Daily Market Report - Thursday, Aug 17, 2023


The big-box retailer Target (NYSE: TGT) reported stronger-than-expected second-quarter earnings on Wednesday but slashed its full-year profit forecast. Target’s total revenue of $24.8 billion was down nearly 5% year over year. However, the stock jumped despite the company's reported mixed earnings results.

Now the focus shifts to the America's largest retailer, Walmart (NYSE: WMT) is scheduled to report its fiscal second-quarter earnings today before the bell. The company is expected to post quarterly earnings of $1.71 per share and revenues are expected to be $160.27 billion.


So far Wall Street had a messy week despite some good US macroeconomic and earnings news. On Wednesday, major US indices extended the weekly losses driven by hawkish FED minutes. The minutes of the July 25-26 FOMC policy meeting reveal that FED officials believe there might be a need for more interest rate hikes in the future unless there is favourable data.


Crude oil futures were largely subdued on Thursday morning following the previous session’s sell-off. The sell-off was fueled by a strong dollar and economic concerns in China. Meanwhile, the latest EIA crude inventory data showed the US crude inventories declined by 5.96 million barrels last week, exceeding forecasts for a 2.3 million barrel draw.

In the currency market, the US Dollar Index, which measures the greenback’s value against the basket of six major currencies price action remained volatile and traded with a strong bid tone on Wednesday after the release of FOMC minutes. The index reached a fresh multi-month high of 103.60. Moving ahead, today dollar traders have 2 important economic data to digest which include Initial Jobless Claims and the Philadelphia Fed Manufacturing Survey. On the other hand, the Japanese Yen remains volatile as the markets are unsettled by swings in volatility caused by the latest FED minutes.


The precious metal remains under pressure after the latest FED minutes showed, that most of the FOMC members saw "significant" upside risks to inflation and those risks could require further tightening. For gold, today is littered with key U.S. economic figures and any market disappointment over the outcome of them could potentially support the metal.

Economic Outlook

On the data front, US Housing starts and Building permits (MOM) data came in stronger than estimates in the US. US housing starts rose 3.9% in July to an annual rate of 1.45M, matching expectations. The building permits edged up 0.1% to 1.442 million, compared with expectations of 1.463 million.

Moving ahead today, the important events to watch:

US – Jobless claims: GMT – 12:30

US – Philly Fed index: GMT – 12:30

Technical Outlook and Review

Technically, the momentum remains mixed after the previous session's strong bearish move. On the upper side, 1.0910 will act as an immediate while 1.0950 will be a critical resistance zone. On the downside, if the bearish sentiment continues and the pair doesn’t break back above 1.0950 then the pair will open doors to the next support area of 1.0840/30.


The important levels to watch for today: Support- 1.0860 and 1.0840 Resistance- 1.0910 and 1.0950.

GOLD: Technically the current price action signals suggest that the medium-term bearish trend remains intact. For today, the key support level is located at $1885. On the upper side, $1906 will act as an immediate and key hurdle while $1914 will be a critical resistance zone to focus.

gold neww

The important levels to watch for today: Support- 1889 and 1885 Resistance- 1906 and 1914.

Quote of the day “A market downturn doesn’t bother us. It is an opportunity to increase our ownership of great companies with great management at good prices.” — Warren Buffett.
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