Traders Market Weekly: Market Dysfunction with Inflation and Supply Fragilities

Viewing 15 posts - 16 through 30 (of 49 total)
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    Credit Suisse warned that it will report a loss for Q1 due to higher provisions for legal matters.

    Danone refuted speculation that it is looking to sell parts of its business.

    The governor of Sweden’s central bank said that he is not worried about a recession at this time while the Czech central bank governor said that more rate hikes are in the cards.


    Eurozone’s February Industrial Production 0.7% m/m (expected 0.2%; last -0.7%); 2.0% yr/yr (expected 0.8%; last -1.5%). February trade deficit EUR7.6 bln (last deficit of EUR27.30 bln)

    Germany’s March PPI 4.9% m/m (expected 2.6%; last 1.4%); 30.9% yr/yr (expected 28.2%; last 25.9%)

    Italy’s February trade deficit EUR1.662 bln (last deficit of EUR5.128 bln)


    The People’s Bank of China made no changes to its one-year and five-year loan prime rates despite expectations for cuts.

    A former PBoC official called for a temporary easing of curbs on property debt.

    The Bank of Japan offered to buy unlimited amounts of 5- and 10-yr JGBs after the country’s 10-yr yield climbed above 0.25% to a level not seen since early 2016.

    Australia’s Finance Ministry now expects that 2022 deficit will be about 3.0% of GDP, up from October’s projection of 2.3% of GDP.


    Japan’s March trade deficit JPY412.40 bln (expected deficit of JPY100.80 bln; last deficit of JPY669.70 bln). March Imports 31.2% yr/yr (expected 28.9%; last 34.1%) and March Exports 14.7% yr/yr (expected 17.5%; last 19.1%)

    Australia’s March MI Leading Index 0.3% m/m (last 0.4%)


    Dow 35,160.79 249.59 0.71%
    S&P 500 4,459.45 -2.76 -0.06%
    Nasdaq 13,453.07 -166.59 -1.22%
    GlobalDow 4,061.17 21.90 0.54%
    Gold 1,959.90 0.90 0.05%
    Oil 102.56 0.00 0.00%


    U.S. Corporate news:

    Netflix (NFLX 255.19, -93.42): -26.8% after losing 200,000 global paid subscribers in Q1 and estimating it will lose 2 million more subscribers in Q2. Netflix beat EPS estimates but missed revenue estimates and issued downside Q2 guidance. The company is open to offering a lower priced service with advertising.

    IBM (IBM 132.18, +3.03): +2.4% after beating top and bottom-line estimates and expecting FY22 revenue growth (constant currency) at the high end of the mid-single digit range.

    Procter & Gamble (PG 161.50, +2.09): +1.3% after beating top and bottom-line estimates.
    Abbott Labs (ABT 121.00, +1.02): +0.9% after beating top and bottom-line estimates.

    Lululemon athletica (LULU 413.20, +8.54): +2.1% after announcing a five-year growth plan to double revenue by 2026 to $12.5 billion.



    Abbott Labs (ABT) beats by $0.27, beats on revs; reaffirms FY22 EPS guidance
    Anthem (ANTM) beats by $0.42, beats on revs
    ASML (ASML) beats by €0.05, beats on revs; guides Q2 revs below consensus; reaffirms FY22 revs guidance
    Avient (AVNT) beats by $0.04, beats on revs; guides Q2 EPS in-line; guides FY22 EPS in-line
    Baker Hughes (BKR) misses by $0.05, misses on revs
    Comerica (CMA) reports EPS in-line
    Danone (DANOY) reports Q1 net sales increased 7% yr/yr; reaffirms FY22 outlook
    First Horizon (FHN) beats by $0.03
    Fulton Fincl (FULT) beats by $0.06, net interest income decreased by 1.9% yr/yr
    GATX (GATX) beats by $0.95, misses on revs; reaffirms FY22 EPS guidance
    Hancock Whitney (HWC) beats by $0.08, net interest income down less than 1% yr/yr to $231 mln
    Healthcare Services Group (HCSG) beats by $0.09, reports revs in-line
    Holley Inc. (HLLY) guides Q1 net revs above consensus
    IBM (IBM) beats by $0.01, beats on revs; expects FY22 revenue growth (constant currency) at the high end of the mid-single digit range
    Interactive Brokers (IBKR) reports EPS in-line, misses on revs
    Lithia Motors (LAD) beats by $1.62, beats on revs; raises dividend
    lululemon athletica (LULU) announces five-year growth plan to double revenue by 2026 to $12.5 billion
    MarketAxess (MKTX) beats by $0.01, reports revs in-line
    Marten Transport (MRTN) beats by $0.07, beats on revs
    Matson (MATX) guides Q1 earnings nicely above consensus (two analyst estimate)
    NASDAQ (NDAQ) beats by $0.02, reports revs in-line; provides non-GAAP operating expense guidance
    Netflix (NFLX) beats on EPS, reports slight downside on revs; guides Q2 EPS below consensus, revs slightly below consensus; Net adds in Q1 were -0.20 mln vs +2.50 mln prior guidance
    Omnicom (OMC) beats by $0.06, beats on revs
    PacWest Bancorp (PACW) misses by $0.03
    Procter & Gamble (PG) beats by $0.04, beats on revs; reaffirms FY22 EPS guidance, guides FY22 revs in-line
    Rexford Industrial Realty (REXR) beats by $0.03, reports revs in-line; guides FY22 FFO below consensus
    Rio Tinto (RIO) reports Q1 Production; Pilbara iron ore production down 6% yr/yr
    Rogers Comms (RCI) beats by CAD0.08, reports revs in-line; raised outlook
    Stride (LRN) beats by $0.14, beats on revs; guides FY22 revs above consensus
    United Comm Banks (UCBI) reports Q1 (Mar) results, revs in-line
    Vale S.A. (VALE) reports Q1 production results
    Wintrust Fin (WTFC) beats by $0.55, beats on revs


    After Hours:

    Alcoa (AA) beats by $0.18, misses on revs… AA down 4.6%
    Carvana (CVNA) misses by $1.31, beats on revs; no longer providing specific numeric near-term guidance for the remainder of the year; announces $1 bln Class A common stock offering… CVNA down 23.0%
    CSX (CSX) beats by $0.02, beats on revs… CSX up 2.2%
    Equifax (EFX) beats by $0.08, beats on revs; guides Q2 EPS below consensus; lowers FY22 guidance… EFX down 7.5%
    Lam Research (LRCX) misses by $0.11, misses on revs; guides JunQ EPS below consensus, revs in-line… LRCX down 1.3%
    Landstar System (LSTR) beats by $0.15, beats on revs; guides Q2 EPS, revs above consensus… LSTR up 1.5%
    Sleep Number (SNBR) misses by $0.25, misses on revs; guides FY22 EPS in-line… SNBR down 6.2%
    Steel Dynamics (STLD) reports Q1 EPS above prior guidance, beats on revs… STLD up 1.1%
    Tesla (TSLA) beats by $0.95, beats on revs; reiterates expectation to achieve 50% average annual growth in deliveries over multi-year horizon… TSLA up 4.1%
    United Airlines (UAL) misses by $0.02, misses on revs; expects to be profitable for FY22; expects highest quarterly revenue in company history in Q2… UAL up 8.0%


    Market Updates

    S&P Futures vs Fair Value: +35.0
    10 yr Note: 2.882%
    USD/JPY: 128.14 +0.25
    EUR/USD: 1.0920 +0.0063
    Europe: FTSE: -0.1% DAX: 1.2% CAC: +1.5%
    Asia: Hang Seng: -1.3% Shanghai: -2.3% Nikkei: +1.2%
    Gold (1945.50 -10.10) Silver (24.97 -0.30) Crude (102.99 +0.24)


    The global equity markets are mixed but US futures are pushing to higher ground. The S&P Futures are up about 35 points to trade around the 4490 area. The market found support in the neighborhood of 4470 with the ultimate low print coming in at 4467.50. Spoos lifted to a fresh high of 4493.75 during the European session and are currently trading toward the top end of the range.

    In Asia, China dropped over 2% while Japan jumped over 1%. Sellers remained in control of the Shanghai after the state continued to keep some businesses shut down due to the zero COVID policy. In Japan, the Nikkei advanced with the yen remaining near a 20-year low. Semiconductors were among the leaders with names such as Tokyo Electron and Advantest surging 2-3%.

    In Europe, the DAX and CAC are over 1% higher while the FTSE lags. Eurozone headline CPI and Core CPI came in a tick below expectations and may be lending a boost to sentiment. Financials continue to represent leadership with banks such as BNP Paribas, Societe Generale and Deutsche Bank up 2-3%.


    Key factors driving the futures market

    Tesla (TSLA) up 7.5% after posting much better-than-expected earnings results and growth outlook
    Several airlines highlighting record demand in conjunction with posting March quarter earnings results
    Better-than-expected earnings results from multiple companies in industrials and materials sectors (key cyclical sectors) feeding better sentiment about near-term economic outlook


    Upgrades: BHP, XOM, HLIT, MKTX, RRC
    Downgrades: CVX, EFX, NFLX, CMA, MCRI, RIO, SMG, TWTR


    Netflix (NFLX) slumps another 3.5% on further downgrades and report Pershing Square Holdings sold its entire stake yesterday less than four months after buying 3.1 million shares
    Carvana (CVNA) down 4.5% after big earnings miss, although well off post-report lows in yesterday’s after-hours trade


    Japan’s Nikkei: +1.2%
    Hong Kong’s Hang Seng: -1.3%
    China’s Shanghai Composite: -2.3%
    India’s Sensex: +1.5%
    South Korea’s Kospi: +0.4%
    Australia’s ASX All Ordinaries: +0.2%


    Equity indices in the Asia-Pacific region ended Thursday on a mixed note. The Bank of Japan will continue offering to buy unlimited amounts of 10-yr JGBs until Tuesday. Japan’s Finance Minister is expected to meet with his U.S. counterpart today. An extra budget will be compiled by Japan’s government. South Korea’s exports through the first 20 days of April were up 16.9% yr/yr with chip exports increasing 22.9%.

    South Korea’s March PPI 1.3% m/m (last 0.5%); 8.8% yr/yr (last 8.5%)
    Hong Kong’s March Unemployment Rate 5.0% (last 4.5%)
    New Zealand’s Q1 CPI 1.8% qtr/qtr (expected 2.0%; last 1.4%); 6.9% yr/yr (expected 7.1%; last 5.9%)

Viewing 15 posts - 16 through 30 (of 49 total)
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