US Stocks Rally on Open led by NIKE

Written by Stuart Cowell

USA500, H1

Wall Street rallied after the open, with the major indices up broadly. The US30 has added 0.75%, and the US500 is up 1.0%, while the US100 is 1.7% firmer. The rally has come despite the hawkish comments from Fed chair Powell on Monday, where he suggested rates may have to be raised at a quicker pace. #Nike leads the US30 gainers, up over 4% to a high of $138.80, before cooling, on better North American sales. 7 of 11 S&P sectors are higher, led by financials, up 2%, as yields rise. Energy underperforms, down 1.2% as oil prices again retreat.

The strong open to Tuesday’s trades comes following the Richmond Fed Manufacturing Index rebounding 12 points to 13 in March, much better than expected, after falling -7 points to 1 in February which was the lowest print since -3 in September. The index has generally been reflecting a slowdown in activity since July when supply chain distortions, rising prices, and then Covid’s resurgence limited production. Strength was broadbased. Shipments surged to 9 from -11, with new order volume jumping to 10 from -3. The employment index rose to 23 after jumping 16 points to 20 previously, with the workweek rebounding to 18 from -1. Wages improved to 37 from 35. The prices paid index slipped to 11.1% from 12.3%, with prices received accelerating to 9.2% from 8.8%. However, the 6-month shipments outlook slumped to 30 from 48, with employment little changed at 40 from 41. New order volume fell to 11 from 42. Price trends showed a pick-up with prices paid rising to 6.6% from 5.5%, and prices received at 5.6% versus 4.9% previously. Capex dipped to 39 from 42.

About the author

Stuart Cowell

With over 25 years experience working for a host of globally recognized organisations in the City of London, Stuart Cowell is a passionate advocate of keeping things simple, doing what is probable and understanding how the news, charts and sentiment work together to provide trading opportunities across all asset classes and all time frames.

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