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Major European indices trade on a mostly lower note while Spain’s IBEX (+0.1%) outperforms slightly.
—Equity Markets—
STOXX Europe 600: -0.3%
Germany’s DAX: -0.5%
U.K.’s FTSE 100: -0.1%
France’s CAC 40: -0.3%
Italy’s FTSE MIB: -0.2%
Spain’s IBEX 35: +0.1%The U.K.’s November CPI showed a slowdown in the yr/yr rate to 10.7% from 11.1% that was reached in October.
Meanwhile, Spain’s CPI slowed for the fourth consecutive month.
Travel operator TUI beat revenue expectations for the fiscal year and announced that it will repay aid received during the pandemic.
Germany’s ifo Institute raised the domestic growth forecast for 2022 to 1.8% from 1.6% while the outlook for next year was increased to -0.1% from -0.3%.
The European Central Bank and the Bank of England are expected to announce 50-bps rate hikes tomorrow after the Federal Reserve does the same today.
Eurozone’s October Industrial Production -2.0% m/m (expected -1.5%; last 0.8%); 3.4% yr/yr, as expected (last 5.1%)
U.K.’s November CPI 0.4% m/m (expected 0.6%; last 2.0%); 10.7% yr/yr (expected 10.9%; last 11.1%). November Core CPI 0.3% m/m (expected 0.5%; last 0.7%); 6.3% yr/yr (expected 6.5%; last 6.5%). November RPI 0.6% m/m (expected 0.5%; last 2.5%); 14.0% yr/yr (last 13.9%; last 14.2%)
Italy’s Q3 Unemployment Rate 7.9% (last 8.1%)
Spain’s November CPI -0.1% m/m, as expected (last 0.3%); 6.8% yr/yr (expected 6.3%; last 7.3%)
Swiss November CPI -0.5% m/m (last 0.0%); 3.8% yr/yr (last 4.9%)November Import/Export prices
Import prices fell 0.6% in November after a revised 0.4% decline in October (from -0.2%). Import prices, excluding oil, fell 0.4% following a 0.1% decline in October.
Export prices fell 0.3% in November following a revised 0.4% decline in October (from -0.3%). Export prices, excluding agriculture, fell 0.6% after a 0.3% decline in October.Delta Air Lines (DAL 34.82, +1.44, +4.3%): raises Q4 EPS guidance; narrows Q4 revenue guidance; sees FY23 EPS and revs above consensus; sees FY24 EPS above consensus
Lennar (LEN 91.40, +0.81, +0.9%): upgraded to Overweight from Equal Weight at Barclays
Plug Power (PLUG 14.64, +0.53, +3.8%): USB initiated coverage with a Buy rating
Tesla (TSLA 159.49, -1.46, -0.9%): price target lowered to $235 from $305 at Goldman Sachs, according to CNBC; investors are concerned about CEO Elon Musk’s focus on Twitter, according to WSJ
Braze (BRZE 27.26, -1.64, -5.7%): beats by $0.07, beats on revs; guides JanQ EPS above consensus, revs above consensus
Best Buy (BBY 81.72, -2.35, -2.8%): downgraded to Underperform from Neutral at BofA SecuritiesGrowth stocks have a slightly performance edge over value stocks. The Russell 3000 Growth Index is up 0.7% versus a 0.4% gain in the Russell 3000 Value Index.
The CBOE Volatility Index is down 1.5% or 0.33 to 22.22 in front of the FOMC decision this afternoon.
Article from “Ghost Watch” (lol) — I knew that BONDS were a bad investment this year
Noted as WORST YEAR on RECORD – as I’ve not been bond investor for all years in 401k programs
I’ve done fairly well privately with Roth & 401k by selling HIGH (36,000)
and then reinvesting 100% on major selloffs (29,000) — and hoping not to buy FALLING KNIVES – lol
and staying in CASH money markets or STOCKS patiently waiting – can yield mathematical profits
2022 was good year for us on that front … Finally, cautious investors stay away from KRYTPOs 🙂SPEAKING of BONDS — my FAV movie theme in series from great Norwegian group 😉
PPPPPPLLLLLLUUUUNNNNGGGGGGEEEEEEEEEEE
50 BPS – “sell on news” as stocks instantly went GREEN to RED
7% current INFLATION is still too high v. 2% desired rate
depending on Jerome’s statement later – markets could swing in either direction
esp. hints of further FED MOVES that might occur in 2023Dow 33,966.35 -142.29 -0.42%
S&P 500 3,995.32 -24.33 -0.61%
Nasdaq 11,170.89 -85.93 -0.76%
VIX 21.36 -1.19 -5.28%
Gold 1,818.50 -7.00 -0.38%
Oil 77.39 2.00 2.65%Equity indices in the Asia-Pacific region ended Thursday on a mostly lower note.
Japan’s Nikkei: -0.4%,
Hong Kong’s Hang Seng: -1.6%,
China’s Shanghai Composite: -0.3%,
India’s Sensex: -1.4%,
South Korea’s Kospi: -1.6%,
Australia’s ASX All Ordinaries: -0.7%.China’s November Retail Sales -5.9% yr/yr (expected -3.7%; last -0.5%), November Industrial Production 2.2% yr/yr (expected 3.6%; last 5.0%), and November Fixed Asset Investment 5.3% yr/yr (expected 5.6%; last 5.8%). November House Prices -1.6% yr/yr (last -1.6%)
Japan’s November trade deficit JPY2.03 trln (expected deficit of JPY1.68 trln; last deficit of JPY2.17 trln). November Imports 30.3% yr/yr (expected 27.0%; last 53.5%) and Exports 20.0% yr/yr (expected 19.8%; last 25.3%). October Tertiary Industry Activity Index 0.2% m/m (expected 0.4%; last -0.2%)
South Korea’s November Import Price Index 14.2% yr/yr (last 19.8%) and Export Price Index 8.6% yr/yr (last 13.5%)
Australia’s November Employment Change 64,000 (expected 19,000; last 43,100) and full employment change 34,200 (last 47,100). November Unemployment Rate 3.4%, as expected (last 3.4%) and Participation Rate 66.8% (expected 66.6%; last 66.5%). MI Inflation Expectations 5.2% (last 6.0%)
New Zealand’s Q3 GDP 2.0% qtr/qtr (expected 0.9%; last 1.9%); 6.4% yr/yr (expected 5.5%; last 0.3%)
In news:
Equities in China and Hong Kong were pressured by weak November growth figures while property names were also among the laggards.
China’s National Stats Bureau reiterated that the foundation for an economic recovery is not solid yet. The Chinese government is expected to release a 12-year plan for expanding domestic demand.
Hong Kong Monetary Authority followed yesterday’s fed funds rate hike with its own 50-bps increase to 4.75%, as expected.Major European indices trade in the red amid focus on central banks.
STOXX Europe 600: -1.1%,
Germany’s DAX: -1.2%,
U.K.’s FTSE 100: -0.5%,
France’s CAC 40: -1.2%,
Italy’s FTSE MIB: -1.0%,
Spain’s IBEX 35: -0.5%.Germany’s November WPI -0.9% m/m (last -0.6%); 14.9% yr/yr (last 17.4%)
France’s November CPI 0.3% m/m (expected 0.4%; last 1.0%); 6.2% yr/yr, as expected (last 6.2%). December Business Survey 101 (expected 100; last 101)
Spain’s October trade deficit EUR6.85 bln (last deficit of EUR6.98 bln)
The Bank of England raised its bank rate by 50 bps to 3.50%, as expected. Most BoE policymakers believe that further increases will be needed, and the BoE also noted that the U.K. is in a recession, expecting Q4 GDP to contract 0.1%.
The Swiss National Bank raised its policy rate by 50 bps to 1.00% and Norges Bank raised its rate by 25 bps to 2.75%.
The European Central Bank is expected to announce a 50-bps rate hike of its own at 8:15 ET.
The U.K. may extend energy subsidies for businesses past the winter, though at a lower level.Western Digital (WDC 34.10, -1.73, -4.8%): downgraded to Sell from Neutral at Goldman Sachs
AT&T (T 18.66, -0.24, -1.3%): downgraded to Equal Weight from Overweight at Morgan Stanley
Verizon (VZ 37.76, +0.31, +0.8%): upgraded to Overweight at Morgan Stanley
Tesla (TSLA 154.69, -2.11, -1.4%): indicated lower after CEO Elon Musk disclosed the sale of 21,995,000 shares worth more than ~$3.5 bln (transaction dates were 12/12 – 12/14)
Fidelity Nat’l Info (FIS 74.12, +1.71, +2.4%): incoming CEO and Board commence review to strengthen performance and drive value creation
Novavax (NVAX 15.40, -1.83, -10.6%): announces $125 mln convertible notes offering; co also announces a $125 mln public offering for its common stock; reaffirms FY22 revs guidance
American Express (AXP 151.66, -2.45, -1.6%) BofA named a top pick
Nordson (NDSN 240.00, +4.09, +1.7%): beats by $0.11, beats on revs; guides JanQ EPS below consensus, revs in-line; guides FY23 EPS in-line, revs in-line
Lennar (LEN 88.36, -2.46, -2.7%): beats by $0.12, reports revs in-line; expects new orders and deliveries of 12,000-13,500 in FebQ; deliveries of 60,000-65,000 in FY23The S&P 500 futures are down 53 points and are trading 1.3% below fair value.
The Nasdaq 100 futures are down 192 points and are trading 1.6% below fair value.
The Dow Jones Industrial Average futures are down 371 points and are trading 1.1% below fair value.Total retail sales fell 0.6% in November (consensus -0.1%) after a 1.3% increase in October. Retail sales, excluding autos, fell 0.2% in November (consensus +0.2%) following a revised 1.2% increase in October (from 1.3%).
Weekly initial jobless claims totaled 211,000 (consensus 227,000) following a revised 231,000 last week (from 230,000). Continuing claims came in at 1.671 million after last week’s revised count of 1.670 million (from 1.671 million).
The Philadelphia Fed Index came in at -13.8 in December from -19.4 in November. The Empire State Manufacturing Index fell -11.2 in December after a reading of 4.5 in November.
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