Traders Market Weekly: Debt Ceilings and The Consumer

Viewing 15 posts - 61 through 75 (of 85 total)
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    PacWest Bancorp (PACW 4.82, -1.2500, -20.6%): company says deposits decline approx. 9.5% for week ending May 5, with bulk of decline occurring May 4-5

    PacWest Bancorp (PACW)

    $4.9500-1.1300 (-18.59%) As of 10:04AM EDT. Market open.


    The Producer Price Index for final demand increased 0.2% month-over-month in April (consensus +0.3%) following an upwardly revised 0.4% decline (from -0.5%) in March. The index for final demand, excluding food and energy, increased 0.2% month-over-month in April (consensus +0.3%) following an upwardly revised unchanged reading (from -0.1%) in March.\

    The key takeaway from the report is that producer inflation continued to moderate. On a year-over-year basis, total PPI was up 2.3% versus up 2.7% in March. Excluding food and energy, PPI was up 3.2% versus 3.4% in March.


    Initial jobless claims for the week ending May 6 increased by 22,000 to 264,000 (consensus 247,000). Continuing jobless claims for the week ending April 29 increased by 12,000 to 1.813 million.

    The key takeaway from the report is that initial claims reached their highest level since October 30, 2021, tracking in a direction that reflects a labor market that is becoming less tight.


    Treasury yields have been declining since the 8:30 a.m. ET data release.

    2-yr note yield is down nine basis points to 3.82%
    10-yr note yield is down eight basis points to 3.35%.

    Regional bank stocks are sharply lower in premarket action following the PacWest (PACW 4.66, -1.42, -23.4%) news. Western Alliance (WAL 26.00, -1.12, -4.1%) is a standout in that regard despite the company issuing an update, saying that deposits had increased over the same period that PACW saw a decline.


    The S&P 500 futures are down 9 point and are trading 0.2% below fair value.
    The Nasdaq 100 futures are up 9 points and are trading slightly above fair value.
    The Dow Jones Industrial Average futures are down 211 points and are trading 0.6% below fair value.


    Pelton can’t get up for falling down
    $PTON 7.01 ▼ -0.52 (-6.84%) today

    Recalled 2.2 million Peloton Model PL01 stationary bike Thursday over a safety issue with bikes’ seat
    Consumer Product Safety Commission urged Peloton users “immediately stop” riding

    Peloton, which has struggled since sales surged in the early months of the Covid-19 pandemic when gyms were largely shut down, had received 35 complaints from customers, including 13 that said they were injured as a result of the faulty seat.

    $1,400 is the price of Peloton’s Model PL01 at-home bike, which it sold at its own stores, online and at Dick’s Sporting Goods starting in January 2018, according to the CPSC


    On a personal note I did a major “sell in MAY and go away” in my 401k account
    VITAX (Vanguard TECH mutual) is my FAV with 5 stars in Morningstar & moved everything to Money Market
    With over 20% gain in Q1 … locking in today to have “FRESH POWDER” in case more BEARISH times return
    and there is 3-month period to reinvest back into this fund from MM
    However based on risk factors – felt need to hunker & bunker down
    The deer, pugs, and family will await the GREAT CORRECTION as too many wild cards are out there
    Still if one can lock great gains & be patient future buying opportunities await us.
    Thru years VITAX has been good to us … and not an “ad” at all & mainly sharing for anyone having VANGUARD IRAs 🙂


    Dow 33,309.51 -221.82 -0.66%
    S&P 500 4,130.62 -7.02 -0.17%
    Nasdaq 12,328.51 22.06 0.18%
    VIX 16.93 -0.01 -0.06%
    Gold 2,019.70 -17.40 -0.85%
    Oil 71.50 -1.06 -1.46%

    Hopeful for some financial & political MIRACLES in days ahead 🙂


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

    Japan’s Nikkei: +0.9% (+0.8% for the week),
    Hong Kong’s Hang Seng: -0.6% (-2.1% for the week),
    China’s Shanghai Composite: -1.1% (-1.9% for the week),
    India’s Sensex: +0.2% (+1.6% for the week),
    South Korea’s Kospi: -0.6% (-1.0% for the week),
    Australia’s ASX All Ordinaries: +0.1% (+0.5% for the week).


    Hong Kong’s Q1 GDP 5.3% qtr/qtr, as expected (last 0.0%); 2.7% yr/yr, as expected (last -4.2%)

    New Zealand’s April Business PMI 49.1 (expected 50.7; last 48.1) and March Visitor Arrivals -2.9% m/m (expected 106.2%; last 0.6%). Q2 Business Inflation Expectations 2.8% qtr/qtr (last 3.3%)

    Trade ministers from China and Australia held their first in-person conversation since 2019.

    National Security Advisor Jake Sullivan met with China’s top diplomat Wang Yi for two days in Austria.

    Honda and Nissan reported strong results for the quarter.


    Major European indices trade on a firmly higher note.

    STOXX Europe 600: +0.5% (+0.1% week-to-date),
    Germany’s DAX: +0.5% (-0.3% week-to-date),
    U.K.’s FTSE 100: +0.3% (-0.4% week-to-date),
    France’s CAC 40: +0.7% (+0.1% week-to-date),
    Italy’s FTSE MIB: +1.0% (UNCH week-to-date),
    Spain’s IBEX 35: +1.0% (+1.4% week-to-date).


    Q1 GDP 0.1% qtr/qtr, as expected (last 0.1%); 0.2% yr/yr, as expected (last 0.6%).
    Q1 Business Investment 0.7% qtr/qtr (expected -0.4%; last -0.2%); 3.2% yr/yr (expected 11.9%; last 10.8%).
    March Construction Output 0.2% m/m (expected -0.2%; last 2.6%); 4.1% yr/yr (expected 3.6%; last 6.0%). March Industrial Production 0.7% m/m (expected 0.1%; last -0.1%); -2.0% yr/yr (expected -2.9%; last -2.7%).
    March Manufacturing Production 0.7% m/m (expected -0.1%; last 0.1%); -1.3% yr/yr (expected -2.5%; last -1.9%).
    March trade deficit GBP16.36 bln (expected deficit of GBP17.50 bln; last deficit of GBP16.46 bln)


    France’s April CPI 0.6% m/m, as expected (last 0.7%); 5.9% yr/yr, as expected (last 5.7%)

    Spain’s April CPI 0.6% m/m, as expected (last 0.4%); 4.1% yr/yr, as expected (last 3.3%)

    European Central Bank policymaker Nagel repeated that the rate hike in May was not the last one of the cycle and that more tightening is likely after the summer.

    Allianz and Societe Generale reported better than expected results for the quarter.


    News Corp. (NWSA 17.41, +0.67, +4.0%): beats by $0.05, beats on revs; expects to achieve at least $160 mln in annualized savings from headcount reductions

    Fox Corp (FOXA 30.10, -0.57, -1.9%): downgraded to Equal Weight from Overweight at Wells Fargo


    Tesla (TSLA 176.15, +4.03, +2.3%): increased prices for all vehicles in US with the exception of Model 3, according to Reuters; Late yesterday Elon Musk announced on Twitter that he’s hired a new CEO of X/Twitter

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