Stocks rallied after the Fed Chairman Jerome Powell spoke and stated that the future rate hikes are going to be “data driven.” This was a shift from the plan laid out earlier of successive rate hikes. Today’s vote for a 75 basis point hike was 12-0 which is impressive. He remains committed to using PCE index over the CPI index. Coincidentally PCE index comes out Friday and will be watched closely. For now we need to see GDP tomorrow at 8:30 am. Consensus is .5% on 2nd Quarter GDP sales. After the bell Facebook issued their earnings report and and it was abysmal. The stock traded down. The two most damaging parts were the decline of revenue next quarter by 10% and the statement by Zuckerberg. He explained that years from now the Metaverse will net them billions. The problem is in the meantime their core business is eroding. Investors want to know how you are going to grow but also how you are going to make money now. Between this call and Teledoc symbol TDOC which was down 20% after hours there were not many bright spots this evening. The one bright spot that stands out is LRCX and TXN. Both semiconductor companies beat expectations in both revenue and earnings. Make sure to look at the semiconductor channel in the charts below.
📈Stocks Rally on Fed Hike.🏦
📈Stocks Rally on Fed Hike.🏦
📈Stocks Rally on Fed Hike.🏦
Stocks rallied after the Fed Chairman Jerome Powell spoke and stated that the future rate hikes are going to be “data driven.” This was a shift from the plan laid out earlier of successive rate hikes. Today’s vote for a 75 basis point hike was 12-0 which is impressive. He remains committed to using PCE index over the CPI index. Coincidentally PCE index comes out Friday and will be watched closely. For now we need to see GDP tomorrow at 8:30 am. Consensus is .5% on 2nd Quarter GDP sales. After the bell Facebook issued their earnings report and and it was abysmal. The stock traded down. The two most damaging parts were the decline of revenue next quarter by 10% and the statement by Zuckerberg. He explained that years from now the Metaverse will net them billions. The problem is in the meantime their core business is eroding. Investors want to know how you are going to grow but also how you are going to make money now. Between this call and Teledoc symbol TDOC which was down 20% after hours there were not many bright spots this evening. The one bright spot that stands out is LRCX and TXN. Both semiconductor companies beat expectations in both revenue and earnings. Make sure to look at the semiconductor channel in the charts below.