Money & Meaning

Breathe Life, Indulge in Happiness

💰A rebound for US equities🍏

Spread the love

Stocks closed higher despite paring some of the earlier gains as they tried to jump out of the loss cycle given the warmer inflation data last week, which hinted at the need for the Fed to do more to fight inflation. 

This week might be a reprieve for investors as economic data are light. US Pending Home Sales rose 8.1%, breaking the expectation of a 0.95% gain. Given recent erratic financial data, we will set sight on the ISM Manufacturing data on Wednesday and service economic data on Friday as our next hurdle. 

Do note that the February jobs report is delayed to March 10. The idea of a Fed pause in rate hike had spiked a spectacular rally in January and faded in February. If we receive yet another hotcake report on job report, it could seal the fate of any enthusiasm in the equity market and push the odds of a 0.5% rate hike higher. 

📱Zoom: It’s show time!💎

Shares of the meeting technology giant rose after posting a rosy fourth-quarter earnings result. Its outlook is mixed with a forecast of slower revenue growth but a sweet spot for a higher forecast in profitability. This combination can be attributed to its recent job-trimming effort and further cost reduction in its broad business spectrum. 

As we explore, we remain on the sideline and are mindful of the potential broader slowdown in corporate spending as the economy cools. This could be a headwind for Zoom if it materialises. 

🎢Meme Stock: AMC, Moon Shot, here we go!🗽

AMC Entertainment jumped on Monday as investors renewed optimism about the upcoming earnings report, spurring FOMO buying. A report based on a court filing shows that a dilutive share authorisation could be postponed, supporting the risk-on sentiment.

Some of the AMC shareholders had sued the company for issuing APE units shares which would reduce the voting power of its common shareholders. The options market is implying a potential swing move of 15% ahead of its earnings on Tuesday, and analysts are expecting a net loss of 6 cents per share for the fourth quarter. 

📮What are our dishes today? 📖

At 10.45 pm, we will have the Chicago PMI data, which is still likely to be in the contraction zone of 45.0, higher than a prior period of 44.3.

It is February 28, Tuesday, 9 am in Singapore and 8 pm in New York. We have come to the last trading day of the month, and Pika World hopes all friends have a profitable closure. 

Please enter CoinGecko Free Api Key to get this plugin works.
Buy Me A Coffee