Traders Market Weekly: MAR19-25 — Some Sheep may be Sheared

Viewing 15 posts - 16 through 30 (of 40 total)
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    Upgrades: ACH, BP, TMUS
    Downgrades: AMWD, FBHS, LGIH


    GameStop (GME 138.55, +15.41): +12.5% after RC Ventures increased its stake in the company.
    General Mills (GIS 64.00, +1.32): +2.1% after beating Q3 EPS expectations and raising its FY22 EPS guidance above consensus.
    Adobe (ADBE 454.00, -12.45): -2.7% after beating Q1 EPS expectations and issuing below-consensus EPS and revenue guidance for Q2.
    Poshmark (POSH 12.53, -1.30): -9.4% after missing Q4 EPS expectations on above-consensus revenue and issuing below-consensus revenue guidance for Q1.


    Asian markets ended higher.
    Japan’s Nikkei +3.0%,
    Hong Kong’s Hang Seng +1.2%,
    China’s Shanghai Composite +0.3%


    Dow 34,358.50 -448.96 -1.29%
    S&P 500 4,456.24 -55.37 -1.23%
    Nasdaq 13,922.60 -186.21 -1.32%
    GlobalDow 4,061.01 -27.71 -0.68%
    Gold 1,947.20 25.70 1.34%
    Oil 114.48 2.72 2.43%

    Some of great songs by YES — best group I ever saw in concert
    to close out rough day in the markets


    Market Updates

    S&P Futures vs Fair Value: +26.0
    10 yr Note: 2.367%
    USD/JPY: 121.67 +0.52
    EUR/USD: 1.0984 -0.0022
    Europe: FTSE: +0.3% DAX: +0.3% CAC: +0.5%
    Asia: Hang Seng: -0.9% Shanghai: -0.6% Nikkei: +0.3%
    Gold (1938.90 +1.60) Silver (25.23 +0.04) Crude (115.18 +0.25)


    World markets find support backed by better than expected Manufacturing PMIs in EU

    The global equity markets are mostly higher. S&P Futures are up about 26 points to trade around the 4474 area. The market found a base of support in the 4450 vicinity, with the low print coming in at 4445.75. Spoos have seen steady buying since that has taken the price to just off the overnight high of 4479.00.

    In Asia, China slid 0.6% while Japan mustered a gain of 0.3%. The Shanghai struggled with tensions mounting following comments from the US that it would enforce export controls over China should it assist sanctions-laden Russia. In Japan, the Nikkei managed to close marginally higher. The Preliminary PMI for March initially disappointed participants with a print of 53.2 compared to expectations of 53.5. A couple of automotive names helped to keep the benchmark afloat. Both Toyota and Yamaha Motor closed 3% higher after the companies announced stock buy back plans.

    In Europe, the major bourses are slightly higher. Better than expected preliminary Manufacturing PMIs have helped sentiment. Most notably, Germany’s March print of 57.5 was well above the forecast of 55.8. This drove a beat for the Eurozone in which the Manufacturing PMI came in at 57.0 compared to the 56.0 estimate.


    S&P 500 futures 0.6% above fair value; Nasdaq 100 futures 0.5% above fair value; DJIA futures 0.7% above fair value
    Key factors driving the futures market:

    Speculation that yesterday’s close below the 200-day moving average (4475) for the S&P 500 will spur buy-the-dip efforts
    Relief that preliminary March PMI readings for the eurozone were better than expected and still indicative of expansion activity, albeit at a slower pace than seen in February
    Mega-cap stocks catching a bid in pre-market action
    G7, NATO, and European Council meeting in Brussels to discuss ongoing response to Russia’s invasion of Ukraine
    Blackrock CEO Larry Fink says in shareholder letter that “Russian invasion of Ukraine has put an end to the globalization we have experienced over the last three decades.”

    Airline CEOs lobbying for end of mask mandate on planes
    KB Home (KBH) down 4.0% after missing fiscal Q1 earnings and reporting flat home deliveries
    Darden Restaurants (DRI) drops 2.2% following earnings miss and below consensus FY22 EPS guidance


    Research calls of note:
    Upgrades: BTI, JCI, SCHN, WERN
    Downgrades: AA, EOG, IFF, NTAP, POST, SCCO, VALE


    Japan’s Nikkei: +0.3%
    Hong Kong’s Hang Seng: -0.9%
    China’s Shanghai Composite: -0.6%
    India’s Sensex: -0.2%
    South Korea’s Kospi: -0.2%
    Australia’s ASX All Ordinaries: +0.1%


    Europe lunch

    Equity Markets—

    STOXX Europe 600: +0.1%
    Germany’s DAX: -0.2%
    U.K.’s FTSE 100: +0.1%
    France’s CAC 40: UNCH
    Italy’s FTSE MIB: +0.6%
    Spain’s IBEX 35: -0.4%

    Helmholtz Watson

    Fed’s Waller: He’s looking closely at real estate to judge appropriate stance

    He’s watching whether sharp, ongoing increase in home prices poses financial stability risks
    Rising cost of rent has implications for monetary policy
    Fed’s purchases of MBS reduced mortgage rates by 40 bps
    Home buying has grown less affordable
    Demand for houses is up, supply is constrained
    Home price rise isn’t fueled by excessive leverage and easy lending

    Helmholtz Watson

    US February durable goods orders -2.2% vs -0.5% expected
    Prior was +1.6%

    Durables ex-transportation -0.6% versus +0.6% expected
    Prior ex-transportation +0.7%
    Durable ex defense -2.7% versus +1.6% prior
    Nondefense capital ex air +-0.3% versus 0.5% expected.
    Prior month was +1.0%
    Shipments 0.0% after five consecutive monthly increases
    Unfilled orders +0.4% and up 13 consecutive months
    Inventories +0.4% and up 13 consecutive months as well


    Found almost a “deja vu” of our new puppy SAMSON 🙂


    Dow 34,707.94 349.44 1.02%
    S&P 500 4,520.16 63.92 1.43%
    Nasdaq 14,191.84 269.23 1.93%
    GlobalDow 4,082.07 20.74 0.51%
    Gold 1,960.80 23.50 1.21%
    Oil 111.46 -3.47


    Japan’s Nikkei: +0.1% (+4.9% for the week)
    Hong Kong’s Hang Seng: -2.5% (flat for the week)
    China’s Shanghai Composite: -1.2% (-1.2% for the week)
    India’s Sensex: -0.4% (-0.9% for the week)
    South Korea’s Kospi: unch (+0.9% for the week)
    Australia’s ASX All Ordinaries: +0.3% (+1.6% for the week)

Viewing 15 posts - 16 through 30 (of 40 total)
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