Money Moving Into Fundamentally Strong Stocks as Treasury Bonds Decline

U.S markets are consolidating after a 0.25-0.45% gap-up opening. Investors and traders are slowly moving to strong stocks after the unexpected increase in retail sales and corporate earnings.

The S&P 500 is having the best week since July end, led by industrial and financial shares. Alcoa, the biggest U.S. aluminum producer, rose nearly 15% after announcing its first dividend since 2016. 

  • Stoxx Europe is up by 0.73%
  • Dow Jones is up by 0.80%
  • NASDAQ is up by 0.28%

Bitcoin Hits $60,000, First Time in Six Months 

Crypto king Bitcoin on Friday hit the $60,000 level for the first time in six months on expectations of the first U.S. ETF for the coin. Investors are expecting that U.S. regulators would allow a futures-based Exchange-Traded Fund (ETF) next week, and it has been fueling the recent rally for many days. At the time of writing, Bitcoin is consolidating just below the $60k level. Its value has doubled in the last 3 months. Let’s see how it will react to the all-time high at $64,895, which was hit in April 2021.

Alcoa Rises On Higher Aluminum Pricing and Strong Q3 Results

The shares of aluminum supplier Alcoa rose nearly 15% on Friday in NYSE after it posted solid Q3 results. The global rise in aluminum prices has also boosted the jump. The earnings per share (EPS) were reported at $2.05, above estimates by 20 cents and the revenue grew 31.5% to $3.11 billion. It also announced a new 10-cent quarterly dividend and a $500-million buyback program.

U.S. To Open Borders to Vaccinated Foreign Travelers On Nov 8

The U.S. government has decided to allow vaccinated foreigners to enter from November 8, a great relief for thousands of people. Foreign nationals coming directly from countries including Europe, India, Brazil, and China have been restricted from entering the U.S border since the beginning of the Covid-19 pandemic. Vaccinated individuals who have a negative test result will now be allowed to board a flight to the U.S.

U.S. Retail Sales Jump Unexpectedly

The Commerce Department stated that September retail sales rose to a seasonally adjusted 0.7% compared to August, as Americans started to spend more on goods. Excluding automobiles, sales advanced 0.8% in September, and the August retail sales were revised up to 0.9% from 0.7%. Analysts were expecting lesser sales due to supply disruptions.

It’s controllable: China’s central bank in first statement on Evergrande debt crisis

In a first public statement on the Evergrande debt crisis, China’s central bank said the spillover effect on the banking system is controllable, and individual financial institutions’ risk exposures are not big. Chinese authorities are urging Evergrande to step up asset disposals and the resumption of projects.