Traders Market Weekly: Inflation and Bank Earnings

Viewing 15 posts - 16 through 30 (of 73 total)
  • Author
  • #50399

    Thursday – January 5

    Earnings watch – Notable companies due to report include Walgreens Boots Alliance (WBA), Conagra Brands (CAG), Constellation Brands (STZ), and Lamb Weston (LW).

    12:20 p.m. St. Louis Federal Reserve Bank President James Bullard is scheduled to give a presentation on the U.S. Economy and Monetary Policy.

    2:00 p.m. Lordstown Motors (RIDE) will participate in the Mobility in Harmony press conference at CES.

    Postmarket – CytomX Therapeutics (CTMX) plans to outline its pipeline priorities for 2023 and provide a data update for the CX-2029 Phase 2 cohort expansion study.


    Friday – January 6

    Earnings watch – Notable companies due to report include Greenbrier (GBX).

    All day – The FDA action date for Biogen (BIIB) and Eisai’s (OTCPK:ESALY) (OTCPK:ESALF) Lecanemab will be watched closely after a third patient died while taking the experimental Alzheimer’s treatment.

    All day – Richmond Federal Reserve Bank President Thomas Barkin and Atlanta Federal Reserve Bank President Raphael Bostic are scheduled to give speeches.

    8:30 a.m. The December jobs report is expected to show 57K nonfarm payroll additions to the economy and the unemployment rate holding steady at 3.7%. Average hourly earnings are forecast to slow to a +4.9% Y/Y pace from +5.1% in November.

    1:00 p.m. – BlackBerry Limited (BB) will host an interactive Q&A with management regarding its announcements and demonstrations at CES 2023.


    Barron’s mentions:

    The new year brings a look from the publication at the so-called Forgotten Forty value picks list from Boylar Value Group that includes stocks trading at a discount to their potential value, with a positive company-specific catalyst likely to play out in the year ahead. “If a stock is selling at a significant discount to what we calculate an acquirer would pay for the business, and has a catalyst for capital appreciation, that’s very interesting to us,” noted Jon Boyar on candidates for the Forgotten Forty list.

    Stocks making the cut for 2023 included Laboratory Corporation of America Holdings (LH), Liberty Braves Group (BATRK), Markel (MKL), Uber Technologies (UBER), Walt Disney (DIS), and Watsco (WSO). The publication also broke down some of the more interesting income investing ideas for 2023. Energy pipeline stocks were called out including Williams Companies (WMB), Kinder Morgan (KMI), Enterprise Products Partners (EPD), and Energy Transfer Energy Transfer LP. Telecom stocks AT&T (T) and Verizon (VZ) were also mentioned as top income investing ideas.


    Box office:

    Disney’s (DIS) Avatar: The Way of Water is forecast to cross $400M cumulative at the domestic box office this weekend with daily tracking still strong. The James Cameron sequel is likely to dominate the box office for another weekend with only a couple of Sony/Columbia (SONY) limited releases rolling out during the weekend, including Tom Hanks in novel adaptation A Man Called Otto, and literary documentary Turn Every Page: The Adventures of Robert Caro and Robert Gottlieb.


    Volatility watch:

    Social media interest is high on Helmerich & Payne (HP), QuantumScape (QS), Kala Pharmaceuticals (NASDAQ:KALA), Mullen Automotive (NASDAQ:MULN), and WeTrade Group (NASDAQ:WETG) to start the new year. The stocks with the highest percentage of short interest to total float include Carvana (CVNA), Bed Bath & Beyond (BBBY), Beyond Meat (BYND), MicroStrategy (NASDAQ:MSTR), and Digital Brands Group (DBGI).


    Equity indices in the Asia-Pacific region had some mixed showings on Tuesday.

    Japan’s Nikkei: closed for holiday,
    Hong Kong’s Hang Seng: +1.8%,
    China’s Shanghai Composite: +0.9%,
    India’s Sensex: +0.2%,
    South Korea’s Kospi: -0.3%,
    Australia’s ASX All Ordinaries: -1.3%.


    China’s December Manufacturing PMI 47.0 (expected 48.0; last 48.0) and Non-Manufacturing PMI 41.6 (last 46.7); December Caixin Manufacturing PMI 49.0 (expected 48.8; last 49.4)
    South Korea’s December Exports -9.5% (expected -10.1%; last -14.0%) and Imports -2.4% (expected -0.6%; last +2.7%)
    India’s December Nikkei S&P Global Manufacturing PMI 57.8 (expected 54.3; last 55.7)
    Japan’s Nikkei wasn’t part of the mix as it was closed for holiday.
    Following the U.S. close on Friday, China released its official manufacturing PMI (47.0) and non-manufacturing PMI (41.6) reports for December.
    They were both weaker than expected and lower than the November readings, which is to say they showed a further deceleration in business activity that coincided with rising COVID cases.
    The Caixin Manufacturing PMI (49.0) was a bit stronger than expected but down from November.
    Bloomberg reported that China’s Beige Book notes the economy likely contracted in Q4. Not surprisingly, speculation is swirling that the PBOC is likely to cut interest rates and/or the required reserve ratio in the first half of 2023.
    A Nikkei report highlighted the possibility of the BOJ considering boosting its inflation forecast for FY24 in a move that would be construed as a shift away from its ultra-loose policy.


    Major European indices are all higher today.

    STOXX Europe 600: +1.0%,
    Germany’s DAX: +0.6%,
    U.K.’s FTSE 100: +1.3%,
    France’s CAC 40: +0.5%,
    Italy’s FTSE MIB: +0.9%,
    Spain’s IBEX 35: +0.3%.


    Eurozone’s December Manufacturing PMI 47.8 (expected 47.8; last 47.1)
    Germany’s December Manufacturing PMI 47.1 (expected 47.4; last 46.2); December Unemployment Rate 5.5% (expected 5.6%; last 5.6%)
    Spain’s December Manufacturing PMI 46.4 (expected 46.2; last 45.7)
    Italy’s December Manufacturing PMI 48.5 (expected 48.5; last 48.4)
    France’s December Manufacturing PMI 49.2 (expected 48.9; last 48.3)
    UK’s December Manufacturing PMI 45.3 (expected 44.7; last 46.5)


    Tesla (TSLA 118.00, -5.18, -4.2%): reports Q4 deliveries of 405K vehicles; Piedmont Lithium amends agreement with Tesla (TSLA); Piedmont has agreed to deliver approximately 125,000 metric tons of SC6 to Tesla beginning in H2 2023 through the end of 2025
    Wynn Resorts (WYNN 85.91, +3.44, +4.2%): upgraded to Overweight from Equal Weight at Well Fargo; Optimism connected to reports of Macau reopening
    PayPal (PYPL 73.04, +1.82, +2.6%): upgraded to Buy from Hold at Truist
    Ally Financial (ALLY 24.31, -0.14, -0.6%) downgraded to Equal Weight from Overweight at Barclays
    Li Auto (LI 21.70, +1.30, +6.4%): reports December deliveries increased 50.7% yr/yr


    Manufacturing PMI’s released over the weekend out of Asia and Europe all came in below 50, indicating global manufacturing remains in a state of contraction.

    Treasury yields are noticeably lower as participants continue to deal with concerns over economic weakness and the fear of a policy mistake. The 2-yr note yield is down six basis points to 4.36% and the 10-yr note yield is down 12 basis points to 3.76%.

    The U.S. Dollar Index has made a big move this morning, up 1.1% to 104.69.

    The new Congress convenes today with Republicans taking control of the House. A closely watched vote for House Speaker will also take place later today.


    2023 lets Go!

    Thank you for all of the music and data and reports – lets keep it rocking!


    A reminder today is the one-year anniversary of the All-time High of the S&P 500
    – Tomorrow is the FOMC Minutes – the one-year anniversary that made sure that was the ATH for a while.


    Let’s Get it On …


    Dow 33,136.37 -10.88 -0.03%
    S&P 500 3,824.14 -15.36 -0.40%
    Nasdaq 10,386.98 -79.50 -0.76%
    VIX 22.82 1.15 5.31%
    Gold 1,843.70 17.50 0.96%
    Oil 77.20 -3.06 -3.81%

Viewing 15 posts - 16 through 30 (of 73 total)
  • You must be logged in to reply to this topic.