The major indices are opening mixed. NASDAQ higher as Nvidia soars after beating earnings and increasing revenue projections to $11B (from $7B this quarter). That was 50% greater than analysts expectations. It's all AI.
That's the good news. The not-so-good news is that the Dow industrial average is down for the 5th consecutive day as the odds on shifts to a Fed hike in June. Initial claims showed strong growth still. GDP was higher
There were comments before the opening that a deal could be done today on the debt ceiling. House Speaker McCarthy is now saying he is not so sure about that idea. That has led to some selling after the opening.
A snapshot of the market 9 minutes into the trading days showing:
- Dow industrial average -113.55 points or -0.35% at 32666.38
- S&P +18.02 points or 0.44% at 4133.25
- NASDAQ index +155.92 points or 1.25% at 12640.08
The S&P index still remains below the 4200 level. That level corresponds with the 100-week moving average. Last weekend earlier this week the price did extend above that level only to rotate back to the downside fairly quickly.
Looking at the US debt market, US yields are sharply higher:
- 2 year yield 4.458% +11.5 basis points
- 5 year yield 3.43% +9.6 basis points
- 10 year yield 3.769% +5.0 basis points
- 30 year yield 3.976% +1.2 basis points
The US treasury auction of 7 your notes later today at 1 PM.
Looking at other markets:
- Crude oil is down $2 or -2.70% at $72.33
- Gold is down $12.44 or -0.64% at $1944.90
- Silver is down $0.09 or -0.41% at $22.95
- Bitcoin is trading at $26,332 after trading as low as $25,878
The US dollar is higher and the strongest of the major currencies. The EURUSD is trading at the lowest level since March 21, and below a swing area between 1.07509 and 1.0805.
The USDJPY moved above the 50% midpoint at 139.574. It currently trades just above the level. BOJ Ueda, perhaps trying to slow the rise of the USDJPY, said that the BOJ may look to tweak the YCC. Watching down to 139.39 for support. If the price moves back below that level the break higher may find some profit-taking/downside probing.