Traders Market Weekly: Memorial Weekend a Time for Reflection

Viewing 15 posts - 46 through 60 (of 72 total)
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    Germany’s Q1 GDP 0.2% qtr/qtr, as expected (last -0.3%); 4.0% yr/yr, as expected (last 1.8%). June GfK Consumer Climate -26.0, as expected (last -26.6)
    France’s May Consumer Confidence 86 (expected 89; last 87). April jobseeker total 2.955 mln (last 2.940 mln)
    Spain’s April PPI 45.0% yr/yr (last 47.0%)
    Swiss May ZEW Expectations -52.6 (last -51.6)

    Helmholtz Watson

    Durable goods orders higher in April

    The conditions for durable goods orders proved to be reasonably good in April, if not altogether as strong as expected. New orders for durable goods increased 0.4% month-over-month (consensus 0.6%) while new orders for durable goods, excluding transportation, rose 0.3% month-over-month (consensus 0.6%).

    The key takeaway from the report is that business spending continued to increase. That view was embedded in the 0.3% increase in nondefense capital goods orders, excluding aircraft, which followed on the heels of a 1.1% increase in March.

    New orders for primary metals increased 0.6% after increasing 3.3% in March.
    New orders for fabricated metal products slipped 0.1% following a 1.1% increase in March.
    New orders for machinery increased 1.0% following a 0.6% increase in March.
    New orders for transportation equipment rose 0.6% after declining 0.3% in March, paced by a 4.3% increase in new orders for nondefense aircraft and parts.
    Shipments of nondefense capital goods, excluding aircraft, jumped 0.8% after increasing 0.2% in March. This component factors into GDP computations, so it is a positive input for Q2 GDP.


    Hi all — my heart is broken for the TEXAS community impacted by loss of 19 elementary kids & 2 teachers at school — and only wish to offer prayers for healing & recovery in the long road ahead for this community


    Dow 32,120.28 191.66 0.60%
    S&P 500 3,978.73 37.25 0.95%
    Nasdaq 11,434.74 170.29 1.51%
    GlobalDow 3,810.94 20.46 0.54%
    Gold 1,852.50 -12.90 -0.69%
    Oil 110.86 1.09 0.99%


    In Asia, China added 0.5% while Japan slipped another 0.3%. The Shanghai Composite rose despite comments from Premier Li Keqiang who suggested some aspects of the Chinese economy are worse than when the pandemic began in 2020. In Japan, the Nikkei was weighed down by semiconductors. NVIDIA released earnings and dropped after the close in the US, leading names such as Tokyo Electron and Advantest to fall 2-4% in sympathy. This overshadowed 1-2% gains by Toyota and SoftBank.

    In Europe, the major bourses are hanging around the neutral zone. The session has lacked significant economic data leaving the EU with limited trading cues. Sportswear apparel makers Puma and Adidas are representing relative strength in the DAX with gains of over 1%. Luxury brands are rebounding this morning with the likes of Kering, Hermes and LVMH Moet Hennessy Louis Vuitton also up well over 1%.


    The global equity markets are mixed but little changed. S&P Futures are down about eight points to trade around the 3985 area. The market saw an early attempt to test the 4000 level fizzle out, peaking at 3993.50. Spoos found support at the low of 3960.50 before settling back to the current level.

    S&P Futures vs Fair Value: +8.0
    10 yr Note: 2.722%
    USD/JPY: 126.64 -0.63
    EUR/USD: 1.0685 +0.0004
    Europe: FTSE: -0.1% DAX: +0.3% CAC: +0.3%
    Asia: Hang Seng: -0.3% Shanghai: +0.5% Nikkei: -0.3%
    Gold (1844.80 -1.50) Silver (21.79 -0.08) Crude (110.97 +0.62)


    Equity indices in the Asia-Pacific region ended Thursday on a mostly lower note.

    Reports from China indicate that Shanghai’s port has resumed most of its cargo handling capacity.
    Japan will reopen its borders to foreign tourists on June 10.
    Yonhap reported that South Korea will present measures to stabilize prices in the coming days.
    The Bank of Korea raised its base rate by 25 bps to 1.75%, as expected. The central bank raised its CPI forecast for the year to 4.5% from 3.1%. U.S.
    Secretary of State Blinken will speak on the Biden administration’s China policy this morning.

    —Equity Markets—

    Japan’s Nikkei: -0.3%
    Hong Kong’s Hang Seng: -0.3%
    China’s Shanghai Composite: +0.5%
    India’s Sensex: +0.9%
    South Korea’s Kospi: -0.2%
    Australia’s ASX All Ordinaries: -0.7%


    Japan’s March Corporate Services Price Index 1.7% yr/yr (expected 1.5%; last 1.3%)
    Australia’s Q1 Private New Capital Expenditure -0.3% qtr/qtr (expected 1.5%; last 1.1%), Q1 Building Capital Expenditure -1.7% m/m (last 2.2%), and Q1 Plant/Machinery Capital Expenditure 1.2% qtr/qtr (last -0.1%)
    Singapore’s April Industrial Production 2.2% m/m (expected 8.1%; last -11.2%); 6.2% yr/yr (expected 5.1%; last 5.1%)
    Hong Kong’s April trade deficit HKD36.6 bln (last deficit of HKD37.3 bln). April Imports 2.1% m/m (last -6.0%) and Exports 1.1% m/m (last -8.9%)


    Major European indices trade in the green, though overall activity has been reduced due to the Ascension Day holiday.

    British Chancellor of the Exchequer is expected to announce measures to support households struggling with high energy bills. The U.K. will implement a “temporary, targeted” 25% tax on excess oil and gas profits. The Central Bank of Russia lowered its bank rate by 300 bps to 11.0%.

    —Equity Markets—

    STOXX Europe 600: +0.2%
    Germany’s DAX: +0.9%
    U.K.’s FTSE 100: +0.1%
    France’s CAC 40: +0.8%
    Italy’s FTSE MIB: +0.4%
    Spain’s IBEX 35: +1.0%


    Italy’s March Industrial Sales 2.4% m/m (last 2.9%); 21.4% yr/yr (last 20.8%). May Business Confidence 109.3 (expected 109.0; last 109.9) and Consumer Confidence 102.7 (expected 100.5; last 100.0)


    NVIDIA (NVDA 162.98, -6.77, -4.0%): beats by $0.07, beats on revs; guides JulQ revs below consensus due to Russia and COVID lockdowns in China; increased and extended share repurchase program to $15.0 bln
    VMWare (VMW 121.88, +1.34, +1.1%): Broadcom (AVGO 523.00, -8.63, -1.6%) to acquire VMware for ~$61 billion, or $142.50, in cash and stock
    Macy’s (M 21.90, +2.69, +14.0%): beats by $0.25, reports revs in-line; raises FY23 EPS above consensus, reaffirms FY23 revs guidance; Q1 comps +12.8%
    Williams-Sonoma (WSM 124.89, +9.91, +8.6%): beats by $0.61, beats on revs, comps of +9.5%; reiterated FY23 revenue growth of mid-to-high single-digit percentage
    Dollar General (DG 218.00, +22.66, +11.6%): beats by $0.10, reports revs in-line; reaffirms FY23 EPS guidance, guides FY23 revs above consensus; raises comp guidance
    Southwest Airlines (LUV 43.36, +0.91, +2.1%): sees Q2 (Jun) revs growth of +12-15% yr/yr, up from prior guidance of +8-12% yr/yr
    Dollar Tree Stores (DLTR 153.36, +19.77, +14.8%): beats by $0.39, beats on revs; guides Q2 revs in-line; guides FY23 EPS in-line, revs in-line
    Snowflake (SNOW 117.11, -15.66, -11.8%): Reports Q1 (Apr) GAAP loss of $(0.53) per share; revenues rose 84.5% year/year to $422.37 mln; For Q2 (Jul), company expects product revs of $435-440 mln


    Equity markets look to break 7 week losing streak
    Inflation slowed to 6.3% which has created RALLY TIME on WALL STREET
    wish all a great MEMORIAL DAY holiday – as we honor & reflect upon our service men & women :)


    Equity indices in the Asia-Pacific region ended the week on a higher note.

    Japan’s Prime Minister Kishida said that steps are being taken to limit capital outflows from Japan through promotion of renewable energy and reopening of borders to international tourists.
    Sony’s president said that he expects delays and shortages of semiconductors to continue this year.
    Samsung will reportedly lower its 2022 smartphone production by 10% due to weak demand.

    Japan’s Nikkei: +0.7% (+0.2% for the week)
    Hong Kong’s Hang Seng: +2.9% (-0.1% for the week)
    China’s Shanghai Composite: +0.2% (-0.5% for the week)
    India’s Sensex: +1.2% (+1.0% for the week)
    South Korea’s Kospi: +1.0% (-0.1% for the week)
    Australia’s ASX All Ordinaries: +1.0% (+0.3% for the week)


    China’s April Industrial Profit 3.5% YTD (last 8.5%)
    Japan’s May Tokyo CPI 2.4% yr/yr (last 2.5%) and Tokyo Core CPI 1.9% yr/yr (expected 2.0%; last 1.9%)
    Australia’s May Retail Sales 0.9% m/m, as expected (last 1.6%)


    Major European indices trade in the green. The chief of Germany’s ZEW Institute said that the European Central Bank needs to do more to fight inflation. Meanwhile, ECB policymaker De Cos repeated his expectations for a gradual rate hike path. British Chancellor of the Exchequer Sunak said that the plan to subsidize household energy bills will increase inflation by less than a percentage point.

    STOXX Europe 600: +1.0% (+2.5% week-to-date)
    Germany’s DAX: +1.0% (+2.8% week-to-date)
    U.K.’s FTSE 100: +0.4% (+2.8% week-to-date)
    France’s CAC 40: +1.1% (+3.1% week-to-date)
    Italy’s FTSE MIB: UNCH (+1.9% week-to-date)
    Spain’s IBEX 35: +0.4% (+5.1% week-to-date)

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