Traders Market Weekly: APR 3-9 — Yield Inversion & Inflation concerns

Viewing 15 posts - 16 through 30 (of 48 total)
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    The Dow Jones Industrial Average (-0.08%) scooted toward breakeven levels in the last half hour, but failed to break through.

    A look inside the DJIA shows that Boeing (BA 184.13, -7.05, -3.69%), Caterpillar (CAT 217.17, -3.64, -1.65%), and Cisco (CSCO 55.19, -0.30, -0.54%) are among today’s top laggards.

    Conversely, healthcare plan provider UnitedHealth (UNH 524.16, +14.14, +2.77%) is today’s top performer.

    The DJIA has modestly trimmed its gains to +0.62% month-to-date.


    Twitter (TWTR 50.97, +1.00, +2.0%) is up 2% after the company announced it will appoint Elon Musk to its Board of Directors. Mr. Musk will own no more than 14.9% of Twitter’s outstanding shares for as long as he’s on the Board and for 90 days thereafter.


    ^^^^^ +1s & song dedication (lol) for great updates above 🙂

    As Cramer might say “SELL, SELL, SELL” as $4 gas has blown up the economy
    The COVID-ians + banksters + pitbulls havve been shearing sheep on WALL & MAIN street
    Equities are RED (down about 1%) with OIL just above $100
    Stagflation on steroids for short term — but hope we break out for sake of our nation


    Dow 34,641.18 -280.70 -0.80%
    S&P 500 4,525.12 -57.52 -1.26%
    Nasdaq 14,204.17 -328.39 -2.26%
    GlobalDow 4,065.41 -49.16 -1.19%
    Gold 1,926.20 -7.80 -0.40%
    Oil 100.78 -2.50 -2.42%


    Acuity Brands (AYI) beats by $0.20, beats on revs
    Benson Hill (BHIL) expects to be free cash flow positive in 2025 based on revenues of more than $500 million and consolidated gross margins in excess of 25% (CARS) CFO Sonia Jain to resign, effective April 15; Jandy Tomy named interim CFO; co reaffirms Q1 and FY22 revenue guidance
    Cognyte Software (CGNT) misses by $0.06, misses on revs
    Collegium Pharmaceutical (COLL) sees FY22 revs in line
    Lindsay Corp (LNN) beats by $0.12, beats on revs
    Supernus Pharma (SUPN) reaffirms FY22 guidance
    Thryv (THRY) announces SaaS revenue target of $1 billion in 2027
    Welltower (WELL) expects to exceed midpoint of Q1 FFO guidance


    Amazon (AMZN) announced agreements with Arianespace, Blue Origin, and United Launch Alliance to provide heavy-lift launch services for Project Kuiper, Amazon’s initiative to increase global broadband access using a constellation of satellites in low Earth orbit
    Amazon (AMZN): Additional warehouses have expressed interested in forming a union following NY success, according to Reuters



    Bristol-Myers (BMY) receives European commission approval for Opdivo plus yervoy (ipilimumab) as first-line treatment for patients with unresectable advanced, recurrent or metastatic esophageal squamous cell carcinoma with tumor cell PD-L1 expression
    Bristol-Myers (BMY) receives European commission approval for Opdivo (nivolumab) with chemotherapy as first-line treatment for patients with unresectable advanced, recurrent or metastatic esophageal squamous cell carcinoma with tumor cell PD-L1
    Bristol Myers (BMY) receives Marketing Authorization from European Commission for Breyanzi for certain forms of relapsed or refractory large B-cell lymphoma


    Spirit Airlines (SAVE 25.78, -1.14): -4.2% after confirming an unsolicited proposal from JetBlue Airways (JBLU 13.13, -0.51, -3.7%) for an all-cash acquisition transaction valued at $33.00/share, implying a fully diluted equity value of $3.6 billion. Recall, Spirit previously agreed to merge with Frontier (ULCC 11.79, -0.13, -1.1%).
    RPM Inc. (RPM 83.00, -0.12): -0.1% despite beating top and bottom-line estimates and guiding Q4 revenue above consensus.
    Simply Good Foods (SMPL 39.99, +1.59): +4.1% after beating top and bottom-line estimates and providing in-line FY22 revenue guidance.
    Avis Budget (CAR 265.00, -11.71): -4.2% after the stock was downgraded to Underperform from Neutral at BofA Securities. Transportation stocks have had a noticeably weak start to the month.


    Weekly MBA Mortgage Applications Index fell 6.3% following a 6.8% decline in the prior week. WTI crude futures are up 1.6%, or $1.57, to $103.54/bbl ahead of the weekly EIA crude inventory report at 10:30 a.m. ET.


    Equity indices in the Asia-Pacific region were mostly lower on Wednesday

    Japan’s Nikkei: -1.6%
    Hong Kong’s Hang Seng: -1.9%
    China’s Shanghai Composite: flat
    India’s Sensex: -0.9%
    South Korea’s Kospi: -0.9%
    Australia’s ASX All Ordinaries: -0.6%.


    China’s March Caixin Services PMI 42.0 (prior 50.2)
    Hong Kong’s March Manufacturing PMI 42.0 (prior 42.9)
    India’s March Nikkei Services PMI 53.6 (expected 52.5; prior 51.8)
    China’s Shanghai Composite, which was closed Monday and Tuesday for the Ching Ming Festival, managed a flat session despite a troubling report that showed the Caixin Services PMI tumble to 42.0 in March from 50.2 in February.
    The sharp drop captured the effects of COVID lockdown responses and weakening confidence. On a related note, Shanghai remains in lockdown.
    The yen has continued to weaken with USD/JPY now sitting at 123.94 versus 114.90 on March 1.


    Eurozone’s February PPI +1.1% m/m (expected +1.3%; prior +5.1%) and +31.4% yr/yr (expected +31.5%; prior +30.6%)
    Germany’s February Factory Orders -2.2% m/m (expected -0.2%; prior +2.3%); March IHS Markit Construction PMI 50.9 (prior 54.9)
    UK’s March Construction PMI 59.1 (expected 57.8; prior 59.1)
    Spain’s Consumer Confidence 53.8 (prior 89.8)
    The ECB’s Chief Economist Lane, though, still expects inflation to peak in the middle of this year, albeit with a caveat that a lot still depends on what happens in Ukraine.
    ECB member Wunsch, meanwhile, sees a possibility of the Deposit Rate hitting 0.00% by end of year (versus -0.50% currently).
    German factory orders were much weaker than expected in February and added to the negative investor sentiment.
    Reports suggest more sanctions for Russia will be forthcoming.


    Longer-dated rates are outpacing shorter-dated rates, with the 10-yr yield up eight basis points to 2.63% and the 2-yr yield up three basis points to 2.54%.

    Notably, the 10-yr yield is up 30 basis points since the start of the month, exerting valuation-oriented pressure on the growth stocks.

    Rates have been fueled by expectations for the Fed to tighten policy more aggressively, so the FOMC Minutes for the March meeting, which will be released at 2:00 p.m. ET, will carry more weight than usual today.


    –Equity Markets—

    STOXX Europe 600: -1.6%
    Germany’s DAX: -2.1%
    U.K.’s FTSE 100: -0.7%
    France’s CAC 40: -2.2%
    Italy’s FTSE MIB: -2.5%
    Spain’s IBEX 35: -1.9%

    Helmholtz Watson

    Dollar jumps after FOMC minutes highlight the appetite for 50 basis point rate hikes
    ‘Many’ policymakers wanted to step harder on the brakes

    The US dollar initially fell but quickly reversed course and has now surged to the best levels of the day on indications the FOMC won’t hesitate to deliver one or more half-point rate hikes.

    The commodity currencies are bearing the brunt of the US dollar move as US equities tumble.

    The S&P 500 is down 1.4% and the Nasdaq down 2.7%, both sliding further after the report’s release.

    EUR/USD is down 20 pips to 1.0881 on the day with the entire fall coming after the minutes.

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