Newscasts - US Markets Briefing: Wall St bounces as focus shifts to rates outlook

Bio-Rad Laboratories

09/09/2024 20:00

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Source: 'Reuters - Business videos'

Description: Wall Street's main stock indexes rose on Monday, rebounding from
a week of steep losses as focus shifted back to the extent of interest rate
cuts by the Federal Reserve in 2024 and the crucial inflation report later in
the week.
Short Link: https://refini.tv/4gfzqhL

Video Transcript:

Wall Street bounces as the focus shifts to the rate outlook. Welcome to US
Markets Briefing. I'm David Pollard. Wall Street's main indices have risen
today, rebounding from a week of steep losses that as focus shifts back to the
extent of possible Fed rate cuts this year and ahead of a crucial inflation
report on Wednesday. Investors are betting on a moderating headline CPI rate
for the year, with a month-on-month rate seen unchanged putting a Fed cut
squarely in their sights after last Friday's weaker-than-expected non-farm
payrolls report. Among individual movers, Boeing advanced 3.6% after the
planemaker and its biggest union reached a tentative labor deal covering more
than 32,000 workers, averting a possible strike. Dell Technologies was up
around 5%, and Palantir by over 11% as they get ready to join the S&P 500
Index later in the month. Erie will also join, replacing American Airlines,
Etsy, and Bio-Rad Laboratories in the index. Apple shares were weaker earlier,
even as the firm unveiled an updated watch at a launch event today with a
thinner, bigger display. The main focus, though, is on the iPhone 16, the
first smartphone designed around AI, features, many of which were announced at
its developers' conference in June. The upgrades will take time to reach
consumers and today's event risk being overshadowed by rival Huawei's tri-fold
phone unofficially announced earlier in the day. With a hurricane forecast to
hit the US Gulf Coast this week, potentially disrupting production, oil prices
were up with Brent closing in on $72. But Brent does remain in technically
oversold territory for a fifth day in a row, and there's a growing view it may
struggle to get out of there. Today, Morgan Stanley cut its price outlook to
$75 from $80, traders Gunvor and Trafigura see a range between 60 and $70 on
sluggish demand from China, and global oversupply, added to which OPEC+ could
announce a more bearish outlook in its monthly report due tomorrow.

Very likely going to see another cut in oil demand coming, obviously to start
the year, OPEC was very bullish around oil demand growth. They continue to
ratchet those expectations lower. I think that trend will absolutely continue
this month.

In a quiet diary on Tuesday, GameStop is expected to post a fall in second
quarter revenue hurt by slowing sales at its core business of selling new and
pre-owned video games. And Boeing may well be in the headlines again if, as
expected, it reports its August deliveries data for commercial jets. The
planemaker has been seeking to boost production, while facing scrutiny from
regulators and customers following a January mid-air blowout. And that is US
Markets Briefing