Rates, Earnings Put Stocks on the Backfoot: What to Watch Out for Next

  • 📰 Investingcom
  • ⏱ Reading Time:
  • 59 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 27%
  • Publisher: 53%

United States News News

United States United States Latest News,United States United States Headlines

Stocks Analysis by Michael Kramer covering: S&P 500, United States 5-Year, United States 7-Year, Meta Platforms Inc. Read Michael Kramer's latest article on Investing.com

auction that did not go well, and that just pushed rates even higher after 1 p.m. today, there will be a, and the estimate is for 4.5%. The Atlanta Fed GDPNow and Bloomberg Economics suggest a number greater than 5%. Even if the number comes in around 4.5%, it is almost hard to believe, given the 2.1% print in 2Q. That would be a big acceleration in the economy. That will be a closely watched number as it will greatly impact rates.

So, it missed guidance by a bit. Despite the beat and inline guide, the stock is up less than 2% as of 5:30 ET and is trading around $305, so it is still below where it closed the day before yesterday. Not very encouraging. But the bigger problem for Meta is that there is a lot of call gamma sitting up $315, and put gamma, for that matter, which expires on Friday.

So unless Meta can get above $315, all of that call gamma will start to lose a lot of value as implied volatility begins to melt, which means market makers will likely be sellers of Meta tomorrow.So if the stocks trade down today, despite the “fantastic, groundbreaking results, lead by generative AI,” as noted on TV multiple times, you know why.This week’s bounce is already toast as the tech sector melted down yesterday, dragging the S&P 500 index under 4,200 support.

{username} Just Now Share Follow this postUnfollow this post Save Saved. See Saved Items . This comment has already been saved in your Saved Items Author's response{commentContent} Reply 00 Report {username} Just NowAuthor's response Share Follow this postUnfollow this post Save Saved. See Saved Items .

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 450. in US
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Japanese stocks rise for second session as Hong Kong stocks gainSupported by world-class markets data from Dow Jones and FactSet, and partnering with Automated Insights, MarketWatch Automation brings you the latest, most pertinent content at record speed and with unparalleled accuracy.
Source: MarketWatch - 🏆 3. / 97 Read more »

Unavoidable Correction Looms as Stocks-Real Yields Divergence WidensStocks Analysis by Michael Lebowitz covering: Coca-Cola Co, Apple Inc, Coca Cola Co, United States 10-Year. Read Michael Lebowitz's latest article on Investing.com
Source: Investingcom - 🏆 450. / 53 Read more »