Daily Market Report - Thursday, Sep 7, 2023


Shares of the video game retailer GameStop (NYSE: GME) jumped more than 8% in after-hours trading on Wednesday after the company reported better-than-expected fiscal second-quarter earnings report. GameStop posted an adjusted loss per share of $0.03 and revenue of $1.16 billion topped the $0.14 loss on $1.14 billion in revenues expected. The Grapevine-based company ended the quarter with cash, cash equivalents and marketable securities of $1.195 billion.

GameStop's Q2 net sales were up 2% to $1.16 billion from $1.14 billion a year ago. The Q2 revenue growth was primarily attributed to the "significant software release", as well as increased sales of new gaming hardware in certain international segments, the company said. While sales in GameStop’s collectibles category, which includes tabletop games, dropped 24% to $169.8 million vs. $223.2 million in the year-ago quarter.


Wall Street ended lower on Wednesday despite the release of stronger-than-expected US ISM services PMI data as the strong PMI data heightened concerns about inflation and the possibility of interest rate hikes. ISM Services PMI from the US rose sharply in August. The ISM national services sector index, which gauges business activity, surged to 54.5, surpassing the consensus estimate of 52.5.

On the earnings front, RH and DocuSign are amongst those reporting the last quarter's financial results today.


Crude oil futures were largely subdued, and overall momentum remained mixed throughout the Asian session after the release of mixed Chinese economic data. China's exports and imports decline softened in August following double-digit drops in July. Meanwhile, the weekly API data showed that US crude inventories fell by about 5.5 million barrels last week, marking the fourth straight weekly decline and exceeding forecasts for a 1.429 million barrel draw.

In the currency market, The British pound has weakened against almost all of its peers after the dovish comments from BoE Chairman Andrew Bailey. Bailey said he expects UK inflation to fall by the end of the year and that current interest rates are "near the peak of the cycle". The interest rate was increased to 5.25 percent last month. However, the sustainability of any recovery in the currency pair in the coming days will largely depend on how the US dollar behaves. On the other hand, the US dollar index continues to trade with a mildly bullish tone, although the short-term direction of the USD will depend on the Fed speaker’s commentary today and tomorrow.


A strong U.S. dollar, hawkish bets on the Fed and rising U.S. yields are creating headwinds for gold. So far today the price action in the precious metal is somewhat muted as market participants await the Fed policymaker's comments. Gold is highly sensitive to rising interest rates since higher rates dent gold's appeal as they increase the opportunity cost of holding non-yielding bullion.

Economic Outlook

On the data front, the Eurozone economy grew by 0.1% in the second quarter compared to the previous quarter, according to the second estimate by Europstat published on Thursday. The preliminary report estimated the euro area's gross domestic product (GDP)growth at 0.3%.

Moving ahead today, the important events to watch:

US – Jobless claims: GMT – 12:30

US – EIA crude inventories: GMT – 15:00

Technical Outlook and Review

Technically the medium-term trend still looks bearish, and the next immediate support is at 1.0700 then 1.0680. On the upper side, 1.0760 is the key resistance zone to watch for today, If the pair breaks and closes above this area then the next supply level to watch is around 1.0810.


The important levels to watch for today: Support- 1.0700 and 1.0680 Resistance- 1.0760 and 1.0800.

GOLD: Technically, the momentum remains mixed after the previous session's strong bearish move. On the upper side, 1925 will act as an immediate while 1932 will be a critical resistance zone. On the downside, if the bearish sentiment continues and the pair doesn’t break back above 1930 then the metal will open doors to the next support area of 1910/06.

gold neww

The important levels to watch for today: Support- 1915 and 1910 Resistance- 1925 and 1932.

Quote of the day “In trading you have to be defensive and aggressive at the same time. If you are not aggressive, you are not going to make any money, and if you are not defensive, you are not going to keep it” – Ray Dalio.
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