Traders Market Weekly: Inflation and Bank Run Charades

Viewing 15 posts - 31 through 45 (of 90 total)
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  • #57777

    FED and the “R” word are critical factors … DOW -550 & NASDAQ -180
    Plus DEBT ceiling impacts may come early JUNE – as a meeting is finally scheduled
    but see stubborn MULES & ELEPHANTS in the room – so we could have a GOVT shutdown lurking

    and finally RIP to a legend storyteller in song who passed yesterday at age 84


    Regional Bank selling goes on:

    PacWest (PACW 6.63, -2.44, -26.9%)
    Western Alliance (WAL 29.00, -7.45, -20.4%)
    In regional banks

    But even larger banks that had been viewed as potentially benefitting from the fallout in the regional bank industry, like JPMorgan Chase (JPM 138.77, -2.42, -1.7%) and Bank of America (BAC 27.89, -1.14, -4.0%), are underperforming the broader market today.


    Slowdown concerns stoked this morning by EU manufacturing PMI readings for April out of the eurozone that were weaker than March &JOLTs – Job Openings Report for March that showed openings shrinking to 9.590 million from 9.974 million in February, and a 0.6% decline in nondefense capital goods orders, excluding aircraft, for March.

    Global growth concerns have also manifested themselves in falling commodity prices.

    WTI crude oil futures are down 4.9% to $71.95/bbl and copper futures are down 1.9% to 3.86/lb.

    The sharp decline in oil prices has contributed to the underperformance of the S&P 500 energy sector (-4.8%), which is buried in last place by a wide margin. Unsurprisingly, the financials sector (-2.9%) is another top laggard today.


    Worries about the debt ceiling are looming over the market after Treasury Secretary Yellen warned that the Treasury is unlikely to be able to continue to satisfy all of the government’s obligations by June, and potentially as early as June 1.

    This all comes ahead of an FOMC policy decision tomorrow, where a 25-basis point rate hike is expected but the tone of the directive and Fed Chair Powell’s remarks is still indeterminate.


    In the Treasury market, the nervousness about the debt ceiling issue, an economic slowdown, and the behavior of the bank stocks has fueled buying interest in most tenors.

    The 2-yr note yield is down 16 basis points to 3.96% and the 10-yr note yield is down 13 basis points to 3.43%.
    The 3-month T-bill yield, however, is up 13 basis points to 5.15% in direct response to Secretary Yellen’s warning.

    CBOE Volatility Index surged 15.3%, or 2.46, to 18.44.


    Dow 33,684.53 -367.17 -1.08%
    S&P 500 4,119.58 -48.29 -1.16%
    Nasdaq 12,080.51 -132.09 -1.08%
    VIX 17.69 1.61 10.01%
    Gold 2,027.20 35.00 1.76%
    Oil 71.57 -4.09 -5.41%


    Earnings After Hours:

    Advanced Micro (AMD) beats by $0.04, reports revs in-line; guides Q2 revs in-line… AMD down 6.9%
    Clorox (CLX) beats by $0.29, beats on revs; guides FY23 EPS above consensus, revs above consensus… CLX up 0.2%
    Ford Motor (F) beats by $0.19, beats on revs; reaffirms FY23 guidance… F down 2.2%
    Match Group (MTCH) misses by $0.14, reports revs in-line; guides Q2 revs below consensus… MTCH up 1.7%
    Sprout Social (SPT) beats by $0.07, reports revs in-line; guides Q2 EPS below consensus, revs below consensus; guides FY23 EPS above consensus, reaffirms FY23 revs guidance… SPT down 13.3%
    Starbucks (SBUX) beats by $0.09, beats on revs; global comps +11%; US comps +12%… SBUX down 5.7%
    Super Micro Computer (SMCI) misses by $0.08, reports revs in-line; guides Q4 EPS above consensus, revs above two analyst estimate; guides FY23 EPS above consensus, revs in-line… SMCI up 9.2%
    Western Union (WU) beats by $0.09, beats on revs; guides FY23 EPS in-line… WU up 3.1%
    Yum China (YUMC) beats by $0.25, beats on revs, comps of +8%; reiterates FY23 targets… YUMC up 2.0%


    Equity indices in the Asia-Pacific region ended Wednesday on a lower note while markets in China and Japan were closed for holidays.

    Japan’s Nikkei: CLOSED,
    Hong Kong’s Hang Seng: -1.2%,
    China’s Shanghai Composite: CLOSED,
    India’s Sensex: -0.3%,
    South Korea’s Kospi: -0.9%,
    Australia’s ASX All Ordinaries: -1.0%.


    India’s April Nikkei Services PMI 62.0 (expected 57.0; last 57.8)
    Australia’s April Services PMI 53.7 (expected 52.6; last 48.6)


    New Zealand’s Q1 Employment Change 0.8% qtr/qtr (expected 0.4%; last 0.2%), Q1 Unemployment Rate 3.4% (expected 3.5%; last 3.4%), and Q1 Participation Rate 72.0% (expected 71.7%; last 71.7%).
    Q1 Labor Cost Index 0.9% qtr/qtr (expected 1.0%; last 1.1%); 4.5% yr/yr (expected 4.6%; last 4.3%)

    Reserve Bank of New Zealand Deputy Governor Hawkesby said that the Kiwi labor market remains strong after the release of solid Q1 employment figures.


    Australia’s March Retail Sales 0.4% m/m (expected 0.3%; last 0.2%). April Services PMI 53.7 (expected 52.6; last 48.6) and April AIG Manufacturing Index -20.2 (last 5.6)


    South Korea’s Finance Minister Choo acknowledged that aggressive tightening is increasing volatility in financial markets while Bank of Korea Governor Rhee said that it is too early to talk about a policy pivot.

    Bank Negara Malaysia raised its policy rate by 25 bps to 3.00% against expectations for no change.


    Markets in China will reopen tomorrow while Japan will be closed through the end of the week.


    Major European indices trade on a mostly higher note while Spain’s IBEX (-0.2%) underperforms.

    STOXX Europe 600: +0.4%,
    Germany’s DAX: +0.8%,
    U.K.’s FTSE 100: +0.3%,
    France’s CAC 40: +0.7%,
    Italy’s FTSE MIB: +1.3%,
    Spain’s IBEX 35: -0.2%.


    Eurozone’s March Unemployment Rate 6.5% (expected 6.6%; last 6.6%)

    Italy’s March Unemployment Rate 7.8% (expected 8.0%; last 7.9%)

Viewing 15 posts - 31 through 45 (of 90 total)
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