Summary Of the Markets Today:
- The Dow closed up 683 points or 1.76%,
- Nasdaq closed up 2.87%,
- S&P 500 closed down 2.30%,
- Gold $2,462 up $30.00,
- WTI crude oil settled at $76 up $0.88,
- 10-year U.S. Treasury 3.994 up 0.026 points,
- USD index $103.21 up $0.020,
- Bitcoin $59,465 up $4,324 or 7.84%,
*Stock data, cryptocurrency, and commodity prices at the market closing.
Today’s Highlights:
US stocks experienced a significant rally on Thursday, buoyed by a drop in weekly initial jobless claims, which eased concerns about the labor market’s health.
- Market Performance: The S&P 500 marking its largest single-day gain since November 2022.
- Jobless Claims Data: The U.S. Labor Department reported that initial jobless claims fell to 233,000 for the week ending August 3, down from 250,000 the previous week and below economists’ expectations of 240,000. This positive data provided a much-needed boost to investor sentiment after a recent disappointing jobs report that had raised recession fears.
- Individual Stock Movements: Eli Lilly saw a notable increase in its shares, soaring over 9% after it raised its annual revenue and profit forecasts due to strong sales of its weight-loss drug. Conversely, Nvidia faced volatility, with its stock fluctuating but ultimately ending the day down about 5% after earlier gains.
This rally comes after a turbulent week for Wall Street, where stocks had seen significant declines amidst fears of an economic slowdown. The jobless claims data appears to have provided a temporary reprieve from these concerns, although ongoing scrutiny of the labor market remains.
Click here to read our current Economic Forecast – August 2024 Economic Forecast: New Recession Flag
Today’s Economic Releases Compiled by Steven Hansen, Publisher:
June 2024 sales of merchant wholesalers were up 2.4% from the revised June 2023 level. Total inventories of merchant wholesalers were up 0.1% from the revised June 2023 level. The June inventories/sales ratio for merchant wholesalers was 1.37. The June 2023 ratio was 1.40. The inventory to sales ratio is an indicator of a recession IF the ratio becomes larger – and today this ratio is near the levels associated with recessions. There is something skewed in the data so I do not trust the data in this series to risk making any predictions.
In the week ending August 3, the advance figure for seasonally adjusted initial unemployment claims 4-week moving average was 240,750, an increase of 2,500 from the previous week’s revised average. The previous week’s average was revised up by 250 from 238,000 to 238,250. Initial claims continues to modestly increase BUT remains below the levels one year ago. At this point, the data is not indicating a recession is looming.
Here is a summary of headlines we are reading today:
- Brent Crude Nears $80
- Force Majeure Declared at Libya’s Largest Oilfield
- Japan’s Top Oil and Gas Explorer Raises Shareholder Returns Despite Profit Drop
- Gazprom Exports to Europe via Ukraine Continue Despite Fighting
- Lower LNG Prices Drag Cheniere’s Q2 Profit Down by 36%
- S&P 500 notches its best day since 2022 as Wall Street claws its way back from Monday’s rout: Live updates
- Where to find high and safe yield when the Fed starts to trim rates
- JPMorgan raises 2024 recession odds to 35%
- Weekly jobless claims fall to 233,000, less than expected, in a positive sign for labor market
- XRP pops as court orders Ripple Labs to pay $125 million, legal battle with SEC nears end: CNBC Crypto World
- Buy The Dip… Or Embrace The Rotation?
- 10-year Treasury yield ends at almost 4% after drop in weekly jobless claims
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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Just How Clean Is Renewable Energy?Authored by Kristen Walker via RealClearEnergy, Unless you’ve been living under a rock, you are probably aware of the massive push to transition to green energy. The goal is to have wind and solar replace coal and natural gas; the electric vehicle (EV) will supposedly replace internal combustion engines. Directives are coming from the highest office in the land; the current administration has made green energy a large part of its agenda. We are being told that these technologies are clean and will save the planet from climate change. However,… Read more at: https://oilprice.com/Energy/Energy-General/Just-How-Clean-Is-Renewable-Energy.html |
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Brent Crude Nears $80Brent crude oil is closing in on the $80 price point Thursday afternoon, with WT reaching above $76 per barrel on healthy U.S. economic data combining with a force majeure at Libya’s largest oilfield and mounting tensions between Israel and Hamas. At 2:19 pm CDT, WTI crude was trading at $75.99 per barrel, a $0.76 (+1.01%) increase on the day. Brent crude was trading up $0.66 (0.84%) on the day at $79.04. Geopolitical uncertainties—heightened by the killing of a senior Hezbollah commander in Beirut—and a force majeure on… Read more at: https://oilprice.com/Latest-Energy-News/World-News/Brent-Crude-Nears-80.html |
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Are U.S. Steel Prices Poised for a Rebound?Via Metal Miner The Raw Steels Monthly Metals Index (MMI) moved sideways, with a 1.15% decline from July to August. U.S. steel prices remained in search of a new bottom by the close of July. HRC prices dropped a total of 8.26% during the month, pushing them to their lowest level since December 2022. However, prices appeared to stabilize by the first week of August as mills attempted to invert the bear trend with the announcement of higher prices. Rumors of a Bottom Echo April Warnings Despite seemingly bearish market signals, rumors began to emerge… Read more at: https://oilprice.com/Metals/Commodities/Are-US-Steel-Prices-Poised-for-a-Rebound.html |
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Force Majeure Declared at Libya’s Largest OilfieldLibya’s National Oil Corporation (NOC) has declared force majeure at the Sharara oilfield, after protests halted production at the country’s largest field earlier this week. Considering the current circumstances at Sharara that prevented NOC from carrying out crude oil loading operations, the state oil company of Libya declared force majeure effective August 7, NOC said in a notice. Sharara fully halted oil production on Monday after output was curbed during the weekend due to protests. The oilfield, which has the… Read more at: https://oilprice.com/Latest-Energy-News/World-News/Force-Majeure-Declared-at-Libyas-Largest-Oilfield.html |
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Tajikistan’s Trade Deficit Widens Despite Booming Gold ExportsWhat do Switzerland and Tajikistan have in common? The answer is gold: Tajikistan mines it, and Switzerland wants it. And according to official Tajik trade statistics, Switzerland was Tajikistan’s most lucrative export partner during the first half of 2024, primarily due to shipments of the precious metal. Tajikistan’s overall foreign trade turnover registered a 22 percent increase during the first half of 2024, but that encouraging news was tempered by the fact that exports lagged far behind imports, the Asia-Plus news agency… Read more at: https://oilprice.com/Energy/Energy-General/Tajikistans-Trade-Deficit-Widens-Despite-Booming-Gold-Exports.html |
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Japan’s Top Oil and Gas Explorer Raises Shareholder Returns Despite Profit DropThe largest Japanese oil and gas explorer, Inpex, is raising returns for shareholders to a record-high, despite posting a decline in its first-half net profit. On Thursday, Inpex reported a net profit of $1.5 billion (212.5 billion Japanese yen) for the six months ending June 30, 2024, which was down by 14.5% compared to the same period last year. However, Inpex’s revenues and operating profit rose by 10.4% and 15.3%, compared to the year-ago levels, respectively. The decline in the net profit was attributed to increased tax payments… Read more at: https://oilprice.com/Latest-Energy-News/World-News/Japans-Top-Oil-and-Gas-Explorer-Raises-Shareholder-Returns-Despite-Profit-Drop.html |
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Harbour Energy Bounces Back to Profitability Despite Revenue DipHarbour Energy has returned to the black on Thursday despite the largest UK-based North Sea oil and gas firm suffering a dip in revenue and cratered free cash flow. The producer had been a victim of the energy profit levy imposed off the back of energy price spikes in 2022, with the 75 per cent tax rate hitting its profit for much of 2023. But the FTSE 100 constituent posted a return to profitability in the six months to June 30, with profit after tax rising to £44.9m, up from a loss of £8m in the first half of 2023. The profit jump… Read more at: https://oilprice.com/Latest-Energy-News/World-News/Harbour-Energy-Bounces-Back-to-Profitability-Despite-Revenue-Dip.html |
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U.S. Sanctions Squeeze Russian and Chinese BanksChinese banks have tightened their restrictions on payments from Russia out of fear of triggering U.S. secondary sanctions. Will this make an impact in choking off Russia’s war machine? Finding Perspective: The latest batch of information on this comes from the Russian newspaper Kommersant, which reported at the end of July that trade between Russia and China is getting ever more difficult, with some payments between partners taking up to six months to be processed. About 80 percent of bank transfers made in the Chinese yuan are also getting… Read more at: https://oilprice.com/Energy/Energy-General/US-Sanctions-Squeeze-Russian-and-Chinese-Banks.html |
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ChargePoint Launches Charging Connector That Fits Almost Any EVChargePoint Holdings, which operates the largest electric vehicle charging network in the United States, unveiled on Thursday an EV connector solution that ensures any EV can charge through it. ChargePoint Omni Port, the new adaptable charging solution, combines the most common connector types into one charging port for both Tesla and non-Tesla drivers without the need for adapters, the company said. Thus any EV can charge in any parking space, regardless of its connector type, revolutionizing EV charging, it added. With the new solution, drivers… Read more at: https://oilprice.com/Latest-Energy-News/World-News/ChargePoint-Launches-Charging-Connector-That-Fits-Almost-Any-EV.html |
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Gazprom Exports to Europe via Ukraine Continue Despite FightingNatural gas flows from Russia to Europe via Ukraine continued on Thursday despite clashes at the Russia-Ukraine border near the only gas metering station that still sends Russian gas west to Europe. Unconfirmed reports emerged on Wednesday that Ukraine had seized Sudzha gas metering station in the Russian region of Kursk, a theater of heavy clashes in recent hours after Ukrainian troops crossed into Russian territory with tanks and armored vehicles earlier this week. The Ukrainian ground assault on Russian regions across the border continued on… Read more at: https://oilprice.com/Energy/Energy-General/Gazprom-Exports-to-Europe-via-Ukraine-Continue-Despite-Fighting.html |
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Petronas Grapples With Operational Issues at Malaysian LNG Export PlantMalaysia’s state energy firm Petronas has asked buyers to defer some scheduled LNG cargo loadings from one of its export plants due to operational issues, Reuters reported on Thursday, citing industry sources. A production train at the MLNG Tiga production facility at the giant Bintulu LNG Complex is experiencing operational issues and Petronas has requested the deferments of some cargo loadings for October, according to Reuters’s sources. Bintulu LNG is operating at reduced capacity, per a report by ANZ Research from Wednesday. The… Read more at: https://oilprice.com/Latest-Energy-News/World-News/Petronas-Grapples-With-Operational-Issues-at-Malaysian-LNG-Export-Plant.html |
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Tripoli Orders Arrest of Libyan Oil Minister on Corruption ChargesJust a day after Libya was forced, once again, to reduce oil production from its largest field, Sharara, over protests, the Tripoli-based Libyan Prosecutor’s Office has ordered the arrest of the country’s oil minister on corruption charges, according to Libyan media reports. An arrest warrant was ordered on Wednesday for Oil Minister Khalifa Abdul-Sadiq on charges of corruption in connection to a reported 600,000 euros used “for the benefit of a foreign company”, according to the Libya Observer, citing the arrest order. … Read more at: https://oilprice.com/Latest-Energy-News/World-News/Tripoli-Orders-Arrest-of-Libyan-Oil-Minister-on-Corruption-Charges.html |
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Reasons to Be Bullish Despite the Recent Oil Price CrashOil prices have been highly volatile over the past week, with Brent trading across a $6.75 per barrel (bbl) range to hit a seven-month low of $75.05/bbl intra-day on 5 August thanks to bearish news coming from the world’s largest economy. The latest U.S. jobs report revealed that the economy added 114,000 jobs in July, way lower than the Wall Street consensus at 176,000 jobs. The unemployment rate increased to 4.3% from 4.1% the previous month, breaking a previous trend where it remained under 4% for the longest stretch in decades. The bearish… Read more at: https://oilprice.com/Energy/Oil-Prices/Reasons-to-Be-Bullish-Despite-the-Recent-Oil-Price-Crash.html |
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Lower LNG Prices Drag Cheniere’s Q2 Profit Down by 36%Cheniere Energy (NYSE: LNG) booked a 36% decline in its second-quarter earnings compared to a year ago, due to lower margins for delivered LNG cargoes. Cheniere Energy, the biggest U.S. LNG exporter, reported on Thursday a net income of $880 million for the second quarter, down from $1.37 billion for the same period of 2023. Half-year net income slumped by 80% to $1.382 billion from $6.8 billion for the six months ended June 30, 2023. The decreases in net income, as well as in consolidated adjusted EBITDA, or core earnings, were “primarily… Read more at: https://oilprice.com/Latest-Energy-News/World-News/Lower-LNG-Prices-Drag-Chenieres-Q2-Profit-Down-by-36.html |
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Can Rising Jet Fuel Demand Save China’s Oil Consumption Growth?A rebound in China’s airline traffic this year has boosted jet fuel demand in the only bright spot in transportation fuel consumption in the world’s top crude oil importer. Chinese refiners, which have seen depressed refining margins for producing gasoline and diesel amid weak demand, are now cranking up jet fuel output to seize the higher margins in this segment as demand jumps by double digits. Airline passenger and flight numbers are soaring this year compared to 2023 after nearly three years of Covid-related lockdowns were removed… Read more at: https://oilprice.com/Energy/Energy-General/Can-Rising-Jet-Fuel-Demand-Save-Chinas-Oil-Consumption-Growth.html |
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S&P 500 notches its best day since 2022 as Wall Street claws its way back from Monday’s rout: Live updatesStocks climbed Thursday after new labor market data boosted investors’ confidence in the U.S. economy after a sharp market sell-off earlier in the week. Read more at: https://www.cnbc.com/2024/08/07/stock-market-today-live-updates.html |
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Pressure mounting on Warner Bros. Discovery CEO David Zaslav to deliver value for shareholdersWarner Bros. Discovery could become a target for an activist shareholder if Zaslav doesn’t start to deliver wins for shareholders. Read more at: https://www.cnbc.com/2024/08/08/warner-bros-discovery-ceo-david-zaslav-to-deliver-value-for-shareholders.html |
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Delta says chaos after CrowdStrike outage cost it $380 million in revenueDelta Air Lines on Thursday said last month’s CrowdStrike outage and subsequent mass flight cancellations cost it some $550 million Read more at: https://www.cnbc.com/2024/08/08/delta-says-chaos-after-crowdstrike-outage-cost-it-380-million-in-revenue.html |
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Palantir jumps on Microsoft partnership to sell AI to U.S. defense, intel agenciesPalantir shares were up about 6% on Thursday morning after the company announced a partnership with Microsoft. Read more at: https://www.cnbc.com/2024/08/08/palantir-jumps-on-microsoft-partnership-to-sell-ai-to-us-defense.html |
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Where to find high and safe yield when the Fed starts to trim ratesTime is running out on those hefty 5% yields in cash. Investors would do well to diversify into fixed income. Read more at: https://www.cnbc.com/2024/08/08/the-fed-could-trim-rates-in-september-turn-here-for-solid-yields.html |
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JPMorgan raises 2024 recession odds to 35%It’s the latest sign of caution around America’s economic health. Read more at: https://www.cnbc.com/2024/08/08/jpmorgan-raises-2024-recession-odds-to-35percent.html |
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Boeing’s new outsider CEO Ortberg takes the helm, this time from the factory floorRobert “Kelly” Ortberg, an aerospace veteran who previously headed major supplier Rockwell Collins, takes over from Dave Calhoun on Thursday. Read more at: https://www.cnbc.com/2024/08/08/new-boeing-ceo-kelly-ortberg.html |
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Eli Lilly blows past estimates, hikes guidance as Zepbound, Mounjaro sales soarThe success of Eli Lilly’s weight loss and diabetes drugs Zepbound and Mounjaro caused the company to hike its guidance. Read more at: https://www.cnbc.com/2024/08/08/eli-lilly-lly-earnings-q2-2024.html |
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Weekly jobless claims fall to 233,000, less than expected, in a positive sign for labor marketInitial claims for unemployment insurance were expected to total 240,000 for the week ended Aug. 3. Read more at: https://www.cnbc.com/2024/08/08/weekly-jobless-claims-fall-to-233000-less-than-expected-in-a-positive-sign-for-labor-market.html |
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Trump says he should get a say on Federal Reserve interest rate decisionsThe comments seem to reinforce reporting earlier this year that advisors close to Trump are looking at a host of changes for the Fed. Read more at: https://www.cnbc.com/2024/08/08/trump-says-he-should-get-a-say-on-federal-reserve-interest-rate-decisions.html |
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Trump, Harris agree to Sept. 10 debate on ABC, two more dates in the worksRepublican presidential nominee Donald Trump held a news conference at Mar-a-Lago as he tries to slow the momentum of Democratic rival Kamala Harris. Read more at: https://www.cnbc.com/2024/08/08/trump-news-conference-election-harris.html |
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Trump holds 2-point lead over Harris with a big advantage on economy, CNBC survey showsFormer President Donald Trump leads Vice President Kamala Harris 48% to 46% overall in the CNBC All-America Economic Survey. Read more at: https://www.cnbc.com/2024/08/08/trump-holds-2-point-lead-over-harris-with-a-big-advantage-on-economy-cnbc-survey-shows.html |
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XRP pops as court orders Ripple Labs to pay $125 million, legal battle with SEC nears end: 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, Stuart Alderoty, chief legal officer at Ripple Labs, discusses the $125 million penalty the company will pay to the SEC and what the case means for the industry. Read more at: https://www.cnbc.com/video/2024/08/08/xrp-pops-court-orders-ripple-labs-pay-125-million-battle-with-sec-nears-end-crypto-world.html |
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“Numbers Aren’t Jiving To The Real World” – Huge Revisions Leave Traders Questioning Biden Admin’s Energy DataJust over a year ago, we commented on the “massive” revisions that the statistical arm of Biden administration’s Department of Energy – the Energy Information Administration (EIA)…
Adding to those who questioned the ‘fabrication’ that:
Zoom forward a year and the ‘revisions’ across multiple (government-supplied) macro data items are now well known and widespread… and statistically noteworthy that the revisions tend to be negative (implying the initial data was ‘optimistic’)… Payrolls (7 of the last 10 months have seen downward revisions)… Read more at: https://www.zerohedge.com/energy/numbers-arent-jiving-real-world-huge-revisions-leave-traders-questioning-biden-admins-energy |
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Buy The Dip… Or Embrace The Rotation?Authored by Louis-Vincent Gave via EvergreenGavekal.com, Back in 2000, when technology stocks hit the wall, one of Gavekal’s first clients told us: “It’s OK. Bear markets serve an important purpose: they return capital to its rightful owners.” Behind this cynicism lies an inherent truth. Bear markets do tend to shake out “weak hands,” clean out retail investors, and punish those who operate with too much leverage. Another key function of bear markets is to transfer leadership from one country or sector or asset class to another. This brings us to today’s single most important question: is the current shakedown in the Nasdaq, Nikkei, and US dollar an opportunity to buy more of these assets on the dip? Or is it now time for investors to look for new stories?
The answer to this all-important question might well be provided by … Read more at: https://www.zerohedge.com/markets/buy-dip-or-embrace-rotation |
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GARM ‘Advertising Cartel’ Shuts Down 48 Hours After X, Rumble File Lawsuit48 hours after X and Rumble filed a lawsuit against the Global Alliance for Responsible Media (GARM) ‘advertising cartel’ and several members, the World Federation of Advertisers announced it will shutter GARM, saying in a statement reported by Business Insider that they’re “a not-for-profit organization with limited resources.”
That obviously strains credulity considering they do the bidding of companies representing hundreds of billions in market cap, including CVS Health, Mars, Orsted and Unilever.
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Investors Pull $2.2 Billion From ARKK In 2024 As Cathie Wood Underperforms Nasdaq By -30% YTDCathie Wood appears to be doing what she does best: buying the ‘dip’ in an overvalued market, socking away aggressively valued companies that have a knack for plunging far further than market indexes on selloffs. The ARKK fund manager is buying shares of Amazon.com Inc., Advanced Micro Devices Inc. and Roku Inc. amidst the recent market volatility, Bloomberg reported this week. But ARKK closed at its lowest levels since November and at YTD lows on Wednesday, amidst the volatility, while the NASDAQ was still in green territory for the year, the report says. Wood’s flagship ‘innovation’ fund is down about -24% YTD versus the QQQ, which is up about 6.8%, as of Thursday mid-morning. That’s a pretty noticeable underperformance for just 8 months into the year. And investors seem to be taking note: about 75% of ARKK’s value from 2021 has been wiped away and, as of Tuesday, investors have withdrawn $2.2 billion from ARKK in 2024, setting it up for its worst year of outflows since its 2014 inception, Bloomberg writes. Read more at: https://www.zerohedge.com/markets/investors-pull-22-billion-arkk-2024-cathie-wood-underperforms-nasdaq-30-ytd |
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Russia airspace ban forces BA to drop China flightsBritish Airways to drop flights to Beijing from October, as Russian airspace ban bites. Read more at: https://www.bbc.com/news/articles/c5ykrkv0m5mo |
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Egg donors warned not to do it for the £986 cashThe compensation egg donors receive is rising, but they are being warned not to do it just for the money. Read more at: https://www.bbc.com/news/articles/clyl34qdzjxo |
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House hunting picks up as some make offers after 20 minutesSurveyors expect property sales to pick up in the autumn, as a survey suggests buyers make swift decisions. Read more at: https://www.bbc.com/news/articles/credj9geenno |
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RBI rate pause: What does it mean for mutual fund investors?For mutual fund investors, an unchanged repo rate amid high food inflation and global market volatility offers a mixed opportunity. Debt fund investors can expect stable yields and potential gains from anticipated rate cuts. Equity investors should focus on sectors that are resilient to inflation and market fluctuations. Hybrid funds provide a balanced strategy, reducing risks from both debt and equity markets. Read more at: https://economictimes.indiatimes.com/mf/analysis/rbi-rate-pause-what-does-it-mean-for-mutual-fund-investors/articleshow/112372570.cms |
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Tech View: Nifty taking support at 50-DEMA. Here’s how to trade on FridayNifty finds support at its 50-day exponential moving average (50-DEMA) but faces resistance near 24,350. A breakout above this level or a drop below 24,000 is needed for the next significant move. Despite the current negative trend, selling pressure may persist even within this range, according to Chandan Taparia of Motilal Oswal Read more at: https://economictimes.indiatimes.com/markets/stocks/news/tech-view-nifty-taking-support-at-50-dema-heres-how-to-trade-on-friday/articleshow/112378653.cms |
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Sebi fines Nippon Life India AMC, trustee for charging scheme expenses to AMC’s booksThe market watchdog imposed a fine of Rs 2 lakh on Nippon Life India Asset Management Limited and Rs 1 lakh on Nippon Life India Trustee Limited. They were held guilty in violating total expense ratio (TER) norms prescribed by the regulator Read more at: https://economictimes.indiatimes.com/markets/stocks/news/sebi-fines-nippon-life-india-amc-trustee-for-charging-scheme-expenses-to-amcs-books/articleshow/112380895.cms |
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Micron’s stock is down 30% in a month. Why Citi says to ‘double down’ and buy.Citi analyst expects continued pricing benefits due to tight supply in the market for dynamic random-access memory. Read more at: https://www.marketwatch.com/story/microns-stock-is-down-30-in-a-month-why-citi-says-to-double-down-and-buy-03fa6a6e?mod=mw_rss_topstories |
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10-year Treasury yield ends at almost 4% after drop in weekly jobless claimsYields on U.S. government debt finished at their highest levels in about a week on Thursday after data on weekly initial jobless-benefit claims signaled the labor market remains in good shape. Read more at: https://www.marketwatch.com/story/treasury-yields-rise-amid-calmer-stock-market-environment-following-growth-scare-48f784a8?mod=mw_rss_topstories |
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Oil prices score 3rd straight gain as equities resume rebound from global routOil futures rose Thursday, notching a three-day winning streak as U.S. stocks attempted to shake off on earlier rout amid a tumultuous start to August for global financial markets. Read more at: https://www.marketwatch.com/story/oil-prices-edge-lower-after-back-to-back-gains-650da906?mod=mw_rss_topstories |
