Day: August 26, 2024

The Mexican peso falls due to the strengthening of the dollar, resuming its negative trend.

Posted on by Ignacio Teson

The Mexican peso depreciated due to a strengthening dollar, resuming its negative trend driven by risk aversion among investors regarding the potential effects of the judicial reform.

On Monday, the Mexican peso fell in trading. The local currency weakened as the dollar strengthened, resuming the downward trend caused by investor risk aversion over the potential impacts of the judicial reform.

The exchange rate closed the day at 19.3617 pesos per dollar. Compared to Friday’s rate of 19.0718, according to data from the Bank of Mexico (Banxico), the movement represented a loss of 28.99 centavos, equivalent to 1.52 percent.

The dollar’s price fluctuated within a broad range, reaching a high of 19.4461 pesos and a low of 19.2781. The U.S. Dollar Index (DXY), from the Intercontinental Exchange, which measures the dollar against six major currencies, rose 0.19% to 100.91.

[[USD/MXN-graph]]

The National Electoral Institute (INE) confirmed last Friday, after the markets closed, that Morena, the ruling party, and its allies will indeed hold a significant majority in the upcoming Congress, paving the way for the approval of the reform.

Today, the exchange rate is experiencing upward fluctuations due to nervousness over the drafting process of the judicial reform, following confirmation of a supermajority for certain parties in the Chamber of Deputies. Over the weekend, Senator Ricardo Monreal of Morena stated that changes to the justice system would be debated in Congress starting this Sunday, when the next legislature begins its session.

Wall Street closes mixed, with notable declines in Nvidia and Tesla.

Posted on by Ignacio Teson

By sector, the biggest losses were in technology. Within the Dow Jones index, 3M and Coca-Cola stood out with notable gains.

Wall Street’s three main indices closed mixed on Monday. After rising on Friday, driven by a speech from Federal Reserve (Fed) Chairman Jerome Powell, the averages saw limited movement.

The Dow Jones, composed of 30 major companies, gained 0.16% to close at 41,240.52 points. Meanwhile, the S&P 500, which includes 500 stocks, fell 0.32% to 5,616.84 points, and the tech-heavy Nasdaq Composite dropped 0.85% to 17,725.77.

Sector-wise, the largest declines were in technology (-1.12%) and consumer goods and services (-0.81%), while the energy sector led gains (+1.11%). In the Dow Jones, 3M (+1.54%), Coca-Cola (+1.50%), and Walt Disney (+1.35%) were the top performers.

[[SPX-graph]]

Nvidia shares (-2.25%) led the declines as investors awaited the company’s quarterly earnings report on Wednesday. There is hope that the tech giant can reverse the negative trend seen in recent tech earnings.

On the other hand, Tesla (-3.23%) lost ground after Canada announced plans to impose a 100% tariff on electric vehicle imports from China, following similar actions by the United States and the European Union.

Investors are also awaiting July’s personal consumption expenditures (PCE) price index data on Friday, the Fed’s preferred inflation measure, which could provide clues on the future path of interest rates.

DOGS sparks high interest in crypto community

Posted on by Olumide Adesina

The DOGS cryptocurrency, developed on The Open Network (TON) blockchain, is now accessible on Binance as of August 26, 2024, at noon (UTC). Following a successful period on Binance Launchpool,  the token attracted high interest from the crypto community.

 

DOGS has emerged as a significant meme player in the digital asset industry.  DOGS is now tradeable on several pairs, including DOGS/TRY, DOGS/FDUSD, DOGS/BNB, and DOGS/USDT.

Traders and investors’ interest is rising sharply. The on-chain analytics company, CoinGlass, highlighted that throughout the past 24 hours, DOGS’s open interest has surged by 16,000%, and in the last 4 hours, it has climbed by 35%.

In addition, there may be further pressure to book or sell profits in the following days. Investors who purchased before the CEX listing can sell their tokens, and traders are heavily shorting the market.

Shortly after being listed on well-known exchanges like Binance, OKX, Bybit, and others, the coin had a 25% decline. The DOGS airdrop recipients’ opinions have been divided. While some are pleased with the listed price, others enjoyed the airdrop.

DOGS still has a substantial market capitalization of more than 614 million.  It has established itself as one of the top 100 cryptocurrency assets as of this publication

DOGS began with a trading volume that shot over $630 million. As a result, it came in at number 15 out of all cryptocurrencies. Such market activity reveals traders’ and investors’ interest in the meme coin.

The coin uses a task and reward system to incentivize community involvement and provide incentives. Like other meme coins, DOGS lacks a comprehensive roadmap, but its future development depends on how well its incentive systems work.

Nasdaq Fails at the 50 Daily SMA, Awaiting Nvidia Earnings

Posted on by Skerdian Meta

Nasdaq rebounded higher off the 200 daily SMA this month after the retreat in July, but buyers are finding it hard to break above the 50 SMA on the daily chart. Risk sentiment improved as markets were anticipating FED’s Powell to announce the start of policy easing, and since he did so on Friday, markets have been holding in a tight range. Continue reading “Nasdaq Fails at the 50 Daily SMA, Awaiting Nvidia Earnings” →

Stock Market Darling to Report Quarterly Sales on Wednesday

Posted on by Timothy St. John

On Wednesday, Nvidia (NVDA) will be releasing its second fiscal quarterly report for the year, and expectations are high for the AI chip manufacturer.

The hopes of investors are pinned on this stock.

AI stocks have done very well in recent weeks on Wall Street, but how they do over the next week will depend largely on how Nvidia fares after its earnings report comes out.

 

The anticipated score is that the company will report double the earnings this quarter compared to last quarter. Those are incredibly high numbers, but then Nvidia has been breaking its own records for a while now, impressing even during times when the market was in a downturn.

The only risk to the company posting a stellar earnings report is the continuing production problems. These have persisted during a period when AI chips are in incredibly high demand.

Nivida also has a problem of trying to live up to the sky high expectations that have been thrust upon it. The chip maker has seen its stock shoot up by about 150% already in 2024, and it has almost single handedly helped the S&P 500 perform very well for much of the year.

The Downside

Nvidia stock is down right now, by 2% as we approach the earnings report scheduled for Wednesday. The stock still has an opportunity to turn around, but we could be seeing loss of faith in the company from the investing public. Has Nvidia climbed too high too quickly? Are investors worried that the AI bubble is going to burst?

It can be dangerous to pin all of someone’s investing power on a single stock, especially in a volatile market. We are just now seeing an improvement in the US inflation rate, and the stock market is inherently risky as recession fears are still a topic of conversation.

With a single bad report, the stock market could plummet, and then the consecutive weeks of gains can be brought to a close. Nvidia has more than just its own future resting on its shoulders. The stock market is looking to it as the darling stock, and if it performs well, that will boost AI stocks, tech stocks, and more. 

 

Is the US Still Headed into a Recession? Here Is What Retail Sales Tell Us

Posted on by Timothy St. John

With inflation high and economic reports looking glum, fears of an impending US recession have not been unfounded. New information from the retail sector tells us how likely a recession is.

US retail sales are climbing.

Several retailers had strong recent quarters that indicated that the US economy is picking up and may be gaining strength, possibly averting a recession. A recession in the United States has massive global implications, causing a trickle-down effect that could lead to recession in other countries that rely on the US for commerce.

 

Walmart (WMT) had a stronger second quarter than analysts anticipated, which helped to push the stock price much higher than it has been all year. At the start of 2024, the WMT stock price was $52.58, and it is currently at $75.91. While Walmart may be leading retail sales, other retailers are doing well too, indicating a recovery in that industry.

Confidence in the US economy is improving, especially after a positive retail sector report. US retail sales were up for the month of June by 1.1% and up 2.6% from that same period last year.

In July, with the latest retail report, retail sales across the United States were up by 0.3% compared to the previous month. This indicates increased growth on top of the growth that occurred the month before, which is a very positive sign for the market.

Inflation Is Decreasing

At the same time that retail sales are climbing, US inflation is diminishing. Previously at 3% through much of 2024, the inflation rate dropped to 2.9% earlier this month. That caused a stock market boom and allowed the S&P 500 and Nasdaq Composite stock market indices to achieve record highs.

The market was further helped along by decent retail sales figures, and these indicators allowed the Federal Reserve to post a positive outlook on the US economy. The Fed has stated that they intend to cut interest rates soon, and that could happen as early as September.

With multiple positive economic factors in play, the US economy looks to be pulling away from a recession. Walmart is a great gauge of how Americans are spending their earnings, and the company said its revenue increased by 4.2% from the first fiscal quarter of the year. In general, Walmart accounts for 1/12 of all spending from US shoppers.

Walmart’s management says they are seeing stronger US consumers based on spending figures, and they expect that to improve as the year continues.

 

 

European Economic News Preview: German Ifo Business Confidence Data Due

Posted on by RTT Staff Writer

Business sentiment from Germany is the top economic news due on Monday, headlining a light day for the European economic news.

At 2.00 am ET, Statistics Norway releases unemployment data for July.

At 3.00 am ET, Spain’s INE is set to issue producer price figures for July. Prices had decreased 3.5 percent annually in June.

At 3.30 am ET, Sweden’s central bank releases the minutes of the monetary policy meeting held on August 19.

At 4.00 am ET, the ifo Institute is slated to issue Germany’s business confidence survey results for August. The sentiment index is expected to fall to 86.5 from 87.0 in the prior month.

In the meantime, unemployment data is due from Poland. The jobless rate is forecast to rise slightly to 5.0 percent in July from 4.9 percent in June.

U.S. Dollar Extends Fall On U.S. Fed Chair Powell's Dovish Outlook

Posted on by RTT Staff Writer

The U.S. dollar extended its early weakness against other major currencies in the Asian session on Monday, as traders react to U.S. after Fed Chair Jerome Powell’s speech that signaled the central bank is prepared to begin cutting interest rates at its next monetary policy meeting in September.

“The time has come for policy to adjust,” Powell said at the Jackson Hole Economic Symposium, although he noted the “timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.”

Powell said inflation is now much closer to the Fed’s objective, with consumer prices rising 2.5 percent year-over-year in July, and noted progress toward 2 percent has resumed after a pause earlier this year.

In the Asian trading today, the U.S. dollar fell to more than a 1-year low of 1.1202 against the euro, from Friday’s closing value of 1.1190. The greenback may test support near the 1.13 region.

The U.S. dollar started trading lower against the euro and the pound since August 8, 2024. Against the yen and the Swiss franc, the greenback started trading lower sing August 16th, 2024.

Against the yen and the Swiss franc, the greenback dropped to 3-week lows of 143.45 and 0.8457 from last week’s closing quotes of 144.37 and 0.8479, respectively. If the greenback extends its downtrend, it is likely to find support around 141.00 against the yen and 0.83 against the franc.

The greenback edged down to 1.3223 against the pound, from Friday’s closing value of 1.3209. On the downside, GBP/USD pair may find its support near the 1.33 area.

Against Australia, the New Zealand and the Canadian dollars, the greenback edged down to 0.6797, 0.6233 and 1.3499 from recent highs of 0.6773, 0.6213 and 1.3514, respectively. The next possible support levels for the greenback is found around 0.69 against the aussie, 0.64 against the kiwi and 1.33 against the loonie.

Looking ahead, German Ifo business climate index for August is due to be released at 4:00 am ET in the European session.

In the New York session, U.S. durable goods orders for July, Canada wholesales sales data for July and U.S. Dallas Fed manufacturing index for August are slated for release.

Walmart Recalls Apple Juice Sold In Multiple States

Posted on by RTT Staff Writer

Around 9,535 cases of eight-ounce Great Value Apple Juice, sold by Walmart Inc., has been recalled as it contains inorganic arsenic above action level set in industry guidance, according to the U.S. Food and Drug Administration. The impacted juices were made by Refresco Beverages US Inc.

The recall, which was initially announced on August 15, has now been upgraded by the FDA to Class II that indicates a product that may cause temporary or medically reversible adverse health consequences or where the probability of serious adverse health consequences is remote.

As per the agency, the impacted apple juices were found to contain arsenic levels of 13.2 parts per billion, while the agency’s industry guidance specifically for apple juice states that the upper limit of inorganic arsenic should be 10 parts per billion.

The impacted 100% Apple Juice comes in 6 pack, packaged in PET plastic bottles, with UPC 0-78742-29655-5, and Best if Used by DEC2824 CT89-6.

The impacted product was distributed at Walmart stores in various states, including Alabama, Connecticut, Delaware, District of Columbia, Florida, Georgia, Illinois, Indiana, Kentucky, Maine, Maryland, Massachusetts, Mississippi, Michigan, North Carolina, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, Tennessee, Vermont, Virginia, and West Virginia.

The FDA states, citing the current research, that inorganic arsenic is more dangerous than organic arsenic.

Exposure to inorganic arsenic is associated with adverse human health effects, including cancer, diabetes, adverse birth outcomes, and cardiovascular and neurodevelopmental effects.

Short-term exposure to inorganic arsenic may cause nausea, vomiting, bruising, and numbness or burning sensations in the hands and feet, while long-term exposure may cause skin disorders, increased risks of skin, bladder, and lung cancers, and cardiovascular disease.

In similar recalls, Pure Brands of California in March had called back PureFog Juice Liquid sold exclusively on Amazon.com due to the risk of mold exposure. The recalled fog liquid were to expire sooner than the expiration date, posing a risk of respiratory or other infections in individuals with compromised immune systems, damaged lungs or an allergy to mold.

For More Such Health News, visit rttnews.com

Bliss Tree Butter Snacks Recalled For Undeclared Milk, Sesame

Posted on by RTT Staff Writer

Edison, New Jersey -based Sri Lakshmi Narasimhar Overseas LLC is recalling select Bliss Tree Butter Snacks for possible presence of undeclared milk and/or sesame seeds, known allergens, according to the U.S. Food and Drug Administration.

The recalled snacks were distributed across the United States through retail stores, online orders at www.bliss-tree.us and through Amazon.

The recall was initiated after the presence of undeclared milk and/or sesame were discovered during the FDA review of the product labels. The milk/sesame-containing products were distributed in packaging that did not reveal the presence of milk/sesame.

As per the investigation, the problem was caused by a temporary breakdown in the company’s packaging processes.

People who have an allergy or severe sensitivity to milk and sesame may get serious or life-threatening allergic reaction if they consume these products.

However, the company has not received any reports of illnesses related to the recalled products so far.

The company has suspended the production and distribution of the product until the problem is being corrected.

Consumers who have purchased these impacted products are urged to return them to the place of purchase for a full refund.

In similar recalls, consumer good major Unilever U.S. last week called back around 137,000 cases of Popsicle Jolly Rancher Frozen Confection Pop products for single serve offerings in the U.S. citing undeclared milk.

In early August, Prime Foods Processing LLC’s 2 varieties of Egg Custard Steamed Buns were recalled due to undeclared Sesame, and Too Good Gourmet’s Meijer Dunking Cookies Chocolate Chip was called back for undeclared milk.

For More Such Health News, visit rttnews.com