Here is what you need to know on Wednesday, May 26:
Equity markets saw the return of the retail rally on Tuesday with some strong gains for meme favourities KOSS, AMC and GameStop among others. The rally shows no signs of slowing on Wednesday with all three up strongly in the premarket. Crypto stocks continued to recover as Bitcoin awaits its next big move and big tech names slumbered for most of the day. The Fed doves appear to have lost their homing signal as they fly non-stop across the newswires, spreading the “all inflation is transitory” dogma. The line does appear to be sinking in with investors though as tech and growth names rally. Is the stock market now too big to fail though, and like the banks in 2008 the Fed has to keep it afloat? Watch out if this is the case, but that is way above FXStreet’s purview here.
The dollar is steady at 1.2220 versus the euro. Gold breaks above $1900 to $1912. Oil is steady at $65.60, and Bitcoin recovers above $40,000.
European markets are all flat to barely changed, EuroStoxx at -0.1% is the biggest change on the day in Europe.
US futures are also relatively calm with the Nasdaq top of the class with a 0.5% gain, Dow and S&P are +0.2%.
GOP senators plan to bring a separate $1 trillion infrastructure plan to President Biden.
China’s Inner Mongolia region to propose punishments for companies and individuals in cryptocurrency mining. Inner Mongolia represents about 8% of Bitcoin mining globally.
The Hungarian parliament approves the EU recovery fund, a slight boost to Euro as Hungary had been lagging.
Iran oil could see an extra 1 million barrels per day by late summer.
UK PM Johnson says he is still worried over Indian covid strain.
JNJ: Belgium suspends the use of the covid vaccine for those under 41 as one person reportedly dies.
AMZN buys MGM Studios for $8.45 billion. Increasing competition for NFLX and DIS?
Royal Caribbean (RCL) gets approval from CDC for Miami test voyages.
GOOGL: San Jose officials give go-ahead for a new campus-CNBC.
Dicks Sporting Goods (DKS) beats earnings estimates by a huge margin, EPS $3.41 versus $1.12 estimate. Those Wall Street analysts cannot catch a break this quarter.
Kinder Morgan (KMI) B.Riley downgrades.
AMC: B.Riley downgrades, must not know it is going to the moon.
Urban Outfitters (URBN) also more than triples earnings estimates, revenue also well ahead. JPMorgan upgrades.
BGC Partners (BGCP) to sell its insurance business for $500 million.
Nordstrom (JWN) misses earnings, losing $1.05 EPS versus $0.57 estimate.
Capri (CPRI): Owner of Michael Kors, Jimmy Choo, Versace smashes earnings, EPS reported at $0.38 versus those Wall Street smart guys forecasting $0.02.
Abercrombie & Fitch (ANF) EPS $0.67 versus $-0.38 forecast.
Toll Brothers (TOL) EPS beats estimates as does revenue.
Zscaler (ZS) earnings well ahead of estimates, $0.15 EPS versus $0.07 estimate. BMO upgrades.
Premarket movers
Source Benzinga
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