflation gained traction in December.Having reached a session high at 1.1138 at 07:30 GMT, USD/CAD erased […]
  • Natural gas rallies for a fourth day on cold weather outlookNatural gas rallies for a fourth day on cold weather outlook Natural gas advanced on Wednesday as weather forecasting models called for below-normal temperatures over many densely-populated US areas. The energy source continued to be supported by speculation that a government report may show a record […]
  • Gold futures weekly recap, September 8 – September 12Gold futures weekly recap, September 8 – September 12 Gold futures logged significant losses this week, as a heavier dollar and a lack of any economical headlines weighed on the precious metal as compared with interest baring assets, while traders also dismissed much of the risk over conflicts in […]
  • Facebook turns anti-social on NasdaqFacebook turns anti-social on Nasdaq Facebook  share price plunged 12% this month. On Tuesday company hit their lowest point of the year closing at $24.10 per share.  Right now Facebook stock is down 10% year-to-date comparing to Nasdaq climb of 4% this month and 16% total year […]
  • JD.com shares close lower on Thursday, company appoints Lei Xu as its next CEOJD.com shares close lower on Thursday, company appoints Lei Xu as its next CEO JD.com Inc (JD), a leading supply chain-based technology and service provider, said on Thursday that it had appointed Lei Xu, the company’s president, as its new Chief Executive Officer with immediate effect.Xu will succeed Richard Liu […]