Traders Market Weekly: Fear, Greed, War and Volatility

Viewing 7 posts - 31 through 37 (of 37 total)
  • Author
    Posts
  • #73845
    Truman
    Participant

    Major European indices are on track for a lower finish to the week.

    STOXX Europe 600: -0.5% (-1.6% week-to-date),
    Germany’s DAX: -0.8% (-1.2% week-to-date),
    U.K.’s FTSE 100: -0.7% (-2.2% week-to-date),
    France’s CAC 40: -0.4% (-0.3% week-to-date),
    Italy’s FTSE MIB: -0.3% (UNCH week-to-date),
    Spain’s IBEX 35: -0.7% (UNCH week-to-date).

    Regional markets fell to lows at the open in response to Israel’s attack on Iranian territory, but some of the losses were recovered as participants focused on the lack of major damage from the action.

    Germany
    March PPI 0.2% m/m (expected 0.0%; last -0.4%); -2.9% yr/yr (last -4.1%)
    Germany’s government will reported revise its 2024 growth forecast to 0.3% from 0.2%.

    U.K.
    March Retail Sales 0.0% m/m (expected 0.3%; last 0.1%); 0.8% yr/yr (last -0.3%). March Core Retail Sales -0.3% m/m (last 0.3%); 0.4% yr/yr (last -0.4%)
    British retail sales undershot expectations for March.

    Spain
    March Consumer Confidence 82.5 (last 78.5)

    European Central Bank policymaker Panetta said that disinflation is continuing while policymaker Rehn said that with inflation converging toward the 2.0% target, there is no longer a need to keep rates at the current level for a long time.

    #73846
    Truman
    Participant

    Netflix (NFLX 577.10, -33.46, -5.5%): beats by $0.77, beats on revs, net adds above street ests; guides Q2 EPS above consensus, revs below consensus; guides FY24 revs in-line; will stop reporting quarterly membership numbers and ARM in 1Q25
    PPG Industries (PPG 134.25, -0.86, -0.6%): reports EPS in-line, misses on revs; guides Q2 EPS below consensus; guides FY24 EPS in-line; announces $2.5 billion share repurchase program
    Intuitive Surgical (ISRG 383.64, +11.01, +3.0%): beats by $0.08, beats on revs; da Vinci procedures grew approximately 16% yr/yr; provides FY24 procedure growth guidance on the call: raises its outlook to +14-17% from +13-16%
    Procter & Gamble (PG 155.31, -1.98, -1.3%): beats by $0.10, misses on revs; raises FY24 EPS above consensus, reaffirms FY24 revs guidance
    American Express (AXP 214.35, -3.15, -1.5%): beats by $0.38, reports revs in-line; reaffirms FY24 EPS guidance, revs guidance
    SLB (SLB 50.20, -0.74, -1.5%): reports EPS in-line, revs in-line; targeting to return $7 billion to shareholders over 2024–2025.
    P

    #73847
    Truman
    Participant

    Paramount (PARA 12.02, +1.05, +9.6%): Sony (SONY) and Apollo (APO) consider partnering to purchase Paramount, according to NY Times

    Tesla (TSLA 146.24, -3.69, -2.4%): NTHSA orders TSLA recall 3,878 CyberTrucks over accelerator issue

    #73848
    Truman
    Participant

    There is a negative bias in early trading after Israel conducted a limited military strike against Iran.

    Contracts linked to the S&P 500, Nasdaq 100, and Dow Jones Industrial Average had been lower, but recovered somewhat as participants focused on the lack of major damage from the strike.

    Oil prices initially spiked, sending WTI crude oil futures above $85.00/bbl, but prices quickly pulled back.

    WTI crude oil futures are down 0.7% to $81.54/bbl, suggesting that the market doesn’t expect any major disruptions in oil supplies following the new developments in the Middle East.

    Treasury yields are lower.
    The 2-yr note yield is down two basis points to 4.97% and the 10-yr note yield is down five basis points to 4.60%.

    #73849
    Truman
    Participant

    Morning Market
    Dow 37978.88 +203.50 (0.54%)
    Nasdaq 15533.35 -68.15 (-0.44%)
    SP 500 5012.18 +1.06 (0.02%)
    10-yr Note +1/32 4.621
    NYSE Adv 2166 Dec 433 Vol 128 mln
    Nasdaq Adv 2439 Dec 1389 Vol 1.0 bln

    Industry Watch
    Strong: Energy, Financials, Industrials, Materials, Health Care
    Weak: Communication Services, Information Technology, Consumer Discretionary, Consumer Staples

    Moving the Market
    — Reacting to news that Israel launched an attack on Iran that was ultimately seen as a “limited” strike versus concerns of a larger and more damaging response
    — Weakness in mega cap stocks and chipmakers
    — Losses in some names that reported earnings weighing on market
    — Calm behavior in Treasuries

    Advancing issues lead declining issues by a nearly 5-to-1 margin at the NYSE and by a 2-to-1 margin at the Nasdaq. The S&P 500 is up 0.1%, the Dow Jones Industrial Average sports a 0.5% gain, and the Russell 2000 is up 0.4%.

    The Nasdaq Composite is lagging other major indices, trading down 0.4% due to weakness in mega cap stocks and chipmaker shares. The Vanguard Mega Cap Growth ETF (MGK) is down 0.5% and the PHLX Semiconductor Index (SOX) is down 0.6%.

    Six of the S&P 500 sectors are higher and five trade lower. The communication services sector (-1.1%) shows the biggest decline by a decent margin due to a big earnings-related loss in Netflix (NLFX 573.80, -36.92, -5.9%) and a decline in shares of Meta Platforms (META 493.19, -8.93, -1.8%).

    NFLX topped Q1 estimates, but issued some relatively disappointing Q2 revenue guidance while noting it will no longer provide quarterly membership or average revenue per member numbers beginning with the first quarter of 2025.

    #73850
    Truman
    Participant

    Super Micro Devices (SMCI 770.01, -158.47, -17.0%) is the worst performing stock in the S&P 500 today after confirming its earnings release date without a pre-announcement/guidance, which seems to have spooked investors.

    Netflix (NFLX 558.51, -52.05, -8.5%) is the next worst performing S&P 500 component after beating Q1 expectations and issuing above-consensus EPS guidance for Q2 coupled with below-consensus revenue outlook. The company will stop reporting subscriber additions next year.

    On the flip side, Paramount (PARA 11.78, +0.80, +7.3%) is the top performing S&P 500 constituent following news it may receive a takeover offer of up to $29 bln from Sony (SONY) and Apollo (APO), according to Investing.com.

    #73851

    Dow 37,986.40 211.02 0.56%
    S&P 500 4,967.23 -43.89 -0.88%
    Nasdaq 15,282.01 -319.49 -2.05%
    VIX 18.77 0.77 4.28%
    Gold 2,401.90 3.90 0.16%
    Oil 83.24 0.51 0.62%

    A tale of 2 markets as the DOUBLE DUTCH BUS rolls down WALL STREET – lol

    Wishing all a great WEEKEND 🙂

Viewing 7 posts - 31 through 37 (of 37 total)
  • You must be logged in to reply to this topic.