Traders Market Weekly: Treasury Debt and Central Bank Balancing Act

Viewing 15 posts - 31 through 45 (of 67 total)
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  • #68469
    Truman
    Participant

    The November S&P Global US Services PMI rose to 50.8 in the final reading from 50.6.

    The ISM Non-Manufacturing PMI increased to 52.7% in November (consensus 52.4%) from 51.8% in October.

    JOLTS – Jobs Openings totaled 8.773 million in October following a revised count of 9.35 million in September (from 9.553 million).

    Treasury yields moved lower in response to the data.

    The 2-yr note yield, at 4.62% just before 10:00 ET, sits at 4.59% now.
    The 10-yr note yield, at 4.22% before 10:00 ET, sits at 4.18% now.

    #68470
    Truman
    Participant

    The ISM Non-Manufacturing Index increased to 52.7% in November (consensus 52.4%) from 51.8% in October. The dividing line between expansion and contraction is 50.0%, so the November reading connotes services sector activity expanding at a faster pace versus October. November marked the eleventh consecutive month of growth for the services sector.

    The key takeaway from the report is that the largest sector of the U.S. economy saw a pickup in activity in November that is supportive of the soft landing view.

    #68471
    Truman
    Participant

    Oil prices continues to climb after falling as low as $72.17/bbl earlier.

    WTI crude oil futures are up 1.0% from yesterday at $73.78/bbl.
    On a related note, the S&P 500 energy sector trades down 0.8%.

    #68472
    Truman
    Participant

    Morning Trade

    Dow -65.70 at 36138.74, Nasdaq +94.43 at 14279.92, S&P +7.72 at 4577.50

    The S&P 500 (+0.2%) joined the Nasdaq Composite (+0.6%) in positive territory, propelled mostly by mega cap gains.

    Apple (AAPL 194.17, +4.73, +2.5%) is up more than 2.0% after Foxconn (FXCNY) resumed AAPL iPhone production at its India factory after weather related disruptions, according to Reuters.

    Market breadth shows a negative bias under the index surface.

    Decliners have a roughly 9-to-4 lead over advancers at the NYSE and a 5-to-3 lead at the Nasdaq.

    Small and mid cap stocks are lagging today after outperforming recently.

    The Russell 2000 and the S&P Mid Cap 400 are both trading down 1.1%.

    #68473

    Dow 36,124.56 -79.88 -0.22%
    S&P 500 4,567.18 -2.60 -0.06%
    Nasdaq 14,229.91 44.42 0.31%
    VIX 12.86 -0.22 -1.68%
    Gold 2,037.20 -5.00 -0.24%
    Oil 72.41 -0.63 -0.86%

    #68492
    Truman
    Participant

    Mastercard (MA 411.50, +2.81, +0.7%):
    Increases quarterly cash dividend to $0.66/share from $0.57/share and approves new $11 billion share repurchase program

    #68493
    Truman
    Participant

    Equity indices in the Asia-Pacific region ended the midweek session on a mostly higher note.

    Japan’s Nikkei: +2.0%,
    Hong Kong’s Hang Seng: +0.8%,
    China’s Shanghai Composite: -0.1%,
    India’s Sensex: +0.5%,
    South Korea’s Kospi: UNCH,
    Australia’s ASX All Ordinaries: +1.6%.

    #68494
    Truman
    Participant

    Old Dominion (ODFL 394.79, 0.0, 0.0%): reports November less-than-truckload operating metrics; revs/day fell 0.9% yr/yr

    #68495
    Truman
    Participant

    Japan’s
    December Reuters Tankan Index 12 (last 6)
    Japan is considering providing a JPY50,000 payment for each child to low-income families

    Australia’s
    November AIG Construction Index -22.2 (last 18.5)
    AIG Manufacturing Index -25.3 (last -20.9). Q3 GDP 0.2% qtr/qtr (expected 0.4%; last 0.4%); 2.1% yr/yr (expected 1.8%; last 2.0%)

    China’s
    National Development and Reform Commission will set up a coal production reserve system by 2027.
    China’s Ministry of Finance expects that the country’s economy will maintain a positive trend in Q4.
    Standard & Poor’s and Fitch did not make any changes to China’s sovereign rating despite Moody’s lowering the country’s outlook to Negative from Stable yesterday.

    #68496
    Truman
    Participant

    Toll Brothers (TOL 88.90, +1.69, +1.9%): beats by $0.39, beats on revs, guides for Q1 deliveries of 1,800-1,900 units, FY24 deliveries of 9,850-10,350 units

    MongoDB (MDB 411.50, -21.69, -5.0%): beats by $0.45, beats on revs; guides Q4 EPS above consensus, revs above consensus

    Box (BOX 23.11, -3.58, -13.4%): misses by $0.02, reports revs in-line; guides Q4 EPS below consensus, revs below consensus; guides FY24 EPS below consensus, revs below consensus

    Campbell Soup (CPB 41.00, +0.63, +1.6%): beats by $0.04, reports revs in-line; reaffirms FY24 EPS guidance, revs guidance

    SentinelOne (S 23.30, +3.30, +16.5%): beats by $0.05, beats on revs; guides Q4 revs above consensus; guides FY24 revs above consensus

    Yext (YEXT 5.90, -1.11, -15.8%): beats by $0.02, reports revs in-line; guides Q4 EPS in-line, revs below consensus

    Dave & Buster’s (PLAY 41.25, -0.67, -1.6%): beats by $0.16, misses on revs

    Phreesia
    (PHR 16.90, +2.15, +14.6%): beats by $0.10, beats on revs; reaffirms FY24 revs guidance; guides FY25 revs below consensus

    #68497
    Truman
    Participant

    Major European indices trade in the green.

    STOXX Europe 600: +0.4%,
    Germany’s DAX: +0.3%,
    U.K.’s FTSE 100: +0.5%,
    France’s CAC 40: +0.5%,
    Italy’s FTSE MIB: +0.6%,
    Spain’s IBEX 35: +0.1%.

    #68498
    Truman
    Participant

    Amazon (AMZN 146.98, +0.10, +0.1%): aiming to lower fees for merchants selling clothing priced below $20, according to Bloomberg

    #68499
    Truman
    Participant

    Eurozone’s
    October Retail Sales 0.1% m/m (expected 0.2%; last -0.1%); -1.2% yr/yr (expected -1.1%; last -2.9%)
    Finance Ministers in the EU are reportedly looking at implementing debt reduction targets.
    European Central Bank policymaker Kazaks said that he does not see the need for rate cuts in the first half of 2024, but he is open to changing that view.

    Germany’s
    October Factory Orders -3.7% m/m (expected 0.2%; last 0.7%)
    Travel agency TUI expects that bookings during the winter season will be up strongly yr/yr while the International Air Transport Association chief made positive comments about expectations for the airline industry in 2024.

    #68500
    Truman
    Participant

    Avis Budget (CAR 192.99, +9.02, +4.9%): declares special dividend of $10.00 per share

    #68501
    Truman
    Participant

    Private-sector employment increased by 103,000 jobs in November (consensus 127,000), according to ADP, following a downwardly revised 106,000 (from 113,000) in October. The 5.6% pay increase for job-stayers in November was also the slowest pace of increase since September 2021.

    The key takeaway from the report is that job growth and wage gains both moderated in the private sector, which is what the Fed will like to see in its battle to tame inflation with higher interest rates.

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