Traders Market Weekly: Political Risks and Central Banks

Viewing 15 posts - 31 through 45 (of 62 total)
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  • #45917
    Truman
    Participant

    Bank of Japan Governor Kuroda said that recent yen weakening has been sharp and one-sided while Finance Minister Suzuki said that currency markets are being watched at an increased frequency.
    There was speculation that China’s loan prime rate will be reduced more.
    Reuters reported that the U.S. government may begin jointly producing weapons with Taiwan.
    Australia’s September MI Leading Index 0.0% m/m (last -0.2%)
    New Zealand’s mid-October GDT Price Index -4.6% (last -3.5%)

    #45918
    Truman
    Participant

    Major European indices trade near their flat lines while Spain’s IBEX (-0.4%) underperforms.

    —Equity Markets—

    STOXX Europe 600: -0.4%
    Germany’s DAX: -0.2%
    U.K.’s FTSE 100: -0.1%
    France’s CAC 40: UNCH
    Italy’s FTSE MIB: -0.3%
    Spain’s IBEX 35: -0.4%
    September Housing Starts and B

    #45919
    Truman
    Participant

    British Prime Minister Truss said during her weekly appearance in parliament that she is not a quitter.
    The U.K.’s September CPI was up 10.1% yr/yr, revisiting this year’s peak from July, while the eurozone’s CPI was up 9.9% yr/yr, accelerating at its fastest pace since the euro’s inception.
    European Central Bank policymaker Nagel said that the ECB should begin reducing its bond portfolio soon.
    Eurozone’s September CPI 1.2% m/m, as expected (last 0.6%); 9.9% yr/yr (expected 10.0%; last 9.1%).
    September Core CPI 1.0% m/m, as expected (last 4.3%); 4.8% yr/yr, as expected (last 4.3%).
    August Construction Output -0.63% m/m (last 0.27%)
    U.K.’s September CPI 0.5% m/m (expected 0.4%; last 0.5%); 10.1% yr/yr (expected 10.0%; last 9.9%).
    September Core CPI 0.6% m/m (expected 0.5%; last 0.8%); 6.5% yr/yr (expected 6.4%; last 6.3%).
    September Input PPI 0.4% m/m (expected -0.4%; last -0.9%) and Output PPI 0.2% m/m (expected 0.3%; last 0.1%)

    #45920
    Truman
    Participant

    United Airlines (UAL 39.20, +1.95, +5.23%): beats by $0.52, beats on revs; sees Q4 adj. op margin above 2019 for the first time
    Netflix (NFLX 271.61, +30.75, +12.77%): beats by $0.93, beats on revs, paid net adds of 2.41 mln compared to prior guidance of 1.00 mln; guides Q4 EPS below consensus, revs below consensus, expects paid net adds of 4.5 mln
    Travelers (TRV 168.00, +1.23, +0.74%): beats by $0.60, beats on revs
    ASML (ASML 420.76, +21.77, +5.46%): beats by $0.82, beats on revs; guides Q4 revs in-line
    Procter & Gamble (PG 131.00, +2.63, +2.05%): beats by $0.02, beats on revs; guides FY23 EPS in-line, revs below consensus
    Adobe (ADBE 298.00, +5.02, +1.71%): reaffirms Q4 targets; guides FY23 EPS and revs under expectations, ex-Figma
    Intuitive Surgical (ISRG 212.76, +19.03, +9.82%): beats by $0.07, beats on revs; increases FY22 procedure guidance to 17-18% from 14.0-16.5%; lowers high end of FY22 gross margin guidance, sees gross margin of 69.0-69.5% compared to prior guidance of 69.0-70.5%
    Generac (GNRC 123.01, -24.73, -16.74%): sees Q3 EPS and revs below consensus; lowers FY22 outlook
    Olaplex (OLPX 5.38, -4.41, -45.05%): issues downside Q3 revenue guidance, lowers FY22 revenue and adjusted net income guidance
    Exxon Mobil (XOM 101.15, +0.35, +0.35%): upgraded to Buy from Hold at Jefferies
    Abbott Labs (ABT 107.59, +2.61, +2.49%): beats by $0.21, beats on revs; guides FY22 EPS above consensus

    #45921
    Truman
    Participant

    The weekly MBA Mortgage Application Index declined 4.5%, as mortgage demand hit its lowest level since 1997, according to CNBC.

    #45922
    Truman
    Participant

    Total housing starts declined 8.1% month-over-month in September to a seasonally adjusted annual rate of 1.439 million units (consensus 1.465 million).
    Building permits rose 1.4% month-over-month to 1.564 million (consensus 1.550 million).

    The key takeaway from the report is that there was ongoing weakness in starts and permits for single-family units, which were down 4.7% and 3.1% month-over-month, respectively. The downturn corroborates the adverse impact sharply higher mortgage rates have had on buyer demand and builder sentiment.

    #45949

    Dow 30,423.81 -99.99 -0.33%
    S&P 500 3,695.16 -24.82 -0.67%
    Nasdaq 10,680.51 -91.89 -0.85%
    VIX 30.89 0.39 1.28%
    Gold 1,633.90 -21.90 -1.32%
    Oil 85.82 3.00 3.62%

    MINUS 99 down at the close 😉 🙂

    #45985
    TradersCom
    Keymaster

    Alcoa (AA) misses by $0.51, misses on revs; decreases 2022 alumina and bauxite shipment projections… AA down 6.9%
    Allstate (ALL) estimates Q3 catastrophe losses of $763 mln; provides preliminary Q3 results… ALL down 8.4%
    Hewlett Packard Enterprise (HPE) reiterates FY22 earnings and sales outlook; guides FY23 earnings in-line with consensus, expects revenue growth of +2-4% when adjusted for currency… HPE down 0.3%
    IBM (IBM) beats by $0.01, beats on revs; raises FY22 revenue growth outlook; reaffirms FCF outlook for FY22… IBM up 4.4%
    Kinder Morgan (KMI) reports Q3 (Sep) results, beats on revs… KMI down 1.9%
    Knight-Swift (KNX) misses by $0.05, reports revs in-line; guides FY22 EPS below consensus… KNX down 4.9%
    Lam Research (LRCX) beats by $0.88, beats on revs; guides Q2 EPS above consensus, revs above consensus… LRCX up 2.3%
    PPG Industries (PPG) beats by $0.01, reports revs in-line; guides Q4 EPS below consensus, aggregate sales volumes down a mid-single-digit percentage yr/yr; cost restructuring program underway; promotes COO Tim Knavish to CEO, succeeding Michael McGarry, effective January 1, 2023… PPG down 1.5%
    Super Micro Computer (SMCI) increases guidance for EPS and revs for SepQ… SMCI up 13.6%
    Tesla (TSLA) misses by $0.03, misses on revs; reiterates expectation of achieving 50% average annual growth in vehicle deliveries over multi-year horizon… TSLA down 3.6%
    WD-40 (WDFC) misses by $0.14, reports revs in-line; guides FY23 EPS below two analyst estimate, revs in-line… WDFC down 6.2%

    #45996
    Truman
    Participant

    Equity indices in the Asia-Pacific region ended Thursday on a mostly lower note with Hong Kong’s Hang Seng (-1.4%) showing relative weakness amid pressure on technology stocks.

    —Equity Markets—

    Japan’s Nikkei: -0.9%
    Hong Kong’s Hang Seng: -1.4%
    China’s Shanghai Composite: -0.3%
    India’s Sensex: +0.2%
    South Korea’s Kospi: -0.9%
    Australia’s ASX All Ordinaries: -1.2%

    #45997
    Truman
    Participant

    Chinese authorities may reportedly shorten the coronavirus quarantine time for travelers.
    The People’s Bank of China made no changes to its one-year and five-year loan prime rates.
    Chinese officials are reportedly polling chipmakers about the impact of the new restrictions on sales of advanced products to customers in China.
    Japan’s September trade deficit JPY2.094 trln (expected deficit of JPY2.167 trln; last deficit of JPY2.820 trln)
    Australia’s September Employment Change 900 (expected 25,000; last 36,300) and full employment change 13,300 (last 55,000).
    September Participation Rate 66.6%, as expected (last 66.6%) and September Unemployment Rate 3.5%, as expected (last 3.5%)
    Hong Kong’s September Unemployment Rate 3.9% (last 4.1%)

    #45998
    Truman
    Participant

    Major European indices trade on a mostly higher note.

    —Equity Markets—

    STOXX Europe 600: -0.2%
    Germany’s DAX: -0.2%
    U.K.’s FTSE 100: UNCH
    France’s CAC 40: +0.4%
    Italy’s FTSE MIB: +0.4%
    Spain’s IBEX 35: +0.6%

    #45999
    Truman
    Participant

    British Prime Minister Truss resigned as leader of the conservative party. Her replacement will be elected within the week.
    Bank of England policymaker Broadbent said that it is not clear whether rates need to rise as much the market expects, prompting a modest reduction in expectations for a 100-bps rate hike at the November policy meeting.
    Germany’s PPI was up 45.8% yr/yr, remaining at its highest level in 70 years.
    French Finance Minister Le Maire said that the government expects inflation to decelerate to 5.0% at the start of next year.
    Eurozone’s August Current Account deficit EUR26.30 bln (expected deficit EUR20.30 bln; last deficit of EUR19.90 bln)
    Germany’s September PPI 2.3% m/m (expected 1.3%; last 7.9%); 45.8% yr/yr (expected 44.7%; last 45.8%)
    France’s October Business Survey 103 (expected 101; last 102)
    Swiss September trade surplus CHF4.00 bln (last surplus of CHF3.32 bln)

    #46000
    Truman
    Participant

    Tesla (TSLA 210.07, -11.97, -5.39%): misses by $0.03, misses on revs; reiterates expectation of achieving 50% average annual growth in vehicle deliveries over multi-year horizon
    Lam Research (LRCX 330.00, -0.08, -0.02%): beats by $0.88, beats on revs; guides Q2 EPS above consensus, revs above consensus
    IBM (IBM 126.39, +3.88, +3.17%): beats by $0.01, beats on revs; raises FY22 revenue growth outlook; reaffirms FCF outlook for FY22
    Alcoa (AA 33.53, -4.09, -10.87%): misses by $0.51, misses on revs; decreases 2022 alumina and bauxite shipment projections
    Dow (DOW 44.76, -0.37, -0.82%): misses by $0.06, beats on revs
    American Airlines (AAL 14.39, +0.40, +2.86%): beats by $0.13, reports revs in-line; guides Q4 EPS above consensus, revs in-line
    AT&T (T 15.99, +0.45, +2.90%): beats by $0.06, reports revs in-line
    Allstate (ALL 121.06, -14.09, -10.43%): estimates Q3 catastrophe losses of $763 mln; provides preliminary Q3 results
    Las Vegas Sands (LVS 35.94, +0.34, +0.96%): misses by $0.02, reports revs in-line

    #46001
    Truman
    Participant

    The stock market opened somewhat weak before the major averages lifted into positive territory. The S&P 500 is defending the 3,700 level thus far.

    Mega cap stocks are an important upside driver, with the exception of Tesla (TSLA 203.73, -18.29, -8.2%), which suffers heavy selling after disappointing quarterly results.

    The Vanguard Mega Cap Growth ETF (MGK) is up 0.4% versus a 0.3% gain in the S&P 500 and Invesco S&P 500 Equal Weight ETF (RSP).

    Roughly half of the 11 S&P 500 sectors trade up, led by communication services (+1.2%). Meanwhile, utilities (-1.1%) and consumer discretionary (-1.0%) show the biggest losses.

    #46002
    Truman
    Participant

    Existing home sales totaled 4.71 million in September (consensus 4.70 million) after a revised total of 4.78 million in August (from 4.80 million).

    The September Leading Economic Index fell 0.4% (consensus -0.3%) following a revised flat reading in August (from -0.3%).

Viewing 15 posts - 31 through 45 (of 62 total)
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