Traders Market Weekly: Fed, Inflation and Profit Warnings

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    There was some speculation that the Bank of Japan is preparing to intervene in the currency market to slow the yen’s depreciation against the dollar.
    South Korea’s Finance Ministry also reiterated that it will closely monitor currency and financial markets.
    India’s wholesale inflation slowed a bit in August.
    Japan’s July Core Machinery Orders 5.3% m/m (expected -0.8%; last 0.9%); 12.8% yr/yr (expected 6.6%; last 6.5%). September Reuters Tankan Index 10 (last 13). July Industrial Production 0.8% m/m (expected 1.0%; last 9.2%) and Capacity Utilization 2.4% m/m (last 9.6%)
    India’s August WPI Inflation 12.41% yr/yr (expected 13.00%; last 13.93%)
    Singapore’s Q2 Unemployment Rate 2.1% (last 2.1%)
    New Zealand’s Q2 Current Account -7.7% of GDP (expected -7.4% of GDP; last -6.5% of GDP)


    Major European indices trade on a mostly lower note while Italy’s MIB (+0.4%) outperform with financials contributing to the relative strength.

    —Equity Markets—

    STOXX Europe 600: -0.9%
    Germany’s DAX: -1.0%
    U.K.’s FTSE 100: -1.3%
    France’s CAC 40: -0.5%
    Italy’s FTSE MIB: +0.2%
    Spain’s IBEX 35: -0.1%


    The U.K. reported a slight unexpected deceleration in its yr/yr CPI growth rate. European Commission President von der Leyen announced measures aimed at dealing with the region’s energy crisis.
    French Finance Ministry announced that its domestic growth forecast for 2023 was reduced to 1.0% from 1.4%.

    Eurozone’s July Industrial Production -2.3% m/m (expected -1.0%; last 1.1%); -2.4% yr/yr (expected 0.4%; last 2.2%)
    U.K.’s August CPI 0.5% m/m (expected 0.6%; last 0.6%); 9.9% yr/yr (expected 10.2%; last 10.1%). August Core CPI 0.8% m/m, as expected (last 0.3%); 6.3% yr/yr, as expected (last 6.2%). August Input PPI -1.2% m/m (expected 0.3%; last 0.0%) and Output PPI -0.1% m/m (expected 0.9%; last 1.6%)


    Warner Bros. Discovery (WBD 12.90, -0.05, -0.39%): lower on report it plans to layoff about 30% of its ad sales employees, according to Deadline
    Johnson & Johnson (JNJ 161.83, +0.50, +0.31%): authorized the repurchase of up to $5 billion of the company’s common stock; reaffirms its full-year 2022 guidance
    Stellantis (STLA 13.61, +0.20, +1.49%): Company and General Motors (GM) to execute a share repurchase transaction
    Starbucks (SBUX 89.25, +1.41, +1.61%): provides new growth targets in Reinvention Plan
    Raytheon Technologies (RTX 84.30, +0.58, +0.69%): lowers its FY22 free cash flow outlook to account for the impact of certain legislation; reaffirms FY22 sales and EPS guidance
    Flowserve (FLS 30.02, -0.77, -2.50%): provides an update on expected Q3 results, disclosing that two events are expected to negatively impact EPS by $0.18-$0.22
    Alphabet (GOOG 105.53, +0.22, +0.21%): EU General Court largely confirms the Commission’s decision that Google imposed unlawful restrictions on manufacturers of Android mobile devices and mobile network operators in order to consolidate the dominant position of its search engine
    Akero Therapeutics (AKRO 28.70, -0.35, -1.20%): commences $175 mln common stock offering; upgraded to Outperform from In-line at Evercore ISI
    Nucor (NUE 129.25, -6.85, -5.03%): sees Q3 earnings below consensus


    RIP Ramsey Lewis (age 87) who passed away yesterday
    He was one of world’s best at JAZZ piano/keyboards/Moog
    My better half & I love this album from 1974 (Earth Wind & Fire are major part of also)


    and speaking of GREAT JAZZ — as we need some uplifting music these days – lol 🙂


    Dow 31,135.09 30.12 0.10%
    S&P 500 3,946.01 13.32 0.34%
    Nasdaq 11,719.68 86.10 0.74%
    GlobalDow 3,510.86 -107.01 -2.96%
    Gold 1,707.00 -10.40 -0.61%
    Oil 88.98 1.67 1.91%


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

    —Equity Markets—

    Japan’s Nikkei: +0.2%
    Hong Kong’s Hang Seng: +0.4%
    China’s Shanghai Composite: -1.2%
    India’s Sensex: -0.7%
    South Korea’s Kospi: -0.4%
    Australia’s ASX All Ordinaries: +0.2%


    Japan’s Finance Minister Suzuki said that a potential intervention in the currency market will not be announced ahead of time and would be “swift and without pause.” There was some press speculation that Japan will call on citizens to conserve power during the winter.
    South Korea reportedly sold dollars to support the won. Some banks in China have reportedly cut personal deposit rates.
    ASB Bank expects that the Reserve Bank of New Zealand’s official cash rate will peak at 4.25%, 25 bps above the prior forecast.
    Japan’s August trade deficit JPY2.817 trln (expected deficit of JPY2.398 trln; last deficit of JPY1.434 trln). August Imports 49.9% yr/yr (expected 46.7%; last 47.2%) and Exports 22.1% yr/yr (expected 23.6%; last 19.0%). July Tertiary Industry Activity Index -0.6% m/m (expected -0.1%; last -0.4%)
    Australia’s August Employment Change 33,500 (expected 35,000; last -41,000) and full employment change 58,800 (last -86,900). August Participation Rate 66.6%, as expected (last 66.4%) and August Unemployment Rate 3.5% (expected 3.4%; last 3.4%). MI Inflation Expectations 5.4% (last 5.9%)
    New Zealand’s Q2 GDP 1.7% qtr/qtr (expected 1.0%; last -0.2%); 0.4% yr/yr (expected 0.2%; last 1.2%)


    Major European indices trade on a mostly lower note.

    —Equity Markets—

    STOXX Europe 600: -0.2%
    Germany’s DAX: -0.2%
    U.K.’s FTSE 100: +0.3%
    France’s CAC 40: -0.6%
    Italy’s FTSE MIB: -0.2%
    Spain’s IBEX 35: +0.3%


    Italy is expected to spend EUR13.50 bln on an energy aid package. European Central Bank policymaker De Guindos acknowledged that price pressures in the eurozone have continued strengthening and broadening while policymaker Kazaks said that rates may have to continue rising after February to get inflation back to the 2.0% target. Sweden’s prime minister resigned after her party lost support in last weekend’s general election. Shell named a new CEO.
    Eurozone’s July trade deficit EUR34.00 bln (expected deficit of EUR20.00 bln; last deficit of EUR25.40 bln). Q2 eurozone wages 4.1% yr/yr (last 3.7%) and labor cost index 4.0% yr/yr (last 4.2%)
    Germany’s August WPI 0.1% m/m (expected 0.5%; last -0.4%); 18.9% yr/yr (last 19.5%)
    France’s August CPI 0.5% m/m (expected 0.4%; last 0.3%); 5.9% yr/yr (expected 5.8%; last 5.8%)


    CSX (CSX 32.30, +1.07, +3.43%); Union Pacific (UNP 226.99, +9.04, +4.15%); Norfolk Southern (NSC 245.50, +7.46, +3.13%): US Department of Labor says rail companies, unions came to tentative pact, according to Bloomberg TV; separately, CSX announced a new CEO
    Okta (OKTA 61.37, +0.57, +0.94%): initiated with a Buy at Jefferies
    Netflix (NFLX 229.24, +5.12, +2.28%): upgraded to Outperform from In Line at Evercore ISI
    Humana (HUM 476.85, +18.00, +3.92%): raises FY22 EPS guidance, introduces mid-term adjusted EPS target of $37.00 for FY25
    Southwest Air (LUV 38.00, -0.03, -0.08%): provides Q3 guidance update; narrows operating revs; Operating revenue compared with 2019: Up 9% to 11% vs Up 8% to 12% prior
    Danaher (DHR 291.88, +10.15, +3.60%): to separate its Environmental & Applied Solutions segment to create an independent, publicly traded company
    Arconic (ARNC 23.50, -1.98, -7.77%): lowers FY22 revenue and adjusted EBITDA guidance to reflect the impact of operational issues and the combination of demand declines and higher unhedged energy costs in Europe
    APA Corp. (APA 42.50, +0.76, +1.82%): doubles quarterly dividend to $0.25/sh and increases share buyback authorization by 40 mln shares


    Mega cap stocks leading $ES_F and $NQ_F lower. Vanguard Mega Cap Growth ETF $MGK
    Down 191.39 ▼ 2.81 (▼1.45%)
    Versus Invesco S&P 500 Equal Weight ETF $RSP
    Down much less 141.02 ▼ 0.25 (▼0.18%)
    $MSFT $GOOG $AAPL some steepest losses


    ^^^^ +1s and LOL … the “inflation reduction act” had better get into high gear
    or the WALL STREET BEARS will prevail … I’m been 100% “KASH” since start of WAR started in early 2022
    and the crazy political & economic times we live in … that alone is enough to BUNKER down
    and both parties have FAILED & need to improve in meeting more in middle — than extreme positions
    Still all we can do is pray for nation & vote our conscience in NOV 🙂



    FedEX Warns
    $FEDX 181.84▼ 23.03 (▼11.24%) After Hours
    $ES_F lower
    Prelim Q1 Adj EPS $3.44, Est. $5.10
    Prelim Q1 Rev. $23.2b, Est. $23.54b
    Reaffirms Plan To Buyback $1.5b Shares
    Withdrawing FY 2023 Earnings Forecast

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