Traders Market Weekly: Cracks Widen in China and Emerging Markets

Viewing 10 posts - 16 through 25 (of 25 total)
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  • #74553
    Truman
    Participant

    Fair Value for Friday, May 31:

    S&P 500: 5,250
    Nasdaq 100: 18,596
    DJIA: 38,213

    #74554
    Truman
    Participant

    V.F. Corp (VFC) appoints Sun Choe as Global Brand President, Vans, beginning in late July… VFC up 7.1%

    #74555
    Truman
    Participant

    S&P 500 futures are down eight points and are trading 0.2% below fair value,
    Nasdaq 100 futures are down 50 points and are trading 0.3% below fair value,
    Dow Jones Industrial Average futures are down 34 points and are trading 0.1% below fair value.

    There is a negative bias in early trading in front of the Personal Income and Spending report for April, which includes the Fed’s preferred gauge on inflation (the PCE Price Indexes), at 8:30 ET.

    Market participants are digesting a slate of mixed of earnings news in front of that report. Costco (COST) shares are slightly lower in front of the open after reporting better-than-expected earnings, shares of Dell (DELL) are sharply lower in premarket action on disappointing guidance, and Gap (GPS) is up big in pre-open action following pleasing quarterly results.

    Treasury yields are little changed. The 10-yr note yield is unchanged at 4.55% and the 2-yr note yield is up one basis point to 4.94%.

    #74556
    Truman
    Participant

    Nordstrom (JWN 19.87, -1.16, -5.5%): misses by $0.17, beats on revs; guides FY25 EPS in-line
    NetApp (NTAP 117.61, +1.11, +1.0%): beats by $0.01, reports revs in-line; guides JulQ EPS and revs in-line; guides FY25 EPS above consensus, revs in-line; increases dividend, new $1 bln share repurchase authorization
    Marvell (MRVL 72.51, -4.34, -5.7%): reports EPS in-line, revs in-line; guides Q2 EPS in-line, revs in-line
    SentinelOne (S 17.00, -2.42, -12.5%): beats by $0.05, beats on revs; guides Q2 revs mostly in-line; guides FY25 revs below consensus

    #74557
    Truman
    Participant

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

    Japan’s Nikkei: +1.1% (-0.4% for the week),
    Hong Kong’s Hang Seng: -0.8% (-2.8% for the week),
    China’s Shanghai Composite: -0.2% (-0.1% for the week),
    India’s Sensex: +0.1% (-1.9% for the week),
    South Korea’s Kospi: UNCH (-1.9% for the week),
    Australia’s ASX All Ordinaries: +1.0% (-0.4% for the week).

    China
    May Manufacturing PMI 49.5 (expected 50.5; last 50.4)
    Non-Manufacturing PMI 51.1 (expected 51.5; last 51.2)

    Japan
    May Tokyo CPI 2.2% (last 1.8%) and Tokyo Core CPI 1.9% yr/yr, as expected (last 1.6%).
    April Retail Sales 2.4% yr/yr (expected 1.8%; last 1.1%),
    April Industrial Production -0.1% m/m (expected 1.5%; last 4.4%),
    April Unemployment Rate 2.6%, as expected (last 2.6%),
    April jobs/applications ratio 1.26 (expected 1.28; last 1.28).
    April Housing Starts 13.9% yr/yr (expected -0.2%; last -12.8%) and Construction Orders 26.4% yr/yr (last 31.4%)

    South Korea
    April Industrial Production 2.2% m/m (last -3.0%); 6.1% yr/yr (last 1.0%).
    April Retail Sales -1.2% m/m (last 1.1%)
    April Service Sector Output 0.3% m/m (last -1.1%)

    Hong Kong
    April Retail Sales -14.7% yr/yr (last -7.0%)

    Australia
    April Private Sector Credit 0.5% m/m (expected 0.4%; last 0.4%)
    Housing Credit 0.4% m/m (last 0.4%)

    #74558
    Truman
    Participant

    Japan’s mostly in-line Tokyo CPI for May and disappointing Manufacturing and Non-Manufacturing PMI readings from China with Manufacturing PMI returning to contraction.

    China is reportedly looking to speed up free trade discussions with Japan and South Korea.

    South Korean chipmakers are reportedly being investigated by U.S. authorities over alleged sales of sanctioned equipment to customers in China.

    #74559
    Truman
    Participant

    Major European indices trade near their flat lines while the U.K.’s FTSE (+0.4%) outperforms, building on yesterday’s bounce off a four-week low.

    STOXX Europe 600: +0.1% (-0.7% week-to-date),
    Germany’s DAX: -0.2% (-1.1% week-to-date),
    U.K.’s FTSE 100: +0.4% (-0.6% week-to-date),
    France’s CAC 40: -0.1% (-1.5% week-to-date),
    Italy’s FTSE MIB: +0.1% (-0.1% week-to-date),
    Spain’s IBEX 35: -0.2% (+0.6% week-to-date).

    The market received a big batch of data, which included an acceleration in the eurozone’s yr/yr CPI growth rate to 2.6% from 2.4%, in-line GDP revisions from France (0.2% qtr/qtr) and Italy (0.3% qtr/qtr), and disappointing April Retail Sales from Germany (-1.2% m/m; expected -0.2%).

    Eurozone
    European Central Bank policymaker Panetta said that monetary policy will remain restrictive even after several rate cuts are made.
    flash May CPI 0.2% m/m, as expected (last 0.6%); 2.6% yr/yr (expected 2.5%; last 2.4%).
    May Core CPI 0.4% m/m (last 0.7%); 2.9% yr/yr (expected 2.7%; last 2.7%)

    Germany
    April Retail Sales -1.2% m/m (expected -0.2%; last 2.6%); -0.6% yr/yr (last -1.9%).
    April Import Price Index 0.7% m/m (expected 0.5%; last 0.4%); -1.7% yr/yr (expected -1.8%; last -3.6%)

    U.K.
    A survey conducted by Lloyds showed that British business confidence is at its highest level in eight years.
    May Nationwide HPI 0.4% m/m (expected 0.1%; last -0.4%); 1.3% yr/yr (last 0.6%).
    April BoE Consumer Credit GBP730 mln (expected GBP1.50 bln; last GBP1.42 bln),
    April Mortgage Lending GBP2.41 bln (expected GBP450 mln; last GBP460 mln),
    April Net Lending to Individuals GBP3.10 bln (expected GBP2.00 bln; last GBP1.80 bln)

    France
    Q1 nonfarm payrolls 0.3% qtr/qtr (expected 0.2%; last 0.2%).
    Flash May CPI 0.0% m/m (expected 0.1%; last 0.5%); 2.2% yr/yr (expected 2.4%; last 2.2%).
    Q1 GDP 0.2% qtr/qtr, as expected (last 0.1%); 1.1% yr/yr, as expected (last 0.7%).
    April PPI -3.6% m/m (last -1.0%); -6.8% yr/yr (last -8.3%).
    April Consumer Spending -0.8% m/m (expected 0.2%; last 0.5%)

    Italy
    Q1 GDP 0.3% qtr/qtr, as expected (last 0.2%); 0.7% yr/yr (expected 0.6%; last 0.6%).
    Flash May CPI 0.2% m/m, as expected (last 0.1%); 0.8% yr/yr, as expected (last 0.8%). March Industrial Sales -2.9% m/m (last 1.9%); -5.1% yr/yr (last -1.7%)

    Spain
    March Current Account surplus EUR3.29 bln (last surplus of EUR1.90 bln)

    Swiss
    April Retail Sales 2.7% yr/yr (expected 0.2%; last -0.2%)

    #74560

    Dow 38,686.32 574.84 1.51%
    S&P 500 5,277.51 42.03 0.80%
    Nasdaq 16,735.02 -2.06 -0.01%
    VIX 13.10 -1.37 -9.47%
    Gold 2,348.90 -17.60 -0.74%
    Oil 77.19 -0.72 -0.92%

    Ohhhh the humanity as noted in 2 GOAT albums :)

    #74561

    and an excellent Australian bonus song to start WEEKEND :)

    #74501

    June 1, 2024 FEAR NOT Brave Investors Where have we been and where are we going? Join our weekly market thread on Traders Community… Image: Cracks App
    [See the full post at: Traders Market Weekly: Cracks Widen in China and Emerging Markets]

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