- The S&P 500, Nasdaq and FTSE 100 post strong rebounds on Thursday.
- PayPal shares fall after analysts’ downgrade.
- Gold and Bitcoin are under downward pressure in new equity optimism.
This week, global equities continued to hit near year-to-date highs, with bullish outlook for the market coming from a strong earnings season across all sectors.
The US and European stock markets are expected to end the week higher after mixed sessions in Asia, with the S&P 500, Nasdaq and FTSE 100 indices highlighting the market’s resilience.
The S&P 500 rose 0.34%, while the Nasdaq 100 edged up 0.45. However, the Dow Jones Industrial Average was down 0.17% as the market struggled to lag behind a few major stocks.
In Europe, the STOXX 600 is up 0.35% and the FTSE 100 index is positive 0.36%. In Asia, markets rose on Friday, with the Japanese Nikkei up 0.50% and the Chinese Shanghai Composite Index edging up 1.1%.
The largely bullish sentiment in global equity markets comes as retail data has helped ease inflation concerns, even as quantitative easing plans continue to boost the near-term outlook. In the United States, strength in the tech sector saw major indexes close higher on Thursday. A higher opening on Friday could see Wall Street continuing its momentum since early October.
Recap of PayPal, Walmart and Rivian actions
The week has been very eventful for several important stocks.
Shares of PayPal (PYPL) fell more than 4.36% on November 17, with the drop coming after analysts at Bernstein put the stock on hold. This lowered the PYPL share price from a buy, lowering the price target from $ 220 to $ 260 for the year.
PayPal shares are down 2.8% pre-market, currently at $ 200.50, as analysts say that the digital wallet faces increasing competition from Apple Pay and Square.
Rivian (RVN) fell after a successful public debut, while Tesla (TSLA) turned positive on Thursday, adding 3% to its value after a prolonged sell-off exacerbated by Elon Musk’s offloading of hundreds of thousands of shares throughout week long.
As underlined here , Visa (V), Target (TGT) and Walmart (W) have also seen major moves and could fluctuate even more ahead of Black Friday purchases.
For Walmart, the losses came despite the company’s profits exceeding third-quarter estimates. The stock price has fallen almost 4% in the past five days and is currently negative in its outlook since the start of the year at around 3.2%.
While the holiday season may attract investors to retail stocks, Blue Line Capital’s Bill Baruch has declared to ” Trading Nation From CNBC that this may not be the time to consider new positions in these assets. August was a better month, he said, but as market sentiment evolves, consumer discretionary will likely lag behind the S&P 500 for a few weeks or even months.
Drop in gold and bitcoin
In commodities, crude oil returned to key levels as West Texas Intermediate (WTI) crude rose 0.8% to $ 79.68 per barrel. Meanwhile, the gold was under some pressure amid resurgent investor appetite for risk.
The precious metal was priced at $ 1,859 an ounce on Friday morning, even as Bitcoin saw further sell action. Negative news from Twitter, the SEC’s rejection of a BTC spot exchange-traded fund (ETF) and the impending distribution of Mt.Gox hack funds all combined to see Bitcoin plunge to weekly lows of near $ 56,000.