US stocks rally, tech giants lead the pack Another day, another record high for US stocks Today's rally led by tech stocks Major US indices hit fresh record highs this Friday on the back of forecast-beating results from tech giants like Amazon and Microsoft.
At the time of writing, the Nasdaq Composite index is trading at 7,000 levels; up 2.18 percent on the day. The tech index has added 30 percent to its value this year.
As per Reuters report, “Amazon jumped as much 12.8 percent after reporting a quarterly sales surge.” Shares in Google's parent company, Alphabet ticked up by 6.4 percent after it reported a revenue boost from advertising sales.
The stocks also received a boost from the stronger US Q3 preliminary GDP reading. The US Bureau of Economic Analysis (BEA) data showed the US economy expanded 3 percent in the third quarter. The upbeat GDP figure is likely to cement the Dec Fed rate hike expectations.
USD/CAD trims losses on Friday but ends week sharply higher Best week for the pair since February The tone of the Bank of Canada sent the loonie to the downside The rally of the USD/CAD eased on Friday but the bullish trend remains intact. Price pulled back after hitting at 1.2915, the highest level since July 12.
USD/CAD was about to end Friday marginally higher and far from the highs, signaling a potential short-term exhaustion to the upside that could lead to some consolidation for the next sessions.
The pair dropped toward 1.2850 on Friday amid a rally in crude oil prices. Still, it was about to post the seventh daily gain in a row. Over the week it gained 230 pips, having the best since February.
The rally over the week was supported by a stronger US Dollar on the back of rising US bond yields. The loonie was already moving with a bearish bias and accelerated the decline after the Bank of Canada decision. It kept rates unchanged, as expected.
NFP Preview: Strong rebound expected in October – Wells Fargo Next Friday, the official US employment report will be released. Analysts from Wells Fargo, forecast an increased in NFP by 280.000,
“Last month’s 33,000 decline in employment snapped a nearly seven-year string of uninterrupted job growth. The decline in employment was attributable to the recent hurricanes having disrupted hiring plans and preventing some jobholders from working during the survey period. Those distortions should be largely unwound in October, however. Initial jobless claims have fallen back below 240,000, the level that prevailed in the months leading into hurricane season.”
“We expect to see hiring rebound to 280,000 in October as employers catch up on hiring and workers return to their jobs. The unemployment rate, however, is anticipated to tick up to 4.3 percent following last month’s suspiciously large 906,000-jump in household employment.”
Gold futures were flat Friday, unable to trim recent losses as U.S. stocks continued their record-setting run.
Surging techs stocks drove the Nasdaq up 2 percent, while the rest of the market was in consolidation mode after all-time highs.
With gold's safe haven appeal diminished, the precious metal has fallen in October.
Dec. gold added $2.20, or 0.2%, to settle at $1,271.80/oz, but was down 0.8% for the week.
Economic growth in the U.S. slowed modestly in the third quarter, according to a report released by the Commerce Department on Friday, although the pace of growth still exceeded economist estimates.
The report said real gross domestic product jumped by 3.0 percent in third quarter after surging up by 3.1 percent in the second quarter. Economists had expected GDP to increase by 2.5 percent.
The Federal Reserve is widely expected to raise interest rates in December if the economy performs well over the next two months.