The US markets were negative as the high inflation numbers drove the markets lower as investors started pricing in the impact of inflation breaking 6%. The rising inflation rate will raise some concern for investors as a likely hood of the Fed implementing their tools at disposal is more than likely. The tapering of the asset purchasing will aid in getting inflation lower, however, with rising wages as well as increasing oil prices the pressure will take its toll if the federal government leases

Yesterday’s movers: 

• Coinbase Global Inc (COIN) was down 8.06% as third-quarter earrings came out disappointing 
• Palantir Technologies Inc (PLTR) was down 7.13% as it was downgraded by RBC Capital
• DOCU was down 7.09% 
• TLRY was down 6.95%

Stocks to watch:

Spotify Technology (SPOT)

Spotify’s third-quarter earnings came out significantly better than expected as earnings were positive for the first time this year, while revenue also beat expectations by $64 million. Relatively speaking the stock is still priced significantly undervalue as a lot more potential upside is expected to come over the coming years. Their paid subscription is still on the rise year on year exceeding 160 000 paid listeners, in line with the growth of Netflix’s subscriber growth.

Technically the chart is starting to shape up well for entry as price broke the 200-day moving average well and rallied post earrings, with a retracement back lower to the $260 level buying opportunities are starting to line up as it is set to go test the previous highs.