Landon Capital

Oil prices bounce back from a one-month low amidst doubts over rate hikes, denting the dollar’s strength

The recent jump in ​oil prices from a one-month low can be attributed to several factors. Weak ​U.S. economic readings and comments from the ​Federal Reserve indicating a diminished chance of more interest rate hikes have impacted traders’ expectations and dented the ​dollar.

In October, crude prices experienced a 10% drop due to reduced risk premiums associated with the ​Israel-Hamas conflict. However, recent reports have indicated some deescalation in the conflict, contributing to a more positive market sentiment. Additionally, concerns about worsening demand in the coming months, following unfavorable business activity readings from the euro zone, China, and the U.S., have also put pressure on oil prices.

The strength of the dollar has further influenced oil markets, with traders positioning themselves for a potentially hawkish stance from the Federal Reserve. However, the recent drop in the dollar against a basket of currencies has provided some relief to oil markets and contributed to the price increase.

As of Thursday, Brent oil futures rose 0.6% to $85.13 a barrel, while West Texas Intermediate crude futures rose 0.8% to $81.04 a barrel.

The Federal Reserve’s stance has been a key focus this week. While the central bank maintained interest rates as expected, comments from Fed Chair Jerome Powell presented a more mixed outlook for higher rates. Powell stated that the Fed still sees a long way to go before inflation reaches its 2% target but also highlighted that financial conditions have tightened substantially this year, pointing to increased risks to the economy. Powell’s comments led to a decline in the dollar value in overnight trade. Additionally, Fed fund futures prices indicate that traders are now pricing in a smaller chance of an interest rate hike in December.

Dow futures trade steady, Qualcomm, DoorDash gain after earnings

US stock futures were steady within a tight range during Wednesday’s evening deals, with investors digesting the Federal Reserve’s policy decision ahead of the latest batch of corporate earnings reports.

By 6:55pm ET (10:55 pm GMT) Dow Jones Futures were flat while S&P 500 Futures and Nasdaq 100 Futures lifted 0.1% apiece.

In extended deals, Qualcomm (NASDAQ:QCOM) added 3.6% after reporting Q4 EPS of $2.02 versus $1.91 expected, while revenues came in at $8.67 billion versus $8.51 billion expected.

DoorDash (NASDAQ:DASH) lifted 7.5%, reporting Q3 losses of $0.19 per share versus expected losses of $0.40 per share. Revenue for the quarter was reported at $2.2 billion versus $2.09 billion expected.

Electronic Arts (NASDAQ:EA) lifted 5% after the company reported Q2 EPS of $1.46 versus $1.25 expected, while revenues were reported at $1.91 billion versus $1.77 billion expected.

Roku (NASDAQ:ROKU) popped 17.3%, reporting Q3 losses of $2.33 per share versus expected losses of $1.96 per share on revenue of $912 million versus $855.11 million expected.

Ahead in Thursday’s session, market participants will be monitoring key employment data including nonfarm payrolls, unemployment rate, average hourly earnings as well as factory orders and sa speech from Fed Vice Chair for supervision Barr.

On the earnings front, companies to watch include Apple Inc (NASDAQ:AAPL), Eli Lilly and Company (NYSE:LLY), ConocoPhillips (NYSE:COP), Starbucks Corporation (NASDAQ:SBUX) and Shopify Inc (NYSE:SHOP).

During Wednesday’s regular trade, the Dow Jones Industrial Average added 221.7 points or 0.7% to 33,274.6, the S&P 500 added 44.1 points or 1.1% to close at 4,237.9 and the NASDAQ Composite lifted 210.2 points or 1.6% to 13,061.5.

Investor focus remained squarely on the Federal Reserve’s latest interest rate decision and statement as policymakers held rates steady, with Fed Chair Powell not ruling out further hikes in December.

On the bond markets, United States 10-Year rates eased back to 2-week lows at 4.734%.



Qualcomm Chips Away at Expectations: Forecasts Boom in Sales and Profits Amidst Smartphone Sales Resurgence

San Diego’s chip maverick, Qualcomm, is flipping the script, envisioning a sales and profit surge surpassing Wall Street’s predictions. With smartphone sales on the mend, particularly in China, and a snazzy new deal with Apple in their arsenal, the tech icon is looking ahead with rosy expectations.

The crystal ball at Qualcomm headquarters foresees first-quarter revenue ranging between $9.1 billion and $9.9 billion, outshining analysts’ $9.2 billion projection according to LSEG data. The profits estimate of $2.25 to $2.45 per share for the current quarter kicks the anticipated $2.23 per share to the curb, as per LSEG.

As these ambitious predictions hit the streets, Qualcomm’s stock leaped by 3.4%, a high-five from investors cheering for the company’s future.

During a powwow over the airwaves, Qualcomm’s Chief Executive, Cristiano Amon, spilled the beans that smartphone companies have tidied up their inventory and are now ringing up fresh orders, painting a promising picture for the company’s tomorrows.

Investing is like planting seeds of financial wisdom that, with a dash of patience and a sprinkle of diversification, can grow into a money tree of opportunities. It’s the art of making your money work for you, so you can sit back, sip your coffee, and watch your wealth flourish. Just remember, in the world of investing, there are no crystal balls, but there are plenty of thrilling rollercoaster rides and exhilarating “Eureka!” moments when your portfolio takes off. So, fasten your seatbelt, keep your eye on the horizon, and let your money embark on the adventure of a lifetime.