Traders Market Weekly: Holiday Shopping Season Kicking Off

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    Boeing’s (NYSE:BA) shares rose by over 4% following successful deals at the Dubai Airshow 2023.

    SunExpress, a Turkish carrier, ordered up to 90 Boeing 737 MAX aircraft, enhancing their fleet.
    Emirates, a major investor in Boeing, finalized a $52B purchase of 777-9, 777-8, and 787 aircraft, boosting their growth plans.
    Emirates’ regional affiliate, FlyDubai, also secured an agreement to acquire 30 787-9 Dreamliners, solidifying Boeing’s performance and growth prospects in the aviation industry.

    These developments demonstrate renewed confidence in Boeing’s future.

    China is also considering ending a commercial freeze in a crucial overseas market for Boeing’s 737 MAX aircraft.


    Harmony Gold Mining Company (NYSE:HMY) shares surged as much as 10%

    Reported a 7% increase in gold production in Q1, reaching 425,130 ounces, driven by higher grade yields from South African operations and the Hidden Valley mine in Papua New Guinea. The company also saw a 33% increase in gold revenue, reaching ZAR14.78B in Q30, driven by increased production and an 18% rise in gold prices in the South African rand. Harmony Gold also improved its all-in sustaining costs by 7%, dropping to $1,404 per ounce. The company maintains its target for the fiscal year ending June 30, aiming for an annual production range of 1.38M-1.48M ounces of gold and aiming to keep AISC below ZAR975,000 per kilogram.


    Equity indices in the Asia-Pacific region had a mixed showing to begin the week.

    Japan’s Nikkei: flat,
    Hong Kong’s Hang Seng: +1.6%,
    China’s Shanghai Composite: +0.3%,
    India’s Sensex: -0.5%,
    South Korea’s Kospi: -0.2%,
    Australia’s All Ordinaries: -0.4%.
    Hong Kong’s Hang Seng (+1.6%) outperformed on the back of strength in its tech components.
    Saturday was Singles Day (11/11) in China.
    Reports suggest sales gains were seen across major e-commerce platforms with deep discounts helping to spur spending.


    Japan’s October PPI -0.4% month-over-month (expected 0.0%; last -0.2%) and 0.8% yr/yr (expected 0.9%; last 2.2%); October Machine Tool Orders -20.6% yr/yr (last -11.2%)
    USD/JPY reached its highest level since October 2022 as Japan reported a month-over-month decline in October PPI.
    USD/JPY +0.2% to 151.72.


    China’s October New Loans CNY738.4B (expected CNY665.0B; last CNY2310.0B)

    China’s President Xi will be at the APEC Summit in San Francisco this week. He is confirmed to meet with President Biden on Wednesday with a reported aim for the two leaders to ease diplomatic tension between the two governments.


    Major European indices are trading with a modestly positive bias to begin the week.

    STOXX Europe 600: +0.5%,
    Germany’s DAX: +0.1%,
    U.K.’s FTSE 100: +0.6%,
    France’s CAC 40: +0.2%,
    Italy’s FTSE MIB: +0.9%,
    Spain’s IBEX 35: +0.6%.


    Germany’s September Current Account Balance EUR28.1B (last EUR22.8B)

    ECB member de Guindos says inflation may pick up again temporarily, but that he won’t pre-judge any future movement in interest rates before adding that talk about rate cuts is premature, according to Bloomberg.


    UK’s November Rightmove House Price Index -1.3% yr/yr (last -0.8%)
    UK Prime Minister Sunak fired home secretary Braverman and, in a major surprise, announced former prime minister David Cameron will be foreign secretary.
    UK Rightmove House Price Index saw its biggest decline (-1.3% yr/yr) in five years.


    HP Inc. (HPQ 28.15, +0.53, +1.9%): upgraded to Buy from Neutral at Citi


    Tower Semi (TSEM 23.23, -1.30, -5.3%): reports Q3 (Sep) results, revs in-line; guides Q4 revs below consensus

    Tyson Foods (TSN 45.35, -1.60, -3.4%): beats by $0.08, misses on revs; guides FY23 revs below consensus


    Novo Nordisk (NVO 100.18, -1.01, -1.0%): reports Semaglutide 2.4 mg (Wegovy) cardiovascular outcomes data presented at American Heart Association Scientific Sessions and simultaneously published in New England Journal of Medicine


    The 2-yr note yield is unchanged from Friday at 5.05% and the 10-yr note yield is up one basis point at 4.64%.

    Notably, after Friday’s close Moody’s changed its outlook on US ratings to negative from stable, but affirmed Aaa ratings.

    Moody’s Lowers Outlook on US Debt to Negative, Towards Fitch and S&P Global Downgrades


    Now Treasury yields are climbing.
    The 10-yr note yield is up five basis points to 4.68% and the 2-yr note yield is up three basis points to 5.08%.

    WTI crude oil futures are up 0.1% to $77.20/bbl.


    The S&P 500 futures are down 15 points and are trading 0.3% below fair value.
    The Nasdaq 100 futures are down 64 points and are trading 0.4% below fair value.
    The Dow Jones Industrial Average futures are down 68 points and are trading 0.2% below fair value.


    The stock market opened on a softer note.

    The negative bias is partially due to an expectation for some consolidation activity following Friday’s rally effort. There’s also an element of hesitation in play in front of tomorrow’s release of the October Consumer Price Index (CPI).

    Dow 34274.45 -8.65 (-0.03%)
    Nasdaq 13718.06 -80.05 (-0.58%)
    SP 500 4400.16 -15.08 (-0.34%)
    10-yr Note -4/32 4.688
    NYSE Adv 889 Dec 1787 Vol 94 mln
    Nasdaq Adv 1313 Dec 2645 Vol 891 mln

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

    Moving the Market
    — Selling into strength in a market many believe is due for some consolidation

    — A wait-and-see mentality in front of Tuesday’s release of October Consumer Price Index

    — Rising Treasury yields

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