top of page
Search

26/12/23 Briefing

The S&P 500 futures are up seven points and are trading 0.1% above fair value, the Nasdaq 100 futures are up 43 points and are trading 0.2% above fair value, and the Dow Jones Industrial Average futures are up 22 points and are trading 0.1% above fair value.

Equity futures indicate a slightly higher open to begin the final week of the year. Participation is expected to be light in this seasonally strong period for the market. 

The 2-yr note yield is up two basis points to 4.35% and the 10-yr note yield is unchanged from Friday at 3.90%.

Geopolitical worries are still in play after reports that Israel is intensifying its campaign in Gaza, according to The New York Times.

Today's economic calendar features the October FHFA Housing Price Index and October S&P Case-Shiller Home Price Index at 9:00 ET.

In corporate news:

  • Intel (INTC 49.15, +1.15, +2.4%): Israel grants INTC $3.2 bln for new $25 bln chip plant, according to Reuters

  • Manchester United (MANU 20.71, +0.87, +4.4%): reaches agreement for Sir Jim Ratcliffe, Chairman of INEOS, to acquire up to a 25% shareholding in the company

  • AstraZeneca (AZN 66.37, +0.08, +0.1%): Gracell Biotechnologies to be acquired by AstraZeneca, furthering cell therapy ambition across oncology and autoimmune diseases for $10.00/ADS

  • RayzeBio (RYZB 60.25, +29.68, +97.1%): to be acquired by Bristol-Myers (BMY) for $62.50/share

  • HollySys (HOLI 27.05, +1.53, +6.0%): Buyer consortium led by Dazheng Group announces enhanced all-cash proposal of $29.00/share to acquire HOLI

  • Apple (AAPL 193.85, +0.25, +0.1%): President Biden decided against veto of AAPL Watch Series 9 and Ultra 2 import ban; meaning ban has taken effect, according to Reuters

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended Tuesday on a mostly higher note while markets in Hong Kong, Australia, and New Zealand remained closed for Christmas. Japan's Nikkei: +0.2%, Hong Kong's Hang Seng: HOLIDAY, China's Shanghai Composite: -0.7%, India's Sensex: +0.3%, South Korea's Kospi: +0.1%, Australia's ASX All Ordinaries: HOLIDAY.

  • In economic data:

  • Japan's November Leading Index -0.4% m/m (expected -0.6%; last -0.3%) and Coincident Indicator 0.2% m/m, as expected (last 0.1%). November jobs/applications ratio 1.28 (expected 1.30; last 1.30) and November Unemployment Rate 2.5%, as expected (last 2.5%). October Corporate Services Price Index 2.3% yr/yr (expected 2.4%; last 2.3%). November BoJ Core CPI 2.7% yr/yr (expected 3.0%; last 3.0%)

  • Singapore's November CPI -0.2% m/m (last 0.2%); 3.6% yr/yr (expected 3.8%; last 4.7%). November Core CPI 3.2% yr/yr, as expected (last 3.3%). November Industrial Production -7.8% m/m (expected -7.1%; last 9.9%); 1.0% yr/yr (expected 3.1%; last 7.6%)

  • In news:

  • Former Bank of Japan policymaker Masai criticized Governor Ueda for confusing markets with his statements, saying that imminent changes to the central bank's policy stance are unlikely.

  • Japan sold 2-yr debt to weak demand.

  • China Securities Journal speculated that the Chinese government will take steps to support equity inflows next year.

  • Samsung will delay the start of mass production at its fabrication facility in Texas until 2025.

  • Major European markets remain closed for Christmas/Boxing Day, set to reopen tomorrow. 

  • In economic data:

  • Spain's November PPI -7.4% yr/yr (last -7.7%)

  • In news:

  • The Spanish government is reportedly planning a six-month extension to its inflation assistance measures for low-income earners.

 

U.S. equity futures:

  • S&P 500 Futures +7 @ 4,812

  • DJIA Futures: +22 @ 37,762

  • Nasdaq 100 Futures: +43 @ 17,023

Overseas:

  • Europe: DAX closed for holiday, FTSE closed for holiday, CAC closed for holiday

  • Asia: Nikkei +0.2%, Hang Seng closed for holiday, Shanghai Composite -0.7%

Commodities:

  • Crude Oil +0.43 @ 73.99

  • Nat Gas -0.147 @ 2.463

  • Gold +3.80 @ 2072.90

  • Silver +0.075 @ 24.640

  • Copper +0.014 @ 3.9190

Earnings/Guidance:

  • There is no earnings news of note

News:

  • Iranian drone strikes oil tanker near India, according to The Wall Street Journal

  • US believes Iran is "deeply involved" in Houthi attacks on Red Sea vessels, according to FT

  • Maersk will resume sending tankers through the Red Sea under a new US coalition, according to FT

  • Israel is intensifying its campaign in Gaza, according to New York Times

  • Bank of Japan Governor Kazuo Ueda says BOJ would consider changing policy if chances of reaching 2% inflation target increase, according to Reuters

  • Russian President Putin has told associates that he is open to deal with Ukraine that will freeze fighting along the current lines, but there is no evidence Ukraine would accept that deal, according to New York Times

  • China aiming to soften stance on gaming, according to Bloomberg

  • SEC hopes to launch Bitcoin ETF in early 2024, according to Reuters

  • White House issues statement from NSC Spokesperson Adrienne Watson on U.S. strikes in Iraq

  • AMC Entertainment (

  • Apple (

  • ConocoPhillips (

  • Empire State Realty Trust (

  • GSK (

  • Harpoon Therapeutics (

  • Intel (

  • Micron (

  • Microsoft (

  • Nanobiotix (

  • Nio (

  • Petrobras

  • Reliance Industries and Disney (

  • Samsung (

  • SomaLogic (

  • Target (

  • Ubisoft (

M&A:

  • American Electric (

  • Brown & Brown (

  • Gracell Biotechnologies (

  • HollySys (

  • Manchester United (

  • Penske Auto (

  • POINT Biopharma (

  • RayzeBio (

  • Stratasys (SSYS): Nano Dimension (NNDM) announces preliminary all cash proposal to acquire Stratasys (SSYS) for $16.50/share

  • Synopsys (

Syndicate:

  • Core Molding Technologies (

  • Global Medical REIT (

  • Gritstone bio (

  • Liquidia Technologies (

  • Scilex Holding (

IPOs:

  • No IPOs expected to price.

Gapping Up/Down

  • Gapping Up: RYZB +97.1%, GRCL +58.0%, SSYS +10.5%, HOLI +5.8%, MANU +4.7%, NIO +3.0%, NTES +2.7%, TYRA +2.5%,  LIAN +2.4%, ANSS +2.0%, INTC +1.9%, GMRE +1.2%, SNPS +1.2%

  • Gapping Down: SLGC -7.4%, LQDA -3.9%, INFY -1.0%

Analyst Research (see Upgrades/Downgrades calendar for full list):

  • Upgrades

  • There are no upgrades of note

  • Downgrades:

  • UPS (UPS) downgraded to Neutral from Outperform at Daiwa Securities; tgt $155

  • Others:

  • Axsome Therapeutics (AXSM) reiterated with a Buy at H.C. Wainwright

  • Dianthus Therapeutics (DNTH) initiated with a Buy at Jefferies; tgt $22

  • Tyra Biosciences (TYRA) initiated with a Buy at H.C. Wainwright

Econ Data:

  • 09:00 ET: October FHFA Housing Price Index (Prior 0.6%)

  • 09:00 ET: October S&P Case-Shiller Home Price Index (Briefing.com consensus 5.0%; Prior 3.9%)

Earnings:

  • Monday (Dec 25)

  • Markets closed for Christmas Day

  • Tuesday (Dec 26)

  • Morning: None

  • Afternoon:  None

  • Wednesday (Dec 27)

  • Morning:  None

  • Afternoon: None

  • Thursday (Dec 28)

  • Morning: None

  • Afternoon: None

  • Friday (Dec 29)

  • Morning: None

  • Afternoon: None

 

Asia & Europe detail:

Asia: Nikkei +0.2%, Hang Seng closed for holiday, Shanghai Composite -0.7%

Equity indices in the Asia-Pacific region ended Tuesday on a mostly higher note while markets in Hong Kong, Australia, and New Zealand remained closed for Christmas. Former Bank of Japan policymaker Masai criticized Governor Ueda for confusing markets with his statements, saying that imminent changes to the central bank's policy stance are unlikely. Japan sold 2-yr debt to weak demand. China Securities Journal speculated that the Chinese government will take steps to support equity inflows next year. Samsung will delay the start of mass production at its fabrication facility in Texas until 2025.

  • In economic data:

  • Japan's November Leading Index -0.4% m/m (expected -0.6%; last -0.3%) and Coincident Indicator 0.2% m/m, as expected (last 0.1%). November jobs/applications ratio 1.28 (expected 1.30; last 1.30) and November Unemployment Rate 2.5%, as expected (last 2.5%). October Corporate Services Price Index 2.3% yr/yr (expected 2.4%; last 2.3%). November BoJ Core CPI 2.7% yr/yr (expected 3.0%; last 3.0%)

  • Singapore's November CPI -0.2% m/m (last 0.2%); 3.6% yr/yr (expected 3.8%; last 4.7%). November Core CPI 3.2% yr/yr, as expected (last 3.3%). November Industrial Production -7.8% m/m (expected -7.1%; last 9.9%); 1.0% yr/yr (expected 3.1%; last 7.6%)

---Equity Markets---

  • Japan's Nikkei: +0.2%

  • Hong Kong's Hang Seng: HOLIDAY

  • China's Shanghai Composite: -0.7%

  • India's Sensex: +0.3%

  • South Korea's Kospi: +0.1%

  • Australia's ASX All Ordinaries: HOLIDAY

---FX---

  • USD/JPY: +0.1% to 142.33

  • USD/CNH: UNCH at 7.1445

  • USD/INR: +0.1% to 83.19

 

Europe: DAX closed for holiday, FTSE closed for holiday, CAC closed for holiday

Major European markets remain closed for Christmas/Boxing Day, set to reopen tomorrow. The Spanish government is reportedly planning a six-month extension to its inflation assistance measures for low-income earners.

  • In economic data:

  • Spain's November PPI -7.4% yr/yr (last -7.7%)

---Equity Markets---

  • STOXX Europe 600: HOLIDAY

  • Germany's DAX: HOLIDAY

  • U.K.'s FTSE 100: HOLIDAY

  • France's CAC 40: HOLIDAY

  • Italy's FTSE MIB: HOLIDAY

  • Spain's IBEX 35: HOLIDAY

---FX---

  • EUR/USD: UNCH at 1.1011

  • GBP/USD: +0.1% to 1.2692

  • USD/CHF: +0.4% to 0.8575

3 views0 comments

Recent Posts

See All

Comments


bottom of page