Traders Market Weekly: America on Show; Big Oil, Apple, FOMC and Boeing

Viewing 15 posts - 61 through 75 (of 84 total)
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    January ifo Business Climate 85.2 (expected 86.7; last 86.3).
    January Current Assessment 87.0 (expected 88.6; last 88.5)
    Business Expectations 83.5 (expected 84.8; last 84.2)

    STMicroelectronics missed Q4 expectations and issued cautious guidance for Q1 and FY24.


    January CBI Distributive Trades Survey -50 (expected -30; last -32)


    January Business Survey 99 (expected 100; last 99).
    December total jobseekers 2.825 mln (last 2.827 mln)


    December PPI -6.3% yr/yr (last -7.6%)


    Tesla (TSLA 190.45, -17.49, -8.4%): misses by $0.02, misses on revs, gross margin down 30 bps qtr/qtr; says 2024 vehicle volume growth rate may be notably lower than growth achieved in 2023
    IBM (IBM 186.53, +12.60, +7.2%): beats by $0.08, reports revs in-line; guides to FY24 CC revs growth in mid-single digits
    Lam Research (LRCX 857.18, +9.02, +1.1%): beats by $0.40, beats on revs; guides Q3 EPS in-line, revs in-line
    CSX (CSX 34.47, +0.08, +0.2%): beats by $0.01, beats on revs
    United Rentals (URI 600.00, +23.10, +4.0%): beats by $0.56, beats on revs; guides FY24 revs in-line; intends to repurchase $1.5 bln in 2024 and intends to raise dividend by 10%
    Humana (HUM 349.50, -52.90, -13.2%): reports Q4 (Dec) results, beats on revs
    Las Vegas Sands (LVS 51.00, +1.36, +2.7%): misses by $0.04, reports revs in-line
    American Airlines (AAL 14.60, +0.67, +4.8%): beats by $0.18, reports revs in-line; guides Q1 EPS in-line; guides FY24 EPS above consensus
    ServiceNow (NOW 769.66, +6.24, +0.8%): beats by $0.33, beats on revs; provides Q1 and FY24 sub revenue forecasts
    Valero Energy (VLO 131.97, +1.82, +1.4%): beats by $0.61, misses on revs
    Comcast (CMCSA 45.00, +1.20, +2.7%): beats by $0.05, beats on revs; increases quarterly cash dividend to $0.31/share from $0.29/share and increases share repurchase authorization to $15.0 bln
    Northrop Grumman (NOC 447.80, -16.12, -3.5%): beats by $0.47, beats on revs; guides FY24 EPS above consensus, revs in-line
    Dow (DOW 52.73, -0.36, -0.7%): beats by $0.03, beats on revs
    Southwest Air (LUV 31.57, +0.46, +1.5%): beats by $0.25, beats on revs


    GDP was up 3.3% in the advance Q4 report (consensus 2.0%) after rising 4.9% in Q3.
    The GDP Price Deflator was up 1.5% in the advance Q4 report (consensus 2.8%) after rising 3.3% in Q3.

    Weekly initial jobless claim totaled 214,000 (consensus 200,000) following a revised count of 189,000 (from 187,000). Continuing claims came in at 1.833 million following a total of 1.806 million last week.

    The trade deficit narrowed to $88.5 billion in the advance December report from a revised $89.3 billion in November (from $90.3 billion).
    Retail inventories declined 0.8% in the advance December report following a revised 0.1% increase in November (from -0.1%).
    Wholesale inventories declined 0.4% in the advance December report following a revised 0.4% decline in November (from -0.2%).

    Durable goods orders were unchanged in December (consensus 0.1%) following a 5.5% increase in November (revised from 5.4%). Durable goods orders, excluding transportation, increased 0.6% in December (consensus 0.2%) following a 0.5% increase in November.


    New home sales increased 8.0% month-over-month in December to a seasonally adjusted annual rate of 664,000 units (consensus 640,000) from an upwardly revised 615,000 (from 590,000) in November. On a year-over-year basis, new home sales were up 4.4%.

    The key takeaway from the report is that new home sales activity increased in December, bolstered by a drop in mortgage rates and a sizable drop in selling prices.


    Morning Market
    Dow 37920.08 +113.69 (0.30%)
    Nasdaq 15579.69 +97.77 (0.63%)
    SP 500 4892.99 +24.44 (0.50%)
    10-yr Note +3/32 4.140
    NYSE Adv 1983 Dec 735 Vol 215 mln
    Nasdaq Adv 2427 Dec 1605 Vol 2.3 bln

    Industry Watch
    Strong: Real Estate, Utilities, Communication Services, Information Technology, Materials, Industrials, Energy
    Weak: Consumer Discretionary, Health Care

    Moving the Market

    — Big loss in Tesla (TSLA) after disappointing earnings and guidance
    — Strength in other notable names that reported earnings, like IBM (IBM)
    — Ongoing strength in mega cap stocks, except Tesla
    — Drop in market rates following slate of economic data that corroborated the soft landing narrative

    Market breadth reflects broad based buying activity driving today’s gains. Advancers lead decliners by a nearly 3-to-1 margin at the NYSE and by a 3-to-2 margin at the Nasdaq. Nine of the 11 S&P 500 sectors are trading up and 24 of the 30 Dow Jones Industrial Average components are trading higher.

    Semiconductor stocks are showing strength again today after Lam Research (LRCX 883.30, +35.14, +4.1%) reported pleasing earnings and issued guidance that was in-line with expectations. Shares of LRCX reached a fresh 52-week high today. The PHLX Semiconductor Index is up 1.2%.

    VLO leads energy sector after earnings

    EIA Natural Gas Inventories showed a draw of 326 bcf versus a draw of 154 bcf last week. Natural gas futures turned lower in response, trading down 2.0% now at $2.22/mmbtu.

    WTI crude oil futures, meanwhile, trade up 1.3% to $76.07/bbl.

    S&P 500 energy sector is trading up 0.3%. Valero Energy (VLO 133.40, +3.23, +2.5%) is a top performer after reporting quarterly results.


    Dow 38,049.13 242.74 0.64%
    S&P 500 4,894.16 25.61 0.53%
    Nasdaq 15,510.50 28.58 0.18%
    VIX 13.48 0.34 2.59%
    Gold 2,019.60 3.60 0.18%
    Oil 77.22 2.13 2.84%


    The Bank of Japan in no hurry to end negative rates after Tokyo’s core CPI ex-food and energy fell by -0.1% m/m SA (-0.3% NSA) this month.

    – Extends the move away from peak in the summer
    – Issue is Spring wage negotiations

    The JGB 2-year was slightly dearer in the aftermath. At issue is whether Spring wage negotiations add to last year’s strong wage gains and translate into enough momentum in core inflation going forward to offset what may be maturing forces that previously drove greater pass-through effects into underlying inflation.


    Equity indices in the Asia-Pacific region ended the week on a mixed note while markets in Australia and India were closed for holidays.
    Japan’s Nikkei: -1.3% (-0.6% for the week),
    Hong Kong’s Hang Seng: -1.6% (+4.2% for the week),
    China’s Shanghai Composite: +0.1% (+2.8% for the week),
    India’s Sensex: HOLIDAY (-1.0% for the week),
    South Korea’s Kospi: +0.3% (+0.2% for the week),
    Australia’s ASX All Ordinaries: HOLIDAY (+1.7% for the week).


    January Tokyo CPI 1.6% yr/yr (last 2.4%) and Tokyo Core CPI 1.6% yr/yr (expected 1.9%; last 2.1%).
    December Leading Index 107.6 (expected 107.7; last 108.9) and Coincident Indicator -1.3% m/m (last -1.4%)

    Japan’s Tokyo CPI decelerated to 1.6% in January, representing the slowest pace of price growth in nearly two years.
    Japan’s Prime Minister Kishida said that he will not resign despite a recent fundraising scandal.
    The Bank of Japan’s Minutes from the December meeting showed an agreement that the central bank should intensify talks about timing of the exit from negative rate policy.


    Q4 URA Property Index 2.8% qtr/qtr (expected 2.7%; last 0.8%).
    December Industrial Production -1.7% m/m (expected 2.1%; last -8.0%); -2.5% yr/yr (expected 1.0%; last 0.0%)


    European indices are looking for a higher finish to the week with leadership from France’s CAC (+2.1%) after the release of strong results from LVMH.
    STOXX Europe 600: +1.0% (+3.0% week-to-date),
    Germany’s DAX: +0.3% (+2.4% week-to-date),
    U.K.’s FTSE 100: +1.2% (+2.1% week-to-date),
    France’s CAC 40: +2.1% (+3.4% week-to-date),
    Italy’s FTSE MIB: +0.8% (+0.4% week-to-date),
    Spain’s IBEX 35: +0.4% (+1.0% week-to-date).


    French farmers have expanded their protests against excessive regulation to Paris while farmers in Germany are also continuing their protests.

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