Market Lab Report - Premarket Pulse 10/11/16
Major averages rose yesterday on lower volume, closing in the lower half of their respective trading ranges.
U.S. Treasury yields rallied to their highest levels since early June while precious metals are testing major support levels. The dollar also hit an 11-week high as investors upped their bets on the Federal Reserve raising US interest rates before the end of the year as doubts grew over Donald Trump's ability to win the US presidency.
"Trump is widely deemed to be dollar-negative, while a Clinton victory is regarded to be positive for the dollar. In the absence of a shock victory for Trump, the Federal Reserve will most likely raise interest rates in December, thanks to improving data in the US," said Forex.com analyst Fawad Razaqzada.
At 2:00 PM ET tomorrow, the Fed will release their latest FOMC meeting minutes. The Fed will probably wait until after the election to raise rates, but will there be another rate hike this year? CME FedWatch puts the odds at 70% when they meet in December, up from 66% last Friday.
Cloud networking software and hardware company Arista Networks (ANET) had a pocket pivot. It's a favorite of strongly performing Fidelity Contrafund's Will Danoff. ANET has responded well to its last several earnings reports. Indeed, earnings has been catching up with price. Pretax margin 27.8%, ROE 25.9%, group rank 42.
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