Traders Market Weekly: Inflation and the Fed

Viewing 15 posts - 16 through 30 (of 62 total)
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    One of best CHRISTMAS ALBUMS of all time … esp song #12 🙂

    Track listing:
    1. “And Winter Came…” 0:00
    2. “Journey Of The Angels” 3:15
    3. “White Is In The Winter Night” 8:03
    4. “O Come, O Come, Emmanuel” 11:03
    5. “Trains And Winter Rains” 14:43
    6. “Dreams Are More Precious” 18:28
    7. “Last Time By Moonlight” 22:53
    8. “One Toy Soldier” 26:51
    9. “Stars And Midnight Blue” 30:45
    10. “The Spirit Of Christmas Past” 33:54
    11. “My! My! Time Flies!” 38:12
    12. “Oíche Chiúin (Chorale)” 41:15


    Dow 33,947.10 -482.78 -1.40%
    S&P 500 3,998.84 -72.86 -1.79%
    Nasdaq 11,239.94 -221.56 -1.93%
    VIX 20.75 1.69 8.87%
    Gold 1,780.90 -28.70 -1.59%
    Oil 77.42 -2.56 -3.20%
    BITCOIN 16,974


    Bond Wrap: U.S. Treasuries lower, 5-yr note and shorter tenors accelerating lower.

    2-yr: +9 bps to 4.38%
    3-yr: +10 bps to 4.11%
    5-yr: +13 bps to 3.79%
    10-yr: +9 bps to 3.60%
    30-yr: +5 bps to 3.62%


    Equity indices in the Asia-Pacific region ended Tuesday on a mostly lower note.
    Japan’s Nikkei: +0.2%,
    Hong Kong’s Hang Seng: -0.4%,
    China’s Shanghai Composite: UNCH,
    India’s Sensex: -0.3%,
    South Korea’s Kospi: -1.1%,
    Australia’s ASX All Ordinaries: -0.5%.


    Japan’s October Household Spending 1.1% m/m (expected 1.5%; last 1.8%); 1.2% yr/yr (expected 1.0%; last 2.3%). October overall wage income 1.8% yr/yr (last 2.2%)
    Australia’s Q3 Current Account deficit AUD2.30 bln (expected surplus of AUD10.50 bln; last surplus of AUD14.70 bln)
    There was continued focus on reopening efforts in China.
    Japan’s household spending increased for the second consecutive month in October.
    Japan’s Finance Minister Suzuki said that ruling parties are consulting on the appropriate level of defense funding after it was reported that the country plans to increase its defense spending by 50% over the next five years.
    The Reserve Bank of Australia raised its cash rate by 25 bps to 3.10%, as expected.


    Major European indices trade in the red.

    STOXX Europe 600: -0.3%,
    Germany’s DAX: -0.1%,
    U.K.’s FTSE 100: -0.3%,
    France’s CAC 40: -0.2%,
    Italy’s FTSE MIB: -0.3%,
    Spain’s IBEX 35: -0.4%.

    Grocery prices in Britain decreased for the first time in almost two years in November.


    Germany’s October Factory Orders 0.8% m/m (expected 0.1%; last -2.9%)
    U.K.’s November Construction PMI 50.4 (expected 52.0; last 53.2)
    European Central Bank Chief Economist Lane said that he has confidence about being near the inflationary peak, but also acknowledged that more rate hikes are needed while policymaker Herodotou said that more rate hikes will take place, but neutral rates are “very close.”


    JP Morgan (JPM 133.28, +1.91, +1.5%): upgraded to Overweight from Underweight at Morgan Stanley
    Alcoa (AA 47.41, +0.89, +1.9%): moving higher on reports that the US and EU are weighing new tariffs on Chinese steel and aluminum, according to Bloomberg
    Royal Caribbean (RCL 58.19, -1.23, -2.1%): downgraded to Underweight from Overweight at JP Morgan
    GameStop (GME 25.75, +0.19, +0.7%): has started layoffs, according to Axios
    GitLab (GTLB 45.13, +6.80, +17.7%): beats by $0.05, beats on revs; guides Q4 EPS above consensus, revs in-line
    PepsiCo (PEP 183.44, +0.32, +0.2%): moving higher as company plans to lay off hundreds of workers at its North American snacks and beverage division headquarters, according to The Wall Street Journal
    Vivint Smart Home (VVNT 11.86, +2.87, +31.9%): NRG Energy (NRG) to acquire Vivint for $12 per share or $2.8 bln in an all-cash transaction
    Signet Jewelers (SIG 62.00, +4.17, +7.2%): beats by $0.42, beats on revs; guides Q4 revs below consensus; guides FY23 EPS above consensus, revs in-line
    AutoZone (AZO 2520.00, -6.92, -0.3%): beats by $2.17, beats on revs; Q1 domestic comps +5.6%


    Stock market sold off on:
    SP500 rejected 4,000
    Recession fears fueled by JPMorgan Chase $JPM CEO Jamie Dimon, Walmart $WMT CEO Doug McMillon, and Union Pacific $UNP CEO Lance Fritz on @CNBC
    In CNBC interviews this morning JPMorgan Chase (JPM ) CEO Jamie Dimon said that he thinks a mild to more pronounced recession is likely ahead, Walmart (WMT) CEO Doug McMillon reiterated that the low-end consumer is still feeling pressure, and Union Pacific (UNP) CEO Lance Fritz said the economy and consumer are slowing.
    Inversion along Treasury yield curve deepening. The 2-yr note yield is up two basis points to 4.40% while the 10-yr note yield is down three basis points to 3.57%.


    The trade deficit widened in October to $78.2 billion (consensus -$77.2 billion) from a downwardly revised $74.1 billion (from -$73.3 billion) in September. That was the result of exports being $1.9 billion less than September exports and imports being $2.2 billion more than September imports.

    The key takeaway from the report is that the pickup in imports speaks to a relatively strong U.S. economy in October versus other economies.


    All the S&P 500 sectors trade in negative territory now.

    Mega cap stocks weigh on index performance. The Vanguard Mega Cap Growth ETF (MGK) is down 1.5% versus a 0.9% loss in the S&P 500. Tesla (TSLA 176.90, -5.52, -3.0%) and Alphabet (GOOG 98.28, -1.63, -1.6%) are among the biggest losers for the group.

    Decliners lead advancers by a 3-to-2 margin at the NYSE and a nearly 2-to-1 margin at the Nasdaq.


    The S&P 500 utilities sector (+0.1%) is alone in positive territory despite a big loss in NRG Energy (NRG 35.80, -5.00, -12.2%), which trades down on the news that it will acquire Vivint Smart Home (VVNT 11.90, +2.91, +32.4%) for $12 per share or $2.8 billion in an all-cash transaction.

    NRG Energy to Buy Vivint Smart Home in $5.8 Billion Deal


    Dow 33,596.34 -350.76 -1.03%
    S&P 500 3,941.26 -57.58 -1.44%
    Nasdaq 11,014.89 -225.05 -2.00%
    VIX 22.00 1.25 6.02%
    Gold 1,784.10 2.80 0.16%
    Oil 74.35 -2.58 -3.35%


    “China considers downgrading Covid’s status to remove need for strict controls
    – Beijing has been laying increasing stress on the milder nature of Omicron and some cities have already started easing their rules
    – One official said the downgrading of the disease – putting it on a par with HIV and viral hepatitis – could happen as soon as Wednesday”

    Via SCMP


    Cboe Global Markets (CBOE) reports monthly trading volume statistics for November; total U.S. options volume reached all-time high for fourth consecutive month

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