Traders Market Weekly: Market Corrections, When the Rubber Meets the Road

Viewing 15 posts - 31 through 45 (of 53 total)
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  • #35998
    Truman
    Participant

    U.S. Treasuries are on track for a modestly higher start with shorter tenors expected to show slight relative strength in the early going.

    Treasury futures climbed after yesterday’s cash close, building on their gains during the early portion of the overnight session.
    The market reached highs just after 22:00 ET, followed by a pullback that returned futures to levels from last evening.

    The U.S. Treasury will follow yesterday’s solid 2-yr note sale with a $49 bln 5-yr note auction.

    Yield Check:
    2-yr: -2 bps to 2.53%
    3-yr: -5 bps to 2.68%
    5-yr: -4 bps to 2.76%
    10-yr: -2 bps to 2.75%
    30-yr: -1 bp to 2.86%

    #35999
    Truman
    Participant

    M] S&P futures vs fair value: +13.90. Nasdaq futures vs fair value: +30.80.
    The stock market is on track for a slightly higher start as investors digest some high-profile earnings reports. The S&P 500 futures trade 14 points, or 0.3%, above fair value, although they were trading more than 1.0% above fair value earlier in the session.

    #36000
    Truman
    Participant

    Japan’s Nikkei: -1.2%
    Hong Kong’s Hang Seng: +0.1%
    China’s Shanghai Composite: +2.5%
    India’s Sensex: -0.9%
    South Korea’s Kospi: -1.1%
    Australia’s ASX All Ordinaries: -0.8%

    #36001
    Truman
    Participant

    China’s March Industrial Profit 8.5% YTD (last 5.0%) o South Korea’s April Consumer Confidence 103.8 (last 103.2)
    Australia’s Q1 CPI 2.1% qtr/qtr (expected 1.7%; last 1.3%); 5.1% yr/yr (expected 4.6%; last 3.5%)
    Japan’s Prime Minister Kishida announced a JPY6.2 trln stimulus package while a JPY2.7 trln extra budget is expected to be compiled at a later time.
    There was some speculation that a plan to reopen Japan to tourists will be proposed.
    South Korea’s 12-month household inflation expectations increased to 3.1% from 2.9%.

    #36002
    Truman
    Participant

    Germany’s May GfK Consumer Climate -26.5 (expected -16.0; last -15.7)
    U.K.’s April CBI Distributive Trades Survey -35 (expected -3; last 9)
    France’s April Consumer Confidence 88 (expected 92; last 90)
    Italy’s March non-EU trade deficit EUR510 mln (last deficit of EUR1.55 bln)
    Swiss April ZEW Expectations -51.6 (last -27.8)
    The supply of Russian gas to Poland and Bulgaria will reportedly remain halted until the two countries agree to pay for deliveries in rubles.
    Germany’s Finance Minister Lindner warned about a “very high risk” of a feedback loop between inflation and higher wages.
    Deutsche Bank reported better than expected profit for Q1 while Mercedes-Benz reported profit growth for Q1.

    #36003
    Truman
    Participant

    Major European indices trade in the green.

    STOXX Europe 600: +0.7% Germany’s DAX: +0.3% U.K.’s FTSE 100: +0.8% France’s CAC 40: +0.5% Italy’s FTSE MIB: +0.5% Spain’s IBEX 35: +0.4%.

    #36004
    Truman
    Participant

    Alphabet (GOOG 2286.80, -103.32): -4.3% after missing EPS estimates. The Board authorized the company to repurchase up to an additional $70.0 billion of its Class A and Class C shares.
    Microsoft (MSFT 280.80, +10.58): +3.9% after beating EPS estimates on 18.4% revenue growth. MSFT issued in-line fiscal Q3 revenue guidance.
    Visa (V 211.66, +10.56): +5.3% after beating top and bottom-line estimates.
    Boeing (BA 161.04, -6.00): -3.6% after missing top and bottom-line estimates.
    T-Mobile US (TMUS 127.27, +2.31): +1.9% after beating EPS estimates and raising its core adjusted EBITDA, postpaid net customer additions, net cash flow, merger synergies guidance.

    #36005
    Truman
    Participant

    Key factors driving the futures market:

    Belief market is oversold on short-term basis and is due for (another) rebound effort
    Lots of earnings news and mixed responses: MSFT, GM, CMG, V, and TMUS trade higher while GOOG, BA, TXN, COF, and FFIV trade lower
    Lingering growth concerns

    #36006
    Truman
    Participant

    Boeing (BA) slumps 5.2% on huge Q1 earnings miss and disappointing revenue
    General Motors (GM) up 2.4% as company boosts FY22 adjusted EPS guidance range and points to ongoing strong demand despite inflation pressures

    #36007
    Truman
    Participant

    Brokerage research calls of note:

    Upgrades: AVY, ECL, HAL, SLB, BAM, EL, RHI
    Downgrades: BK, COF, JBLU, PCH, SKYW

    #36008
    Truman
    Participant

    Archegos’ Bill Hwang his CFO arrested and indicted, according to a New York Times reporter

    Last year, Bill Hwang’s family office imploded in one of the most-dramatic declines of personal wealth in history. He lost nearly $10 billion.

    Charged with crimes including racketeering conspiracy in connection with a scheme to manipulate the company’s stock prices. Both were arrested in their homes.

    #36016

    Dow 33,301.93 61.75 0.19%
    S&P 500 4,183.96 8.76 0.21%
    Nasdaq 12,488.93 -1.81 -0.01%
    GlobalDow 3,811.00 -12.56 -0.33%
    Gold 1,886.60 -17.50 -0.92%
    Oil 102.06 0.36 0.35%

    #36032
    Truman
    Participant

    Japan’s Nikkei: +1.8%
    Hong Kong’s Hang Seng: +1.7%
    China’s Shanghai Composite: +0.6%
    India’s Sensex: +1.2%
    South Korea’s Kospi: +1.1%
    Australia’s ASX All Ordinaries: +1.3%

    #36033
    Truman
    Participant

    Japan’s March Industrial Production 0.3% m/m (expected 0.5%; last 2.0%) and March Retail Sales 0.9% yr/yr (expected 0.4%; last -0.9%). March Housing Starts 6.0% yr/yr (expected -0.5%; last 6.3%) and March Construction Orders -21.2% yr/yr (last -2.3%)
    Australia’s Q1 Import Price Index 5.1% qtr/qtr (last 5.8%) and Export Price Index 18.0% qtr/qtr (last 3.5%)
    New Zealand’s March trade deficit NZD392 mln (last deficit of NZD691 mln). April ANZ Business Confidence -42.0 (last -41.9)
    Singapore’s Q1 Unemployment Rate 2.2% (last 2.3%)
    Hong Kong’s March trade surplus HKD37.30 bln (last deficit of HKD32.10 bln). March Imports -6.0% m/m (last 6.2%) and Exports -8.9% m/m (last 0.9%)

    #36034
    Truman
    Participant

    STOXX Europe 600: +0.7%
    Germany’s DAX: +1.6%
    U.K.’s FTSE 100: +0.9%
    France’s CAC 40: +1.3%
    Italy’s FTSE MIB: +1.3%
    Spain’s IBEX 35: +0.5%

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