Yazar: Geoffrey Smith
Investing.com – Janet Yellen’s comments on the interest rate created an interesting backdrop for ADP’s monthly survey of private sector hiring and ISM’s non-manufacturing survey. The automobile industry stands out in the earnings calendar. GM and BorgWarner (NYSE:) will report and Stellantis results are already in. Oil tests $70 on a fresh drop in US stocks and the Dogecoin craze/ponzi scheme intensifies before Elon Musk’s exit in SLN.
What you need to know in financial markets on Wednesday, May 5th:
1. ADP, ISM nonfarm payrolls report to be published – Yellen’s statements shed new light on the political landscape
ADP will share its forecasts for private sector hiring in the month to mid-April and is expected to provide evidence of the still strong recovery in the labor market. Analysts estimate 800,000 new jobs have been created in the private sector, with the added benefit of increased employment freedom for the hospitality and other service sectors.
The April report of the ISM’s non-manufacturing survey will also be shared, and the employment sub-index will again attract attention due to the Fed’s focus on the labor market.
On Tuesday, Treasury Secretary (and former Fed Chair) Janet Yellen stirred markets by saying that interest rates “will need to rise” to prevent the economy from overheating. His efforts to tidy the situation did not change the idea that such steps were on the radar of politicians.
2. Dogecoin craze reaches new highs
Before the event, where cryptocurrency enthusiast Elon Musk will guest host on Saturday Night Live, the craze for cryptocurrencies increased, while Dogecoin rose 38%, breaking a new record.
Cryptocurrency blogs talk about the possibility of Musk, whose public support for Dogecoin triggered the rise in digital money this year, once again using the podium to pump prices.
Dogecoin’s market cap is now over $85 billion. It has risen 118% in the last seven days. What started out as a joke and with no apparent economic or social benefit is now the fourth largest cryptocurrency by market cap.
3. Stocks will recover after Yellen slump; GM and PayPal earnings to be shared
US stock markets are expected to open higher. The market is recovering after Yellen’s statements on Tuesday. Technology stocks, which fell the most on Tuesday due to their sensitivity to interest rates, were among the biggest gainers in the premarket.
It rose 0.6%, rose 85 points and gained 0.4%.
Among the stocks that may be in the center of attention Lift (NASDAQ:) The shared cruise company presented another strong report in terms of passenger numbers and reiterated its adjusted EBITDA profit target for the third quarter. Automakers will also be on the radar. General Motors (NYSE:) will report early. Stellantis, owner of Jeep, rose 2.6% with a report that exceeded expectations despite the difficulties it experienced in chip supply.
BorgWarner, Exelon (NASDAQ:), Sempra Energy (NYSE:), Hilton Worldwide, AmerisourceBergen (NYSE:), and Paypal will also share.
4. India expands monetary policy as Covid-19 moves wildly
The central bank of India has expanded its monetary policy to assist in the fight against the Covid-19 wave.
The Reserve Bank of India has announced a new $7 billion term loan facility to help healthcare organizations struggling with essential supplies, from PPE (personal protective equipment) to oxygen, access credit.
The rupee, which rose nearly 2% last week, fell 0.3% against the dollar to 73,955.
The country saw its second drop in new cases on Tuesday, with 382,000 cases reported, but most analysts say these figures are likely underreported. The official death toll from the virus hit a new high of 3,780 daily.
5. Crude oil tests $70 after stockpiles drop, eyes on EIA report
It tested $70 for the first time in two months after the American Petroleum Institute (API) reported the biggest weekly drop in inventories since November.
With clear indications of an increase in gasoline demand in particular, API estimates a 7.69 million-barrel drop in inventories last week. The previous week, there was a decrease of 4.32 million barrels. Government data will be awaited at the usual time.
WTI is still 1.1% higher at $66.41 even though it has pulled out of its highs. Brent, on the other hand, is trading at $69.66, up 1.1%.