US stocks are rebounding as investors await a key round of pricing data points that could tilt the scales over how much more tightening the Fed will do in the February policy meeting. It looks like this losing streak for stocks will end not because of positive catalysts but on exhaustion from this 5-day losing streak. Jobless claims didn’t really tell us anything new but some investors were excited over an analyst upgrade given to Boeing’s stock. Wells Fargo increased their Boeing price target from $185 to $218.
Wall Street won’t make much of today’s gains as it focuses on the upcoming pricing data points and next week’s FOMC decision.
Jobless claims edged higher and expectations are growing for that trend to continue. Initial jobless claims printed at 230,000, in-line with expectations and 5,000 more than the prior reading. The labor market remains tight and some seasonal hiring might keep this data point a little bit supported.
The labor market is slowly heading towards a rough patch and that should help stop wage gains early next year.
Until we get beyond some key pricing data and the FOMC decision, bitcoin seems stuck in a seesaw around the $1700 level. Cryptos haven’t had any fresh developments stemming from the FTX collapse and that has provided a quiet period.
It is no surprise that FTX founder Sam Bankman-Fried reportedly will face a market manipulation inquiry. The legal dissection of FTX and all of management will take months and dominate the headlines but might not drive the crypto market unless it exposes an unforeseen domino fall in the cryptoverse.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.