Traders Market Weekly: Inflation and Bank Run Charades

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    Equity indices in the Asia-Pacific region began the week on a quiet note with markets in China, Hong Kong, Singapore, South Korea, and India closed for holidays.

    Japan’s Nikkei: +0.9%,
    Hong Kong’s Hang Seng: CLOSED,
    China’s Shanghai Composite: CLOSED,
    India’s Sensex: CLOSED,
    South Korea’s Kospi: CLOSED,
    Australia’s ASX All Ordinaries: +0.3%.


    China’s Manufacturing PMI returned into contraction in the April reading while Japan’s Manufacturing PMI remained in contraction for the sixth month in a row.
    China’s April Manufacturing PMI 49.2 (expected 51.4; last 51.9) and April Non-Manufacturing PMI 56.4 (expected 57.0; last 58.2)

    Japan’s April Manufacturing PMI 49.5, as expected (last 49.2)

    India’s April Manufacturing PMI 57.2 (expected 55.8; last 56.4)

    South Korea’s April trade deficit $2.62 bln (expected deficit of $2.89 bln; last deficit of $4.63 bln)


    The Reserve Bank of Australia will hold a policy meeting tomorrow, but it is not expected to change its cash rate.

    Australia’s April Manufacturing PMI 48.0 (expected 48.1; last 49.1) and April Inflation Gauge 0.2% m/m (last 0.3%)


    Major European markets are closed for Labor Day.

    STOXX Europe 600: CLOSED, Germany’s DAX: CLOSED, U.K.’s FTSE 100: CLOSED, France’s CAC 40: CLOSED, Italy’s FTSE MIB: CLOSED, Spain’s IBEX 35: CLOSED.


    Fitch lowered France’s rating to AA- from AA, noting that ongoing social unrest is complicating policy making.
    French Finance Minister Le Maire said that implementation of structural reforms will continue.

    The European Central Bank is expected to announce a 25-bps rate hike on Thursday.


    First Republic Bank (FRC 1.9000, -1.61, -45.9%): JPMorgan Chase (JPM) acquires substantial majority of assets and assumes certain liabilities of First Republic Bank


    General Motors (GM 33.91, +0.87, +2.6%): upgraded to Overweight from Equal Weight at Morgan Stanley
    Exxon (XOM 116.31, -2.03, -1.7%): downgraded to Buy from Neutral at Goldman Sachs
    Comcast (CMCSA 41.88, +0.51, +1.2%): upgraded to Buy from Neutral at BofA Securities


    Carvana (CVNA 7.26, +0.32, +4.6%): creditors are offering to swap debt for equity, according to Bloomberg


    Ascendis Pharma (ASND 82.10, +12.14, +17.4%): FDA issues complete response letter for TransCon PTH in hypoparathyroidism; no new preclinical studies, or Phase 3 clinical trials to evaluate safety or efficacy, were requested in the letter


    SoFi Technologies (SOFI 6.61, +0.38, +6.4%): beats by $0.04, beats on revs; guides Q2 revs above consensus; guides FY23 revs above consensus


    The S&P 500 futures are down 4 points and are trading slightly below fair value.
    The Nasdaq 100 futures are down 15 points and are trading 0.1% below fair value.
    The Dow Jones Industrial Average futures are down 14 points and are trading slightly below fair value.

    Treasuries are little changed from Friday’s settlement levels.

    The 2-yr note yield is unchanged at 4.06% and the 10-yr note yield is up one basis point to 3.46%. The U.S. Dollar Index is up 0.2% to 101.83.

    Energy complex futures are moving lower.

    WTI crude oil futures are down 2.1% to $75.14/bbl and natural gas futures are down 0.9% to $2.56/mmbtu.


    More Layoffs: General Motors $GM cutting several hundred full-time contract positions, primarily from its Detroit product development.

    Last month, about 5,000 GM salaried U.S. workers took voluntary buyouts, costing the company roughly $1 billion. via WSJ

    GM’s product-development group, employs thousands of engineers, designers and other salaried workers who develop future vehicle models.
    The cuts aim to reduce costs amid uncertainty in the car market.
    Despite economic concerns, GM’s business remains strong, with customers willing to pay for high-level models and features.
    GM is taking steps to protect against worsening economic conditions and plans to cut $2 billion in annualized expenses by the end of 2023.



    Dow 34,051.70 -46.46 -0.14%
    S&P 500 4,167.87 -1.61 -0.04%
    Nasdaq 12,212.60 -13.99 -0.11%
    VIX 16.08 0.30 1.90%
    Gold 1,989.70 -9.40 -0.47%
    Oil 75.69 -1.09 -1.42%


    Vanguard Mega Cap Growth ETF $MGK fell 0.2%, S&P 500 closed flat.

    Apple $AAPL 169.59 -0.09, -0.053%
    Amazon $AMZN 102.05 -3.40, -3.2%
    Alphabet $GOOG 107.71 -0.51, -0.5%
    Tesla $TSLA 161.83, -2.48 -1.5%
    Microsoft $MSFT 305.56, -1.70 -0.6% all losses

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