Traders Market Weekly: Algorithms, Jobs and Holiday Markets

Viewing 15 posts - 46 through 60 (of 75 total)
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  • #68240
    Truman
    Participant

    Major European indices trade in the green.

    STOXX Europe 600: +0.5%,
    Germany’s DAX: +0.5%,
    U.K.’s FTSE 100: +0.7%,
    France’s CAC 40: +0.5%,
    Italy’s FTSE MIB: +0.5%,
    Spain’s IBEX 35: +0.3%.

    #68241
    Truman
    Participant

    Eurozone’s flash November CPI -0.5% m/m (last 0.1%); 2.4% yr/yr (expected 2.7%; last 2.9%).
    Flash November Core CPI -0.6% m/m (last 0.2%); 3.6% yr/yr (expected 3.9%; last 4.2%).
    October Unemployment Rate 6.5%, as expected (last 6.5%)

    Germany
    November Unemployment Change 22,000, as expected (last 31,000) and Unemployment Rate 5.9% (expected 5.8%; last 5.8%).
    October Retail Sales 1.1% m/m (expected 0.4%; last -0.8%); -0.1% yr/yr (expected -2.0%; last -4.3%)

    France’s

    Q3 GDP -0.1% qtr/qtr (expected 0.1%; last 0.5%); 0.6% yr/yr (expected 0.7%; last 0.9%).
    Flash November CPI -0.2% m/m (expected 0.1%; last 0.1%); 3.4% yr/yr (last 4.0%).
    October PPI 0.0% m/m (last 0.7%); -1.2% yr/yr (last -1.5%).
    October Consumer Spending -0.9% m/m (expected -0.2%; last 0.0%)

    Italy’s flash November CPI -0.4% m/m (expected -0.2%; last -0.2%); 0.8% yr/yr (last 1.7%).
    October Unemployment Rate 7.8% (expected 7.5%; last 7.6%)

    Spain’s September Current Account surplus EUR3.45 bln (last surplus of EUR4.19 bln)

    #68242
    Truman
    Participant

    Swiss November KOF Leading Indicators 96.7 (expected 96.6; last 95.1). October Retail Sales -0.1% yr/yr (expected 0.2%; last -1.2%)

    #68243
    Truman
    Participant

    There are growing expectations that the European Central Bank will cut rates as early as April after the release of disappointing employment data in Germany and cooler than expected flash November inflation figures for the eurozone.

    Germany’s Finance Minister Lindner warned that the country is facing an EUR17 bln budget gap for 2024.

    French Finance Minister Le Maire said that inflation is expected to be below 4.0% by the end of this year.

    #68244
    Truman
    Participant

    Salesforce (CRM 251.42, +21.07, +9.2%): beats by $0.06, reports revs in-line; guides Q4 EPS above consensus, revs in-line; observed an 80% jump in deals over $1.0 mln
    Snowflake (SNOW 189.00, +13.68, +7.8%): beats by $0.09, beats on revs, product revenue up 34%, well above its guidance, guides for Q4 product revenue growth of 29-30%
    Costco (COST 590.06, +2.20, +0.4%): reports November adjusted comparable sales growth of 4.4%
    Synopsys (SNPS 568.00, +15.54, +2.8%): beats by $0.13, reports revs in-line; guides Q1 EPS above consensus, revs above consensus; guides FY24 EPS above consensus, revs in-line
    Five Below (FIVE 188.00, -0.06, -0.03%): beats by $0.03, beats on revs; guides Q4 EPS in-line, revs in-line; authorized $100 mln for repurchases
    Pure Storage (PSTG 32.26, -5.67, -15.0%): beats by $0.10, reports revs in-line; guides Q4 revs below consensus
    PVH (PVH 87.49, -4.01, -4.4%): beats by $0.16, misses on revs; guides Q4 EPS below consensus, revs below consensus; increases repurchase plan by $150 mln
    Ford Motor (F 10.71, +0.12, +1.1%): reinstates guidane; sees Adjusted EBIT of $10.0-10.5 bln
    P

    #68245
    Truman
    Participant

    Discover Financial Services (DFS 91.00, +2.11, +2.4%): exploring the sale of the Discover Student Loans portfolio and the transfer of servicing these loans to a third-party

    #68246
    Truman
    Participant

    Occidental Petroleum (OXY 60.75, +0.42, +0.7%): is in discussions to purchase CrownRock for more than $10 bln, according to WSJ

    #68247
    Truman
    Participant

    Walt Disney (DIS 92.46, -0.04, -0.04%) appoints James Gorman, CEO of Morgan Stanley, and Sir Jeremy Darroch as new members of Board of Directors

    #68248
    Truman
    Participant

    ImmunoGen (IMGN 16.55, +0.49, +3.1%): AbbVie (ABBV) to acquire ImmunoGen for $31.26 per share in cash a 95% premium

    #68249
    Truman
    Participant

    Ford Motor (F 10.71, +0.12, +1.1%): reinstates guidane; sees Adjusted EBIT of $10.0-10.5 bln

    Tesla (TSLA 246.30, +2.16, +0.9%): will hold CyberTruck delivery event today in Austin, TX

    #68250
    Truman
    Participant

    Pinterest (PINS 34.35, +1.07, +3.2%): upgraded to Buy from Hold at Jefferies

    #68251
    Truman
    Participant

    Personal income increased 0.2% month-over-month in October, as expected, following an upwardly revised 0.4% increase (from 0.3%) in September.
    Personal spending was also up 0.2% month-over-month, as expected, following an unrevised 0.7% increase in September.
    The PCE Price Index was unchanged in October (consensus 0.1%) while the core PCE Price Index, which excludes food and energy, was up 0.2%, as expected.

    On a year-over-year basis, the PCE Price Index was up 3.0%, versus 3.4% in September, and the core PCE Price Index was up 3.5%, versus 3.7% in September.

    The key takeaway from this report is the disinflation seen in the PCE Price Indexes, which is good; however, the 3.5% increase in core PCE, which is what the Fed focuses on, remains well above the 2.0% target. It’s moving in the right direction fortunately, but that isn’t the type of reading that will move the Fed to think about cutting rates soon.

    #68252
    Truman
    Participant

    Initial jobless claims for the week ending November 25 increased by 7,000 to 218,000 (consensus 215,000). Continuing jobless claims for the week ending November 18 increased by 86,000 to 1.927 million, hitting their highest level since November 27, 2021.

    The key takeaway from the report is that layoff activity remains relatively subdued, which is a good thing. The bad thing, and what fits with a softening labor market, is that it is becoming more difficult to find a job after a layoff.

    Treasury yields moved higher after the data.

    The 2-yr note yield, at 4.62% shortly before 8:30 a.m. ET, is up two basis points from yesterday at 4.68%.
    The 10-yr note yield, at 4.28% before 8:30 a.m. ET, is up four basis points from yesterday to 4.31%.

    #68253
    Truman
    Participant

    Market Morning

    Dow 35743.67 +313.25 (0.88%)
    Nasdaq 14189.54 -68.95 (-0.48%)
    SP 500 4551.03 +0.45 (0.01%)
    10-yr Note -5/32 4.322
    NYSE Adv 1796 Dec 899 Vol 196 mln
    Nasdaq Adv 2263 Dec 1719 Vol 1.7 bln

    Industry Watch
    Strong: Energy, Financials, Information Technology
    Weak: Consumer Staples, Consumer Discretionary, Communication Services, Utilities

    Moving the Market
    — Mostly positive responses to earnings news, headlined by Salesforce (CRM)

    — Relative weakness in mega caps

    — Rising Treasury yields after this morning’s economic data keeping stocks in check

    WTI crude oil futures plunge; energy sector outperforms

    The Dow Jones Industrial Average is trading near its high of the day while the S&P 500 and Nasdaq Composite are near their lows.

    WTI crude oil futures plunged recently, moving from just under $79.27/bbl to $76.94/bbl, which is 1.2% lower than yesterday’s settlement. On a related note, the S&P 500 energy sector is up 0.5%.

    Occidental Petroleum (OXY 59.57, -0.77, -1.3%) is a top laggard from the sector after The Wall Street Journal reported OXY is in discussions to purchase CrownRock for more than $10 billion.

    Chevron (CVX 142.82, -1.09, -0.8%) is another influential loser from the sector.

    #68254

    Dow 35,950.89 520.47 1.47%
    S&P 500 4,567.80 17.22 0.38%
    Nasdaq 14,226.22 -32.27 -0.23%
    VIX 12.95 -0.03 -0.23%
    Gold 2,055.10 -12.00 -0.58%
    Oil 75.65 -2.21 -2.84%

Viewing 15 posts - 46 through 60 (of 75 total)
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