Summary Of the Markets Today:
- The Dow closed up 86 points or 0.25%,
- Nasdaq closed up 1.15%,
- S&P 500 closed up 0.74%,
- Gold $1,964 up $26.90,
- WTI crude oil settled at $76 up $1.15,
- 10-year U.S. Treasury 3.867% down 0.115 points,
- USD Index $100.55 down $1.19,
- Bitcoin $30,288 down $300,
*Stock data, cryptocurrency, and commodity prices at the market closing.
Click here to read our Economic Forecast for July 2023
Today’s Economic Releases Compiled by Steven Hansen, Publisher:
The Consumer Price Index for All Urban Consumers (CPI-U) rose 3.0% over the last 12 months. The all items less food and energy index rose 4.8% over the last 12 months. The index for shelter was the largest contributor to the monthly all-items increase, accounting for over 70% of the increase, with the index for motor vehicle insurance also contributing. This data was better than expectations which were 3.1% year-over-year for the all-items index and 5.0% for the all-items less food and energy. The federal funds rate is now slightly above both the all-items and all items less food and energy. I believe the federal funds rate must be higher than the inflation rate to begin a more permanent moderation of inflation. The future issues remain energy (which is currently in another up cycle) and labor costs (labor costs are currently growing well above the federal funds rate).
According to the July 12, 2023 Beige Book:
Overall economic activity increased slightly since late May. Five Districts reported slight or modest growth, five noted no change, and two reported slight and modest declines. Reports on consumer spending were mixed; growth was generally observed in consumer services, but some retailers noted shifts away from discretionary spending. Tourism and travel activity was robust, and hospitality contacts expected a busy summer season. Auto sales remained unchanged or exhibited moderate growth across most Districts. Manufacturing activity edged up in half of the Districts and declined in the other half. Transportation activity was down or flat in most Districts that reported on it, as some contacts reported reduced demand due to high inventory levels and others noted continued challenges from labor shortages. Banking conditions were mostly subdued, as lending activity continued to soften. Despite higher mortgage rates, demand for residential real estate remained steady, although sales were constrained by low inventories. Construction for both residential and commercial units was slightly lower on balance. Agricultural conditions were mixed geographically but softened slightly on balance, with some contacts expecting further softening for the remainder of 2023. Energy activity decreased. Overall economic expectations for the coming months generally continued to call for slow growth.
Here is a summary of headlines we are reading today:
- Ecuador’s Energy Imports Exceed Exports For First Time In 50 Years
- Coal-Addicted South Africa Unlikely To Hit Renewables Targets
- Brent Oil Price Rises Above $80 Per Barrel As Supply Tightens
- Toyota: Explosive Growth In EV Production Could Spark Mineral Shortage
- Heatwave Forces French Nuclear Power Plants To Curb Output
- Inflation rose just 0.2% in June, less than expected as consumers get a break from price increases
- S&P 500, Nasdaq close at highest levels since April 2022, buoyed by cooler-than-expected inflation report: Live updates
- Amazon’s Prime Day off to a strong start, early data shows
- US inflation rises at slowest pace in two years
- Futures Movers: Oil prices settle at highest since late April, buoyed by a weaker dollar and supply cuts
Click on the “Read More” below to access these, other headlines, and the associated news summaries moving the markets today.
The Market in Perspective
| Here are the headlines moving the markets. | |
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HSBC: China’s Auto Market Is Becoming Too CompetitiveWith recent rallies in Tesla (and now Rivian), market participants are starting to mull whether or not EV stocks are about to be looked at favorably and outperform once again. But insane-valuation- and hot-money-history may not be ready to repeat itself just yet. The industry is facing headwinds that it hasn’t before, with Tesla leading a charge of price cutting to start 2023 and now HSBC reporting that an already saturated and competitive market is going to become…even more saturated and competitive – especially in China. In a note… Read more at: https://oilprice.com/Energy/Energy-General/HSBC-Chinas-Auto-Market-Is-Becoming-Too-Competitive.html |
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Ecuador’s Energy Imports Exceed Exports For First Time In 50 YearsEcuador’s fuel import costs have surpassed crude and fuel oil export income for the first time in more than 50 years, energy minister Fernando Santos has revealed. Exports by the South American country of crude and fuel oil–the only refined product Ecuador exports–were $2.9bn, $100m lower than imports of high-octane naphtha for blending into gasoline, LPG, and diesel which cost $3bn during the first half of the year, thanks to oil prices falling 30% from the same period a year ago. This marks the first time Ecuador’s energy imports… Read more at: https://oilprice.com/Latest-Energy-News/World-News/Ecuadors-Energy-Imports-Exceed-Exports-For-First-Time-In-50-Years.html |
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Coal-Addicted South Africa Unlikely To Hit Renewables TargetsRenewable energy will account for just 20% of South Africa’s power mix by the end of this decade, according to Rystad Energy analysis, highlighting the uphill battle the nation faces in its pursuit of decarbonization. South Africa had targeted lifting the share of renewable energy in its power generation mix from 11% currently to 41% by 2030 by increasing onshore wind and solar capacity, both of which have shown significant growth in recent years. However, rising demand and new additions to its aging coal power infrastructure mean that hitting… Read more at: https://oilprice.com/Energy/Coal/Coal-Addicted-South-Africa-Unlikely-To-Hit-Renewables-Targets.html |
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Renault And Geely Launch Powertrain Tech Company In UKRenault and Aston Martin backer Geely have announced the launch of a new UK-based powertrain technology company, to manufacture low-emission hybrid and internal combustion engines. An investment of up to £6bn will be injected into the new outfit, which will employ 19,000 workers. The two automakers said the new group would operate 17 engine plants and five R&D hubs across three continents, with the firm’s headquarters located in Britain. It will aim to produce five million ICE’s and hybrid engines yearly – supplying companies… Read more at: https://oilprice.com/Latest-Energy-News/World-News/Renault-And-Geely-Launch-Powertrain-Tech-Company-In-UK.html |
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Nord Stream Investigators Find Traces Of Explosives In YachtNord Stream investigators have uncovered traces of subsea explosives from a yacht, according to European diplomats who spoke to the United Nations Security Council. Sweden, Denmark, and Germany have been jointly investigating the Nord Stream incident. Just who is responsible for the explosives being there or for the Nord Stream sabotage is still unknown. The findings most closely back German media’s March reports that six individuals hired by a Ukrainian company in Poland were responsible for the attacks. Other theories of who… Read more at: https://oilprice.com/Latest-Energy-News/World-News/Nord-Stream-Investigators-Find-Traces-Of-Explosives-In-Yacht.html |
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Shaky Steel Market Could Be A Speed Bump For Rising Auto SalesVia AG Metal Miner The Automotive MMI (Monthly Metals Index) continued its decline in June, this time falling by 3.28%. The aluminum and copper components of the index traded sideways. However, all other parts of the index dropped. Lead prices managed to trend more sideways in June than in May, but weak demand continues to impact lead and steel prices. Though U.S. car sales also trended higher in June, they weren’t enough to pull the automotive index upward. U.S. Vehicle Demand Up According to a recent Reuter’s report, new vehicle demand… Read more at: https://oilprice.com/Metals/Commodities/Shaky-Steel-Market-Could-Be-A-Speed-Bump-For-Rising-Auto-Sales.html |
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Brent Oil Price Rises Above $80 Per Barrel As Supply TightensBrent crude has climbed above $80 a barrel for the first time since early May, a sign that supply is gradually tightening and demand growing. The oil prices gains came despite data showing U.S. crude inventories jumped by nearly 6 million barrels last week with traders focusing on surging domestic demand during the summer driving season. The latest oil price rally comes after Saudi Arabia, for the second month running, extended its voluntary 1M bbl/day oil production cut for another month, this time till August. The reduction will take… Read more at: https://oilprice.com/Latest-Energy-News/World-News/Brent-Oil-Price-Rises-Above-80-Per-Barrel-As-Supply-Tightens.html |
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Russia Looks To Egypt, Algeria For Future Space PartnershipsVia the Jamestown Foundation Russia is searching for new long-term partnerships in outer space instead of relying on cooperation with the United States, Europe, Canada and Japan. Recently, Yuri Borisov, head of state-owned Roscosmos, tried to develop space cooperation ties with Algeria and Egypt during his visits there and extended a public invitation to join Russia’s space program during the G20 meeting of the heads of national space agencies on July 6. Moscow hopes to advance cooperation with new partners on constructing and deploying… Read more at: https://oilprice.com/Geopolitics/International/Russia-Looks-To-Egypt-Algeria-For-Future-Space-Partnerships.html |
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Shell’s North Sea Discovery Could Hold Double Gas Resources Than ThoughtThe Pensacola natural gas discovery operated by Shell may contain nearly double the resources than initially estimated, the minority partner in the license, Deltic Energy Plc, said on Wednesday. Drilling at the Pensacola well in the Southern North Sea began in November 2022, and in January 2023, Shell reported a gas discovery and recommended a full well testing program. In February, Deltic Energy said, “Pensacola could represent one of the largest natural gas discoveries in the Southern North Sea in over a decade.”… Read more at: https://oilprice.com/Latest-Energy-News/World-News/Shells-North-Sea-Discovery-Could-Hold-Double-Gas-Resources-Than-Thought.html |
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Shell Makes Fourth Oil And Gas Discovery Offshore NamibiaShell has made a fourth hydrocarbon discovery offshore Namibia, one of the hot spots in offshore exploration right now. The UK-based supermajor said on Wednesday that it had confirmed the presence of hydrocarbons in the fourth exploration well, Lesedi-1X, it completed drilling offshore the African country. “Further evaluation is required to determine development potential,” Shell said in a statement carried by Reuters. Last month, Zoë Yujnovich, Integrated Gas and Upstream Director at Shell, said on Shell’s Capital… Read more at: https://oilprice.com/Energy/Crude-Oil/Shell-Makes-Fourth-Oil-And-Gas-Discovery-Offshore-Namibia.html |
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Toyota: Explosive Growth In EV Production Could Spark Mineral ShortageIn a recent letter addressed to the head of the Environmental Protection Agency, Toyota Motor North America, Inc. criticized the agency’s proposed new tailpipe emission standards, deeming them “unrealistic” and warning that they could spark a shortage of critical minerals. Toyota sent a letter to EPA administrator Michael Regan with comments on the agency’s tailpipe emission limits for vehicles produced in 2027 and beyond. The proposed rule calls for more electric vehicles to be sold, accounting for 67% of new light-duty vehicle sales and 46% of… Read more at: https://oilprice.com/Latest-Energy-News/World-News/Toyota-Explosive-Growth-In-EV-Production-Could-Spark-Mineral-Shortage.html |
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Oil Prices Move Down On Large Crude Inventory BuildCrude oil prices moved lower today after the U.S. Energy Information Administration reported an inventory increase of 5.9 million barrels for the week to July 7. This compared with a modest inventory draw of 1.5 million barrels for the previous week, which failed to move prices in any meaningful way. In gasoline, the authority estimated an inventory draw and in middle distillates, it reported a sizeable inventory rise. Gasoline stocks declined only marginally in the week to July 7, with production averaging 10.1 million barrels daily.… Read more at: https://oilprice.com/Energy/Crude-Oil/Oil-Prices-Move-Down-On-Large-Crude-Inventory-Build.html |
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Audi Discusses Buying Chinese EV Platform For China’s MarketGerman automaker Audi is at an advanced stage of talks to buy an electric vehicle (EV) platform from SAIC Motor, the largest Chinese auto group, for Audi vehicles on the Chinese market, sources with knowledge of the discussions told Reuters on Wednesday. This weekend, the German publication Automobilwoche reported that Audi, the premium car brand of VW, is on the lookout for platform partners for faster EV development in China. Audi, which is lagging behind Tesla and Chinese competitors in the Chinese EV market, the world’s… Read more at: https://oilprice.com/Latest-Energy-News/World-News/Audi-Discusses-Buying-Chinese-EV-Platform-For-Chinas-Market.html |
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Heatwave Forces French Nuclear Power Plants To Curb OutputThe current heatwave in most of Europe, expected to be a prolonged period of higher-than-normal temperatures, is set to limit nuclear power generation at two French nuclear plants this week, operator EDF warned on Wednesday. The Bugey and Saint Alban nuclear plants on the Rhone River in eastern France could see their output halved between July 13 and 16, according to an EDF notice cited by Reuters. The output restrictions are coming into place as high temperatures are raising the temperatures of rivers and forcing EDF to reduce… Read more at: https://oilprice.com/Alternative-Energy/Nuclear-Power/Heatwave-Forces-French-Nuclear-Power-Plants-To-Curb-Output.html |
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Moldova Pledges Accelerated Alliance With NATOMoldovan Foreign Minister Nicu Popescu says his country’s prosperity and security can only be guaranteed through its eventual membership in the European Union and through “intensified, accelerated cooperation with NATO,” amid discussion on whether the current policy of neutrality is insufficient. Moldova, wedged between Ukraine and EU and NATO member Romania, is one of Europe’s poorest countries and has acutely felt the impact of Russia’s unprovoked invasion of Ukraine.Since gaining independence from the former Soviet Union in 1991, Moldova, where… Read more at: https://oilprice.com/Latest-Energy-News/World-News/Moldova-Pledges-Accelerated-Alliance-With-NATO.html |
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As Twitter continues to implode, advertisers pin their hopes on ThreadsAdvertisers are interested in Meta’s new Threads app as a new social channel to reach consumers while Twitter continues to struggle. Read more at: https://www.cnbc.com/2023/07/12/metas-threads-could-be-the-twitter-replacement-advertisers-have-been-waiting-for.html |
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Inflation rose just 0.2% in June, less than expected as consumers get a break from price increasesThe consumer price index was expected to increase 0.3% in June and 3.1% from a year ago. Read more at: https://www.cnbc.com/2023/07/12/inflation-rose-just-0point2percent-in-june-less-than-expected-as-consumers-get-a-break-from-price-increases.html |
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S&P 500, Nasdaq close at highest levels since April 2022, buoyed by cooler-than-expected inflation report: Live updatesU.S. stocks jumped Wednesday as traders cheered new data that showed inflation rose less than expected last month. Read more at: https://www.cnbc.com/2023/07/11/stock-market-today-live-updates.html |
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Here’s an A.I. pure play that could get bought by a megacap tech, says investor Paul Meeks“One pure play AI company, C3.ai, probably at some point successfully sells itself to one of the mega tech cap companies,” Meeks said on CNBC Pro Talks. Read more at: https://www.cnbc.com/2023/07/12/heres-an-ai-pure-play-that-could-get-bought-by-a-megacap-tech-says-investor-paul-meeks.html |
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DeSantis donors privately worry about campaign as Florida governor lags in 2024 pollsRon DeSantis’ fundraisers are privately hearing some concerns from donors on the trajectory of the DeSantis campaign as the governor lags in public polling. Read more at: https://www.cnbc.com/2023/07/12/desantis-donors-worried-about-campaign.html |
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Crypto regulation bill revived, and new report sheds light on digital asset crime: CNBC Crypto WorldCNBC Crypto World features the latest news and daily trading updates from the digital currency markets and provides viewers with a look at what’s ahead with high-profile interviews, explainers, and unique stories from the ever-changing crypto industry. On today’s show, Jacqueline Burns Koven, the head of cyber threat intelligence at Chainalysis, explains the data revealed in the company’s mid-year crypto crime report. Read more at: https://www.cnbc.com/video/2023/07/12/crypto-regulation-bill-revived-report-digital-asset-crime-cnbc-crypto-world.html |
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Amazon’s Prime Day off to a strong start, early data showsThe positive results indicate inflation-weary shoppers are still opening their wallets, lured by deep discounts. Read more at: https://www.cnbc.com/2023/07/12/amazon-prime-day-off-to-a-strong-start-early-data-shows.html |
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This A.I. stock has a unique ‘secular bull trend,’ market technician saysFairlead’s Katie Stockton weighed in on Cadence Design’s rally. Read more at: https://www.cnbc.com/2023/07/12/this-ai-stock-has-a-unique-secular-bull-trend-market-technician-says.html |
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Ukraine war live updates: G7 signs declaration of security guarantees for Ukraine; Kremlin warns West is making a ‘dangerous mistake’NATO officials and leaders from its partner states continue their summit in Vilnius, Lithuania, with a focus on Russia’s war in Ukraine. Read more at: https://www.cnbc.com/2023/07/12/russia-ukraine-live-updates.html |
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Communist Party cells influencing U.S. companies’ China operations, FBI Director Wray saysThe Chinese government has “exploited” joint business ventures in search companies’ secrets and information, Wray told the House Judiciary Committee. Read more at: https://www.cnbc.com/2023/07/12/communist-cells-influence-companies-in-china-fbi-director.html |
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From ‘Barbie’ to Formula 1, TAG Heuer is making its mark on the luxury watch marketLuxury watch maker TAG Heuer, which is owned by LVMH, is riding a wave of marketing successes and new launches. Read more at: https://www.cnbc.com/2023/07/12/from-barbie-to-formula-1-tag-heuer-gaining-in-luxury-watch-market.html |
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How to install the preview of Apple’s new iPhone software coming this fallApple’s iOS public beta has most of the features that will be included in the final release version, but isn’t ready for everyone yet. Read more at: https://www.cnbc.com/2023/07/12/apple-ios-17-public-beta-how-to-install.html |
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Biden’s Federal Reserve Board nominees clear key Senate committeeNominees Philip Jefferson, Lisa Cook and Adriana Kugler were approved by the Senate Banking Committee, teeing up a vote in the full Senate later this year. Read more at: https://www.cnbc.com/2023/07/12/bidens-federal-reserve-board-nominees-clear-key-senate-committee-.html |
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Fox News Downgraded By Wells Fargo Over Viewership IssuesAuthored by Jack Phillips via The Epoch Times (emphasis ours), A top financial services company downgraded Fox Corporation’s stock on Monday, noting issues with the network’s viewership, earnings, and content.
Ex-Fox News host Tucker Carlson speaks during 2022 FOX Nation Patriot Awards at Hard Rock Live at Seminole Hard Rock Hotel & Casino Hollywood in Hollywood, Fla., on Nov. 17, 2022. (Jason Koerner/Getty Images) An analyst with Wells Fargo downgraded shares of Fox Corp. from “equal weight” to “underweight,” lowering the price target from $35 per share to $31 per share, according to multiple reports on Monday. “Fox News is the FOXA cash cow at [around] 80 percent of our FY24E EBITDA,” Steven Cahall, with Wel … Read more at: https://www.zerohedge.com/political/fox-news-downgraded-wells-fargo-over-viewership-issues |
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NATO Leaders Tell Zelensky ‘Cool It’ In Rare Dressing Down At SummitBloomberg is just out with a devastating behind-the-scenes account of a hot-headed Zelensky at the NATO summit in Vilnius, and the growing Western backlash in the face of his obvious frustration and what’s being seen as ingratitude for the steady flow of billions of dollars in arms to Kiev. Apparently, even the mainstream media agrees with our own assessment of the Ukrainian leader having thrown a “tantrum” as he complained about the “weak” and “absurd” NATO stance on Ukraine’s membership. The blistering tweet he issued in English while en route to Lithuania exposed cracks in the alliance, as Bloomberg highlights in the opening of its very revealing Wednesday piece:
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‘Secretly Stealing Everything’: Google Hit With Lawsuit Over New AI Data-Scraping Privacy PolicyAuthored by Savannah Fortis via CoinTelegraph.com, A week after Google updated its privacy policy to allow data scraping for AI training purposes, the company faces a class-action lawsuit…
Google is now facing a lawsuit following its recent privacy policy update that accuses the tech giant of misusing large amounts of data, including copyrighted material, in artificial intelligence (AI) training. The class-action lawsuit was filed on July 11 by eight individuals who claim to represent “millions of class members” — internet users and copyright holders — who have had their privacy and property rights violated in light of Google’s recent updates to its privacy policy. In its opening statement, the plaintiffs accuse Goog … Read more at: https://www.zerohedge.com/technology/secretly-stealing-everything-google-hit-lawsuit-over-new-ai-data-scraping-privacy-policy |
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House GOP To Release Damning Allegations Against Biden DHS ChiefThe House Homeland Security Committee is about to release a lengthy report detailing what Chairman Mark Green claims are several instances where Department of Homeland Security (DHS) Secretary Alejandro Mayorkas broke the law, the Daily Caller reports.
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US inflation rises at slowest pace in two yearsInflation rose by 3% in the year to June but US interest rates are expected to rise again. Read more at: https://www.bbc.co.uk/news/business-66178936?at_medium=RSS&at_campaign=KARANGA |
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Elon Musk announces new AI start-upThe new entity is called xAI, and employs several engineers that have worked at companies like OpenAI and Google. Read more at: https://www.bbc.co.uk/news/technology-66183034?at_medium=RSS&at_campaign=KARANGA |
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Mortgage payments set to jump by £500 for one million householdsBank of England says higher interest rates are yet to hit many homes but lenders are proving resilient. Read more at: https://www.bbc.co.uk/news/business-66172954?at_medium=RSS&at_campaign=KARANGA |
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Ahead of Market: 10 things that will decide D-Street action on Thursday“The range-bound movement in the Indian indices was influenced by the likelihood of subdued IT earnings. While optimism about moderation in US inflation supported the broad index. Further, an uptick in domestic food inflation on the back of mandi prices trending above MSP and muted Kharif sowing forced the investors to be cautious. Monsoon progress and the Kharif sowing trend in July are the keys to the future inflation trend,” said Vinod Nair, Head of Research at Geojit Financial Services Read more at: https://economictimes.indiatimes.com/markets/stocks/news/ahead-of-market-10-things-that-will-decide-d-street-action-on-thursday/articleshow/101705373.cms |
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Tech View: Nifty bulls face stiff challenge at 19,500. What traders should do on Thursday expiryPositive chart patterns like higher tops and bottoms were intact on the daily chart and present weakness could be in line with new higher bottom formation at the highs, analysts said. On a move below 19,300, the market is likely to find another important support of 19,100-19,000 levels. Fresh buying interest could only emerge on a decisive move above 19500 levels, said Nagaraj Shetti of HDFC Securities Read more at: https://economictimes.indiatimes.com/markets/stocks/news/tech-view-nifty-bulls-face-stiff-challenge-at-19500-what-traders-should-do-on-thursday-expiry/articleshow/101700654.cms |
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Concurrent Gainers: These 6 stocks gain for 5 days in a row. Do you own any?ETMarkets has identified six stocks from the BSE200 index that have consistently shown growth in their share prices during this period, despite market volatility. Read more at: https://economictimes.indiatimes.com/markets/stocks/news/concurrent-gainers-these-6-stocks-gain-for-5-days-in-a-row-do-you-own-any/articleshow/101693139.cms |
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Market Snapshot: S&P 500 heads toward highest close in 15 months after inflation data takes some pressure off FedU.S. stocks traded higher Wednesday after data showed the rate of inflation in June slowed to the lowest level since early 2021, fueling hopes that the Fed may be close to being done with its interest rate hikes. Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C06575-04D4-B545-7229-828AAD0789EB%7D&siteid=rss&rss=1 |
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Key Words: PGA-LIV Golf merger: Senators rip ‘brutal’ and ‘repressive’ Saudi influence in packed hearingPGA Tour board member Jimmy Dunne defended the controversial merger with LIV Golf. Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C06575-04D4-B545-7228-B0186A6374AF%7D&siteid=rss&rss=1 |
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Futures Movers: Oil prices settle at highest since late April, buoyed by a weaker dollar and supply cutsOil futures climb on Wednesday to their highest finish since late April, finding support as a smaller-than-expected rise in U.S. consumer prices helped weaken the dollar and OPEC+ supply cuts continued to point to tighter global crude supplies. Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C06575-04D4-B545-7229-9CE158783748%7D&siteid=rss&rss=1 |
