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28/12/22 Briefing

Updated: Dec 29, 2022


The S&P 500 futures are up points and are trading 0.3% above fair value. The Nasdaq 100 futures are up 31 points and are trading 0.3% above fair value. The Dow Jones Industrial Average futures are up 99 points and are trading 0.3% above fair value.

The stock market is poised for a higher open as the Santa Claus rally period (last five trading days of the year plus the first two trading sessions of the new year) continues. Some speculative bargain hunting interest is likely playing a role after many stocks registered sizable losses recently.  

Hong Kong ended its major remaining coronavirus restrictions, according to Bloomberg.

The U.S. is considering new coronavirus measures for travelers from China, according to The Wall Street Journal. 

Russia has banned oil sales to countries with imposed price caps, according to The Wall Street Journal.

On a related note, energy complex futures are moving lower this morning. WTI crude oil futures are down 0.4% to $79.22/bbl and natural gas futures are down 6.2% to $4.96/mmbtu.

Economic data today is limited to November Pending Home Sales (Briefing.comconsensus -0.2%; prior -4.6%) at 10:00 a.m. ET.

Treasury yields are declining. The 2-yr note yield is down 10 basis points to 4.33% and the 10-yr note yield is down five basis points to 3.81%. 

In corporate news:

  • Tesla (TSLA 111.27, +2.17, +2.0%): ARK Innovation ETF (ARKK) purchased 25K shares of TSLA;  Barron's out with a cautious view on TSLA

  • Boeing (BA 190.21, +0.81, +0.4%):  BOC Aviation announces order for 40 additional Boeing 737-8 Jets

  • TaiwanSemiconductor Manufacturing Co. (TSM 74.10, -0.22, -0.3%): Q1 revenue could decline by 15% qtr/qtr, according to Digitimes

  • Southwest Air (LUV 33.53, -0.41, -1.2%): continued weakness over flight cancelations; memos showed concern about winter storm, according to Bloomberg

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended Wednesday on a mostly lower note. Japan's Nikkei: -0.4%, Hong Kong's Hang Seng: +1.6%, China's Shanghai Composite: -0.3%, India's Sensex: UNCH, South Korea's Kospi: -2.2%, Australia's ASX All Ordinaries: -0.4%.

  • In economic data:

  • Japan's November Industrial Production -0.1% m/m (expected -0.3%; last -3.2%)

  • South Korea's January Manufacturing BSI Index 71 (last 74)

  • In news:

  • Japan's deputy chief cabinet secretary said that the government will increase its focus on wage growth in 2023.

  • Continued weakness in Japanese debt drove the country's 20-yr yield to 1.27%, a level not seen since late October.

  • China Economic Daily noted that there is more room for supportive policies and that more powerful measures need to be taken to support the property sector.

  • Digitimes reported that Q1 revenue at contract chipmaker TSMC is expected to be down 15% qtr/qtr.

  • Major European indices trade near heir flat lines while the U.K.'s FTSE (+0.9%) outperforms after being closed yesterday. STOXX Europe 600: +0.5%, Germany's DAX: +0.1%, U.K.'s FTSE 100: +0.9%, France's CAC 40: +0.3%, Italy's FTSE MIB: +0.1%, Spain's IBEX 35: +0.6%.

  • In economic data:

  • Swiss December ZEW Expectations -42.8 (last -57.5)

  • In news:

  • Russian President Putin signed a decree banning the sale of oil to countries that support the EU price cap.

  • European Central Bank policymaker Simkus said that the inflationary peak is expected to be reached soon.

  • Infineon CEO said that his company is considering acquisitions.

 

U.S. equity futures:

  • S&P 500 Futures: +13 @ 3,842

  • DJIA Futures: +104 @ 33,346

  • Nasdaq 100 Futures: +32 @ 10,855

Overseas:

  • Europe: DAX +0.1%, CAC +0.3%, FTSE +0.1%

  • Asia: Nikkei -0.4%, Hang Seng +1.6%, Shanghai Composite -0.3%

Commodities:

  • Crude Oil -0.31 @ 79.22

  • Nat Gas -0.230 @ 4.886

  • Gold -11.05 @ 1812.05

  • Silver -0.147 @ 24.07

  • Copper +0.0155 @ 3.856

 

Earnings/Guidance:

  • Taiwan Semiconductor Manufacturing (TSM) Q1 revenue could decline by 15% qtr/qtr, according to Digitimes

News:

  • Russia bans oil sales to countries with imposed price caps, according to the Wall Street Journal

  • Hong Kong ends major remaining coronavirus restrictions, according to Bloomberg

  • US considering new coronavirus measures for travelers from China, according to the Wall Street Journal

  • US Supreme Ct extends Title 42 immigration policy, according to CNBC

  • Apple (AAPL): Estimated shipments of iPhone 14 devices in 2022 have been lowered to 78.1 million units due to impact of COVID-19 lockdown on Foxconn's (HNHPF) base in Zhengzhou, says TrendForce

  • AstraZeneca (AZN): Imfinzi plus Imjudo approved in Japan for advanced liver and non-small cell lung cancers, and Imfinzi approved for unresectable biliary tract and liver cancers

  • Boeing (BA): BOC Aviation announces order for 40 additional Boeing 737-8 Jets

  • Cboe Global Markets (CBOE) to re-open floor trading of VIX options on Wednesday

  • Clean Energy Fuels (CLNE) announces sustainability-linked financing with riverstone credit partners to fund RNG growth

  • Franco-Nevada (FNV) provides further update on Cobre Panama

  • Gilead Sciences (GILD) buys out remaining financial obligations under GS-1811 license with Jounce Therapeutics

  • Himax Tech (HIMX) announced a collaboration with Wentai Technology

  • IVERIC bio (ISEE) to sell its preclinical stage gene therapies IC-100 and IC-200 to Opus Genetics

  • KULR (KULR) to Introduce All-New Modular Energy Platform, KULR ONE, at CES 2023

  • MAG Silver (MAG) reports on the Juanicipio project

  • Pfizer (PFE): FDA accepts for review the biologics license application for Pfizer's investigational pentavalent meningococcal vaccine candidate (MenABCWY) in adolescents

  • Sempra Energy (SRE) Announces sale and purchase agreement with RWE for Port Arthur LNG

  • Southwest (LUV) memos showed concern about winter storm, according to Bloomberg

  • Tesla (TSLA): ARK Innovation ETF (ARKK) purchased 25K shares of TSLA

M&A:

  • LightJump Acquisition Corp. (LJAQ) and Moolec Science announce that their previously announced business combination was approved at a special meeting of stockholders of LightJump on December 27, 2022

Syndicate:

  • Quantum (QMCO) files for 361,010 share common stock offering by selling shareholders

  • RadNet (RDNT) files mixed securities shelf offering; also files for common stock offering by selling shareholders

  • Sun Country Airlines (SNCY) files for 34,352,603 share common stock offering by selling shareholders, includes warrants

IPOs:

  • Expect to Price:

  • No IPOs expected.

Gapping Up/Down

  • Gapping up: KULR +5.2%, CLNE +2%, HIMX +1.4%

  • Gapping down: LJAQ -21.1%, QMCO -1.9%, ISEE -1.7%

 


Analyst Research (see Upgrades/Downgradescalendarfor full list):

  • Upgrades

  • N

  • Downgrades:

  • N

  • Others:

  • G

Upcoming Events:

  • Econ Data:

  • 07:00 ET: MBA Mortgage Applications Index for Dec. 24 (Briefing.comConsensus NA; Prior 0.9%)

  • 10:00 ET: Pending Home Sales for Nov (Briefing.comConsensus -0.2%; Prior -4.6%)

  • Earnings:

  • Wednesday (Dec 28)

  • Afternoon:  CALM

Asia & Europe detail:

Asia: Nikkei -0.4%, Hang Seng +1.6%, Shanghai Composite -0.3%

Equity indices in the Asia-Pacific region ended Wednesday on a mostly lower note. Japan's deputy chief cabinet secretary said that the government will increase its focus on wage growth in 2023. Continued weakness in Japanese debt drove the country's 20-yr yield to 1.27%, a level not seen since late October. China Economic Daily noted that there is more room for supportive policies and that more powerful measures need to be taken to support the property sector. Digitimes reported that Q1 revenue at contract chipmaker TSMC is expected to be down 15% qtr/qtr.

  • In economic data:

  • Japan's November Industrial Production -0.1% m/m (expected -0.3%; last -3.2%)

  • South Korea's January Manufacturing BSI Index 71 (last 74)

---Equity Markets---

  • Japan's Nikkei: -0.4%

  • Hong Kong's Hang Seng: +1.6%

  • China's Shanghai Composite: -0.3%

  • India's Sensex: UNCH

  • South Korea's Kospi: -2.2%

  • Australia's ASX All Ordinaries: -0.4%

---FX---

  • USD/JPY: +0.3% to 133.89

  • USD/CNH: +0.2% to 6.9789

  • USD/INR: -0.1% to 82.80

 

Europe: DAX +0.1%, CAC +0.3%, FTSE +0.1%

Major European indices trade near heir flat lines while the U.K.'s FTSE (+0.9%) outperforms after being closed yesterday. Russian President Putin signed a decree banning the sale of oil to countries that support the EU price cap. European Central Bank policymaker Simkus said that the inflationary peak is expected to be reached soon. Infineon CEO said that his company is considering acquisitions.

  • In economic data:

  • Swiss December ZEW Expectations -42.8 (last -57.5)

---Equity Markets---

  • STOXX Europe 600: +0.5%

  • Germany's DAX: +0.1%

  • U.K.'s FTSE 100: +0.9%

  • France's CAC 40: +0.3%

  • Italy's FTSE MIB: +0.1%

  • Spain's IBEX 35: +0.6%

---FX---

  • EUR/USD: +0.1% to 1.0645

  • GBP/USD: +0.5% to 1.2081

  • USD/CHF: -0.1% to 0.9275

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