Traders Market Weekly: Market Dysfunction with Inflation and Supply Fragilities

Viewing 15 posts - 31 through 45 (of 49 total)
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  • #35792
    Truman
    Participant

    Major European indices trade in the green. There are growing expectations that the European Central Bank will raise rates as early as July after policymakers de Guindos and Wunsch spoke about the possibility. Greece will increase its minimum wage on May 1. Industrial robotics company ABB reported strong Q2 results. British Prime Minister Johnson indicated that he will seek reelection.

    Eurozone’s March CPI 2.4% m/m (expected 2.5%; last 0.9%); 7.4% yr/yr (expected 7.5%; last 5.9%). March Core CPI 1.2% m/m, as expected (last 0.5%); 2.9% yr/yr (expected 3.0%; last 2.7%)
    France’s April Business Survey 108 (expected 105; last 107)

    #35793
    Truman
    Participant

    STOXX Europe 600: +0.7%
    Germany’s DAX: +1.5%
    U.K.’s FTSE 100: +0.3%
    France’s CAC 40: +1.9%
    Italy’s FTSE MIB: +0.2%
    Spain’s IBEX 35: +0.9%

    #35794
    Truman
    Participant

    Latest weekly initial jobless claims count totaled 184,000 (Briefing.com consensus 195,000). That was below the prior week’s revised count of 186,000 (from 185,000). As for continuing claims, they decreased to 1.417 million from an unrevised count of 1.475 million.

    The Philadelphia Fed Index for April decreased to 17.6 (Briefing.com consensus 21.0) from 27.4 in March.

    #35795
    Truman
    Participant

    Tesla (TSLA 1049.00, +71.80): +7.4% after beating top and bottom-line estimates and reiterating expectations to achieve 50% average annual growth in deliveries over a multi-year horizon.
    AT&T (T 19.70, +0.27): +1.4% despite missing EPS estimates.
    Dow Inc. (DOW 68.95, +1.41): +2.1% after beating top and bottom-line estimates.
    American Airlines (AAL 21.56, +2.08): +10.7% after beating top and bottom-line estimates.
    United Airlines (UAL 50.45, +3.93): +8.5% on expectations for Q2 to be the highest quarterly revenue in company history and for the company to be profitable in FY22. United missed top and bottom-line estimates.
    Alaska Air (ALK 61.61, +2.92): +5.0% after beating EPS estimates and guiding FY22 revenue above consensus.

    #35796
    Truman
    Participant

    U.S. Treasuries are on track for a lower start with shorter tenors expected to give back their gains from yesterday. Treasury futures faced some selling pressure last evening, reaching lows around the midpoint of the Asian session. The trading range narrowed as the night went on with Treasuries remaining just above their worst levels of the night.

    The overnight session saw a limited set of economic data while equity markets in Asia had a mixed showing, followed by gains in Europe. The Bank of Japan will continue offering to buy unlimited amounts of 10-yr JGBs until Tuesday as the country’s 10-yr yield remains near 0.25%. Eurozone’s yr/yr inflation rate was revised down to 7.4% in the final March reading from 7.5% in the preliminary report.

    2-yr: +5 bps to 2.62%
    3-yr: +5 bps to 2.83%
    5-yr: +4 bps to 2.90%
    10-yr: +2 bps to 2.86%
    30-yr: +2 bps to 2.90%

    #35808

    Dow 34,792.76 -368.03 -1.05%
    S&P 500 4,393.66 -65.79 -1.48%
    Nasdaq 13,174.65 -278.41 -2.07%
    GlobalDow 4,028.00 -34.29 -0.84%
    Gold 1,953.30 -2.30 -0.12%
    Oil 103.93 1.74 1.70%

    #35817
    Truman
    Participant

    Asia-Pacific for Fri/Week.

    Japan #Nikkei -1.6% (UNCH for week)
    Hong Kong #HangSeng -0.2% (-4.1% )
    China #Shanghai Comp+0.2% (-3.9%)
    India #Sensex -1.2% (-2.0%)
    South Korea #Kospi -0.9% (+0.3%)
    Australia #ASX All Ordinaries -1.5% (-0.7%)

    #35818
    Truman
    Participant

    Major European indices trade in the red.

    STOXX Europe 600: -1.3% (-1.0% week-to-date) Germany’s DAX: -1.8% (+0.6% week-to-date) U.K.’s FTSE 100: -0.8% (-0.6% week-to-date) France’s CAC 40: -1.5% (+0.4% week-to-date) Italy’s FTSE MIB: -1.6% (-1.8% week-to-date) Spain’s IBEX 35: -0.9% (+0.4% week-to-date).

    #35819
    Truman
    Participant

    Japan’s Finance Minister Suzuki and Treasury Secretary Yellen reportedly discussed coordinated currency intervention during yesterday’s meeting.
    Japan’s core CPI increased at its fastest yr/yr pace in two years. The Chinese government is reportedly encouraging large investors to buy domestic equities.
    About 60% of large businesses in Shanghai have resumed production.

    #35820
    Truman
    Participant

    Japan’s March National CPI 1.2% yr/yr (last 0.9%) and National Core CPI 0.8% yr/yr, as expected (last 0.6%). Flash April Manufacturing PMI 53.4 (last 54.1) and flash Services PMI 50.5 (last 49.4)
    Australia’s flash April Manufacturing PMI 57.9 (last 57.7) and flash Services PMI 56.6 (last 55.6)
    Singapore’s Q1 URA Property Index 0.7% qtr/qtr (last 0.4%)
    Hong Kong’s March CPI 1.7% yr/yr (expected 1.8%; last 1.6%)

    #35821
    Truman
    Participant

    Eurozone’s flash April Manufacturing PMI 55.3 (expected 54.7; last 56.5) and flash Services PMI 57.7 (expected 55.0; last 55.6). February Current Account surplus EUR20.80 bln (last surplus of EUR21.60 bln)
    Germany’s flash April Manufacturing PMI 55.4 (expected 53.0; last 54.7) and flash Services PMI 58.8 (expected 56.5; last 57.4)
    U.K.’s flash April Manufacturing PMI 55.3 (expected 59.0; last 55.2) and flash Services PMI 58.3 (expected 60.0; last 62.6). March Retail Sales -1.4% m/m (expected -0.3%; last -0.5%); 0.9% yr/yr (expected 2.8%; last 7.2%). March Core Retail Sales -1.1% m/m (expected -0.4%; last -0.9%); -0.6% yr/yr (expected 0.7%; last 4.7%)
    France’s flash April Manufacturing PMI 55.4 (expected 53.0; last 54.7) and flash Services PMI 58.8 (expected 56.5; last 57.4)

    #35822
    Truman
    Participant

    Bank of England Governor Bailey warned that falling real incomes will pressure growth after retail sales missed March estimates.
    French Finance Minister Le Maire said that inflation will remain high in 2022 and ease progressively in 2023.
    The U.K. hopes to complete a free trade deal with India by October.

    #35823
    Truman
    Participant

    American Express (AXP 183.85, -1.89): -1.0% despite beating EPS estimates and reaffirming full-year guidance.
    Verizon (VZ 54.15, -0.86): -1.6% after saying it expects FY22 EPS to be at the lower end of guidance range. Q1 results were in-line with expectations.
    Snap (SNAP 29.53, +0.11): +0.4% after missing EPS estimates and guiding Q2 revenue below consensus. DAUs grew 18% year-over-year.
    Gap (GPS 11.97, -2.32): -16.2% after lowering its fiscal Q1 revenue guidance due to macro-economic dynamics and execution challenges at the Old Navy brand. Old Navy CEO Nancy Green is stepping down.
    Kimberly-Clark (KMB 133.30, +5.20): +4.1% after beating top and bottom-line estimates and reaffirming its FY22 EPS guidance.

    #35824
    Truman
    Participant

    In the Treasury market, the 10-yr yield hit 2.97% last evening following Fed Chair Powell’s hawkish-sounding commentary earlier on Thursday. The benchmark yield has backed off those highs and currently sits unchanged at 2.92%. The 2-yr yield is up four basis points to 2.73%.

    The U.S. Dollar Index, meanwhile, remains above the 100.00 level (100.85, +0.27, +0.3%) while WTI crude futures remain above $100.00/bbl ($102.66, -1.13, -1.1%).

    #35825
    Truman
    Participant

    Upgrades: DOW, UAL, AAL
    Downgrades: JBLU, HA

Viewing 15 posts - 31 through 45 (of 49 total)
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