top of page
Search

29/12/22 Briefing


The S&P 500 futures are up 16 points and are trading 0.4% above fair value. The Nasdaq 100 futures are up 64 points and are trading 0.7% above fair value. The Dow Jones Industrial Average futures are up 75 points and are trading 0.2% above fair value. 

There's a positive bias in the equity futures market this morning thanks to decent gains in Tesla (TSLA) and renewed interest in other mega cap stocks. Some bargain hunting activity after recent weakness is likely helping boost the market. 

The U.S. and other countries will require a negative Covid test before entry for travelers from China. 

The 2-yr Treasury note yield is up one basis point to 4.36% and the 10-yr note yield is flat at 3.88%. The U.S. Dollar Index is down 0.3% to 104.17.

WTI crude oil futures are down 1.0% to $78.24/bbl.

Market participants will receive the following economic data today:

  • 8:30 a.m. ET: Weekly initial jobless claims (Briefing.comconsensus 220,000; prior 216,000) and continuing claims (prior 1.672 million)

  • 10:30 a.m. ET: Weekly EIA Natural Gas Inventories (prior -87 bcf)

  • 11:00 a.m. ET: Weekly EIA Crude Oil Inventories (prior -5.89 million)

In corporate news:

  • Tesla (TSLA 118.05, +5.34, +4.7%) ARK Innovation ETF purchased 17K shares of TSLA; CEO Elon Musk tells workers that they shouldn't be "bothered by stock market craziness," according to CNBC

  • Goldman Sachs (GS 342.25, +1.38, +0.4%):  expects to eliminate jobs next month, according to Bloomberg

  • DoorDash (DASH 47.35, +0.50, +1.1%): Consumers are changing to in store pickups versus food delivery as costs increase, according to WSJ

  • Walt Disney (DIS 84.83, +0.66, +0.8%):  'Avatar: The Way of Water' crosses $1 billion at the global box office

  • Taiwan Semiconductor Manufacturing Co. (TSM 73.95, +0.89, +1.2%): holds 3nm volume production and capacity expansion ceremony, marking a key milestone for advanced manufacturing

  • Cal-Maine Foods (CALM 59.90, -2.29, -3.7%): misses by $0.17, beats on revs

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended Thursday mostly lower, following the disappointing lead from Wall Street on Wednesday. Japan's Nikkei: -0.9%, Hong Kong's Hang Seng: -0.8%, China's Shanghai Composite: -0.4%, India's Sensex: +0.4%, South Korea's Kospi: -1.9%, Australia's ASX All Ordinaries: -0.9%.

  • In economic data:

  • South Korea's November Industrial Production +0.4% m/m (expected -0.8%; last -3.5%) and -3.7% yr/yr (expected -4.0%; last -1.2%); November Retail Sales -1.8% m/m (last -0.2%)

  • Hong Kong's November exports -24.1% m/m (last -10.4%) and imports -20.3% m/m (last -11.9%)

  • In news:

  • Stronger than expected industrial production in South Korea in November was offset by reports that semiconductor production fell 15%, marking the largest drop since 2009, and another decline in retail sales.

  • The Bank of Japan carried out another unscheduled bond purchase operation, focusing a JPY300 bln effort on 5-10yr JGBs. In related news, Reuters reports that former deputy governor Yamaguchi, who has criticized the BOJ's current policy, is a potential successor to Governor Kuroda.

  • China continues to open up with relaxed COVID restrictions, although several countries, including the U.S., will be requiring negative COVID tests before entry for travelers from China, Hong Kong, and Macau.

  • Major European indices are little changed, taking some tentative steps after Wall Street's disappointing showing on Wednesday. STOXX Europe 600: flat, Germany's DAX: +0.2%, U.K.'s FTSE 100: -0.2%, France's CAC 40: +0.1%, Italy's FTSE MIB: +0.3%, Spain's IBEX 35: +0.2%.

  • In economic data:

  • Eurozone's November M3 Money Supply +4.8% yr/yr (expected +5.0%; last +5.1%)

  • Spain's November Retail Sales -0.6% yr/yr (last +1.0%)

  • In news:

  • Overall conviction is lacking amid thin holiday trading conditions and a lack of market-moving news flow.

  • A survey conducted by KPMG indicates that two-thirds of UK consumers plan to reduce discretionary spending in 2023 because of rising costs, according to The Guardian.

  • CNBC reports that natural gas prices in Europe have fallen back to levels seen before Russia invaded Ukraine in February.

 

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 +0.2%, FTSE -0.2%, CAC +0.1%

  • Asia: Nikkei -0.9%, Hang Seng -0.8%, Shanghai Composite -0.4%

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:

  • Cal-Maine Foods (CALM) misses by $0.17, beats on revs

  • Mosaic (MOS) provides update on Q4 volume data

News:

  • China's economy is showing signs of returning to normal despite tens of millions of coronavirus cases, according to Financial Times

  • CDC confirms negative COVID-19 test requirement from air passengers entering the United States from the People's Republic of China

  • Regulators will investigate power outages during winter storm, according to Reuters

  • China will increase oversight of education technology, according to Bloomberg

  • Boeing (BA) supports Lockheed Martin protest asking the US GAO to review the US Army's decision on recent FLRAA contract, which was awarded to Textron

  • Check Point Software (CHKP) announced an extended collaboration with Intel (INTC) to offer enhanced anti-ransomware capabilities for Check Point Harmony's customers

  • DocGo (DCGO) co-founder and current Chairman/CEO Stan Vashovsky will continue to serve as non-executive Chairman beginning on January 1, 2023

  • DoorDash (DASH): Consumers are changing to in store pickups versus food delivery as costs increase, according to the Wall Street Journal

  • Goldman (GS) expects to eliminate jobs next month, according to Bloomberg

  • Gold Resource (GORO) announces ownership interest in Green Light Metals upon promissory note conversion into common shares

  • HYZON Motors (HYZN) enters into Equity Capital Contribution Agreement with Chevron and Raven SR

  • ImmunoGen (IMGN) CFO Susan Altschuller, PhD is on leave and will not continue employment at the conclusion of her leave

  • Lockheed Martin (LMT) being awarded an undefinitized contract action worth up to $528 mln from Missile Defense Agency

  • Mesoblast (MESO) announced that funds managed by Oaktree Capital extended the availability of up to an additional $30.0 mln of its $90 mln five year facility subject to achieving certain milestones on or before September 30, 2023

  • New Mountain Finance (NMFC) extends stock repurchase program for up to $50 mln through Dec 31, 2023

  • Novartis (NVS) aiming to pay $245 mln to settle exforge generics lawsuit, according to Bloomberg

  • Osisko (OR) Provides Update on CSA Stream Transaction

  • Pfizer (PFE) announces positive top-line results from phase 3 study of hemophilia b gene therapy candidate

  • Southwest (LUV): Unions claim that Southwest didn't accept recommendations to upgrade technology before winter storm, according to the Washington Post

  • Standard Lithium (SLI) receives notice of allowance for final U.S. patent covering DLE Process for recovering lithium from brines

  • Taiwan Semiconductor Manufacturing (TSM) holds 3nm volume production and capacity expansion ceremony, marking a key milestone for advanced manufacturing

  • Tata Motors (TTM): Delhi Transport Corporation signs a definitive agreement with Tata Motors' subsidiary for operating 1500 electric buses

  • Tesla (TSLA): ARK Innovation ETF purchased 17K shares of TSLA

  • Tesla (TSLA) CEO Elon Musk tells workers that they shouldn't be "bothered by stock market craziness", according to CNBC

M&A:

  • Brigham Minerals (MNRL) stockholders approve merger with Sitio Royalties Corp (STR); anticipated to close on Dec 29, 2022

  • Resolute Forest Products (RFP) receives Canadian Competition Bureau approval; one step closer to closing transaction; remains on course to close in 1H23

Syndicate:

  • Kura Sushi (KRUS) files for $125 mln mixed securities shelf offering

IPOs:

  • Expect to Price:

  • No IPOs expected.

Gapping Up/Down

  • Gapping up: HYZN +12.9%, GLBL +7.1%, RXO +4.7%, TSM +1.2%,

  • Gapping down: JYNT -6.1%, CALM -5.5%, IMGN -2.6%, VNO -1.8%, KRUS -1.7%, TTM -1.3%,

 


Analyst Research (see Upgrades/Downgradescalendarfor full list):

  • Upgrades

  • No upgrades of note.

  • Downgrades:

  • Loop Industries (LOOP) downgraded to Neutral from Buy at H.C. Wainwright

  • Others:

  • Shift4 Payments (FOUR) assumed with an Overweight at Piper Sandler; tgt $69

  • Skechers USA (SKX) initiated with a Neutral at Piper Sandler; tgt $42

Upcoming Events:

  • Econ Data:

  • 08:30 ET: Initial Claims for Dec 24 (Briefing.comConsensus 220K; Prior 216K)

  • 08:30 ET: Continuing Claims for Dec 17 (Briefing.comConsensus NA; Prior 1672K)

  • 10:30 ET: EIA Natural Gas Inventories for Dec 24 (Briefing.comConsensus NA; Prior -87 bcf)

  • 11:00 ET: EIA Crude Oil Inventories for Dec 24 (Briefing.comConsensus NA; Prior -5.89 M)

  • Earnings:

  • Wednesday (Dec 28)

  • Afternoon:  CALM

Asia & Europe detail:

Asia: Nikkei -0.9%, Hang Seng -0.8%, Shanghai Composite -0.4%

Equity indices in the Asia-Pacific region ended Thursday mostly lower, following the disappointing lead from Wall Street on Wednesday. Stronger than expected industrial production in South Korea in November was offset by reports that semiconductor production fell 15%, marking the largest drop since 2009, and another decline in retail sales. The Bank of Japan carried out another unscheduled bond purchase operation, focusing a JPY300 bln effort on 5-10yr JGBs. In related news, Reuters reports that former deputy governor Yamaguchi, who has criticized the BOJ's current policy, is a potential successor to Governor Kuroda. China continues to open up with relaxed COVID restrictions, although several countries, including the U.S., will be requiring negative COVID tests before entry for travelers from China, Hong Kong, and Macau.

  • In economic data:

  • South Korea's November Industrial Production +0.4% m/m (expected -0.8%; last -3.5%) and -3.7% yr/yr (expected -4.0%; last -1.2%); November Retail Sales -1.8% m/m (last -0.2%)

  • Hong Kong's November exports -24.1% m/m (last -10.4%) and imports -20.3% m/m (last -11.9%)

---Equity Markets---

  • Japan's Nikkei: -0.9%

  • Hong Kong's Hang Seng: -0.8%

  • China's Shanghai Composite: -0.4%

  • India's Sensex: +0.4%

  • South Korea's Kospi: -1.9%

  • Australia's ASX All Ordinaries: -0.9%

---FX---

  • USD/JPY: -0.6% to 133.71

  • USD/CNH: -0.3% to 6.9771

  • USD/INR: +0.1% to 82.797

 

Europe: DAX +0.2%, FTSE -0.2%, CAC +0.1%

Major European indices are little changed, taking some tentative steps after Wall Street's disappointing showing on Wednesday. Overall conviction is lacking amid thin holiday trading conditions and a lack of market-moving news flow. A survey conducted by KPMG indicates that two-thirds of UK consumers plan to reduce discretionary spending in 2023 because of rising costs, according to The Guardian. On a better note, CNBC reports that natural gas prices in Europe have fallen back to levels seen before Russia invaded Ukraine in February.

  • In economic data:

  • Eurozone's November M3 Money Supply +4.8% yr/yr (expected +5.0%; last +5.1%)

  • Spain's November Retail Sales -0.6% yr/yr (last +1.0%)

---Equity Markets---

  • STOXX Europe 600: flat

  • Germany's DAX: +0.2%

  • U.K.'s FTSE 100: -0.2%

  • France's CAC 40: +0.1%

  • Italy's FTSE MIB: +0.3%

  • Spain's IBEX 35: +0.2%

---FX---

  • EUR/USD: +0.3% to 1.0637

  • GBP/USD: +0.1% to 1.2021

  • USD/CHF: -0.4% to 0.9246

0 views0 comments

Recent Posts

See All

The S&P 500 futures are down 9 points and are trading 0.2% below fair value. The Nasdaq 100 futures are down 2 points and are trading roughly in line with fair value. The Dow Jones Industrial Average

The S&P 500 futures are down 37 points and are trading 1.0% below fair value. The Nasdaq 100 futures are down 152 points and are trading 1.3% below fair value. The Dow Jones Industrial Average futures

Post: Blog2_Post
bottom of page