Traders Market Weekly: Santa Claus Came to Town

Viewing 15 posts - 61 through 75 (of 97 total)
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    Equity indices in the Asia-Pacific region were mixed on Thursday, although Japan’s Nikkei (-1.6%) was a notable underperformer.

    Shares of heavyweight component Toyota Motor fell sharply on news the auto maker recalled nearly 1 million Toyota and Lexus vehicle in the U.S. for a safety issue. A stronger yen and some general profit-taking activity contributed to the Nikkei’s weakness.

    —Equity Markets—

    Japan’s Nikkei: -1.6%
    Hong Kong’s Hang Seng: flat
    China’s Shanghai Composite: +0.6%
    India’s Sensex: +0.5%
    South Korea’s Kospi: -0.6%
    Australia’s All Ordinaries: -0.5%


    Cabinet Office updated its FY24 GDP growth forecast to 1.3% (vs 1.2% prior); overall inflation in next fiscal year expected to be 2.5%. Press reports suggest sales of Japanese government bonds could be down ~11% yr/yr in FY24/25.


    The Wall Street Journal reports the Biden Administration is looking at possibly raising tariffs on some Chinese goods, including EVs and solar products made in China.
    In a key corporate development, Air Current reports that Boeing (BA) secured CAAC clearance for 737 Max deliveries in China.

    China’s November Foreign Direct Investment -10.0% (last -9.4%)


    South Korea’s
    November PPI -0.4% m/m (last -0.1%) and 0.6% yr/yr (last 0.8%)

    Hong Kong’s
    November CPI 0.0% m/m (last 1.0%) and 2.6% yr/yr (expected 2.7%; last 2.7%)

    New Zealand’s
    November Credit Card Spending 3.3% yr/yr (last -2.8%)


    Major European indices are trading lower in today’s session without a specific news catalyst to account for the weakness other than yesterday’s news that the U.S. market suffered an abrupt selloff in afternoon trading.

    The precipitant for that selloff was unclear, although there was some chatter that trading activity in zero-day options hastened the retreat. The U.S. market, though, was ripe for a profit-taking pullback given its huge run since late October, so there was likely a general move to take some money off the table that also played a part in the hasty retreat.

    Profit-taking activity looks to have spilled over to European bourses. That hasn’t deterred the euro, however.

    It has caught a bid (vis a vis the dollar), helped in part by ECB member de Guindos toeing the party line and saying that it is still premature to be talking rate cuts. EUR/USD +0.4% to 1.0983.

    —Equity Markets—

    STOXX Europe 600: -0.3%
    Germany’s DAX: -0.3%
    UK’s FTSE 100: -0.4%
    France’s CAC 40: -0.3%
    Italy’s FTSE MIB: -0.4%
    Spain’s IBEX 35: flat


    December Business Survey 100 (expected 98; last 99)

    November PPI -0.9% m/m (last 1.5%) and -12.6% yr/yr (last -9.5%)


    S&P 500 futures are up 33 points and are trading 0.7% above fair value,
    Nasdaq 100 futures are up 162 points and are trading 1.0% above fair value
    Dow Jones Industrial Average futures are up 209 points and are trading 0.6% above fair value.


    Initial jobless claims for the week ending December 16 increased by 2,000 to 205,000 (consensus 218,000) and continuing jobless claims for the week ending December 9 decreased by 1,000 to 1.865 million.

    The key takeaway from the report is virtually the same as last week, because initial claims were virtually the same in the latest week: the level of initial claims is still a long way from being associated with levels registered during a recession.


    Q3 real GDP was revised lower with the third estimate, but it was still a heady 4.9% (consensus 5.2%) versus the second estimate of 5.2% and 2.1% in the second quarter. The GDP Price Deflator, meanwhile, was revised down to 3.3% ( consensus 3.6%) from 3.6% in the second estimate and 1.7% in the second quarter.

    The key takeaway from the report is that the downward revision largely reflected a downward revision to consumer spending growth to 3.1% from 3.6% in the second estimate.


    The December Philadelphia Fed Index checked in at -10.5 (consensus -3.0) versus -5.9 for November. A number below 0.0 for this series is indicative of contraction.

    The key takeaway from this report for a market anticipating a soft landing is that most future activity indicators rose, which points to widespread expectations for overall growth for the next six months.

    Treasury yields moved lower in response.
    The 2-yr note yield, at 4.35% just before 8:30 ET, pulled back to 4.31%.
    The 10-yr note yield, at 3.86% right before the data, sits at 3.85% now.


    Micron (MU 83.45, +4.81, +6.1%): beats by $0.06, beats on revs; guides Q2 EPS above consensus, revs above consensus
    CarMax (KMX 80.00, +5.32, +7.1%): beats by $0.10, misses on revs
    Apogee Enterprises (APOG 52.82, +1.03, +2.0%): beats by $0.13, misses on revs; guides FY24 EPS above consensus, revs below consensus
    MillerKnoll (MLKN 30.98, +1.98, +6.8%): beats by $0.05, misses on revs; guides FebQ EPS above consensus, revs below consensus; guides FY24 EPS above consensus
    BlackBerry (BB 3.93, -0.17, -4.2%): beats by $0.05, beats on revs; guides Q4 revs below consensus


    Calliditas Therapeutics (CALT 25.42, +3.32, +15.0%): announces full FDA approval of TARPEYO®, the only FDA-approved treatment for IgA nephropathy to significantly reduce the loss of kidney function


    Boeing (BA 265.00, +4.75, +1.8%): secured CAAC clearance for 737 Max deliveries in China, according to Air Current


    Salesforce (CRM 265.20, +4.95, +1.9%): upgraded to Overweight from Equal-Weight at Morgan Stanley


    RALLY TIME on 1st DAY OF WINTER 2023-202 🙂
    Shortest day of the year – and maybe “shortest risk investors will go on WALL STREET – lol 🙂

    Dow 37,404.35 322.35 0.87%
    S&P 500 4,746.75 48.40 1.03%
    Nasdaq 14,963.87 185.92 1.26%
    VIX 13.55 -0.12 -0.88%
    Gold 2,056.40 8.70 0.42%
    Oil 74.03 -0.19 -0.26%
    Bitcoin 43.763

Viewing 15 posts - 61 through 75 (of 97 total)
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