Traders Market Weekly: Incoming Deluge of Central Bankers


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    AMC Entertainment (AMC 8.82, +0.58, +7.0%): completes at-the-market equity offering


    HP Inc. (HPQ 27.65, -0.68, -2.4%): 10% owner Warren E. Buffett disclosed the sale of 5,502,172 shares worth more than $158 mln


    The August Producer Price Index for final demand increased 0.7% month-over-month (consensus 0.4%) following a 0.3% increase in July.

    The index for final demand, excluding food and energy, increased 0.2% month-over-month, as expected. On a year-over-year basis, the index for final demand was up 1.6% and the index for final demand, excluding food and energy, was up 2.2%.

    The key takeaway from the report is that 80% of the rise in final demand prices was attributed to a 2.0% jump in the index for final demand goods, which was driven by a 10.5% increase in prices fir final demand energy. That understanding softens the blow of the headline surprise for the index for final demand; however, until energy prices back down, concerns about rising inflation expectations and the Fed holding higher for longer will persist.


    Initial jobless claims for the week ending September 9 increased by 3,000 to 220,000 consensus 226,000) while continuing jobless claims for the week ending September 2 increased by 4,000 to 1.688 million.

    The key takeaway from the report is the same: the low level of initial claims — a leading indicator — is reflective of a fairly tight labor market, which is the basis for why consumer spending continues to hold up in the face of inflation pressures and rising rates.

    Treasuries had a whipsaw reaction to the data.

    The 2-yr note yield, which jumped to 5.03% right after the release, is down three basis points from yesterday to 4.95%.
    The 10-yr note yield, which hit 4.30%, is down four basis points from yesterday to 4.22%.


    August retail sales increased 0.6% month-over-month (consensus 0.2%) following a downwardly revised 0.5% increase (from 0.7%) in July.
    Excluding autos, retail sales rose 0.6% month-over-month (consensus 0.4%) following a downwardly revised 0.7% increase (from 1.0%) in July.

    The key takeaway from the report is that gasoline station sales (+5.2%) had a big impact on the overall increase in retail sales. Excluding gasoline stations, retail sales were up a more modest 0.2%, which is suggestive of a consumer that is softening but not breaking.


    Dow 34752.09 +176.56 (0.51%)
    Nasdaq 13838.10 +24.51 (0.18%)
    SP 500 4485.00 +17.56 (0.39%)
    10-yr Note 0/32 4.261
    NYSE Adv 2246 Dec 504 Vol 154 mln
    Nasdaq Adv 2974 Dec 1050 Vol 1.6 bln

    Apple (AAPL 175.37, +1.18, +0.8%), (AMZN 145.03, +0.21, +0.1%), and Tesla (TSLA 274.84, +3.60, +1.3%) all trade near their highs of the day. The Vanguard Mega Cap Growth ETF (MGK) is up 0.5%.


    Dow 34,907.11 331.58 0.96%
    S&P 500 4,505.10 37.66 0.84%
    Nasdaq 13,926.05 112.47 0.81%
    VIX 12.92 -0.56 -4.15%
    Gold 1,930.60 -1.90 -0.10%
    Oil 90.39 1.87 2.11%

    Some more songs of celebration by FAV group 🙂


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

    Japan’s Nikkei: +1.1% (+2.8% for the week),
    Hong Kong’s Hang Seng: +0.8% (-0.1% for the week),
    China’s Shanghai Composite: +0.1% (UNCH for the week),
    India’s Sensex: +0.5% (+1.9% for the week),
    South Korea’s Kospi: +1.1% (+2.1% for the week),
    Australia’s ASX All Ordinaries: +1.4% (+1.7% for the week).


    China reported better than expected growth figures for August, though home prices continued decreasing.

    China’s August House Prices -0.1% yr/yr (last -0.1%).
    August Fixed Asset Investment 3.2% yr/yr (expected 3.3%; last 3.4%),
    August Industrial Production 4.5% yr/yr (expected 4.0%; last 3.7%),
    August Retail Sales 4.6% yr/yr (expected 3.0%; last 2.5%),
    August Unemployment Rate 5.2% (expected 5.3%; last 5.3%).
    August FDI -5.1% YTD (last -4.0%)

    Sino Ocean was pressured after announcing a halt to offshore debt payments.

    The People’s Bank of China rolled over CNY591 bln worth of medium-term loans, keeping the rate steady at 2.50%.


    South Korea’s August trade surplus $880 mln (expected surplus of $870 mln; last surplus of $1.65 bln).
    August Imports -22.8% yr/yr, as expected (last -25.4%) and Exports -8.3% yr/yr (expected -8.4%; last -16.4%)

    South Korea’s Finance Minister Choo said that inflation is expected to stabilize after October.



    India’s August trade deficit $24.2 bln (expected deficit of $21.0 bln; last deficit of $20.7 bln)

    New Zealand’s August Business PMI 46.1 (last 46.3)

    The Bank of Japan reportedly sees an upside risk to its price outlook.


    Major European indices are looking for a higher finish to the week amid growing speculation that the European Central Bank has reached the peak rate in its hiking cycle.

    STOXX Europe 600: +0.8% (+2.2% week-to-date),
    Germany’s DAX: +1.1% (+1.5% week-to-date),
    U.K.’s FTSE 100: +0.8% (+3.5% week-to-date),
    France’s CAC 40: +1.7% (+2.6% week-to-date),
    Italy’s FTSE MIB: +0.8% (+3.1% week-to-date),
    Spain’s IBEX 35: +0.5% (+2.5% week-to-date).


    Eurozone’s July trade surplus EUR6.5 bln (last surplus of EUR18.5 bln).
    Q2 Wages 4.6% yr/yr (last 4.9%) and Q2 Labor Cost Index 4.5% yr/yr (last 5.2%)
    European Central Bank policymaker de Guindos said that headline and core CPI will continue to ease.


    France’s August CPI 1.0% m/m, as expected (last 0.1%); 4.9% yr/yr (expected 4.8%; last 4.3%)
    France’s Finance Ministry lowered its domestic growth forecast for 2024 to 1.4% from 1.6% due to an expected recession in Germany, sluggish growth in China, and high interest rates.


    Italy’s August CPI 0.3% m/m (expected 0.4%; last 0.0%); 5.4% yr/yr (expected 5.5%; last 5.9%).
    July trade surplus EUR6.38 bln (expected surplus of EUR6.50 bln; last surplus of EUR3.46 bln)

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