CNBC Daily Open: Powell conference had something for bulls and bears

What you need to know today

The highly anticipated Fed hike

The Federal Reserve raised 25 basis points, bringing rates to a target range of 5.25% to 5.5%, the most since 2001. The long-awaited hike was unanimous among voting committee members. But Chairman Jerome Powell left the door open to a subsequent rate hike, saying the central bank would make decisions on a "meeting-by-meeting basis."

Digesting the new rates

US markets reacted little to the Fed's rate hike. Still, the major indexes were mixed, with only the Dow Jones industrial average rising for a 13th straight day. Asia-Pacific shares rose on Thursday. Hong Kong's Hang Seng index climbed around 1%, leading gains in the region. South Korea's Kospi advanced 0.44%, even after a 95% year-on-year drop in earnings at Samsung Electronics.

Meta's second-quarter earnings and sales beat Wall Street estimates. Revenue rose 11% from a year earlier to $32 billion, marking the first time since 2021 that the company has seen double-digit growth. Meta's expected third-quarter revenue is also higher than analysts expected. That's all music to investors' ears (regardless of Meta's mounting losses at its Reality Labs unit). Meta shares rose nearly 7% in extended trading.

BlackRock returns to India BlackRock has partnered with Jio Financial Services, an Indian company led by the country's richest man, Mukesh Ambani, to launch Jio BlackRock. BlackRock and Jio Financial Services plan to invest up to $150 million in a 50-50 venture, BlackRock's second attempt to enter India's burgeoning asset management industry.

[PRO] What will happen to the Dow series? The Dow has risen for 13 straight days, its longest winning streak since 1987. The market law -- what goes up must come down -- suggests the streak will soon be broken. But that's not necessarily true, according to data analyzed by CNBC Pro.

Bottom Line

There was something for everyone at the Fed's last meeting. In other words, Chairman Jerome Powell deftly negotiated expectations from market bulls and bears in his post-meeting press conference and somehow managed to reaffirm the case for both camps.

Market bulls seized on Powell's comment that "it's possible that [the Fed] would decide to stay steady and we'll carefully assess, as I said, meeting after meeting." That means the two rate hikes left for the year – as suggested at the Fed's June meeting – could end up with just one. That means the Fed is at the tail end of its hiking cycle after hiking a quarter of a percentage point this month. This idea is supported by Powell's admission that the Fed "can afford to be a little patient" in watching the effects of tighter monetary policy ripple through the economy.

But there was plenty for even the bears to chew. Powell made it clear that he doesn't think the Fed will be comfortable cutting rates this year — or even next. "Policy has not been restrictive enough for long enough," Powell said. That means stocks will have to fight the tide if they want to rise further than they have this year. But the Fed isn't all that interested in financial markets — it's even willing to endure "a period of below-trend growth and some softening in labor market conditions" because "the labor market remains very tight," Powell said.

All in all, it's a "hawkish hold," according to Frances Donald, global chief economist at Manulife Investment Management. The "hawkish" part will please the bears, while the "tribute" part will appeal to the bulls.

The markets had already pushed prices up so they were muted. Treasury yields fell instead of rising with rising interest rates. The S&P 500 was essentially flat, the Nasdaq Composite fell 0.12% and the Dow Jones Industrial Average rose 0.23%. That gives the Dow its 13th straight winning day, matching its longest winning streak since 1987. (For more on why the Dow seems to have such strong momentum right now, read this article by CNBC's Fred Imbert.) If the Dow in the next session, that would be a streak that hadn't been seen in 126 years 

On today's CNBC Daily Open, we dive into the highlights of Federal Reserve Chairman Jerome Powell's recent conference call and offer comprehensive analysis that caters to both bullish and bearish investors. Powell's remarks during the conference shed light on critical factors influencing the market and provide valuable insights for both traders and investors. Let's explore the key takeaways from his address and understand the implications for the financial environment.

Overview of the Powell Conference:

Here is a brief overview of the conference, summarizing the key topics and topics discussed by Jerome Powell. From monetary policy decisions to economic projections, we break down the essential points to inform readers.

Impact on bulls:

For bullish investors, Powell's conference brought some positive signals. We highlight the factors contributing to the market's upward momentum and examine how its announcements have boosted confidence in certain sectors. Traders and investors looking for growth opportunities will find this section particularly useful.

Challenges for bears:

On the other hand, we look at the concerns expressed during the conference, which may have dampened the mood of bearish investors. Powell's cautious approach to specific economic indicators and potential risks could have a negative impact on certain asset classes. We dive into these factors to help bear investors make informed decisions.

Projections of monetary policy and rates:

One critical aspect of Powell's conference was the discussion of monetary policy and interest rate projections. We provide a clear overview of the chairman's stance on inflation, interest rates and the future direction of Fed policy. Investors looking to adjust their strategies in response to these policy changes will find this section very relevant.

Expert opinions and market reactions:

To deepen our analysis, we gather insights from leading market experts and analysts who attended the Powell Conference. We examine the market's immediate reaction to his announcement and offer expert views on how the financial landscape may evolve in the coming weeks.

Long-term outlook and opportunities:

In this section, we assess the long-term implications of Powell's remarks on the overall market trajectory. We examine potential opportunities that may arise in the context of evolving economic conditions and provide guidance to investors looking to position themselves strategically for the future.

The CNBC Daily Open concludes with a comprehensive overview of Powell's conference call that will satisfy both bullish and bearish investors. By highlighting key insights, market reactions and expert opinions, our analysis provides readers with valuable insights to help them safely navigate a dynamic financial environment. Stay informed and ahead of the market by tuning in regularly to CNBC for insightful coverage of critical events like this one.

Welcome to CNBC Daily Open, your favorite source for the latest updates and insights from the world of finance and markets. Today we delve into Federal Reserve Chairman Jerome Powell's recent conference call, which left investors divided between the bull and bear camps. Read on to discover the main advantages and implications for your investment strategy

Powell Conference Reveals Upbeat Outlook for Bulls:

Federal Reserve Chairman Jerome Powell's conference call struck an upbeat tone and hinted at the potential for a strong economic recovery. He cited encouraging data and positive indicators that predict possible sharp economic growth. Bulls are excited about the potential opportunities arising from this optimistic outlook.

The bears were not left empty-handed:

Despite the optimism, Powell also addressed the bears' concerns. He acknowledged the presence of various economic uncertainties, including inflationary pressures and disruptions to world trade. The Federal Reserve's commitment to closely monitor these factors offers some reassurance to bearish investors who remain cautious.

Projections of interest rates and policies:

Powell's conference shed light on the Federal Reserve's stance on interest rates and monetary policy. While some investors expected a clearer timetable for rate adjustments, Powell stressed the importance of flexibility given the dynamic economic environment. Bulls welcomed the approach, seeing it as a potential catalyst for further market gains, while bears remained wary of potential risks.

Industry opportunities and risks:

The conference also highlighted specific industries that could see growth and challenges. Tech companies, renewable energy and infrastructure have attracted the attention of optimistic investors. At the same time, bears weighed the impact of rising inflation on traditional industries and the potential for supply chain disruption.

Impacts on the global market:

Powell's remarks about the interconnectedness of global markets resonated with investors around the world. His recognition of the global nature of economic challenges and cooperation between central banks brought both hope and caution to cross-border investors.

Powell's conference provided a riveting experience for investors, offering a mix of bullish optimism and bearish caution. The Federal Reserve's approach to managing the economic recovery while addressing risks is providing market participants with an exciting ride. As the investment landscape evolves, stay tuned to CNBC for comprehensive coverage, expert analysis and actionable insights to help you make informed decisions for your portfolio.

Federal Reserve Chairman Jerome Powell's highly anticipated conference call left investors on the edge of their seats. With insightful insights into the current economic landscape, Powell's speech provided reasons for both bulls and bears to take note. As financial markets open today, traders and investors are evaluating the potential impact of Powell's remarks on their strategies. Read on for a comprehensive breakdown of key events from the conference and what it means for the market.

The financial world eagerly awaited the conference of the Chairman of the Federal Reserve System, Jerome Powell, which brought a comprehensive assessment of the economy. As markets open today, investors are analyzing the implications of Powell's remarks for both bullish and bearish scenarios. Read on to discover key takeaways from the conference and their potential impact on market sentiment.

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