Traders Market Weekly: Naive Markets and The Fed Fortune Tellers

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    Dow 34,624.30 6.06 0.02%
    S&P 500 4,453.53 3.21 0.07%
    Nasdaq 13,710.24 1.90 0.01%
    VIX 14.14 0.35 2.54%
    Gold 1,954.70 8.50 0.44%
    Oil 91.82 1.05 1.16%


    U.S. Steel Raises Q3 EPS guidance to $1.10-$1.15/share above consensus $0.97

    All operating segments outperformed earlier Q3 estimates, adj EBITDA of ~$550M

    UAW strike will cause temporary idle blast furnace B at Granite City Works The move effectively suspends steelmaking operations at Granite City after the company idled the mill’s other blast furnace months ago.

    The company said it sees its Flat-Rolled segment’s Q3 adjusted EBITDA broadly in-line with Q2, as average selling prices will come in slightly higher than previously expected even as spot prices declined, which is a key driver to the better than expected performance in this segment.

    $X up 1.1%


    Equity indices in the Asia-pacific region ended Tuesday on a mostly lower note while markets in India were closed for a holiday.

    Japanese automakers have shown continued strength amid the ongoing contract dispute between United Auto Workers and Detroit’s automakers.

    —Equity Markets—

    Japan’s Nikkei: -0.9%
    Hong Kong’s Hang Seng: +0.4%
    China’s Shanghai Composite: UNCH
    India’s Sensex: CLOSED
    South Korea’s Kospi: -0.6%
    Australia’s ASX All Ordinaries: -0.5%


    Chinese press speculated that the People’s Bank of China will not make changes to its loan prime rate this month but could announce additional cuts in Q4.

    The Reserve Bank of Australia’s latest policy minutes showed that policymakers believe that there is a strong case for pausing rate hikes.

    Hong Kong’s August Unemployment Rate 2.8% (last 2.8%)


    Major European indices trade on a mostly flat note while Italy’s MIB (+0.4%) outperforms with bank stocks showing strength.

    —Equity Markets—

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


    Germany’s Bundesbank expects the domestic economy to contract in Q3, noting that an “overhaul” is needed.
    OECD’s updated economic outlook showed that Germany is the only major economy that is expected to be in recession this year.
    European Central Bank policymaker Villeroy de Galhau said that the ECB will maintain rates at 4.0%.


    Starbucks (SBUX 95.53, -1.23, -1.3%): facing consumer lawsuit, according to Reuters; downgraded to Market Perform from Outperform at TD Cowen

    CVS Health (CVS 71.35, +0.65, +0.9%): upgraded to Outperform from In-line at Evercore ISI

    Dell (DELL 70.10, +0.95, +1.4%): upgraded to Outperform from Neutral at Daiwa Securities

    Deere (DE 402.76, -8.08, -2.0%): downgraded to In-line from Outperform at Evercore ISI


    Block (SQ 50.57, -0.68, -1.4%): Square CEO Alyssa Henry to depart, effective October 2; Jack Dorsey, the Company’s Block Head and Chairperson, will also serve as the Square Head


    AutoZone (AZO 2470.00, -52.10, -2.1%): beats by $1.18, beats on revs
    Apogee Enterprises (APOG 52.50, +3.19, +6.5%): beats by $0.24, misses on revs; guides FY24 EPS above consensus, reaffirms FY24 revs guidance

    Intel (INTC 38.43, +0.44, +1.2%): indicated higher ahead of Intel Innovation event (Sept. 19-20)


    Housing starts in August declined 11.3% to a seasonally adjusted annual rate of 1.283 million units (consensus 1.435 million).

    Single-unit starts were down 4.3% to a seasonally adjusted annual rate of 941,000. There was better news on the permits front. Total building permits increased 6.9% to 1.543 million ( consensus 1.442 million) with permits for single units up 2.0% to 949,000.

    The key takeaway from the report is that starts were clearly weak in August, yet the strength in permits — a leading indicator — lends some hope that September will feature better news on the home construction front, which is needed given the tight supply of existing homes for sale.

    Treasury yields turned higher in response.

    The 2-yr note yield is up three basis points to 5.08% and the 10-yr note yield is up five basis points to 4.37%.

    Elsewhere, oil prices climbed past $92.00/bbl, up 1.8% to $92.20/bbl.


    Treasury yields continue to nudge higher.

    2-yr note yield is up seven basis points to 5.11%
    10-yr note yield is up four basis points to 4.35%.
    The U.S. Dollar Index is down 0.1% to 105.12.

    Natural gas futures are making a big move also, up 3.7% to $2.83/mmbtu.


    Dow 34,517.73 -106.57 -0.31%
    S&P 500 4,443.95 -9.58 -0.22%
    Nasdaq 13,678.19 -32.05 -0.23%
    VIX 14.11 0.11 0.79%
    Gold 1,953.20 -0.50 -0.03%
    Oil 91.60 0.40 0.44


    Equity indices in the Asia-Pacific region ended the midweek session on a lower note.

    —Equity Markets—

    Japan’s Nikkei: -0.7%
    Hong Kong’s Hang Seng: -0.6%
    China’s Shanghai Composite: -0.5%
    India’s Sensex: -1.2%
    South Korea’s Kospi: UNCH
    Australia’s ASX All Ordinaries: -0.5%


    The People’s Bank of China made no changes to its one-year and five-year loan prime rates, as expected.
    China exported no gallium nor germanium in August, according to customs data.
    China’s Transport Ministry announced that international cruise arrivals and departures will be fully resumed.


    There was some speculation that the Reserve Bank of India intervened in the foreign exchange market to stop the rupee from continuing to a fresh record low against the dollar.

Viewing 15 posts - 16 through 30 (of 102 total)
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