Inflation today, taper tomorrow

 Inflation today, taper tomorrow

Inflation today, taper tomorrow.

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All eyes will be on the Jackson Hole Symposium today as there are impending discussions set to take place with regard to the Fed’s monetary policy decisions. A vast majority of Economists are suggesting that we may get a hint when the Fed will start implementing asset purchasing, which will have a huge impact on the markets themselves.

Investors remain focused on the current inflation rate which has been stable the last two months at 5.4%, however with the PPI figure released last month at 1% overshooting the forecast by 0.4% the inflation rollercoaster may not be over just yet. The transitory phase that the Fed keeps on referring to may last a lot longer than they anticipate.

US futures had very little movement over the last 2 days as the impending uncertainty takes hold of the Nasdaq, Dow Jones and S&P 500.

Yesterday’s movers:

  • Nikola Corporation (NKLA) was down 4.19%
  • Autohome Inc(ATHM) was down 3.96% surprisingly after earnings and revenue beat expectations
  • Lyft Inc (LYFT) was up 3.69% as it follows Airbnb’s lead with improved economic conditions
  • Guardant Health (GH) was up 3.55%

Stocks to watch:

American Express (AXP)

American Express credit card metrics got released at the beginning of the week which laid firm the strength as the delinquency rate and net write-off rate stayed stable. The small business write-off rate improved over the last two months from 0.6% to 0.5%.

The credit card company’s previous earnings that were released the prior month came out substantially higher than expected as earnings and revenue were higher than forecast for the 2nd quarter of the year.

The share price rallied yesterday gaining just over 3% for the day, American Express is currently up 0.25% in pre-market.

Price came down well as profit-taking came into effect prior to the credit card data being released, yesterday saw a strong move to the upside as the price attempted to get over the 50EMA on the daily timeframe. A break of the falling trendline and close above $169 should see price rally to the 132.6 or 161.8 Fibonacci levels.

Zander van der Merwe

Zander van der Merwe is a Commerce graduate with majors in Economics from the University of Pretoria with an intense passion for the financial markets. My general focus is to look at the markets holistically combining strong Fundamental views with the incorporation of Technical analysis in the sphere of the United States stock markets, indices, commodities as well as the new kid on the block: cryptocurrencies. I incorporate this very strongly with my value add to the TD Markets team to ensure that clients are being given the transparent and in-depth view of the markets that is imperative to a career in trading. I am also a writer and market analyst at TD markets

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