Morning Brew January 27 2023

Good Morning, 

Equities as well as the USD both had a strong day yesterday, the Dow gained 0.61%, the S&P 1.10%, and the Nasdaq 1.76%  and the Nasdaq 100 closed above its 200-day moving average for the first time since March last year

Tesla gained 11% on the better than expected earnings and Chevron 4.5% on the buy back program. Major Losers were IBM, down 4.5% on disappointing news and Bed Bath & Beyond collapsing 22% on o defaulting on debt.

US Yields rose to 3.55, giving the Dollar some strength and causing Gold, Silver, EURUSD GBPUSD from breaking resistances.

The US GDP as well as Durable goods in the US came higher than expected and the Japanese CPI came higher than expected. Today we are expecting the US Consumption data at 14:30 and the University of Michigan Consumer confidence at 1600 as the key data points.

The weekly closes will be rather interesting from a technical view so todays data will be rather significant.

Fundamentally the Fed is on the 2 and done course as our Steen Jakobsen points out, meaning there will be two hikes by the Fed and then a pause to assess the economic situation. Any change in that expectation will have a significant impact. Next week three key central banks will set rates, the Fed on Wednesday, the Bank of England and the European Central Bank on Thursday.

The earnings season will continue next week, so far 69% of companies have beat expectations.

Economic Data & Earnings

Friday

EU Money Supply

U PCE, Consumption and Confidence

Earnings:  American Express Co Chevron Corp

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