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Airline Stocks Fly High in Thursday"s Trading: Here"s Why

Upbeat passenger traffic during the holidays is likely to have buoyed the Q4 performance of United Airlines (UAL), American Airlines (AAL) and Spirit Airlines (SAVE). Delta Air Lines DAL kicked off the fourth-quarter 2021 earnings season for the airline stocks yesterday on a bright note. DAL reported better-than-expected earnings per share and revenues for the same period. Results were aided by an upbeat air traffic during the holidays.Apart from a strong earnings report, DAL management’s encouraging commentary on the omicron variant of COVID-19, pleased investors. As a result, the stock gained 2.1% on Jan 13. In fact, the bullishness was not limited to Delta alone as other stocks like American Airlines AAL, Spirit Airlines SAVE and United Airlines UAL in the industry were also lifted. The NYSE ARCA Airline index was up 2.84% following the northward movement of its constituents.Omicron: A Short-Term Pain Point for Air-Travel DemandThe omicron variant is causing U.S. airlines, including Delta to cancel multiple flights as the illness caused by the virus results in staff crunch. Encouragingly, for Delta, operations have stabilized over the past seven days with omicron-related cancellations impacting only 1% of its flights, per CEO Ed Bastian.Bastian further said that the omicron impact is likely to be short-term and “is expected to temporarily delay the demand recovery 60 days”. Although the variant is likely to result in a first-quarter loss for Delta, it is expected to be profitable in the remaining three quarters of 2022. In fact, DAL, currently carrying a Zacks Rank #3 (Hold), expects spring and summer travel to recover, riding on significant pent-up air travel demand, “resulting in a meaningful profit in 2022”.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Entire Industry Perked UpDelta’s healthy earnings report and bright forecast cheered investors, prompting them to grow bullish on the entire industry. American Airlines, which will report its fourth-quarter results on Jan 20, gained 4.54% yesterday. Like Delta, AAL’s December-quarter results are likely to be positively impacted by upbeat passenger traffic. AAL operated 1,500 flights more than other airlines during the Thanksgiving week.Buoyed by the strong air-travel demand scenario, American Airlines recently provided an improved revenue guidance for the final quarter of 2021. Management now expects total revenues to decline approximately 17% in the fourth quarter of 2021 from the comparable period’s figure in 2019. Previously, the airline estimated the same to decrease around 20%. The expectation that fuel cost per gallon will decline is also a positive. If this expectation comes true, the bottom line at AAL will get a boost. AAL now expects average fuel price per gallon to be $2.36 for the fourth quarter compared with the previous expectation of $2.43-$2.48.United Airlines, which will report fourth-quarter results on Jan 19, gained 3.5% yesterday. Like its peers, UAL attracted a significant traffic during the Thanksgiving holiday period. UAL expanded its domestic network by 700 flights during the Thanksgiving week. By doing so, the airline operated around 87% of its 2019 domestic schedule.Against the above backdrop, upbeat passenger volumes during the holidays are likely to have bumped up UAL’s performance in the to-be-reported quarter. The Zacks Consensus Estimate for fourth-quarter passenger revenues indicates a surge of more than 100% from the year-ago reported number. Moreover, United Airlines suggests a 2.1% increase from the third-quarter 2021 reported level.Spirit Airlines was another top gainer on Jan 13 with shares of SAVE rising 5.08% yesterday. SAVE is expected to report fourth-quarter results on Feb 8. Similar to other carriers, SAVE’s top line is likely to have benefited from increased passenger revenues, accounting for bulk of its revenues.Driven by upbeat traffic during the holidays, the Zacks Consensus Estimate for fourth-quarter passenger revenues at Spirit Airlines indicates a 6.3%% increase from the third-quarter 2021 reported level. On the back of higher traffic, the consensus mark for SAVE’s load factor (% of seats filled by passengers) in the December quarter is currently pegged at 80, higher than 78 recorded in third-quarter 2021. Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made. The only question is “Will you get into the right stocks early when their growth potential is greatest?” Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How to Profit from Trillions on Spending for Infrastructure >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Airlines Holdings Inc (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksJan 14th, 2022

Top Stock Picks For 2022

2022 is a stock pickers market and the recent dip provides us with some favorable pricing for these winning picks. After a brief yield-fueled market pullback to start the year, 2022’s looks ripe with fresh investment opportunities. Below I break down 6 innovation-powered picks for the rapidly digitalizing economic environment that the new normal is poised to drive materially higher.An Accommodative FedFed Chair Powell's dovish words of relief in his reconfirmation hearing on Capitol Hill provided a friendly bid for recently pressured equities (especially deeply discounted innovation), giving US Treasury yields a chance to take a momentary pause before the Fed's January meeting at the end of this month.Jerome Powell remains stoic in his positioning regarding the persistent nature of global supply and demand imbalances that he maintains are being generated by relentless COVID pressures, which have yet to subside (I agree with this perspective).Jerome acknowledged that the aggressive monetary stimulus the Fed provided public markets for nearly 2 years now is no longer necessary but didn't sound anxious to raise the Fed Funds rate back to pre-pandemic levels in any expedited manner.Powell reiterated what he had said in December's FOMC meeting: we are operating in a digitalized economic environment that is entirely different than the one we left behind in 2019 (no past comparable can be used as reference). The Fed has lowered its long-term target Fed Funds range by 50 basis points since the pandemic began, implying a systemic economic shift that could support lower rates.Jerome's dovish comments about the natural inflation curbing ahead coupled with a slow and steady monetary tightening strategy were just what the market needed to hear. Powell may have put a bottom in for the best-positioned high-growth stocks in the market. It's time to get greedy as others remain fearful.CrowdStrike (CRWD)When asked what he thought the greatest threat to the US economy was at present, Fed Chair Jerome Powell's answer wasn't the Omicron-variant, inflation, or even global economic turmoil but a cyberattack on a prominent US financial institution. CrowdStrike CRWD and its unmatchable cutting-edge AI-fueled cybersecurity platform is the long-term opportunity for this looming digital threat. Any price below $200 a share is a steal for CRWD.CrowdStrike is trusted by Wall Street's top firms, including Goldman Sachs GS and Credit Suisse CS, who can't afford to have any digital vulnerabilities.CrowdStrike is a modern cloud-based solution for the escalating security threats that the increasingly mobile internet age has brought. This company leverages AI, cloud computing, and graph databases for its vigilant security software. CrowdStrike's security AI is perpetually improving as it advances from crowdsourcing and economies of scale. CRWD's cloud-based Falcon platform is an intelligent and evolving digital protector that detects and stops breaches in real-time. This business was provided with a tremendous tailwind in 2020 as the enterprise's best-in-class AI-driven cybersecurity platform became arguably the most sought-after in the industry. Business spending is taking off as we enter 2022 and the economy finally reemerges from the Pandemic downturn. Upgrading cybersecurity is on the top of that Cap Ex list for many financial institutions. CrowdStrike's best-in-class AI-powered Falcon platforms are the obvious solution to any business's digital susceptibility concerns.The TradeThe Fed has now set its interest rate expectations for 2022, and I believe it's prudent to start a position in this best-in-class cybersecurity stock for the future.The market looks to have put in a bottom to CRWD's precipitous decline at just below $175 a share. Look to buy CRWD between $200 and $190, which I presume we reach at some point in today's session, with profit pulling in mega-cap tech weighing on sentiment for high-valuation stocks.Final Thought On CRWDCrowdStrike is taking over the cybersecurity space with its unmatchable threat detection and immediate response capabilities that continue to improve as its proven AI-driven platform learns and adapts to mounting risks. No matter what happens in the broader economy, there will continue to be a swelling demand for this technology as the rapid digital adaptation exposes more and more endpoint liabilities.The company is expected to turn a full-year profit in 2022. Its proliferating subscription-based business model provides the visibility & reliability that justify its still frothy valuation (24x price to forward sales).This is a high-risk/high-reward play, so I am only giving it a 5% allocation. Still, with price targets averaging around $300 a share, I am confident that reward far outweighs the risk in the long run, as long as you can stomach some short-term volatility.ACM Research (ACMR)The time to reopen our Headline Trader portfolio to the recently suppressed Chinese stocks has come, with Biden's administration making clear efforts to resume its alliance with Beijing (after years of political turmoil). At the same time, China's overdue economic recovery commences as it prepares for the 2022 Olympics in Beijing, which is now less than 4 weeks away.At the same time, the ripping rally in US public equities has been decelerating over the past 2 months, following an over 100% bull run from the S&P 500 since the pandemic lows in March 2020 (40% above pre-pandemic high), and investors are beginning to look abroad for higher return opportunities.I am adding ACM Research ACMR, a niche small-cap semiconductor play with ideal exposure in Asia. ACMR provides substantial upside potential at its currently discounted valuation, with its rapidly accelerating chipmaking capacity and its strategic Chinese exposure being the primary buy catalyst.ACM Research is a global leader in semiconductor equipment. As chip manufacturers in Asia begin ramping up production, ACM's best-in-class chipmaking equipment is poised to take flight following a year and a half of sideways trading action.Chip demands far surpassing current production capacities entering the digital renaissance of the 4th Industrial Revolution, positioning this business to explode as the Roaring 20s recommence.China Risk's May Be USChinese stocks have been hammered for nearly a year now, as President Xi and his increasingly autocratic communist administration crackdown on the swelling wealth in its booming tech sector. Xi's fear of losing control of "his" nation to a wealthy group of elites is reminiscent of Mao Zedong's totalitarian regime.This paranoid egotistical positioning has led to a tidal wave of new tech-focused regulations under the guise of elevating "equality" and improved "productivity." These have capitulated the value of this nation's most prominent innovators by a meaningful amount.Those stocks that had been at the center of these regulatory headwinds have seen their share values significantly deteriorate, presenting some superior long-term prospects as the global economy reemerges from the pandemic with a digitally fueled ambition.The CatalystACM Research is a US-based capital equipment firm. Yet, its 3 most prominent customers, representing 76% of 2020 revenue, are based in mainland China, with another nearly 10% of its sales going to a South Korean chip innovator. Over the past 5 years, China and Korea have seen their semiconductor spaces drive compounded annual revenue growth of 20.7% & 19.5% and have become the epicenter for future development for ACMR.As ACM Research takes advantage of the booming demand, this chip equipment powerhouse is rapidly ramping up its own equipment production capacity and capabilities (more offerings) in the region. The company has several new expansion projects for organic growth that will continue to fuel this stock's growth in 2022.ACMR remains a small-cap equity with a market cap of less than $1.5 billion, but with proven profitable growth between 35% - 45% in the past 3 years, and a place in Morgan Stanley's short list of 2022 chip picks, it’s only a matter of time before the market gets wind of this unique investment thesis and lifts ACMR out of its small-cap shadow and into the large-cap spotlight.6 out of 6 analysts are calling ACMR a buy today now, with price targets between $100 and $150 (representing upsides between 27% and 92%). Not to mention the increasingly bullish outlook on ACMR has thrusted this stock into a Zacks Rank #1 (Strong Buy).SMART Global Holdings (SGH)SMART Global Holdings SGH is the under-the-radar semiconductor stock you've been looking for, with its broadening portfolio of cutting-edge chips poised to take flight in this commencing technological Renaissance.SGH is roaring out of the shadows with an ambitious growth strategy that won't remain under the investors' radars for much longer. New CEO Mark Adams is transforming this once complacent memory-focused legacy tech business into a motivated leader in niche innovations.The company released a record quarterly report at the start of 2022, blowing analysts' estimates out of the water and raising forward guidance. However, SGH's undiscovered attributes appear to have both positive and negative consequences, which we saw in its (unwarranted) post-earnings capitulation. This drop-off is a technical retreat catalyzed by the overbought RSI levels it had reached in recent weeks after an over 100% 52-week run into this year opening earnings report (confusion about the upcoming stock split may also be playing a role).The good news is that it presents us with an excellent long-term investment and short-term trading opportunity as the stock picks up support at its 50-day moving average.SMART Global shares' exceedingly thin trading volumes (low liquidity due to its under-the-radar quality) allowed a small group of controlling institutional shareholders to direct its post-earnings narrative. They pulled profits from this recent winner (up 70% since mid-October), and the downward momentum catalyzed a fear-fueled momentum sell-off.The TradeDon't let these big-shot Wall Street firms scare you away from this clear-cut winner. SGH's post-earnings capitulation is extraordinarily overdone and with the recent shareholder shuffle.Silver Lake, a nearly $100 billion tech-focus private equity fund, had been the primary shareholders of SGH since it went public in 2017 until this past fall when the global investment group completely exited the trade (with public returns of nearly 400% in just a few years), leaving $10s of millions in stock value up for grabs.SMART Global's ownership has since been erratic, with most of the investing world still unaware of this small-cap stock's existence. SGH's ownership is almost entirely institutional at this point, and with the already thin volumes, its vulnerability to short-term price manipulation is high.Nevertheless, those analysts covering SGH are more bullish than ever after its most recent quarterly release.The Earnings ReportSMART Global SGH reported its November quarter results (fiscal Q1 2022) after the closing bell Tuesday afternoon (1/4), beating analysts' estimates and raising guidance, yet SGH fell off a cliff. SMART Global achieved record revenues and margins that flowed down to an incredible 177% increase in per-share profits, with its top-of-the-line intelligence platforms (AI, HPC, & other cloud-functionality) being this next-generation innovator's primary growth driver.SGH was down as much as 18% in its post-earnings price action, but I remain unconvinced that it will stay below $70 a share for long. This knee-jerk sell-off reaction resulted from its small market cap (less than $1.5 billion), concentrated ownership, and overbought RSI levels, which SGH had floated up into following its sizable 25% end-of-year rally.SGH also announced that it would be initiating a 2-for-1 stock split, which would go into effect at the beginning of February. This is a clear signal from SMART Global's new CEO, Mark Adams, whose savvy ambition for innovative growth is the primary reason we are in SGH, that this stock is headed much higher. Either way, I'm more bullish on SGH post-earnings than ever before.The TransformationNow is the time to add this hidden gem to your portfolio before the broader investing world catches wind of this discounted chip winner.SMART Global has been around since the late 80s, but it wasn't until Mark Adams took the helm amid the pandemic last year that this chipmaker's upside potential went through the roof. Adams is transforming this once complacent memory-focused legacy tech company into an energized visionary.Adams was the leading force behind SGH's quick strategic acquisition of Cree's niche LED chip business at the peak of pandemic fear for a steal at $300 million. Cree LED's synergies are already paying dividends as it drives margin expansion, improves the firm's capital & operational efficiency, and provides critical industry relationships.SMART Global's new forward-thinking chief has already vastly improved its operational performance and is ramping up R&D spending to ensure that the enterprise remains ahead of the innovative curve.Analysts are getting increasingly bullish on this under-the-radar transformation play as SGH flips the switch on accelerating profitable growth, knocking estimates out of the park by an expanding percentage over the past 3 quarters. Zacks Consensus EPS Estimates for SGH's have been soaring across all time horizons after this most recent quarterly report driving the stock into a Zacks Rank #2 (Buy), and all 6 covering analysts agree on a buy rating for the unique value opportunity here.The New Business MixSMART Global Holdings had been a reliable pure-play memory leader in the chip space for over 30 years before deciding to broaden its product portfolio, which appeared to be catalyzed by activist investors following SGH's 2017 IPO. The company has since executed 4 strategic acquisitions.Penguin Computing was SGH's first vital acquisition ($85 million price tag) back in 2018, adding a broad portfolio of leading next-generation products, including high-performance computing (HPC), cloud computing, hyperscale data centers, and the development of artificial intelligence (AI). This segment has exploded since its acquisition as its AI-focused products experience budding demand. In the summer of 2019, this resourceful chip giant acquired Artesyn Embedded Computing and Inforce Computing for $80 million and $12 million, respectively. Artesyn (which is now called Smart Embedded Computing) provides critical data center architecture used in "industries such as telecom, military and aerospace, medical, and diverse automation and industrial markets," according to its website.SMART Wireless Computing (formerly known as Inforce Computing) exposes the enterprise to cutting-edge technologies like "medical imaging, collaboration/videoconferencing, wearable hands-free computing, and robotics/unmanned aerial vehicles," according to its investor relations page.SMART's diverse set of growing end-market demands provides the company with an enormous total addressable market (TAM), significant upside potential, and not to mention an excellent hedge against the cyclical nature of the semiconductor market.The mere 11x forward P/E that SGH is currently trading at is a remarkably underappreciated valuation multiple for a high-growth tech business that is expected to exhibit consistent 20%+ earnings growth in the years to come.Final Thoughts On SGHWith its fresh innovation-oriented operational outlay, Mark Adams at the helm (with a now proven track record of skilled management), and an industry-wide outlook of accelerating growth, the future SGH has never been brighter. SGH’s post-earnings capitulation has presented us with an incredible investment opportunity today.Analysts are more bullish than ever on this undiscovered profitable growth chip innovator, which will likely not remain under the broader market’s radar for long. I’m looking at price targets between $90 and $100 a share.Uber (UBER)Uber's UBER heavily discounted valuation is finally receiving the attention it deserves as investors begin to recognize the opportunity that this leading mobility-as-a-service (MaaS) business provides in the new normal. Uber Eats & Uber Rides are poised to explode with margin expanding growth in the new normal as our digitally conditioned global economy relies on these leading mobility services more than ever.A flood of analysts are coming out with exceptionally bullish outlooks on this next-generation global leader in digitally fueled mobility solutions. 22 out of 25 analysts are calling Uber a buy now, with no sell ratings. UBER is trading 75% below its average price target of more than $70 a share and it continues to rise.Alaskan Air (ALK)Alaskan Air ALK is perfectly positioned for the 2022 as it becomes the go-to budget airliner. Alaskan took advantage of the unique growth opportunity the pandemic shutdowns presented, adding 70 new markets, and is one of the few commercial airlines to return to profitability in the third quarter of 2021. Its commitment to customer satisfaction and focus on ESG goals will keep ALK at the top of its class.  The CompanyAlaskan Air ALK, primarily driven by vacationers instead of business travel, generated its first positive quarterly earnings since the pandemic began in Q3 as it benefited from the summer getaway rush. I see ALK as the best-positioned airline moving forward with its best-in-class budget vacation offering and still ripening synergies from its acquisition of Virgin America back in 2016.ALK has been an outperforming airline throughout the pandemic with an ESG-focus and no business travel reliance. Analysts have been pushing their price targets to around $80 a share (38% upside), with estimated record earnings by 2023. ALK just busted above its 50-day moving average, and is on its way towards its consensus price target.With remote working functionalities like cloud computing, video conferencing, team messaging, workflow automation, etc., analysts are beginning to rightly question whether companies will be paying up for flights when the job can and has proven to be done in a remote environment.Corporate travel will not return to pre-pandemic levels, at least not anytime soon, and the stocks to stick with are the budget vacation plays, with Alaskan Air being at the top of that value list. I’m looking at price targets between $75 and $100 a share, for this airliner of the New Normal.Upstart (UPST)Upstart UPST, the AI-driven fintech innovator changing the way creditworthiness is assessed, is ripe for a buy today with a couple of key support levels ready to maintain its recent buoyancy, following an overdone sell-off.The final quarter of 2021 was horrendous for the top fintech innovators, with Cathie Wood's ARK Invest Fintech ETF ARKF, the benchmark for next-generation digital finance, falling over 25%. Investors have been selling growth stocks indiscriminately, creating some excellent buying opportunities for the best-positioned fintech equities.UPST has seen significant valuation compression from its mid-October 2021 highs at $400, but the over 1,500% gain it saw from its IPO last December may have been a little overzealous. With UPST now 70% below those highs, it's time to consider adding UPST to your portfolio.Upstart's recent capitulation was catalyzed by profit-pulling in the face of Q3 earnings coupled with the Fed's accelerating tapering timeline, which has valuation compressing impacts on this fintech giant, do to its outsized growth outlay (analysts expecting to see 250% topline appreciation in 2021).UPST found critical support at a vital Fib-derived level around $160, where the markets appear to have put in a temporary bottom.I am looking at a UPST price target of $300+ with quarterly performance continuously outpacing even the most optimistic analysts. Upstart is looking at an unprecedented profitable growth outlook, and with most fresh fintech startups not even able to post positive earnings, UPST is more attractive than ever.The BusinessThis AI-powered cloud incepted fintech business is changing the way banks assess creditworthiness. Many fintech giants are competing against banks, but Upstart has decided to partner with them in its next-generation offering. This is an excellent position to be in as a high-growth company in a rising interest rate environment because higher rates means more profits for banks, which should inevitably drive significant demand for Upstart's one-of-a-kind product offering.The AI platform uses more than 1,600 differing variables before coming to the conclusion of creditworthiness compared to the typical bank, which only looks at 8-15 and the most sophisticated models 30.Upstart's CEO David Girouard said his lending algorithm is 5 times more effective than current systems at accurately depicting a person's ability to repay a loan. Saying that on a scale of 1-100, the current credit regimes are only at about 2 on predicting risk of default, and David believes his AI platform would put banks at closer to a 10, with still a lot more room to grow. Upstart's AI is continuously learning and will continue to be more effective as it is provided with more datasets.A Strategy To Stick To Amid 2022’s Chop:“Be Greedy When Others Are Fearful”Continue to buy the dips in your favorite stocks and look past the short-term volatility (don’t let this choppy market discourage you).Happy Trading!Dan LaboeEquity Strategist & Manager of The Headline Trader Portfolio at Zacks Investment Research Breakout Biotech Stocks with Triple-Digit Profit Potential The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases. Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.See these 7 breakthrough stocks now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Goldman Sachs Group, Inc. (GS): Free Stock Analysis Report Credit Suisse Group (CS): Free Stock Analysis Report ACM Research, Inc. (ACMR): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report SMART Global Holdings, Inc. (SGH): Free Stock Analysis Report ARK Fintech Innovation ETF (ARKF): ETF Research Reports Uber Technologies, Inc. (UBER): Free Stock Analysis Report CrowdStrike (CRWD): Free Stock Analysis Report Upstart Holdings, Inc. (UPST): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksJan 13th, 2022

Financial Stocks Could be Positioned to Kick Off the Q4 Earnings Season

The U.S. dollar was rising against the Japanese yen Tuesday morning as foreign investors take notice of the jump in United States Treasury yields. The Japanese yen is now trading at a three-year low against the dollar. The U.S. dollar Index ($DXY) is working on a two-day rally against a basket of other currencies. The falling yen prompted a rally in Japanese markets. The Nikkei 225 (N225:JP) rose 1.77% overnight. Japan hasn’t had the same inflationary problems as other countries, so the Bank of Japan is still pushing economic stimulus. If the yen continues to weaken, it could help the Nikkei 225 continue to gain ground.   Equity index futures were trading higher before the bell as stocks hit the final official day of the Santa Claus rally. The S&P 500 futures (/ES) rose a quarter of a percent in premarket action. If investors follow through after the opening bell, the S&P 500 could be set to create another all-time high. The Dow Jones Industrial Average futures (/YM) were also up 0.27% in premarket trading and looking to create a new all-time high too. Energy stocks could lead other sectors again on Tuesday because crude oil futures (/CL) were also trading higher on Tuesday morning rising 1.13% in premarket trading. The commodity looks to be bouncing off an important support level. Consumer staples could also be set up for a good day because some of its companies are seeing analyst upgrades. Coca-Cola (NYSE: KO) was upgraded by Guggenheim from neutral to a buy. Yesterday, McDonald’s (NYSE: MCD) was upgraded too. Investors appear to be unconcerned about rising COVID-19 cases. According to data from John Hopkins University, more than 1 million more cases were reported on Monday. One reason the numbers were higher was because of a delay in reporting from some U.S. states. The Omicron variant continues to spread but the case doesn’t seem to be as severe as the Delta variant. In fact, cruise line Carnival (NYSE: CCL) was among several travel and leisure stocks climbing in premarket trading. Travel and leisure have been among the hardest companies hit by COVID-19 because it has hit all workers including pilots, flight attendants, baggage handlers, and more.   The airline was able to influence a dispute between the United States government and AT&T (NYSE: T) and Verizon (NYSE: VZ) over the companies’ 5G plans and how they might affect airline safety. The telecom companies were providing an alternative plan. But after airline unions started speaking up over the safety issues, AT&T and Verizon decided to push ...Full story available on Benzinga.com.....»»

Category: earningsSource: benzingaJan 4th, 2022

Futures Surge To A Record Above 4,800 As Euphoria Grips Global Markets

Futures Surge To A Record Above 4,800 As Euphoria Grips Global Markets US stock futures, European bourses and Asian markets all rose, extending the blistering start to 2022 (just as Goldman predicted in its $125 billion January inflow case), with more strategists cementing their bullish projections as investors shrugged off worries Omicron could choke the global economic recovery as data on U.S. manufacturing and job openings due today will further show the world’s largest economy is resilient against the spread of omicron. Nasdaq 100 futures rose 0.4% and contracts on the S&P 500 climbed 0.3% to a new all time high above 4,800 after the underlying gauge closed at a record on Monday. European stocks also gained. Waning demand for haven assets pushed the yen to a five-year low, while oil fluctuated ahead of an OPEC+ meeting. The dollar and U.S. treasury yields extended their surge - with the 10Y last yielding 1.6630% - after Monday’s worst start to a year since 2009. JPMorgan Chase & Co. strategists advised staying bullish on global stocks, saying positive catalysts are not exhausted, while Credit Suisse reiterated a bullish view on U.S. stocks. In premarket trading, Apple shares rose as much as 0.5%, putting the iPhone maker on track to reclaim $3 trillion in market cap as appetite for risk returns. Meanwhile, Jowell Global plunged 11% after a volatile trading session for the Chinese e-commerce stock on Monday that saw it plunge 59%. Travel stocks rallied for a second day even as the U.S. reported a record of over 1 million Covid cases, amid growing evidence that the omicron variant leads to milder infections. The S&P Supercomposite Airlines Index rose 3.3% Monday to the highest since Nov. 24 and appears set for further gains Tuesday. Most airline companies rose about 1% in premarket trading, while cruise lines were also higher with Carnival +1.8%, Royal Caribbean +1%, Norwegian +1.4%. General Electric rose after the stock was raised to outperform at Credit Suisse and Hewlett Packard Enterprise climbed with an overweight rating from Barclays. Here are some other notable pre-market movers today: Coca-Cola (KO US) sits in a stronger position following a transition year in 2021, Guggenheim Securities writes in note upgrading to buy after almost exactly a year with a neutral stance. Shares up 1% in premarket. Stryker (SYK US) and Globus Medical (GMED US) both upgraded to overweight at Piper Sandler, which says in a note that the two stocks have momentum to continue delivering above-average share performance this year. Stryker up 1.4% premarket. Tiny U.S. biotech stocks gain in high premarket volume amid a broader return of risk appetite and following positive updates on studies. Oragenics (OGEN US) +23%, Indaptus Therapeutics (INDP US) +7%. Intra-Cellular Therapies (ITCI US) falls 7% in premarket after launching a $400 million share sale. AFC Gamma (AFCG US) falls 11% premarket after launching a stock offering. Core & Main (CNM US) dropped 7.6% postmarket after holders offered a stake. In Europe, the Euro STOXX 600 gained as much as 0.9% in early trading, pushing beyond its all-time high of 489.99 points scaled a day earlier, with the FTSE 100 and CAC 40 up over 1.25%. Travel and leisure stocks jumped 2.7%, with Ryanair adding 8% and British Airways-owner IAG gaining over 9%, reflecting expectations Omicron's impact on the industry would be less severe than initially feared. Euro Stoxx 50 added as much as 1% with travel, autos and banks the best performing sectors so far. Investors have set aside worries about the highly infectious omicron variant as they continue to trade on the economic recovery from the pandemic which may soon be ending thanks to Omicron which could make covid endemic. “Globally, there is a lot of news regarding the rising omicron cases, but there is also a lot of news that the cases are not as deadly as the previous variants of Covid,” Ipek Ozkardeskaya, a senior analyst at Swissquote, wrote in a note. “And investors prefer focusing on a glass half full rather than a glass half empty at the start of the year.” "The chief reason behind the return of investor confidence is Omicron," said Jeffrey Halley, an analyst at Oanda. Yes, the virus variant is much more contagious, but it is not leading to a proportionally larger number of hospital admissions... (so) it won't stop the global economic recovery." This, incidentally, is precisely what we said over a month ago. That said, markets anticipate an uptick in volatility as they navigate through the omicron variant, supply-chain disruptions and more central banks winding back pandemic stimulus. More than one million people in the U.S. were diagnosed with Covid-19 on Monday, a new global daily record, and yet markets barely winced. Asian stocks gained behind rallies in Japan and Australia on their first trading sessions of 2022, with much of the region tracking the strong performance in the U.S. as investors maintained growth optimism despite a worsening pandemic.  The MSCI Asia Pacific Index rose as much as 1%, the most in two weeks, lifted by technology and financial shares. Metals and mining stocks gave the Australian benchmark gauge a boost, while a weaker yen allowed exporters to provide support for Japan’s Topix. Chinese stocks bucked the regional trend to suffer their weakest start to a year since 2019. The CSI 300 Index fell 0.5% as some investors took profit and assessed developments in the property sector while renewable energy and health-care firms paced declines. Also souring the mood, the People Bank of China cut its net injection of short-term cash to the markets, prompting concerns over support for the financial system. Tuesday’s activities in Asia also showed some traders setting aside their worries over the rapid spread of omicron strain for now to bet on resilience in the global economy.  While the omicron variant will be a negative factor in the short term, Chinese equities will likely help drive emerging markets higher in 2022 as monetary and fiscal stimulus spur economic growth, said Kristina Hooper, chief global market strategist at Invesco.  The Philippine Stock Exchange had to cancel trading following a system glitch, according to a statement by bourse President Ramon Monzon Japanese equities rose in their first trading session of the year, helped by the yen’s drop to a five-year low and a tailwind from U.S. peers’ climb to fresh all-time highs. Electronics and auto makers were the biggest boosts to the Topix, which gained 1.9%, the most in four weeks. All industry groups advanced except papermakers and energy explorers. Tokyo Electron and Advantest were the largest contributors to a 1.8% rise in the Nikkei 225.  The S&P 500 rose to a record and Treasury yields climbed Monday as traders braced for the start of a potentially volatile year and three expected rate hikes from the Federal Reserve. The White House is likely to nominate economist Philip Jefferson for a seat on the Fed board of governors, according to people familiar with the matter. “It’s gradually coming to light who will be the new members of the FRB and it looks like they will be those with quite a dovish stance, which very supportive factor for stocks,” said Hiroshi Matsumoto, senior client portfolio manager at Pictet Asset Management in Tokyo.  Australian stocks jumped themost in over a year, with fresh records in sight. The S&P/ASX 200 index rose 2% to 7,589.80, marking its best session since October 2020. The benchmark closed about 40 points away from the all-time high it reached in August as all sectors gained. Pilbara Minerals was among the top performers, jumping to a record. St. Barbara was among the worst performers after giving an update on its Simberi mine. In New Zealand, the market was closed for a holiday. India’s Sensex rallied for a third day as the outlook for lenders improved on the back of a continued recovery in the economy.  The S&P BSE Sensex rose 1.1% to 59,855.93 in Mumbai, while the NSE Nifty 50 Index rallied 1%. All but three of the 19 sector sub-indexes compiled by BSE Ltd. climbed, led by a gauge of power companies. The S&P BSE Bankex added 1.3% to stretch its rally to a fourth day, its longest streak of gains since Oct. 26.   Financial stocks in India offer an attractive entry point after foreign funds sold more than $3 billion of sector stocks over Nov.-Dec., Jefferies analyst Prakhar Sharma wrote in a note. He expects improved growth, stable asset quality and manageable omicron impact to aid a re-rating of the sector. “Markets are currently following their global counterparts while the domestic factors are showing mixed indications,” Religare Broking analyst Ajit Mishra said in a note.  Reliance Industries contributed the most to the Sensex’s gain on Tuesday, increasing 2.2%. Out of 30 shares in the index, 25 rose and five fell. In FX, Bloomberg Dollar Spot Index trades notably higher for the second day in a row, with AUD and CHF top the G-10 leader board, while the JPY lags pushing through Asia’s worst levels near 116.31/USD.  The euro was confined in a narrow range around $1.13 while the greenback weakened versus all of its Group-of-10 peers apart from the yen and risk-sensitive currencies were the best performers. The pound edged higher, continuing its ascent over the holiday period that was based on firmer global risk sentiment and bets the U.K. economy won’t be derailed by omicron. Gilts slumped as traders caught up with Monday’s jump in U.S. and euro-area yields after the U.K. was closed for a holiday. Australia’s government bonds and the nation’s currency both rose amid speculation the global economic recovery will weather the surge in omicron infections. New Zealand’s markets remained shut for New Year holidays. Purchasing managers’ index for the Australia’s manufacturing sector declined for the first time in four months in December, Markit data showed. The yen dropped to a five-year, with the USDJPY rising above 116 as speculation the global economic recovery will weather omicron saps demand for haven assets. Japanese bonds declined before debt auctions later this week. Options pricing suggests there may be more gains for the dollar in a rally against the yen that’s already taken it to the strongest since 2017. In rates, 10-year Treasury yield spiked to 1.66% after surging 12 basis points on Monday, the biggest jump to start a year since 2009. The two-year rate was at 0.77%. Treasury yields were cheaper by up to 1.5bp across front- and belly of the curve with long-end yields slightly richer vs. Monday close. IG dollar issuance includes a number of bank names headed by NAB 5-part offering. Three-month dollar Libor +0.69bp at 0.21600%. Bunds richen 1.5bps across the belly with a mixed peripheral complex with expectations for a busy issuance slate ahead. Gilts underperform, playing catch up to Monday’s move in bunds and treasuries, cheapening as much as 10bps across the curve with 10s near 1.07%. Looking beyond the current risk-on momentum, traders expect Fed tightening to further boost yields and reset equity valuations. This week’s U.S. December payroll data and minutes from the Fed’s meeting last month may throw more light on the pace of such shift. “We expect 2022 to be far more challenging from an investment perspective,” Heather Wald, vice president at Bel Air Investment Advisors, said in an emailed note. “Rarely has a market delivered three consecutive years of double-digit returns, as we have seen from 2019-2021. With the Federal Reserve set to accelerate tightening and a fairly valued stock market, we anticipate more muted returns for the S&P next year but still expect equities to remain attractive versus other liquid asset classes.” In commodities, crude futures flip a short-lived dip to rise ~0.7%. WTI trades near best levels of the session close to $76.70, Brent near $79.50 ahead of today’s OPEC+ gathering. Spot gold trades a tight range, holding above $1,800/oz. Base metals are mixed, LME copper underperforms. U.S. economic data slate includes the December ISM manufacturing survey, which will show the early impact of the variant on supply chains, while the JOLTS data will show the balance between job openings and unemployment numbers; also this week brings ADP employment change, durable goods orders and December jobs report. Market Snapshot S&P 500 futures up 0.3% to 4,799 STOXX Europe 600 up 0.5% to 492.53 German 10Y yield little changed at -0.13% Euro little changed at $1.1307 MXAP up 0.9% to 194.72 MXAPJ up 0.6% to 633.00 Nikkei up 1.8% to 29,301.79 Topix up 1.9% to 2,030.22 Hang Seng Index little changed at 23,289.84 Shanghai Composite down 0.2% to 3,632.33 Sensex up 1.1% to 59,815.19 Australia S&P/ASX 200 up 1.9% to 7,589.76 Kospi little changed at 2,989.24 Brent Futures up 0.4% to $79.26/bbl Gold spot up 0.3% to $1,806.40 U.S. Dollar Index little changed at 96.18 Top Overnight News from Bloomberg Treasury traders are betting the rapid spread of omicron will increase inflationary pressures in the U.S. economy, rather than weaken them Global central banks are set to spend 2022 diverging, as some take on the menace of inflation and others stay focused on boosting economic growth French inflation stabilized in December, indicating price pressures may be near a peak in the euro area after surging on energy costs in the past few months OPEC and its allies are poised to revive more halted oil production when they meet on Tuesday after predicting a tighter outlook for global markets A more detailed breakdown of global markets courtesy of Newsquawk Asia-Pac stocks eventually traded mixed on the first trading session of the year for most bourses, with the region catching some tailwinds from the positive Eurozone and US sessions on Monday. On Wall Street, the Nasdaq outpaced with gains of 1.2% as Apple became the first-ever public company to reach USD 3tln in market value, whilst Tesla shares were catapulted 13.5% after beating Q4 delivery expectations despite the chip shortage and in spite of last week's mass recall. US equity futures overnight resumed trade with a mild positive bias and thereafter drifted higher - with the US ISM Manufacturing PMI, FOMC Minutes, US labour market report and Fed speakers all on this week’s docket. The ASX 200 (+2.0%) saw gains across its Energy, Mining, Tech and Financial sectors. The Nikkei 225 (+1.8%) briefly dipped under 29k before rising to session highs – with Autos among the top gainers amid a similar performance Stateside, whilst the softer JPY underpinned the index. The KOSPI (U/C) was flat in early trade but thereafter swung between gains and losses. In China, the Shanghai Comp (-0.2%) gave up early gains on its first trading day of 2022 following a CNY 260bln daily liquidity drain by the PBoC, whilst reports also suggested that China is facing USD 708mln cash demand this month, +18% Y/Y according to calculations, amid maturing debt and seasonal demand for cash ahead of the Lunar New Year on 1st February. The Hang Seng (+0.1%) kicked off its second day of trade the year in the green after Monday’s losses. China Evergrande shares resumed trade with gains of 5% after it yesterday suspended its Hong Kong shares in a bid to raise cash and following the order to demolish 39 buildings. Meanwhile, Hong Kong-listed and US-blacklisted AI firm SenseTime shares rose another 20% to almost triple its IPO price. In fixed income, US 10yr Mar'22 futures saw some light buying in early trade, with some suggested regional Asia demand following the heavy cheapening on Monday, albeit this early mild upside faded. Top Asian News Amazon Plays Down Reports It’s Pulling Kindle From China H.K. Finds One Prelim. Local Case With Unknown Source: HK01 China High-Yield Dollar Bonds Fall 1-2 Cents; Developers Lead China South City USD Bonds Slump; Firm Denies Debt-Swap Report European equities trade on a firmer footing with the Stoxx 600 (+0.8%) once again at a record high. The FTSE 100 leads the charge within the region; however, this is largely on account of a catch-up play from yesterday’s bank holiday. Initially to the downside resided the SMI (+0.1%) as the only major bourse in the red amid losses in index-heavyweight Roche (-1.4%); however, this has abated modestly throughout the morning. The lead from the APAC region was a mixed one as the Nikkei 225 (+1.8%) benefited from a softer JPY, the ASX 200 (+1.95%) was lifted by gains in Energy, Mining, Tech and Financial sectors, whilst Chinese bourses (Hang Seng +0.1%, Shanghai Comp. -0.2%) were kept subdued by a PBoC liquidity drain and unable to benefit from an unexpected expansion in the December Chinese Caixin Manufacturing PMI. Stateside, futures are modestly firmer across the board (ES +0.4%, NQ +0.4%, RTY +0.5%) after yesterday’s session which was characterised by Nasdaq outperformance, +1.2%, as Apple became the first-ever public company to reach USD 3tln in market value, whilst Tesla shares were catapulted 13.5% after beating Q4 delivery expectations. In a recent note, analysts at JP Morgan stated they are of the view that there is further upside for stocks as the Omicron variant appears to be milder than previous strains and the impact on mobility is more manageable than previous ones. Furthermore, the bank suggests that there are signs that constraints in supply chains are passing their peak and power prices are easing. Sectors in Europe are mostly firmer with Travel & Leisure names clearly top of the pile UK as airline names benefit from ongoing optimism about the Omicron variant’s impact on mobility and a December passenger update from Wizz Air which has sent its shares higher by 10.1%. Of note for the European banks (which are also a notable gainer on the session), Citigroup is “overweight” on the sector for the upcoming year, citing profit growth, interest rate hikes and potential for capital returns. In terms of specific names, BNP Paribas, Lloyds and UBS were flagged as top picks. Elsewhere, other cyclically-led sectors such as Autos, Oil & Gas and Basic Resources are also trading on a firmer footing. To the downside, Healthcare names sit in the red amid aforementioned losses in Roche, whilst Sanofi (-0.7%) are also seen lower after flagging that Q4 2021 vaccine sales are expected to be lower on a Y/Y basis. Finally, Rolls-Royce (+3.6%) is seen higher on the session after concluding the sale of Bergen Engines. Top European News Italy Starts Search for New President With Draghi as Contender U.K. Mortgage Approvals Fall to 66,964 in Nov. Vs. Est. 66,000 Ukraine Says Russia Reinforced Military Units in Occupied Donbas European Gas Prices Jump a Second Day as Russian Shipments Drop In FX, the Dollar index looks comfortable enough above 96.000 within a 96.336-146 range after eclipsing yesterday’s best (96.328) marginally, but the technical backdrop remains less constructive given its failure to end last week (and 2021) above a key chart level at 96.098. Nevertheless, the most recent spike in US Treasury yields has given the Greenback sufficient impetus to claw back losses, and in DXY terms fresh incentive to rebound firmly or extend gains against funding currencies in particular ahead of the manufacturing ISM and the remainder of a hectic first week of the new year that culminates in NFP and a trio of scheduled Fed speakers, but also comprises minutes of the December FOMC taper and more hawkishly aligned tightening policy meeting. JPY/AUD - As noted above, low yielders are underperforming or lagging in the current environment, and the Yen is also succumbing to the increasingly divergent BoJ vs Fed trajectory that is exacerbating technical forces behind the rally in Usd/Jpy to new 5 year highs just shy of 115.90. Stops are said to have been triggered during the latest leg up and there is little of significance in terms of resistance ahead of 116.00, while option expiry interest is relatively light until 1.13 bn at the half round number above. Conversely, the Aussie has been boosted by higher coal prices overnight and an unexpected return to growth from contraction in China’s Caixin manufacturing PMI, with Aud/Usd trying to establish a base around 0.7200 in wake of an upward revision to the final manufacturing PMI. GBP/NZD/EUR/CHF/CAD - The Pound is next best major, but mainly due to Gilts playing catch-up following Monday’s UK Bank Holiday and only in part on the back of an upgrade to the final manufacturing PMI allied to better than forecast BoE data including consumer credit, mortgage lending and approvals. Cable is probing 1.3500 and Eur/Gbp is edging towards 0.8360 even though the Euro has regained some poise against the Buck to retest 1.1300 with some traction gleaned from stronger than anticipated German retail sales and jobs metrics. Back down under, the Kiwi is trying to keep tabs on 0.6800 in the face of Aud/Nzd headwinds as the cross climbs over 1.0600, while the Franc is holding above 0.9200 post-Swiss CPI that was close to consensus and the Loonie is meandering between 1.2755-23 parameters pre-Canadian PPI and Markit’s manufacturing PMI against the backdrop of firmer crude prices. In commodities, WTI and Brent are firmer this morning and have been grinding towards fresh highs throughout the European session after slightly choppy APAC trade; currently, the peaks are USD 76.82/bbl and USD 79.67/bbl respectively. Newsflow has been fairly slow throughout the morning with catch-up action occurring for participants. Today’s focal point for the space is very much the OPEC+ gathering; albeit, this is expected to result in a continuation of the existing quota adjustments of 400k BPD/month. Thus far, the JTC has reviewed market fundamentals and other developments determining that the Omicron variant’s impact is expected to be both mild and short-term. For reference, today’s timings are 12:00GMT/07:00EST for the JMMC and 13:00GMT/08:00EST for OPEC+ - though, as always with OPEC, these serve only as guidance. While the main decision is expected to be a straightforward one, there is the possibility that underproduction by certain members could cause some tension. Elsewhere, spot gold and silver are contained with a modest positive-bias but are yet to stray too far from the unchanged mark with spot gold, for instance, in a sub-USD 10/oz range just above USD 1800/oz. Separately, coal futures were notable bid in China following reports that Indonesia, a large supplier to China, has banned exports for the month, given domestic power concerns. US Event Calendar 10am: Nov. JOLTs Job Openings, est. 11.1m, prior 11m 10am: Dec. ISM Employment, est. 53.6, prior 53.3 ISM New Orders, est. 60.4, prior 61.5 ISM Prices Paid, est. 79.2, prior 82.4 ISM Manufacturing, est. 60.0, prior 61.1         Tyler Durden Tue, 01/04/2022 - 07:59.....»»

Category: blogSource: zerohedgeJan 4th, 2022

American Airlines stock surges toward 6-week high amid a broad airline-sector rally

Share of air carriers traded broadly higher Monday, amid growing optimism that the latest surge in COVID-19 cases to record daily levels won't lead to widespread shutdowns given the omicron variant appears less severe and as more people are vaccinated. The U.S. Global Jets ETF rallied 2.8% in afternoon trading, to outperform the S&P 500's 0.4% gain by a wide margin. Among the more active air carriers, shares of American Airlines Group Inc. hiked up 4.3% toward a six-week high, United Airlines Holdings Inc. rallied 3.7%, Delta Air Lines Inc. climbed 2.9%, Southwest Airlines Co. rose 2.1% and JetBlue Airways Corp. tacked on 2.6%. Analyst Conor Cunningham at MKM Partners said he expects airlines to slow capacity to stabilize operations amid the surge in cases, but that might not be a bad thing longer term. "Slowing capacity will highlight cost headwinds but should allow for better pricing power," Cunningham wrote in a note to clients.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news......»»

Category: topSource: marketwatchJan 3rd, 2022

S&P 500 surges to 69th record close of 2021 as Santa rally powers US stocks

The S&P 500 is now up 27% for the year. The Nasdaq and the Dow remain off their November highs and are up 23% and 18%, respectively, for 2021. Investors have become more cautious about US stocks in recent weeks.Johannes Eisele/Getty Images US stocks rallied sharply Monday despite Omicron-related weakness in travel stocks. The S&P 500 notched its 69th record close of the year, adding to gains during the trading session. Major US indexes continued a year-end Santa Claus rally after picking up from last week's momentum. Sign up here for our daily newsletter, 10 Things Before the Opening Bell. US stocks jumped Monday, powering the S&P 500 to its 69th record close of the year, even as the Omicron coronavirus variant weighed on travel-related sectors.Led by the Nasdaq, the so-called Santa Claus rally picked up from last week's momentum. The top indexes added to gains over the course of the trading session after opening modestly higher. The S&P 500 is now up 27% for the year. The Nasdaq and the Dow Jones Industrial Average remain off their November highs and are up 23% and 18%, respectively, for 2021. Here's where US indexes stood at the 4 p.m. ET close on Monday:S&P 500: 4,791.30, up 1.4% Dow Jones Industrial Average: 36,302.77, up 1% (352 points)Nasdaq Composite: 15,871.26, up 1.4%Read more: 9 crypto experts told us their investing outlooks for 2022, from bitcoin price predictions to high-conviction altcoin picks and what's next for regulationDespite a resurgence in coronavirus cases, investors have become less concerned about the Omicron variant's effect on the economy overall as its symptoms appear less severe than Delta's.But airline stocks sold off Monday after carriers canceled thousands of additional flights amid staffing shortages caused by the virus and winter weather. Cruise line stocks also fell with COVID-19 outbreaks reported on ships recently. Casino stocks, hotels and travel-booking sites sold off too.Elsewhere in the market, Meta stock climbed more than 3% as the company's Oculus VR app was the most popular download on Apple's App Store on Christmas.  Analysts at JPMorgan said the time is right for investors to take on more risk, explaining that investors have been overly cautious as evidenced by the narrow group of stocks driving the S&P 500's record run. Decentraland will host its first fashion week in March as virtual fashion emerges as a hot corner of the metaverse market.GoDaddy stock leapt 8% after the Wall Street Journal reported activist investor Starboard Value has taken a 6.5% stake worth about $800 million in the web-hosting company.Moderna slipped 1% after the Financial Times reported the biotech is facing a shareholder proposal to share its coronavirus vaccine technology with lower-income countries and explain its high prices.Didi Global dropped 5% as China banned insiders at the ride-hailing company from selling stock, according to the FT.West Texas Intermediate crude oil reversed earlier losses to rally 2.34% to $75.52 per barrel. Brent crude, oil's international benchmark, rose 3.17% to $78.53 per barrel.Gold dipped 0.14% to $1,809.320 per ounce, while bitcoin climbed 2.34% to $51,527. The yield on the 10-year Treasury slipped 1 basis point to 1.482%.Read the original article on Business Insider.....»»

Category: topSource: businessinsiderDec 27th, 2021

S&P 500 rises to record territory at 4,750 to start final week of trade of the year

U.S. stock benchmarks rose Monday, with gains in technology shares helping to establish an intraday record for the S&P 500, which could lead to its 69th record close of 2021. The S&P 500 index was trading 0.5% higher at 4,748, and had hit an intraday day high at 4,750.35, marking the first intraday record for the broad-market index since Nov. 22. The Dow Jones Industrial Average rose 0.2% at 36,032, and the Nasdaq Composite Index advanced 0.6% to trade around 15,750. Hundreds of flights were canceled across the globe over the weekend as surging COVID-19 infections triggered quarantines for airline staff. Shares of airliners, including American Airlines Group and United Airlines Holdings were down sharply in early trade. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news......»»

Category: topSource: marketwatchDec 27th, 2021

S&P 500 hits fresh record high as US stocks extend "Santa Claus rally" to begin last trading week of the year

After setting its 68th record close of 2021 on Thursday, the S&P 500 notched yet another new high on Monday. Trader Leon Montana works on the floor of the New York Stock Exchange stocks NYSE worryAP Photo/Richard Drew US stocks rose early Monday to extend a "Santa Claus rally" after taking a day off on Friday for Christmas. The S&P 500 hit another new intraday high following its 68th record close of the year on Thursday. Airline stocks fell after carriers canceled thousands of flights over the holiday weekend. Sign up here for our daily newsletter, 10 Things Before the Opening Bell. US stocks pointed higher on Monday as last week's "Santa Claus rally" continued into the last trading week of the year.After setting its 68th record close of 2021 on Thursday, the S&P 500 notched yet another new intraday high. But thin trading volume between the Christmas and New Year's holidays could result in volatility.Markets in the UK were closed Monday and will remain closed on Tuesday. Indexes in Asia rose after China's central bank over the weekend pledged more support for the economy.Here's where US indexes stood shortly after the 9:30 a.m. ET open on Monday:S&P 500: 4,748.27, up 0.5% Dow Jones Industrial Average: 36,047.40, up 0.3% (97 points)Nasdaq Composite: 15,743.14, up 0.6%Investors have become less concerned about the Omicron coronavirus variant's effect on the economy overall as its symptoms appear less severe than Delta's.But airline stocks sold off Monday after carriers canceled thousands of flights over the holiday weekend due to staffing shortages caused by the virus. Cruise line stocks also fell with COVID-19 outbreaks reported on ships recently. Elsewhere in the market, GoDaddy stock rallied 5% after the Wall Street Journal reported activist investor Starboard Value has taken a 6.5% stake worth about $800 million in the web-hosting company.Moderna slipped 3% after the Financial Times reported the biotech is facing a shareholder proposal to share its coronavirus vaccine technology with lower-income countries and explain its high prices.Didi Global dropped 2% as China banned insiders at the ride-hailing company from selling stock, according to the FT.West Texas Intermediate crude oil eased 1% to $73.03 per barrel. Brent crude, oil's international benchmark, rose 0.25% to $76.33 per barrel.Gold dipped 0.27% to $1,807.70 per ounce, while bitcoin climbed 1.81% to $51.261. The yield on the 10-year Treasury was flat at 1.493%.Read the original article on Business Insider.....»»

Category: personnelSource: nytDec 27th, 2021

5 Oil & Gas Stocks Set to Sustain Their Winning Streaks in 2022

With strong fundamental footing, the rally in Canadian Natural Resources (CNQ), PDC Energy (PDCE), SM Energy (SM), Imperial Oil (IMO) and Marathon Oil (MRO) is likely to continue. In early and mid-2020, the Oil/Energy sector was devastated, with the space left for dead due to the unprecedented turmoil caused by the COVID-19 pandemic. While most businesses were hit hard by the coronavirus-induced lockdowns, the demand destruction and price plunge associated with oil and gas were like no other.But have things changed! Fast forward to December 2021 and the year could well be construed as one of stunning recovery for the energy market. Profits across the space have bounced back from last year's pandemic-driven slump in consumption and prices. With crude rallying past $70 and natural gas trading around 45% above the year-ago levels amid macro tailwinds, the sector components have reacted very positively to this robust investment landscape.Energy watchdogs have made it quite clear that global demand for oil and gas will not fall anytime soon. This should probably put a floor beneath prices. Given this backdrop, it will be fruitful to invest in top-ranked stocks that stood out in 2021 and have a chance of outperforming in 2022 as well. We recommend Canadian Natural Resources CNQ, PDC Energy PDCE, SM Energy SM, Imperial Oil IMO and Marathon Oil MRO.The Great Energy RevivalTaking investors on a roller coaster ride, crude has made a rebound for ages — from the depths of minus $38 a barrel in April 2020 to reclaim a seven-year high above $85 in October. While it has pulled back somewhat due to uncertainties associated with the latest COVID strain, the general trend has been positive.The widespread development/distribution of vaccines, economic recovery around the world and increased mobility has aided fuel demand. Just recently, the four-week average for petroleum demand stood at an all-time high of 23.2 million barrels a day, indicating little reason for concern at this point. On the other hand, U.S. commercial stockpiles are down nearly 16% since mid-March.In other words, oil looks well-positioned with a supportive macro backdrop and robust fundamentals. Apart from COVID-19 vaccine rollouts, the ongoing government stimulus and the OPEC+ cartel’s calibrated production policy have contributed to this positive setup. There is also a marked improvement in fuel demand on the back of rebounding road and airline travel.The story is positive on the natural gas front as well. Higher cooling demand in the summer months on the back of record-breaking heat, hurricane-related disruption in supplies and strong liquefied natural gas (“LNG”) export demand are the key reasons why the fuel has soared in 2021. The commodity recently topped $6 per million British thermal units (MMBtu) for the first time since 2014 and reached a 13-year high settlement of $6.312 in October.Why the Momentum Is Likely to Continue Into 2022Much of the positive argument is simply a bet on stronger economic growth in America and the subsequent improvement in end-user fuel usage. The newly introduced $1 trillion mega infrastructure bill will be another major catalyst for the U.S. markets, thereby supporting stronger crude prices. The unleashing of pent-up travel demand will also pave the way for oil demand growth in 2022. Further, fears of a slowdown in oil demand recovery from the Omicron variant are starting to subside, with the strain likely to be less deadly than expected. At the same time, available vaccines might be effective in neutralizing it.Moving to natural gas, there is a stable demand catalyst in the form of continued strong LNG feedgas deliveries. LNG shipments for export from the United States have been robust for months on the back of environmental reasons and record higher prices of the super-chilled fuel elsewhere. Most analysts believe that deliveries appear poised for further gains this year and the next on surging consumption in Europe and Asia, especially as we head deeper into winter. The circumstances are particularly dire in Europe where gas supply is running low with the need for a steady refill from the United States ahead of the peak winter period. At the same time, promised flows from Russia have been limited.5 High-Flying Energy Stocks With Potential for Further GainsAfter solid year-to-date gains for most energy companies, investors might wonder which stocks’ rally can continue in the days ahead. To this end, we suggest adding names that have room to increase further from a fundamental perspective. In other words, while investors will essentially be buying high, they hope to sell even higher.Here, Zacks’ proprietary methodology comes in handy. Our research shows that stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) offer good investment opportunities. You can see the complete list of today’s Zacks #1 Rank stocks here.We have picked five stocks with a market capitalization of more than $1 billion that have gained more than 50% so far in 2021, but have the potential to move up further next year based on their inherent strengths.The chart below shows the price performance of our five picks so far this year. Image Source: Zacks Investment ResearchOur ChoicesCanadian Natural Resources: This Calgary-based energy major boasts a diversified portfolio of crude oil (heavy as well as light), natural gas, bitumen and synthetic crude oil. CNQ’s balanced and diverse production mix facilitates long-term value and reduces the risk profile thereby lending its results a high level of stability. Lower capital expenditure needs, accretive acquisitions and improving operational efficiencies are other positives in the Canadian Natural story, which allowed the company to generate a significant free cash flow of C$2.2 billion (post capital spending and dividends) in the most recent quarter.CNQ has an expected earnings growth rate of 11.1% for next year. The Zacks Consensus Estimate for Canadian Natural's 2022 earnings has been revised 9.1% upward over the last 60 days. CNQ, carrying a Zacks Rank #1, has gained around 72.3% year to date.PDC Energy: PDCE is an independent exploration and production operator with the Wattenberg Field in Colorado being its chief operating region. Following the SRC Energy deal last year, PDC Energy has emerged as the second-largest oil producer in the DJ Basin to go with its existing Delaware acreage. The company has a favorable debt maturity and its credit facility currently has a total borrowing base of $2.4 billion.PDC Energy has a projected earnings growth rate of 29.1% for 2022. PDCE’s consensus estimate for the next year has been revised 18.3% upward over the past 60 days. PDC Energy carries a Zacks Rank #1 and its shares are up 141.3% since the beginning of 2021.SM Energy: SM Energy is an oil and gas explorer in North America. The company’s top-tier, balanced and diverse portfolio of proved reserves, as well as development drilling opportunities is expected to create long-term value for its shareholders. Given SM Energy’s increasing focus on crude oil, specifically in the Permian Basin and Eagle Ford regions, we believe that the company is in a good position to capitalize on strong realizations in the coming days.SM Energy has an expected earnings growth rate of 276.8% for the next year. The Zacks Consensus Estimate for the upstream explorer's 2022 earnings has been revised 80.6% upward over the last 60 days. SM Energy, carrying a Zacks Rank #1, has rocketed around 374.3% year to date.Imperial Oil: IMO’s integrated business portfolio of upstream and downstream assets provides it with a high level of stability, reducing the risk profile of the company. Strong execution and ramped-up activities in Kearl, Cold Lake and Syncrude projects positions the company for solid production growth and is expected to augment its revenues and earnings going forward. Imperial Oil's strong balance sheet, its ability to generate cash flow and a shareholder-friendly policy should also favor the stock, apart from the majority holding by ExxonMobil.IMO has an expected earnings growth rate of 40% for next year. The Zacks Consensus Estimate for Imperial Oil's 2022 earnings has been revised 12.2% upward over the last 60 days. The #2 Ranked IMO has rallied around 88.1% so far this year.Marathon Oil: Marathon’s robust operational metrics suggest strong long-term cash flows that should support higher price points for the shares. The wells drilled by MRO have extremely low oil price breakeven costs and need oil prices of just $35 a barrel to be profitable. Marathon continues to cut down costs substantially and is striving to achieve a 30% decrease in production and G&A costs in 2021 compared to the 2019 levels. Further, the company’s significant debt maturities mostly fall after 2025 and as such there does not appear to be much risk here.Marathon Oil has a projected earnings growth rate of 71.6% for 2022. MRO’s consensus estimate for next year has been revised 41% upward over the past 60 days. Marathon Oil carries a Zacks Rank of 2 and its shares are up 143.4% since the beginning of 2021. Zacks Top 10 Stocks for 2022 In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022? From inception in 2012 through November, the Zacks Top 10 Stocks gained an impressive +962.5% versus the S&P 500’s +329.4%. Now our Director of Research is combing through 4,000 companies covered by the Zacks Rank to handpick the best 10 tickers to buy and hold. Don’t miss your chance to get in on these stocks when they’re released on January 3.Be First to New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Marathon Oil Corporation (MRO): Free Stock Analysis Report SM Energy Company (SM): Free Stock Analysis Report Imperial Oil Limited (IMO): Free Stock Analysis Report Canadian Natural Resources Limited (CNQ): Free Stock Analysis Report PDC Energy, Inc. (PDCE): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksDec 24th, 2021

3 Under $10 Electronics Stocks Wall Street Analysts Recommend Buying

Here are three electronic stocks, One Stop Systems (OSS), Babcock & Willcox, and Flux Power, which hold solid investment opportunities. The electronics industry has been gaining from the coronavirus pandemic-led work-from-home and learn-from-home trends.The trends, which are expected to prevail in 2022 as well, are leading to the growing proliferation of laptops, notebooks, office equipment, and network peripherals, which have turned out to be boons for electronics companies.An uptick in demand for 5G test solutions, which are required for 5G deployment, remains another major positive. Moreover, the current coronavirus outbreak-triggered remote-working wave globally, which is bolstering the demand for high-speed Internet services, bodes well for electronic companies that are enhancing their 5G efforts.The rapid adoption of cloud computing technology and the rising need for data centers to ensure an efficient remote-working environment are benefiting electronics companies offering supply-chain solutions.The solid adoption of AI and industrial revolution 4.0, which focus on interconnectivity, automation, Machine Learning (ML) and real-time data, is another tailwind.The growing proliferation of fitness trackers and smartwatches, high-end smartphones, smart speakers, and smart cars and autonomous vehicles is fuelling the demand for electronic components.Additionally, the increasing use of medical devices such as electronic monitoring devices, infrared laser thermometers and thermal imaging cameras throughout the world has been boosting the demand for electrical equipment.We note that all the above-mentioned facts are expected to continue shaping the growth trajectory of the electronic industry. Moreover, these are creating an extremely conducive growth environment for electronic stocks in the near term.Considering the upbeat scenario, we believe fundamentally strong electronics stocks offer lucrative investment opportunities.Our PicksHere we have picked three electronics stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.To narrow down the list further, we have selected those with an average estimate of Wall Street analysts less than or equal to two.Additionally, we have focused on the stocks that are trading under $10 a share. Low-priced stocks may not seem attractive to some because fewer people follow them and less has been said about them. But it is also true that the low-priced stocks could be greatly rewarding based on their strong fundamentals.Babcock & Willcox BW is benefiting from its expanding clean and renewable energy business. The company’s acquisition of solar installation and services firm, Fosler Construction Co., is expected to boost its prospects in the solar installation and construction services space in the United States.Apart from this, the company’s increasing number of booked renewable waste-to-energy projects is likely to continue contributing well to top-line growth. Further, its strengthening environmental business and growing momentum across the decarbonization platform, namely ClimateBright, remain major positives.Babcock & Willcox, which is a provider of energy and environmental technologies and services for the power and industrial markets, is further gaining from its well-performing renewable segment. The recent acquisition of VODA, a multi-brand aftermarket parts and service provider for energy plants, positions Babcock & Willcox well to rapidly penetrate the renewable service market of Europe.Currently, the company flaunts a Zacks Rank #1. Additionally, BW has an average broker rating of 1.Babcock Price and Consensus Babcock price-consensus-chart | Babcock Quote One Stop Systems OSS is riding on the growing momentum across the media and entertainment markets on the back of improving sales of its ruggedized servers. Solid demand for the company’s differentiated military AI transportable data processing and storage products remains another tailwind. It is continuously gaining traction among new applications within the key accounts, which remain other positives. Further, its well-performing European subsidiary, Bressner, will likely aid its financial performance in the days ahead.The company, which designs and manufactures ultra-dense high-performance computing systems for learning, oil and gas exploration, financial trading, media and entertainment, defense, and traditional HPC applications, is expected to continue gaining from its expanding offerings in the edge computing systems market.Notably, One Stop Systems sports a Zacks Rank #1 at present. Further, OSS has an average broker rating of 1.One Stop Systems, Inc. Price and Consensus One Stop Systems, Inc. price-consensus-chart | One Stop Systems, Inc. QuoteFlux Power FLUX is benefiting from the rising uptake of its packs with a high selling price. The increasing demand for lithium-ion energy storage solutions worldwide remains another tailwind for the company. The growing momentum across its lithium-ion LiFT Pack solution on the back of environmental benefits that it provides over propane-based power solutions remains a major positive.Flux Power, a developer of advanced lithium-ion battery packs for commercial and industrial equipment, remains well-poised to capitalize on the increasing demand for zero-emission GSE battery packs in the airline industry, which is recovering from the pandemic-led disruptions.Currently, the company carries a Zacks Rank #2. Further, FLUX has an average broker rating of 1.Flux Power Holdings, Inc. Price and Consensus Flux Power Holdings, Inc. price-consensus-chart | Flux Power Holdings, Inc. Quote Zacks Top 10 Stocks for 2022 In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022? From inception in 2012 through November, the Zacks Top 10 Stocks gained an impressive +962.5% versus the S&P 500’s +329.4%. Now our Director of Research is combing through 4,000 companies covered by the Zacks Rank to handpick the best 10 tickers to buy and hold. Don’t miss your chance to get in on these stocks when they’re released on January 3.Be First to New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Babcock (BW): Free Stock Analysis Report Flux Power Holdings, Inc. (FLUX): Free Stock Analysis Report One Stop Systems, Inc. (OSS): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksDec 23rd, 2021

Markets Sell Again: Omicron, the Fed & More

The Omicron variant of Covid-19 is changing the calculus of the global economy. Monday, December 20, 2021Pre-market futures are down big to start a holiday shortened trading week, following a big sell-off Friday. The Dow, which fell roughly 1 1/2% Friday, is down another -440 points this morning. The S&P 500 is down another -65 points at this hour, closing out last week in the red. The tech-heavy Nasdaq has been seeing the biggest gouges of late, chopping out lots of speculative valuation, and trades down -250 points right now. The Nasdaq fell a full -3% last week.The Omicron variant of Covid-19 is changing the calculus of the global economy. We’re already seeing airline cancellations in this country, and a fresh outbreak everywhere would go back to constricting supply chains again. A new massive Covid variant may bring big headwinds on the demand side as well as the supply side, and that’s why the down-trade continues this morning.The jury is still out on Omicron, however. Some foremost authorities on Covid from the earliest days of the pandemic see a scenario where the highly infectious — but perhaps less severe, especially among the vaccinated population — variant burns through the U.S. quickly, bringing with it a blanket of immunity for those having been infected. It will again be a huge strain on hospitals and healthcare in general, but is far less likely to warrant another economic shutdown. We still have plenty to learn about Omicron, however -- none of this is a sure thing.We also look back to the Fed’s decision last week toward quickening the taper of asset purchases. In different, more “normal” economic times, we might have equated our latest bout with market bearishness as being directly affected by the Fed taking away the honey pot, albeit slowly. If we happen to see economic growth pulling back while prices remain high, that’s “stagflation” — and something within the Fed’s wheelhouse to deal with: it will have to raise interest rates to flush out inflation if it stubbornly remains, even if Omicron is a short-term issue.Stagflation must also be fought with new forays into productivity. This was a main initiative of President Biden’s Build Back Better plan, to bring about new employment and family care opportunities to increase productivity among our working population. Unfortunately for Biden from a political perspective, resistance within the split Democratic Party is keeping this plan from going forward at this time. Thus we remove an arrow from the quiver in our ability to attack stagflation. Perhaps the market is throwing a question mark there as well, adding to today’s overall bearish tone.Beneath our present set of economic concerns sits a bedrock of a very stout, healthy economy. For proof, look no further than Q3 earnings season just ended. We’ll get a revision to Q3 GDP mid-week, which is expected to remain at +2.1%. This is far cooler than the +6.7% we saw in Q2, but includes challenges experienced from the previous major Covid variant, Delta. And if Q3 earnings season was any indicator, we may even see a higher revision for last quarter.Other than that, mostly just jobless claims are what we’ll be looking at this week, which have also been very good. We’ll take it slow this Christmas Week — or at least not panic-sell into our current market indigestion.Questions or comments about this article and/or its author? Click here>> 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports To read this article on Zacks.com click here......»»

Category: topSource: zacksDec 20th, 2021

Pre-market Down on Holiday Shortened Week

Pre-market Down on Holiday Shortened Week Pre-market futures are down big to start a holiday shortened trading week, following a big sell-off Friday. The Dow, which fell roughly 1 1/2% Friday, is down another -440 points this morning. The S&P 500 is down another -65 points at this hour, closing out last week in the red. The tech-heavy Nasdaq has been seeing the biggest gouges of late, chopping out lots of speculative valuation, and trades down -250 points right now. The Nasdaq fell a full -3% last week.The Omicron variant of Covid-19 is changing the calculus of the global economy. We’re already seeing airline cancellations in this country, and a fresh outbreak everywhere would go back to constricting supply chains again. A new massive Covid variant may bring big headwinds on the demand side as well as the supply side, and that’s why the down-trade continues this morning.The jury is still out on Omicron, however. Some foremost authorities on Covid from the earliest days of the pandemic see a scenario where the highly infectious — but perhaps less severe, especially among the vaccinated population — variant burns through the U.S. quickly, bringing with it a blanket of immunity for those having been infected. It will again be a huge strain on hospitals and healthcare in general, but is far less likely to warrant another economic shutdown. We still have plenty to learn about Omicron, however -- none of this is a sure thing.We also look back to the Fed’s decision last week toward quickening the taper of asset purchases. In different, more “normal” economic times, we might have equated our latest bout with market bearishness as being directly affected by the Fed taking away the honey pot, albeit slowly. If we happen to see economic growth pulling back while prices remain high, that’s “stagflation” — and something within the Fed’s wheelhouse to deal with: it will have to raise interest rates to flush out inflation if it stubbornly remains, even if Omicron is a short-term issue.Stagflation must also be fought with new forays into productivity. This was a main initiative of President Biden’s Build Back Better plan, to bring about new employment and family care opportunities to increase productivity among our working population. Unfortunately for Biden from a political perspective, resistance within the split Democratic Party is keeping this plan from going forward at this time. Thus we remove an arrow from the quiver in our ability to attack stagflation. Perhaps the market is throwing a question mark there as well, adding to today’s overall bearish tone.Beneath our present set of economic concerns sits a bedrock of a very stout, healthy economy. For proof, look no further than Q3 earnings season just ended. We’ll get a revision to Q3 GDP mid-week, which is expected to remain at +2.1%. This is far cooler than the +6.7% we saw in Q2, but includes challenges experienced from the previous major Covid variant, Delta. And if Q3 earnings season was any indicator, we may even see a higher revision for last quarter.Other than that, mostly just jobless claims are what we’ll be looking at this week, which have also been very good. We’ll take it slow this Christmas Week — or at least not panic-sell into our current market indigestion. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report To read this article on Zacks.com click here......»»

Category: topSource: zacksDec 20th, 2021

"Santa Rally Is Finally Here": Futures Hit All Time High Day After Powell Goes Full Jean-Claude Trichet

"Santa Rally Is Finally Here": Futures Hit All Time High Day After Powell Goes Full Jean-Claude Trichet One day before what everyone knew would be a hawkish pivot by the Fed, the mood was dour with tech names tumbling and futures hanging one for dear life. One day after, Jerome Powell confirmed he would go full Jean-Claude Trichet as the Fed would not only turbo-taper into a sharply slowing economy, ending its QE program by March but then proceed with hiking rates as many as 3 times in 2022 (more than the 2 hike consensus), with the BOE shocking markets moments ago with a surprise rate hike and even the ECB trimming its turbo QE, and futures are.... at all time highs. That's right - eminis are higher by 140 points in 24 hours because the Fed was more hawkish than consensus expected.  At 8:00 a.m. ET, Dow e-minis were up 215 points, or 0.61%, S&P 500 e-minis were up 27.25 points, or 0.57%, and Nasdaq 100 e-minis were up 100 points, or 0.61%. Treasury yields jumped alongside European bonds after the BOE became the first major central bank to raise rates since the pandemic, while the dollar fell and the pound jumped. The Euro also hit session highs after the ECB seemed to turn ever so slightly more hawkish as its monthly QE is set to shrink in the coming year. "The market likes facts it can digest. With the uncertainty now gone, it finds relief,” said Frederik Hildner, a portfolio manager at Salm-Salm & Partner. Gradual rising rates “provides more firepower for the next downturn, as it displays the ability normalize monetary policy.” On Wednesday, Jerome Powell said the U.S. economy no longer needed increasing amounts of policy support as annual inflation has been running at more than double the central bank's target in recent months, while the economy nears full employment. Recent readings on surging producer and consumer prices as well as the fast-spreading Omicron variant of the coronavirus have fueled anxiety as the benchmark S&P 500 inches closer to a record high. "Is the Santa Rally finally here? Markets certainly seem to have a spring in their step... the prospect of three interest rate hikes in 2022 would suggest the central bank has a clear plan to not let inflation get out of control," Russ Mould, investment director at AJ Bell wrote in a client note. "Equally, it isn't being too aggressive to trip up the economy. This sense of balance is exactly what investors want, and an upbeat tone from the Fed certainly seems to have rubbed off on markets" Bell said, clearly goalseeking his narrative to the market's response as just 24 hours later he would be saying just the opposite when futures were tanking of hawkish Fed fears. Big tech stocks and banks led gains in premarket trading. Shares in Tesla, Microsoft, Meta and Amazon.com rose between 0.7% and 2.4%, with the lift pushing Apple shares nearer to an historic market value of $3 trillion. Bank stocks including JPMorgan, Morgan Stanley, Bank of America, Wells Fargo and Citigroup all gained between 0.7% and 0.8%. Here are some of the biggest U.S. movers today: Apple (APPL) and other big U.S. tech stocks rise after the Federal Reserve said that it would speed up its taper, joining in with a broader relief rally across risk assets. Apple shares are up 0.6%, with the stock drawing nearer to an historic market capitalization of $3 trillion. Also Thursday, Goldman Sachs said lead times for Apple’s iPhone have declined in the latest week. Assertio (ASRT US) shares rise 4% after the company announced the $44 million acquisition of the Otrexup device from Antares Pharma. Blue Bird (BLBD US) dropped 6% after the school bus-maker provided a weaker-than-expected sales outlook. The company also offered $75m shares at $16/share in a private placement. Danimer Scientific (DNMR) falls 10% after announcing that it plans to offer $175 million of convertible senior notes. Delta Air Lines (DAL) is up 2% after saying it expects to report a profit for the fourth quarter, citing a strong demand for travel over the winter holiday period and a decline in jet fuel prices. Other airline stocks are also higher. DocuSign (DOCU) falls 2% as Morgan Stanley issued a downgrade, saying third-quarter results changed the firm’s view regarding the durability of growth through tough post-pandemic comparables. Freyr Battery (FREY) gains 14% after executing its inaugural offtake agreement for at least 31 GWh of low-carbon battery cells. IronNet (IRNT US) slumps 25% after the cybersecurity company’s results fell short of expectations, prompting a Street-low target from Jefferies. Lennar Corp. (LEN US) declined 6% after it reported a forecast for purchase contracts that was weaker than expected. Plug Power (PLUG) gains 5% after signing an agreement with Korean electric-vehicle manufacturer Edison Motors to develop an electric city bus powered by hydrogen fuel cells. Syndax Pharmaceuticals (SNDX) falls 8% after pricing 3.2 million shares at $17.50 each. Tesla (TSLA) is up 2%, rising with other electric vehicle stocks amid a broader gain in technology stocks and U.S. futures on hopes that the Federal Reserve’s policy tightening will fight high inflation without hampering economic growth. Wayfair (W) falls 2% after BofA downgraded the stock to underperform, citing weak near-term data and difficult comparisons through the first quarter of 2022 for the online furniture retailer. European equities rally with Euro Stoxx 50 up as much as 2.1% before drifting off best levels. The U.K.’s exporter-heavy FTSE 100 Index pared some gains after the BOE decision, while European dipped modestly after the European Central Bank’s meeting.  Miners, tech and autos are the best performers, utilities and media names lag. Equities have whipsawed in recent weeks as investors attempted to price in the prospect of rate hikes, while assessing risks from the spread of the omicron variant. The market’s early response to the Fed signals some relief arising from policy clarity, and optimism that the rebound from pandemic lows can weather the pivot away from ultra-loose monetary settings. “The market is breathing a sigh of relief that the FOMC meeting suggested that it is taking inflation risks in the United States more seriously,” Ann-Katrin Petersen, an investment strategist at Allianz Global Investors, said in an interview with Bloomberg TV. “The question really will be whether the Fed will dare to do even more in order to taper the inflation risk.” Asian stocks rose, halting a four-day slide, as confidence in Federal Reserve policy allowed investors to take on riskier assets. The MSCI Asia Pacific Index climbed as much as 0.8%, buoyed by energy and technology shares. Japan was Asia’s top performer, aided by a weaker yen. Hong Kong and China stocks eked out gains amid ongoing concern over U.S. sanctions. Australian equities declined for a third day. Asia’s benchmark advanced for the first time this week on hopes the Fed will effectively combat surging prices without choking off economic growth. The U.S. central bank said it will double the pace of its asset tapering program to $30 billion a month and projected three interest-rate increases in 2022. In the run-up to the Fed’s decision, Asia’s equity gauge slumped almost 2% over the past four days, keeping it below the 50-day moving average.    The short-term boost to stock market sentiment is from Fed Chair Jerome Powell’s comments about wage inflation not being the main issue for now, and expectations that there’ll be full employment next year, said Ilya Spivak, head of Greater Asia at DailyFX. However, there’s a “meaningful risk” that the Fed’s latest policy stance will trigger liquidation as Asia stock portfolios are de-risked, Spivak said. Japan’s stocks rose for a second day after the yen weakened and U.S. stocks rallied amid speculation the Federal Reserve will combat surging prices without choking off economic growth. The Topix index climbed 1.5% to close at 2,013.08 in Tokyo, while the Nikkei 225 Stock Average advanced 2.1% to 29,066.32. Keyence Corp. contributed the most to the Topix’s gain, increasing 2.5%. Out of 2,181 shares in the index, 1,674 rose and 421 fell, while 86 were unchanged. “It wouldn’t be strange to see the discount on Japanese equities narrowing following the FOMC meeting results, with market interest centered around electronics, machinery, automakers and marine transportation stocks,” said Takashi Ito, an equity market strategist at Nomura Securities. Electronics firms and automakers helped lift the Topix as the yen headed for a four-day slump against the dollar, with the currency falling 0.1% to 114.19 Australia's S&P/ASX 200 index fell 0.4% to close at 7,295.70, extending its losing streak to a third day.  CSL was the worst performer after the benchmark’s second-biggest company by weighting completed a placement to fund its Vifor acquisition. Mesoblast was the top performer after saying it plans to conduct an additional U.S. Phase 3 trial of rexlemestrocel-L in patients with chronic low back pain.  Investors also digested November jobs data. Australian employment soared last month, smashing expectations and pushing the jobless rate lower as virus restrictions eased on the east coast. In New Zealand, the S&P/NZX 50 index fell 0.7% to 12,777.54 In rates, cash USTs bull steepened, bolstered by a large curve steepener that blocked in early London. Bunds are soft at the back end, peripherals slightly wider ahead of today’s ECB meeting. Gilts bear steepen slightly, white pack sonia futures are lower by 2-3.5 ticks. In FX, the dollar slipped for a second day and oil rose; cable snapped to best levels of the week after the BOE unexpectedly hiked rates.  The Bloomberg Dollar Spot Index fell for a second day as the greenback weakened against all its Group-of-10 peers apart from the yen; Tresury yields fell, led by the belly of the curve. Commodity currencies were the best G-10 performers, led by the krone, which reversed an earlier loss after Norway’s central bank raised its interest rate for the second time this year and flagged another increase in March as officials acted to cool the rebounding economy despite renewed coronavirus concerns. The Australian and New Zealand dollars reversed earlier losses amid upbeat stock markets; the Aussie earlier weakened as RBA Governor Lowe hinted at the prospect of no rate hikes next year. The yen fell as the Federal Reserve’s decision reaffirmed yield differentials ahead of the Bank of Japan’s outcome on Friday. Bonds rose after a solid auction. Elsewhere in FX, NOK outperforms in G-10 after Norges Bank rate action, other commodity currencies are similarly well bid. In commodities, Crude futures hold a narrow range around best levels of the session. WTI is up 1.1% near $71.70, Brent near $74.70. Spot gold grinds higher, adding ~$9 near $1,786/oz. LME copper outperforms in a well-bid base metals complex To the day ahead now, and the main highlights will be the aforementioned policy decisions from the ECB and the BoE. On the data side, we’ll also get the flash PMIs for December from around the world, the Euro Area trade balance for October, and in the US there’s November data on industrial production, housing starts and building permits, as well as the weekly initial jobless claims. Finally, EU leaders will be meeting for a summit in Brussels. Market Snapshot S&P 500 futures up 0.5% to 4,734.25 STOXX Europe 600 up 1.2% to 476.39 MXAP up 0.8% to 193.11 MXAPJ up 0.5% to 623.76 Nikkei up 2.1% to 29,066.32 Topix up 1.5% to 2,013.08 Hang Seng Index up 0.2% to 23,475.50 Shanghai Composite up 0.8% to 3,675.02 Sensex up 0.1% to 57,851.57 Australia S&P/ASX 200 down 0.4% to 7,295.66 Kospi up 0.6% to 3,006.41 Brent Futures up 1.0% to $74.59/bbl Gold spot up 0.5% to $1,786.03 U.S. Dollar Index down 0.36% to 96.16 German 10Y yield little changed at -0.36% Euro up 0.2% to $1.1316 Top Overnight News from Bloomberg The greenback is set for its biggest annual gain in six years and its rally appears to be far from over, market participants say. The prime mover: a hawkish Federal Reserve that’s drawn a roadmap of interest-rate increases over the next three years, while other central banks look much more reticent to withdraw stimulus The ECB is poised to unveil a gradual withdrawal from extraordinary pandemic stimulus in the face of soaring inflation whose path is further clouded by the omicron coronavirus variant The “phenomenal pace” at which the new Covid-19 omicron strain is spreading across the U.K. will trigger a surge in hospital admissions over the holiday period, according to Boris Johnson’s top medical adviser The Swiss National Bank kept both the deposit and the policy rate at -0.75%, as widely predicted by economists. With the global economic recovery on shaky footing due to the omicron variant, President Thomas Jordan and fellow policy makers also reiterated their pledge to supplement subzero rates with currency interventions as needed France will impose tougher rules on people traveling from the U.K., including a ban on non-essential trips and a requirement to self-isolate, as it tries to slow the spread of the omicron variant IHS Markit said its index tracking output across the U.K. economy fell to 53.2 this month from 57.6 in November, reflecting weaker-than-expected growth in service industries including hotels, restaurants and travel-related businesses. Business-to-business services stalled European power prices soared to records after Electricite de France SA said that two nuclear reactors will stop unexpectedly and two will have prolonged halts -- just as the continent heads for a cold snap with already depleted gas inventories Hungary’s central bank increased the effective base interest rate for the fifth time in as many weeks to tackle the fastest inflation since 2007 and shore up the battered forint A more detailed look at global markets courtesy of Newsquawk Asian equity markets traded mixed as the region digested the FOMC meeting. The ASX 200 (-0.4%) was negative with heavy losses in the healthcare sector and as COVID infections remained rampant. There were also notable comments from RBA Governor Lowe that the board discussed tapering bond purchases in February and ending it in May or could even end purchases in February if economic progress is better than expected, although it is also open to reviewing bond buying again in May if the data disappoints. The Nikkei 225 (+2.1%) outperformed and reclaimed the 29k level after the Lower House recently passed the record extra budget stimulus and with the latest trade data showing double-digit percentage surges in Imports and Exports, despite the latter slightly missing on expectations. The Hang Seng (+0.2%) and Shanghai Comp. (+0.8%) were varied with Hong Kong pressured by losses in the big tech names amid ongoing frictions between the world’s two largest economies and as US lawmakers proposed a bill to allow the US oversight of China audits, although the mainland was kept afloat amid further speculation of a potential LPR cut this month, as well as reports that China will boost financial support for small businesses and offer more longer-term loans to manufacturers. Finally, 10yr JGBs were indecisive despite the constructive mood in Tokyo and with price action stuck near the 152.00 focal point, while demand was also sidelined amid mixed results at the 20yr JGB auction and as the BoJ kickstarts its two-day meeting. Top Asian News Indonesia Reports First Omicron Case in Jakarta Facility Asia Stocks Snap Four-Day Drop as Traders Take on Risk After Fed Shimao Group Shares Set for Best Day in Month Money Manager Vanishes With $313 Million From China Builder Equities in Europe have taken their cue from the post-FOMC rally seen across Wall Street (Euro Stoxx 50 +1.6%; Stoxx 600 +1.1%) following somewhat mixed APAC trade. As a reminder, markets saw relief with one of the major risk events out of the way, and with Chair Powell refraining from throwing hawkish curveballs. That being said, the forecast does see three rate hikes next year, whilst the Fed Board next year will also be more hawkish – at least within the rotating voters - with George, Mester and Bullard poised to vote from 2022. Nonetheless, US equity future continues grinding higher with all contracts in the green and the RTY (+1.3%) outperforming vs the NQ (+0.7%), ES (+0.6%), and YM (+0.5%). Bourses in Europe also experience broad-based gains with no real outliers, although the upside momentum somewhat waned amid some softer-than-expected PMI metrics ahead of ECB. Sectors in Europe paint a clear pro-cyclical bias. Tech outperforms following a similar sectorial performance seen on Wall Street. Basic Resources and Oil & Gas follow a close second, with Autos and Travel & Leisure also among the biggest gainers. The downside sees Personal & Household Goods, Telecoms and Food & Beverages. Healthcare meanwhile fares better than its defensive peers as Novartis (+4%) is bolstered after commencing a new USD 15bln buyback, highlighting confidence in growth and pipeline. On the flip side, EDF (-12%) shares have slipped after it narrowed FY EBITDA forecasts and highlighted some faults with some nuclear reactors amid corrosion. Top European News Britain’s Covid Resurgence Cuts Growth to Slowest Since Lockdown SNB Says Franc Is Highly Valued as Omicron Clouds Outlook Norway Delivers Rate Hike That Omicron Had Threatened to Derail Erdogan Approves Third Capital Boost for State Banks Since 2019 In FX, not much bang for the Buck fits the bill accurately as it is panning out in the FOMC aftermath even though market expectations were matched and arguably exceeded in terms of dot plots showing three hikes in 2022 vs two anticipated by most and only one previously, while the unwinding of asset purchases will occur in double quick time to end in March next year instead of June. However, there appears to be enough in the overall statement, SEP and Fed chair Powell’s post-meeting press conference to offset the initial knee-jerk spike in the Dollar and index that lifted the latter very close to its current y-t-d peak at 96.914 vs 96.938 from November 24. Indeed, the terminal rate was maintained at 2.5%, no decision has been taken about whether to take a break after tapering before tightening, and the recovery in labour market participation has been disappointing to the point that it will now take longer to return to higher levels. In response, or on further reflection, the DXY has recoiled to 96.141 and through the 21 DMA that comes in at 96.238 today. NZD/AUD/CAD/GBP/EUR/CHF - All on the rebound vs their US counterpart, with the Kiwi back on the 0.6800 handle and also encouraged by NZ GDP contracting less than feared in Q3, while the Aussie is hovering around 0.7200 in wake of a stellar jobs report only partly tempered by dovish remarks from RBA Governor Lowe who is still not in the 2022 hike camp and non-committal about ending QE next February or extending until May. Elsewhere, the Loonie has clawed back a chunk of its losses amidst recovering crude prices to regain 1.2800+ status ahead of Canadian wholesale trade that is buried between a raft of US data and survey releases, Sterling is flirting with 1.3300 in advance of the BoE that is likely to hold fire irrespective of significantly hotter than forecast UK inflation, the Euro is pivoting 1.1300 pre-ECB that is eyed for details of life after the PEPP and the Franc is somewhat mixed post-SNB that maintained rates and a highly valued assessment of the Chf with readiness to intervene as required. Note, Usd/Chf is meandering from 0.9256 to 0.9221 vs Eur/Chf more elevated within a 1.0455-30 band. JPY - The Yen is underperforming on the eve of the BoJ and looking technically weak to compound its yield and rate disadvantage after Usd/Jpy closed above a key chart level on Wednesday (at 114.03). As such, Fib resistance is now exposed at 114.38 vs the circa 114.25 high, so far, while decent option expiry interest may be influential one way or the other into the NY cut given around 1.3 bn at the 114.25 strike, 1.7 bn at 114.30 and 1.2 bn or so at 114.50. In commodities, WTI and Brent front-month futures are taking advantage of the risk appetite coupled with the softer Buck. WTI Jan trades on either side of USD 71.50/bbl (vs low USD 71.39/bbl) while Brent Feb sees itself around USD 74.50/bbl (vs low USD 74.28/bbl). Complex-specific news has again been on the quiet end, with prices working off the macro impulses for the time being, and with volumes also light heading into Christmas trade. Elsewhere spot gold and silver ebb higher – in tandem with the Dollar, with the former eyeing a group of DMAs to the upside including the 100 (1,788/oz), 21 (1,789/oz) 200 (1,794/oz) and 50 (1,796/oz). Turning to base metals, LME copper has been catapulted higher amid the risk and weaker Dollar, with prices re-testing USD 9,500/t to the upside. Meanwhile, a Chinese government consultancy has said that China's steel consumption will dip 0.7% on an annual basis in 2022 amid policies for the real estate market and uncertainties linked to COVID-19 curb demand. US event calendar 8:30am: Dec. Initial Jobless Claims, est. 200,000, prior 184,000; Continuing Claims, est. 1.94m, prior 1.99m 8:30am: Nov. Housing Starts MoM, est. 3.1%, prior -0.7% 8:30am: Nov. Housing Starts, est. 1.57m, prior 1.52m 8:30am: Nov. Building Permits MoM, est. 0.5%, prior 4.0%, revised 4.2% 8:30am: Nov. Building Permits, est. 1.66m, prior 1.65m, revised 1.65m 8:30am: Dec. Philadelphia Fed Business Outl, est. 29.6, prior 39.0 9:15am: Nov. Manufacturing (SIC) Production, est. 0.7%, prior 1.2%; Industrial Production MoM, est. 0.6%, prior 1.6% 9:45am: Dec. Markit US Manufacturing PMI, est. 58.5, prior 58.3 9:45am: Dec. Markit US Services PMI, est. 58.8, prior 58.0 DB's Jim Reid concludes the overnight wrap Yesterday’s biggest story was obviously the Fed. In line with our US economists call (their full recap here), the FOMC doubled the pace of taper to $30bn a month, which would bring an end to QE in mid-March. The new dot plot showed three rate hikes in 2022, up from the Committee being split over one hike in September. Farther out, the median dot had 3 additional hikes in 2023 and 2 hikes in 2024, bringing fed funds just below their estimate of the longer-term rate. Notably, all 18 Committee members have liftoff occurring next year, and 10 have 3 hikes penciled in, suggesting consensus behind the recent hawkish turn was strong. Short-end market pricing increased in line and now has around 2.9 hikes priced for 2022. The first hike is fully priced for the June meeting, but notably, meetings as early as March are priced as live, more on that in a bit. In the statement, the Committee admitted that inflation had exceeded target for some time (dropping ‘transitory’ completely), and that liftoff would be tied to the economy reaching full employment. By the sounds of the press conference, progress toward full employment has proceeded pretty rapidly. Chair Powell noted that while labour force participation progress has been disappointing, almost every other measure of labour market strength shows a very strong labour market, and could create upside risks to inflation should wage growth start to increase beyond productivity. It is within that context that he framed the decision to taper faster, it will leave the Fed in a position to react as needed, providing optionality. In that vein, he stressed a few times that the lag between the end of taper and liftoff need not be as long as it was in the last cycle, and that the Fed will raise rates after taper is done whenever needed, hence meetings as early as March being live. Notably on Omicron, the Chair, like the rest of us, recognises we don’t know much about the variant yet, but seemed optimistic about the economy’s ability to withstand subsequent Covid shocks, regardless of Omicron’s specifics. While Covid shocks can tighten supply chains, discourage labour participation, and reduce demand, as more people get vaccinated those impacts should dwindle over time, so his argument went. Hammering the point home, he sounded confident that the economy can handle whatever Omicron brings without any additional QE, justifying the accelerated taper path despite Covid risks. The hawkish turn had been well forecast through Fed speakers since the last meeting, not least of which the Chair himself during Congressional testimony, which served to dull the market impact. Treasury yields were slightly higher, (2yr Tsys +0.6bps and 10yr Tsys +1.5 bps) but were quite docile for an FOMC afternoon. The dollar initially strengthened on the statement release before reversing course and ending the day -0.24% lower. Stocks were the real outperformers, as the S&P 500 rallied through the FOMC events, gaining +1.63%, the best daily performance in two months, while the Nasdaq increased +2.15%. The Russell 2000 matched the S&P, gaining +1.65%. Obviously the market was anticipating the change in policy, but if doubling taper and adding three rate hikes in the next year isn’t enough to tighten financial conditions, what is? The Chair was asked about that in so many words in the press conference, where he responded by noting financial conditions could change on a dime. Indeed, they will have to tighten from historically easy levels if the Fed is to bring inflation back to target through policy. The Fed may be out of the way now, but the central bank excitement continues today as both the ECB and the BoE announce their own policy decisions later on. We’ll start with the ECB, who like the Fed have faced much higher than expected inflation lately, with the November flash estimate coming in at +4.9%, which is the highest since the formation of the single currency. Whilst Omicron has cast a shadow of uncertainty, with Commission President von der Leyen saying yesterday that it was likely to become dominant in Europe by mid-January, our European economics team doesn’t think there has been anything concrete enough to alter the ECB from their course (like the Fed). In our European economists’ preview (link here) they write the ECB appears on track to initiate a transition to a monetary policy stance based more on policy rates and rates guidance and less on liquidity provision. The ECB is set to confirm that PEPP net purchases will end in March, but will cushion the blow by working flexibility into the post-PEPP asset purchase arrangement. They are also set to make the policy framework more flexible to better respond to inflation uncertainties. One thing to keep an eye out for in particular will be the latest inflation projections, with a report from Bloomberg suggesting that they’ll show inflation beneath the 2% target in both 2023 and 2024. So if that’s true, that could offer a route to arguing against a tightening of monetary policy for the time being, since the ECB’s forward guidance has been that it won’t raise rates until it sees inflation at the target “durably for the rest of the projection horizon”. Today’s other big decision comes from the BoE, where our UK economist is expecting that there’ll be a 15bps increase in Bank Rate, taking it up to 0.25% although they suggest it’s a very close call. See here for the rationale. Ahead of that decision later on, we received a very strong UK inflation print for November, with CPI rising to +5.1% (vs. +4.8% expected), up from +4.2% in October and the fastest pace in a decade. That’s running ahead of the BoE’s own staff forecasts in the November Monetary Policy Report, which had seen inflation at just +4.5% that month, so six-tenths beneath the realised figure. We’ll get their decision at 12:00 London time, 45 minutes ahead of the ECB’s. In terms of the latest on the Omicron variant, there are continued signs of concern in South Africa, with cases coming in at a record 26,976 yesterday, whilst the number in hospital at 7,339 is up +73% compared to a week ago. Meanwhile the UK recorded their highest number of cases since the pandemic began, at 78,610. England’s Chief Medical Officer, Chris Whitty, said that a lot of Covid records would be broken in the coming weeks, and also that a majority of cases in London were now from the Omicron variant. Separately, the French government is set to hold a meeting tomorrow on Covid measures, and EU leaders will be discussing the pandemic at their summit today. When it comes to Omicron’s economic impact, we could see some light shed on that today as the December flash PMIs are released from around the world. Overnight we’ve already had the numbers out of Australia and Japan where hints of a slowdown are apparent. Japan's Manufacturing PMI came out at 54.2 (54.5 previous) and the Composite at 51.8 (53.3 previous) while Australia’s Manufacturing and Composite came in at 57.4 and 54.9 respectively (59.2 and 55.7 previous). Overnight in Asia stocks are trading mostly higher led by the Nikkei (+1.78%) followed by the Shanghai Composite (+0.28%), and KOSPI (+0.22%). However the CSI (-0.07%) and Hang Seng (-0.81%) are losing ground on concerns of US sanctions on Chinese tech companies. In Australia, the November employment report registered a strong beat by adding 366.1k jobs against 200k consensus. This is being reflected in a +12.75 bps surge in Australia's 3y bond. Elsewhere, in India wholesale inflation for November rose +14.2% year on year, levels last seen in 2000 against a consensus of +11.98% on the back of higher food and input prices. DM futures are indicating a positive start to markets today with S&P 500 (+0.19%) and DAX (+1.04%) contracts both higher as we type. Ahead of the Fed, European markets had put in a fairly steady performance yesterday, with the STOXX 600 up +0.26%. That brought an end to a run of 5 successive declines, with technology stocks in particular seeing an outperformance. Sovereign bond markets were also subdued ahead of the ECB and BoE meetings later, with yields on 10yr bunds (+0.9bps), OATs (+0.5bps) and gilts (+1.2bps) only seeing modest moves higher. In DC, despite optimistic sounding talks earlier in the week, the latest yesterday was President Biden and Senator Manchin remained far apart on the administration’s build back better bill, imperiling its chances of passing before Christmas. Elsewhere, reports suggested the President would have more nominations for the remaining Fed Board vacancies this week. Looking at yesterday’s other data, US retail sales underwhelmed in November with growth of just +0.3% (vs. +0.8% expected), and measure excluding gas and motor vehicles was also up just +0.2% (vs. +0.8% expected). Also the NAHB’s housing market index for December moved up to a 10-month high of 84, in line with expectations. To the day ahead now, and the main highlights will be the aforementioned policy decisions from the ECB and the BoE. On the data side, we’ll also get the flash PMIs for December from around the world, the Euro Area trade balance for October, and in the US there’s November data on industrial production, housing starts and building permits, as well as the weekly initial jobless claims. Finally, EU leaders will be meeting for a summit in Brussels. Tyler Durden Thu, 12/16/2021 - 08:29.....»»

Category: blogSource: zerohedgeDec 16th, 2021

GameStop, Boeing, and Uber Trading Lower in Premarket Trading

Equity index futures are pointing lower before the open as the S&P 500 (SPX) tests resistance at its all-time high. After a three-day rally, investors appear to be taking a break ahead of Friday’s Consumer Price Index (CPI) report.  Despite the recent rally and the S&P 500’s relative position to a new high, the Cboe Volatility Index (VIX) is still slightly elevated. The VIX was trading above the 20 level before the bell and appears to reflect a sense of uncertainty that remains among investors. Investor uncertainty is likely around the Fed’s ability to taper and manage the inflation situation. Many analysts are viewing the flatter yield curve as the bond market telling the Fed it’s going too slow when it comes to tapering. The Fed may feel more comfortable speeding up its tapering plans because initial jobless claims came in at 184,000 this morning which was below the expected 215,000. Some individual stocks are making moves before the opening bell. After Wednesday’s close, meme stock GameStop (NYSE: GME) reported worse-than-expected losses despite higher-than-expected revenue. The company had higher expenses because it loaded up on inventory for the holidays. The company also disclosed an SEC subpoena related to trading activity. The stock fell about 6% in after-hours trading but trimmed its losses to 4.98% in premarket trading. Food delivery companies like Uber (NYSE: UBER) and Just Eat Takaway.com aka GrubHub (NASDAQ: GRUB) are under scrutiny after the European Union’s food commission looks to designate gig economy workers as full-time employees. The move could require these companies to offer certain benefits that will likely increase expenses and hurt company profits. Looking to the skies, American Airlines (NASDAQ: AAL) announced it will have fewer international flights because of delays from Boeing (NYSE: BA) in delivering its new 787 Dreamliner. Boeing is also losing out to its competitor Airbus. According to Reuters, Airbus appears to be winning the contract as the provider to Dutch KLM airline with planes. Boeing was trading 1.15% lower in premarket trading. On the positive side, CVS Health (NYSE: CVS) announced an increase in its dividend and stock buyback ...Full story available on Benzinga.com.....»»

Category: earningsSource: benzingaDec 9th, 2021

S&P 500 Notches Best Day in Seven Weeks: 5 ETF Winners

Investors jumped to flock stocks at bargain prices after the worst two-day drop in more than a year. Wall Street rebounded strongly from the Omicron-induced sell-offs on bargain hunting. The S&P 500 Index has risen 1.4% — its biggest gain since mid-October. The rally has been broad-based with the Dow Jones Industrial Average gaining 1.8%, its best showing since early March, and the tech-heavy Nasdaq rising 0.8%.In fact, small-cap stocks as represented by the Russell 2000 Index has outperformed, climbing 2.7%. The solid trend was seen in ETF space as well with US Global Jets ETF JETS and Defiance Hotel, Airline, and Cruise ETF CRUZ making the most of the rebound, gaining nearly 6% on the day. iShares U.S. Home Construction ETF ITB, Simplify Volt Cloud and Cybersecurity Disruption ETF VCLO and VanEck Vectors Steel ETF SLX was up about 4% each.Investors jumped to flock stocks at bargain prices after the worst two-day drop in more than a year. The worries over the impact of the spread of new variant of COVID-19 has eased with early indications of the strain being mild in most cases. The wider reach of vaccinations and COVID-19 boosters should help to reduce infections caused by the new variant of COVID-19 (read: 5 Inverse ETFs Up Over 10% on Black Friday).Additionally, the economy is on a firmer footing with stronger-than-expected consumer confidence, a pick-up in hiring and rising wages. Further, concerns over the government shutdown have also averted. The Senate has passed a stopgap spending bill that avoids a short-term shutdown and funds the federal government through Feb 18. The measure now goes to President Joe Biden to be signed into law.We have highlighted ETFs in detail below:U.S. Global Jets ETF (JETS)U.S. Global Jets ETF provides exposure to the global airline industry, including airline operators and manufacturers from all over the world by tracking the U.S. Global Jets Index. The product holds 51 securities and charges 60 bps in annual fees (read: Sector ETFs to Win or Lose on Oil Slump).U.S. Global Jets ETF has gathered $3.2 billion in its asset base while sees heavy trading volume of nearly 7.7 million shares a day. JETS has a Zacks ETF Rank #3 (Hold) with a High risk outlook.Defiance Hotel, Airline, and Cruise ETF (CRUZ)Defiance Hotel, Airline, and Cruise ETF tracks the BlueStar Global Hotels, Airlines, and Cruises Index, which measures the performance of globally listed companies primarily engaged in the travel and tourism industries. Holding 53 stocks in its basket, American firms make up for 45.8% of the portfolio while Panama, Japan and the United Kingdom round off the next three with a single-digit exposure each.Defiance Hotel, Airline, and Cruise ETF, launched in June, has gathered around $14.6 million in its asset base and charges 45 bps in annual fees. Volume is lower as it exchanges around 32,000 shares a day on average.iShares U.S. Home Construction ETF (ITB)iShares U.S. Home Construction ETF provides exposure to U.S. companies that manufacture residential homes by tracking the Dow Jones U.S. Select Home Construction Index. With AUM of $2.9 billion, it holds a basket of 46 stocks with a heavy concentration on the top two firms.iShares U.S. Home Construction ETF charges 41 bps in annual fees and trades in a heavy volume of around 2.6 million shares a day on average. It has a Zacks ETF Rank #2 (Buy) with a High risk outlook (read: 5 Best Sector ETFs of November).Simplify Volt Cloud and Cybersecurity Disruption ETF (VCLO)Simplify Volt Cloud and Cybersecurity Disruption ETF is a thematic investment product and is actively managed. It is designed to concentrate on those few disruptive companies that are poised to dominate the new era of cloud technology and then enhance the concentrated exposure with options. Simplify Volt Cloud and Cybersecurity Disruption ETF holds 29 securities in its basket with a double-digit allocation on the top firm.Simplify Volt Cloud and Cybersecurity Disruption ETF is a high-cost choice, charging 0.96% in annual fees. VCLO has accumulated $19.7 million in its assets base in nearly one year of inception and trades in an average daily volume of 37,000 shares.VanEck Vectors Steel ETF (SLX)VanEck Vectors Steel ETF provides a pure-play exposure to a small basket of 25 stocks in the steel sector. It tracks the NYSE Arca Steel Index. American firms dominate the fund’s returns at 39.2%, followed by Brazil (18.9%) and Australia (14.2%).VanEck Vectors Steel ETF has amassed $120.8 million in its asset base and charges 56 bps in fees from investors. It trades in a moderate volume of 80,000 shares a day on average. Want key ETF info delivered straight to your inbox? Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report iShares U.S. Home Construction ETF (ITB): ETF Research Reports VanEck Steel ETF (SLX): ETF Research Reports U.S. Global Jets ETF (JETS): ETF Research Reports Simplify Volt Cloud and Cybersecurity Disruption ETF (VCLO): ETF Research Reports Defiance Hotel, Airline, and Cruise ETF (CRUZ): ETF Research Reports To read this article on Zacks.com click here......»»

Category: topSource: zacksDec 3rd, 2021

Dow transports turns lower, led by sharp reversal in airline stocks

The Dow Jones Transportation Average has swung into negative territory Wednesday, with the pullback driven by a sharp reversal in its airline components. After tumbling 3.2% to a five-week low on Tuesday, the Dow transports were up as much as 2.5% earlier in Wednesday's session, but were last down 0.5%, with 12 of 20 components losing ground, in afternoon trading. The biggest decliner was American Airlines Group Inc.'s stock , which erased an intraday gain of as much as 3.1% to drop 6.8% toward the lowest close since Jan. 26. Among the Dow transports' other biggest losers, United Airlines Holdings Inc. shares slid 5.9% after being up 3.1% at its intraday high, Delta Air Lines Inc.'s stock slumped 5.8% after being up as much as 3.1% earlier and Avis Budget Group Inc.'s stock declined 4.4% after being up as much as 4.8%. Meanwhile, the Dow Jones Industrial Average was up 29 points, or 0.8%, after being up 520.92 points, or 1.5%, at its intraday high.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news......»»

Category: topSource: marketwatchDec 1st, 2021

Risk Cracks After Moderna CEO Comments Spark Global Stock Rout

Risk Cracks After Moderna CEO Comments Spark Global Stock Rout Ask a drug dealer if methadone helps cure a cocaine addition and - shockingly - you will hear that the answer is "hell no", after all an affirmative response would mean the fixer needs to get a real job. Just as shocking was the "admission" of Moderna CEO, Stéphane Bancel, who in the latest stop on his media whirlwind tour of the past 48 hours gave the FT an interview in which he predicted that existing vaccines will be much less effective at tackling Omicron than earlier strains of coronavirus and warned it would take months before pharmaceutical companies could manufacture new variant-specific jabs at scale. “There is no world, I think, where [the effectiveness] is the same level . . . we had with [the] Delta [variant],” Bancel told the Financial Times, claiming that the high number of Omicron mutations on the spike protein, which the virus uses to infect human cells, and the rapid spread of the variant in South Africa suggested that the current crop of vaccines may need to be modified next year. Here, the self-serving CEO whose sell-mode was fully engaged - after all what else would the maker of a vaccine for covid say than "yes, the world will need more of my product" - completely ignored the earlier comments from Barry Schoub, chairman of South Afruca's Ministerial Advisory Committee on Vaccines, who over the weekend said that the large number of mutations found in the omicron variant appears to destabilize the virus, which might make it less “fit” than the dominant delta strain. As such, it would be a far less virulent strain... but of course that would also reduce the need for Moderna's mRNA therapy and so Bancel failed to mention it. What is grotesque is that the Moderna CEO’s comments on existing vaccines’ effectiveness against the omicron variant is “old news so should be a fade,” says Prashant Newnaha, a senior Asia-Pacific rates strategist at TD Securities in Singapore. Indeed as Bloomberg notes, Bancel reiterated comments made by Moderna’s Chief Medical Officer Paul Burton during the weekend. Alas, the last thing algos care about is nuance and/or reading between the lines, and so moments after Bancel's interview hit, markets hit risk off mode on Tuesday, and yesterday’s bounce in markets immediately reversed amid fresh worries about the efficacy of currently available vaccines with U.S. equity futures dropping along with stocks in Europe. Bonds gained as investors sought havens. After dropping as much as 1.2%, S&P futures pared losses to -0.7%, down 37 points just above 4,600. Dow Eminis were down 339 points or 1% and Nasdaq was down -0.8%. Adding to concerns is Fed Chair Jerome Powell who today will speak, alongside Janet Yellen, at the Senate Banking Committee in congressional oversight hearings related to pandemic stimulus. Last night Powell made a dovish pivot saying the new variant poses downside risks to employment and growth while adding to uncertainty about inflation. Powell's comments dragged yields lower and hit bank stocks overnight. “The market’s reaction to reports such as Moderna’s suggest the ball is still very much in the court of proving that this will not escalate,” said Patrick Bennett, head of macro strategy for Asia at Canadian Imperial Bank of Commerce in Hong Kong. “Until that time, mode is to sell recoveries in risk and not to try and pick the extent of the selloff” U.S. airline and cruiseliner stocks dropped in premarket trading Tuesday, after vaccine maker Moderna’s top executives reiterated that the omicron variant of the coronavirus may require new vaccines. Most U.S. airline stocks were down: Alaska Air -5%, United -3.2%, American -3%, Spirit -2.7%, Delta -2.6%, JetBlue -2.6%, Southwest -1.7%. Here are some other notable movers today: U.S. banks decline in premarket trading following comments from Federal Reserve Chair Jerome Powell that may push back bets on when the central bank will raise rates. Citigroup (C US) -2.4%, JPMorgan (JPM US) -2.2%, Morgan Stanley (MS US) -2.6% Vaccine manufacturers mixed in U.S. premarket trading after rallying in recent days and following further comments from Moderna about treating the new omicron Covid-19 variant. Pfizer (PFE US) +1.6%, Novavax  (NVAS US) +1.3%, Moderna (MRNA US) -3.8% U.S. airline and cruiseliner stocks dropped in premarket trading Tuesday, after vaccine maker Moderna’s top executives reiterated that the omicron variant of the coronavirus may require new vaccines. Alaska Air (ALK US) -5%, United (UAL US) -3.2%, American (AAL US) -3% Krystal Biotech (KRYS US) jumped 4.3% in postmarket trading on Monday, extending gains after a 122% jump during the regular session. The company is offering $200m of shares via Goldman Sachs, BofA, Cowen, William Blair, according to a postmarket statement MEI Pharma (MEIP US) gained 8% postmarket after the cancer-treatment company said it will hold a webcast Tuesday to report on data from the ongoing Phase 2 Tidal study evaluating zandelisib in patients with relapsed or refractory follicular lymphoma Intuit (INTU US) declined 3.4% postmarket after holder Dan Kurzius, co-founder of Mailchimp, offered the stake via Goldman Sachs In Europe, the Stoxx 600 index fell to almost a seven-week low. Cyclical sectors including retail, travel and carmakers were among the biggest decliners, while energy stocks tumbled as crude oil headed for the worst monthly loss this year; every industry sector fell led by travel stocks. Earlier in the session, the Asia Pacific Index dropped 0.6% while the Hang Seng China Enterprises Index lost 1.5% to finish at its weakest level since May 2016. Asian stocks erased early gains to head for a third day of losses on fresh concerns that existing Covid-19 vaccines will be less effective at tackling the omicron variant. The MSCI Asia Pacific Index extended its fall to nearly 1% after having risen as much as 0.8% earlier on Tuesday. The current crop of vaccines may need to be modified next year, Moderna Chief Executive Officer Stephane Bancel said in an interview with the Financial Times, adding that it may take months before pharmaceutical firms can manufacture new variant-specific jabs at scale. U.S. futures also reversed gains. Property and consumer staples were the worst-performing sectors on the regional benchmark. Key gauges in Hong Kong and South Korea were the biggest losers in Asia, with the Kospi index erasing all of its gains for this year. The Hang Seng China Enterprises Index lost 1.5% to finish at its weakest level since May 2016. The fresh bout of selling offset early optimism spurred by data showing China’s factory sentiment improved in November. “With the slower vaccination rate and more limited health-care capacity in the region, uncertainty from the new omicron variant may seem to bring about higher economic risks for the region at a time where it is shifting towards further reopening,” said Jun Rong Yeap, a market strategist at IG Asia Pte. Asia’s stock benchmark is now down 3.5% for the month, set for its worst performance since July, as nervousness remains over the U.S. Federal Reserve’s tapering schedule and the potential economic impact of the omicron variant. “Moderna is one of the primary mRNA vaccines out there, so the risk-off sentiment is justified,” said Kelvin Wong, an analyst at CMC Markets (Singapore) Pte. Liquidity is thinner going into the end of the year, so investors are “thinking it’s wise to take some money off the table,” he added Japanese equities fell, reversing an earlier gain to cap their third-straight daily loss, after a report cast doubt on hopes for a quick answer to the omicron variant of the coronavirus. Telecoms and electronics makers were the biggest drags on the Topix, which dropped 1%, erasing an earlier gain of as much as 1.5%. Fast Retailing and SoftBank Group were the largest contributors to a 1.6% loss in the Nikkei 225. The yen strengthened about 0.4% against the dollar, reversing an earlier loss. Japanese stocks advanced earlier in the day, following U.S. peers higher as a relative sense of calm returned to global markets. Tokyo share gains reversed quickly in late afternoon trading after a Financial Times report that Moderna’s Chief Executive Officer Stephane Bancel said a new vaccine may be needed to fight omicron. “The report of Moderna CEO’s remarks has bolstered an overall movement toward taking off risk,” said SMBC Trust Bank analyst Masahiro Yamaguchi. “Market participants will probably be analyzing information on vaccines and the new virus variant for the next couple of weeks, so shares will likely continue to fluctuate on these headlines.” In FX, the dollar dropped alongside commodity-linked currencies while the yen and gold climbed and bitcoin surged as safe havens were bid. The yen swung to a gain after Moderna Inc.’s chief executive Stephane Bancel was quoted by the Financial Times saying existing vaccines may not be effective enough to tackle the omicron variant. Commodity-linked currencies including the Aussie, kiwi and Norwegian krone all declined, underperforming the dollar In rates, treasuries held gains after flight-to-quality rally extended during Asia session and European morning, when bunds and gilts also benefited from haven flows. Stocks fell after Moderna CEO predicted waning vaccine efficacy. Intermediates lead gains, with yields richer by nearly 6bp across 7-year sector; 10-year Treasuries are richer by 5.6bp at 1.443%, vs 2.5bp for German 10-year, 4.7bp for U.K. Long-end may draw support from potential for month-end buying; Bloomberg Treasury index rebalancing was projected to extend duration by 0.11yr as of Nov. 22. Expectations of month-end flows may support the market, and Fed Chair Powell is slated to testify to a Senate panel.       In commodities, crude futures are off their late-Asia lows but remain in the red. WTI trades close to $68.30, stalling near Friday’s lows; Brent is off over 2.5% near $71.50. Spot gold rises ~$11 near $1,796/oz. Base metals are mixed: LME zinc outperforms, rising as much as 1.6%.  To the day ahead now, and the main central bank highlight will be Fed Chair Powell’s appearance before the Senate Banking Committee, alongside Treasury Secretary Yellen. In addition, we’ll hear from Fed Vice Chair Clarida, the Fed’s Williams, the ECB’s Villeroy and de Cos, and the BoE’s Mann. On the data side, we’ll get the flash November CPI reading for the Euro Area today, as well as the readings from France and Italy. In addition, there’s data on German unemployment for November, Canadian GDP for Q3, whilst in the US there’s the Conference Board’s consumer confidence measure for November, the FHFA house price index for September, and the MNI Chicago PMI for November. Market Snapshot S&P 500 futures down 1.2% to 4,595.00 STOXX Europe 600 down 1.4% to 460.47 MXAP down 0.5% to 190.51 MXAPJ down 0.6% to 620.60 Nikkei down 1.6% to 27,821.76 Topix down 1.0% to 1,928.35 Hang Seng Index down 1.6% to 23,475.26 Shanghai Composite little changed at 3,563.89 Sensex down 0.2% to 57,122.74 Australia S&P/ASX 200 up 0.2% to 7,255.97 Kospi down 2.4% to 2,839.01 German 10Y yield little changed at -0.36% Euro up 0.6% to $1.1362 Brent Futures down 3.0% to $71.26/bbl Brent Futures down 3.0% to $71.26/bbl Gold spot up 0.7% to $1,796.41 U.S. Dollar Index down 0.65% to 95.72 Top Overnight News from Bloomberg Euro-area inflation surged to a record for the era of the single currency and exceeded all forecasts, adding to the European Central Bank’s challenge before a crucial meeting next month on the future of monetary stimulus. If the drop in government bond yields on Friday signaled how skittish markets were, fresh declines are leaving them looking no less nervous. One of Germany’s most prominent economists is urging the European Central Bank to be more transparent in outlining its exit from unprecedented monetary stimulus and argues that ruling out an end to negative interest rates next year may be a mistake. The Hong Kong dollar fell into the weak half of its trading band for the first time since December 2019 as the emergence of a new coronavirus variant hurt appetite for risk assets. A more detailed look at global markets courtesy of Newsquawk Asian equities traded mixed with early momentum seen following the rebound on Wall Street where risk assets recovered from Friday’s heavy selling pressure as liquidity conditions normalized post-Thanksgiving and after some of the Omicron fears abated given the mild nature in cases so far, while participants also digested a slew of data releases including better than expected Chinese Manufacturing PMI. However, markets were later spooked following comments from Moderna's CEO that existing vaccines will be much less effective against the Omicron variant. ASX 200 (+0.2%) was underpinned by early strength across its sectors aside from utilities and with gold miners also hampered by the recent lacklustre mood in the precious metal which failed to reclaim the USD 1800/oz level but remained in proximity for another attempt. In addition, disappointing Building Approvals and inline Net Exports Contribution data had little impact on sentiment ahead of tomorrow’s Q3 GDP release, although the index then faded most its gains after the comments from Moderna's CEO, while Nikkei 225 (-1.6%) was initially lifted by the recent rebound in USD/JPY but then slumped amid the broad risk aversion late in the session. Hang Seng (-1.6%) and Shanghai Comp. (Unch) were varied in which the mainland was kept afloat for most the session after a surprise expansion in Chinese Manufacturing PMI and a mild liquidity injection by the PBoC, with a central bank-backed publication also suggesting that recent open market operations demonstrates an ample liquidity goal, although Hong Kong underperformed on tech and property losses and with casino names pressured again as shares in junket operator Suncity slumped 37% on reopen from a trading halt in its first opportunity to react to the arrest of its Chairman. Finally, 10yr JGBs were initially contained following early momentum in stocks and somewhat inconclusive 2yr JGB auction which showed better results from the prior, albeit at just a marginal improvement, but then was underpinned on a haven bid after fears of the Omicron variant later resurfaced. Top Asian News China’s Biggest Crypto Exchange Picks Singapore as Asia Base SoftBank-Backed Snapdeal Targets $250 Million IPO in 2022 Omicron Reaches Nations From U.K. to Japan in Widening Spread Slump in China Gas Shows Spreading Impact of Property Slowdown Major European bourses are on the backfoot (Euro Stoxx 50 -1.5%; Stoxx 600 -1.5%) as COVID fears again take the spotlight on month-end. APAC markets were firmer for a large part of the overnight session, but thereafter the risk-off trigger was attributed to comments from Moderna's CEO suggesting that existing vaccines will be much less effective against the Omicron COVID strain. On this, some caveats worth keeping in mind - the commentary on the potential need for a vaccine does come from a vaccine maker, who could benefit from further global inoculation, whilst data on the new variant remains sparse. Meanwhile, WSJ reported Regeneron's and Eli Lilly's COVID antiviral cocktails had lost efficacy vs the Omicron variant - however, the extent to which will need to be subject to further testing. Furthermore, producers appear to be confident that they will be able to adjust their products to accommodate the new variant, albeit the timeline for mass production will not be immediate. Nonetheless, the sullied sentiment has persisted throughout the European morning and has also seeped into US equity futures: the cyclically bias RTY (-1.7%) lags the ES (-1.0%) and YM (-1.3%), whilst the tech-laden NQ (-0.5%) is cushioned by the slump in yields. Back to Europe, broad-based losses are seen across the majors. Sectors tilt defensive but to a lesser extent than seen at the European cash open. Travel & Leisure, Oil & Gas, and Retail all sit at the bottom of the bunch amid the potential implications of the new COVID variant. Tech benefits from the yield play, which subsequently weighs on the Banking sector. The retail sector is also weighed on by Spanish giant Inditex (-4.3%) following a CEO reshuffle. In terms of other movers, Glencore (-0.9%) is softer after Activist investor Bluebell Capital Partners called on the Co. to spin off its coal business and divest non-core assets. In a letter seen by the FT, Glencore was also asked to improve corporate governance. In terms of equity commentary, analysts at JPM suggest investors should take a more nuanced view on reopening as the bank expects post-COVID normalisation to gradually asset itself over the course of 2022. The bank highlights hawkish central bank policy shifts as the main risk to their outlook. Thus, the analysts see European equities outperforming the US, whilst China is seen outpacing EMs. JPM targets S&P 500 at 5,050 (closed at 4,655.27 yesterday) by the end of 2022 with EPS at USD 240 – marking a 14% increase in annual EPS. Top European News Omicron Reaches Nations From U.K. to Japan in Widening Spread ECB Bosses Lack Full Diplomatic Immunity, EU’s Top Court Says Adler Keeps Investors Waiting for Answers on Fraud Claims European Gas Prices Surge Above 100 Euros With Eyes on Russia In FX, the Greenback may well have been grounded amidst rebalancing flows on the final trading day of November, as bank models are flagging a net sell signal, albeit relatively weak aside from vs the Yen per Cit’s index, but renewed Omicron concerns stoked by Moderna’s CEO casting considerable doubt about the efficacy of current vaccines against the new SA strain have pushed the Buck back down in any case. Indeed, the index has now retreated further from its 2021 apex set less than a week ago and through 96.000 to 95.662, with only the Loonie and Swedish Krona underperforming within the basket, and the Antipodean Dollars plus Norwegian Crown in wider G10 circles. Looking at individual pairings, Usd/Jpy has reversed from the high 113.00 area and breached a Fib just below the round number on the way down to circa 112.68 for a marginal new m-t-d low, while Eur/Usd is back above 1.1350 having scaled a Fib at 1.1290 and both have left decent option expiries some distance behind in the process (1.6 bn at 113.80 and 1.3 bn between 1.1250-55 respectively). Elsewhere, Usd/Chf is eyeing 0.9175 irrespective of a slightly weaker than forecast Swiss KoF indicator and Cable has bounced firmly from the low 1.3300 zone towards 1.3375 awaiting commentary from BoE’s Mann. NZD/AUD/CAD - As noted above, the tables have turned for the Kiwi, Aussie and Loonie along with risk sentiment in general, and Nzd/Usd is now pivoting 0.6800 with little help from a deterioration in NBNZ business confidence or a decline in the activity outlook. Similarly, Aud/Usd has been undermined by much weaker than forecast building approvals and a smaller than anticipated current account surplus, but mostly keeping hold of the 0.7100 handle ahead of Q3 GDP and Usd/Cad has shot up from around 1.2730 to top 1.2800 at one stage in advance of Canadian growth data for the prior quarter and month of September as oil recoils (WTI to an even deeper trough only cents off Usd 67/brl). Back down under, 1 bn option expiry interest at 1.0470 in Aud/Nzd could well come into play given that the cross is currently hovering near the base of a 1.0483-39 range. SCANDI/EM - The aforementioned downturn in risk appetite after Monday’s brief revival has hit the Sek and Nok hard, but the latter is also bearing the brunt of Brent’s latest collapse to the brink of Usd 70/brl at worst, while also taking on board that the Norges Bank plans to refrain from foreign currency selling through December having stopped midway through this month. The Rub is also feeling the adverse effect of weaker crude prices and ongoing geopolitical angst to the extent that hawkish CBR rhetoric alluding to aggressive tightening next month is hardly keeping it propped, but the Cnh and Cny continue to defy the odds or gravity in wake of a surprise pop back above 50.0 in China’s official manufacturing PMI. Conversely, the Zar is struggling to contain losses sub-16.0000 vs the Usd on SA virus-related factors even though Gold is approaching Usd 1800/oz again, while the Try is striving to stay within sight of 13.0000 following a slender miss in Turkish Q3 y/y GDP. In commodities, WTI and Brent front month futures are once again under pressure amid the aforementioned COVID jitters threatening the demand side of the equation, albeit the market remains in a state of uncertainty given how little is known about the new variant ahead of the OPEC+ confab. It is still unclear at this point in time which route OPEC+ members will opt for, but seemingly the feasible options on the table are 1) a pause in output hikes, 2) a smaller output hike, 3) maintaining current output hikes. Energy journalists have suggested the group will likely be influenced by oil price action, but nonetheless, the findings of the JTC and JMMC will be closely watched for the group's updated forecasts against the backdrop of COVID and the recently coordinated SPR releases from net oil consumers – a move which the US pledged to repeat if needed. Elsewhere, Iranian nuclear talks were reportedly somewhat constructive – according to the Russian delegate – with working groups set to meet today and tomorrow regarding the sanctions on Iran. This sentiment, however, was not reciprocated by Western sources (cited by WSJ), which suggested there was no clarity yet on whether the teams were ready for serious negotiations and serious concessions. WTI Jan resides around session lows near USD 67.50/bbl (vs high USD 71.22/bbl), while Brent Feb dipped under USD 71/bbl (vs high USD 84.56/bb). Over to metals, spot gold remains underpinned in European trade by the cluster of DMA's under USD 1,800/oz – including the 100 (USD 1,792/oz), 200 (USD 1,791/oz) and 50 (1,790/oz). Turning to base metals, LME copper is modestly softer around the USD 9,500/t mark, whilst Dalian iron ore futures meanwhile rose over 6% overnight, with traders citing increasing Chinese demand. US Event Calendar 9am: 3Q House Price Purchase Index QoQ, prior 4.9% 9am: Sept. FHFA House Price Index MoM, est. 1.2%, prior 1.0% 9am: Sept. Case Shiller Composite-20 YoY, est. 19.30%, prior 19.66%; S&P/CS 20 City MoM SA, est. 1.20%, prior 1.17% 9:45am: Nov. MNI Chicago PMI, est. 67.0, prior 68.4 10am: Nov. Conf. Board Consumer Confidenc, est. 111.0, prior 113.8 10am: Nov. Conf. Board Present Situation, prior 147.4 10am: Nov. Conf. Board Expectations, prior 91.3 Central Banks 10am: Powell, Yellen Testify Before Senate Panel on CARES Act Relief 10:30am: Fed’s Williams gives remarks at NY Fed food- insecurity event 1pm: Fed’s Clarida Discusses Fed Independence DB's Jim Reid concludes the overnight wrap Just as we go to print markets are reacting negatively to an interview with the Moderna CEO in the FT that has just landed where he said that with regards to Omicron, “There is no world, I think, where (the effectiveness) is the same level... we had with Delta…… I think it’s going to be a material drop (efficacy). I just don’t know how much because we need to wait for the data. But all the scientists I’ve talked to . . . are like ‘this is not going to be good’.”” This is not really new news relative to the last 3-4 days given what we know about the new mutation but the market is picking up on the explicit comments. In response S&P futures have gone from slightly up to down just over -0.5% and Treasury yields immediately dipped -4bps to 1.46%. The Nikkei has erased gains and is down around -1% and the Hang Seng is c.-1.8%. This is breaking news so check your screens after you read this. In China the official November PMI data came in stronger than expected with the Manufacturing PMI at 50.1 (49.7 consensus vs 49.2 previous) and the non-manufacturing PMI at 52.3 (51.5 consensus vs 52.4 previous). The negative headlines above as we go to print followed a market recovery yesterday as investors hoped that the Omicron variant wouldn’t prove as bad as initially feared. In reality, the evidence is still incredibly limited on this question, and nothing from the Moderna CEO overnight changes that. However the more positive sentiment was also evident from the results of our flash poll in yesterday’s EMR where we had 1569 responses so very many thanks. The poll showed that just 10% thought it would still be the biggest topic in financial markets by the end of the year, with 30% instead thinking it’ll largely be forgotten about. The other 60% thought it would still be an issue but only of moderate importance. So if that’s correct and our respondents are a fair reflection of broader market sentiment, then it points to some big downside risks ahead if we get notable bad news on the variant. For the record I would have been with the majority with tendencies towards the largely forgotten about answer. So I will be as off-side as much as most of you on the variant downside risk scenario. When I did a similar poll on Evergrande 2 and a half months ago, only 8% thought it would be significantly impacting markets a month later with 78% in aggregate thinking limited mention/impact, and 15% thinking it would have no impact. So broadly similar responses and back then the 15% were most correct although the next 78% weren’t far off. In terms of the latest developments yesterday, we’re still waiting to find out some of the key pieces of information about this new strain, including how effective vaccines still are, and about the extent of any increased risk of transmission, hospitalisation and death. Nevertheless, countries around the world are continuing to ramp up their own responses as they await this information. President Biden laid out the US strategy for tackling Omicron in a public address yesterday, underscoring the variant was a cause for concern rather than panic. He noted travel bans from certain jurisdictions would remain in place to buy authorities time to evaluate the variant, but did not anticipate that further travel bans or domestic lockdowns would be implemented, instead urging citizens to get vaccinated or a booster shot. Over in Europe, Bloomberg reported that EU leaders were discussing whether to have a virtual summit on Friday about the issue, and Poland moved to toughen up their own domestic restrictions, with a 50% capacity limit on restaurants, hotels, gyms and cinemas. In Germany, Chancellor Merkel and Vice Chancellor Scholz will be meeting with state premiers today, whilst the UK government’s vaccination committee recommended that every adult be eligible for a booster shot, rather than just the over-40s at present. Boosters have done a tremendous job in dramatically reducing cases in the elder cohort in the UK in recent weeks so one by product of Omicron is that it may accelerate protection in a wider age group everywhere. Assuming vaccines have some impact on Omicron this could be a positive development, especially if symptoms are less bad. Markets recovered somewhat yesterday, with the S&P 500 gaining +1.32% to recover a large portion of Friday’s loss. The index was driven by mega-cap tech names, with the Nasdaq up +1.88% and small cap stocks underperforming, with the Russell 2000 down -0.18%, so the market wasn’t completely pricing out omicron risks by any means. Nevertheless, Covid-specific names performed how you would expect given the improved sentiment; stay-at-home trades that outperformed Friday fell, including Zoom (-0.56%), Peloton (-4.35%), and HelloFresh (-0.8%), while Moderna (+11.80%) was the biggest winner following the weekend news that a reformulated vaccine could be available in early 2022. Elsewhere, Twitter (-2.74%) initially gained after it was announced CEO and co-founder Jack Dorsey would be stepping down, but trended lower throughout the rest of the day. The broader moves put the index back in positive territory for the month as we hit November’s last trading day today. Europe saw its own bounceback too, with the STOXX 600 up +0.69%. Over in rates, the partial unwind of Friday’s moves was even smaller, with yields on 10yr Treasuries moving up +2.6bps to 1.50%, driven predominantly by real rates, as inflation breakevens were a touch narrower across the curve. One part of the curve that didn’t retrace Friday’s move was the short end, where markets continued to push Fed rate hikes back ever so slightly, with the first full hike now being priced for September (though contracts as early as May still price some meaningful probability of Fed hikes). We may see some further movements today as well, with Fed Chair Powell set to appear before the Senate Banking Committee at 15:00 London time, where he may well be asked about whether the Fed plans to accelerate the tapering of their asset purchases although it’s hard to believe he’ll go too far with any guidance with the Omicron uncertainty. The Chair’s brief planned testimony was published on the Fed’s website last night. It struck a slightly more hawkish tone on inflation, noting that the Fed’s forecast was for elevated inflation to persist well into next year and recognition that high inflation imposes burdens on those least able to handle them. On omicron, the testimony predictably stated it posed risks that could slow the economy’s progress, but tellingly on the inflation front, it could intensify supply chain disruptions. The real fireworks will almost certainly come in the question and answer portion of the testimony. The bond moves were more muted in Europe though, with yields on 10yr bunds (+2.0bps), OATs (+1.0bps) and BTPs (+0.4bps) only seeing a modest increase. Crude oil prices also didn’t bounce back with as much rigor as equities. Brent gained +0.99% while WTI futures increased +2.64%. They are back down -1 to -1.5% this morning. Elsewhere in DC, Senator Joe Manchin noted that Democrats could raise the debt ceiling on their own through the reconciliation process, but indicated a preference for the increase not to be included in the build back better bill, for which his support still seems lukewarm. We’re approaching crucial deadlines on the debt ceiling and financing the federal government, so these headlines should become more commonplace over the coming days. There were some further developments on the inflation front yesterday as Germany reported that inflation had risen to +6.0% in November (vs. +5.5% expected) on the EU-harmonised measure, and up from +4.6% in October. The German national measure also rose to +5.2% (vs. +5.0% expected), which was the highest since 1992. Speaking of Germany, Bloomberg reported that the shortlist for the Bundesbank presidency had been narrowed down to 4 candidates, which included Isabel Schnabel of the ECB’s Executive Board, and Joachim Nagel, who’s currently the Deputy Head of the Banking Department at the Bank for International Settlements. Today we’ll likely get some further headlines on inflation as the flash estimate for the entire Euro Area comes out, as well as the numbers for France and Italy. There wasn’t much in the way of other data yesterday, though UK mortgage approvals fell to 67.2k in October (vs. 70.0k expected), which is their lowest level since June 2020. Separately, US pending home sales were up +7.5% in October (vs. +1.0% expected), whilst the Dallas Fed’s manufacturing activity index for November unexpectedly fell to 11.8 (vs. 15.0 expected). Finally, the European Commission’s economic sentiment indicator for the Euro Area dipped to 117.5 in November as expected, its weakest level in 6 months. To the day ahead now, and the main central bank highlight will be Fed Chair Powell’s appearance before the Senate Banking Committee, alongside Treasury Secretary Yellen. In addition, we’ll hear from Fed Vice Chair Clarida, the Fed’s Williams, the ECB’s Villeroy and de Cos, and the BoE’s Mann. On the data side, we’ll get the flash November CPI reading for the Euro Area today, as well as the readings from France and Italy. In addition, there’s data on German unemployment for November, Canadian GDP for Q3, whilst in the US there’s the Conference Board’s consumer confidence measure for November, the FHFA house price index for September, and the MNI Chicago PMI for November. Tyler Durden Tue, 11/30/2021 - 07:50.....»»

Category: blogSource: zerohedgeNov 30th, 2021

Delta Air Lines (DAL) Stock Sinks As Market Gains: What You Should Know

Delta Air Lines (DAL) closed at $36.24 in the latest trading session, marking a -0.38% move from the prior day. Delta Air Lines (DAL) closed at $36.24 in the latest trading session, marking a -0.38% move from the prior day. This change lagged the S&P 500's daily gain of 1.32%. Elsewhere, the Dow gained 0.68%, while the tech-heavy Nasdaq lost 0.15%.Heading into today, shares of the airline had lost 7.03% over the past month, lagging the Transportation sector's loss of 2.97% and the S&P 500's gain of 3.61% in that time.Delta Air Lines will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of -$0.18, up 92.89% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.79 billion, up 121.25% from the year-ago period.DAL's full-year Zacks Consensus Estimates are calling for earnings of -$4.62 per share and revenue of $28.99 billion. These results would represent year-over-year changes of +57.06% and +69.6%, respectively.Investors might also notice recent changes to analyst estimates for Delta Air Lines. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Delta Air Lines is currently a Zacks Rank #4 (Sell).The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 230, putting it in the bottom 10% of all 250+ industries.The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.To follow DAL in the coming trading sessions, be sure to utilize Zacks.com. Investor Alert: Legal Marijuana Looking for big gains? Now is the time to get in on a young industry primed to skyrocket from $13.5 billion in 2021 to an expected $70.6 billion by 2028. After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could kick start an even greater bonanza for investors. Zacks Investment Research has recently closed pot stocks that have shot up as high as +147.0% You’re invited to immediately check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.Today, Download Marijuana Moneymakers FREE >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksNov 29th, 2021

Futures, Oil, Cryptos Soar As Omicron Panic Fades

Futures, Oil, Cryptos Soar As Omicron Panic Fades It appears that Goldman was right again. As we reported yesterday, the bank's traders (not the worthless research analysts whose output is evaluated by the pound not P&L) blasted a report to their best clients, claiming that "we can have reasonable degree of confidence that this mutation is unlikely to be more malicious and that the existing vaccines will most likely continue to be effective in preventing hospitalizations and deaths. As such, while we would monitor the situation in Gauteng closely over the next month, we do not think that the new variant is sufficient reason to make major portfolio changes." That position was bolstered overnight by two of South Africa's top doctors (not worthless propaganda quacks like Anthony Fauci) including the one who first discovered the so-called "Omicron", said that the latest strain was "Extremely mild" and speculated that the numerous mutations in the spike protein "destabilize" the virus. And at least in early Sunday night trading, after suffering their worst post-Thanksgiving plunge since 1941, futures are euphorically ramping higher, unwinding a substantial portion of the Friday puke, with Eminis trading as high as 4630 after trading as low as 4577 on Friday... ... oil surging, with WTI spiking as much as 5.7% even if it clearly still has a ways to go recover its Friday losses when WTI plunged $10 as international travel restrictions were reimposed by many countries and airline stocks plummeted. And yet, as Goldman explained on Friday, even with a worst Omicron case scenario, Brent below $80 is a steal here: Meanwhile, in FX we are seeing safe havens such as the Yen and Swiss Franc slide more than 0.2%, with epicenter pairs like the ZAR surging. Peter Tchir, head of macro at Academy Securities Inc., said he’s watching emerging-market currency and bond markets, and Bitcoin, “as leading indicators of potentially more risky asset unwinds to come.” Well, in that case Peter should be happy because in in crypto both bitcoin... ... and ethereum... ... are storming higher, maybe because they are finally realizing that they live in the best of all worlds, one where new Omicron lockdowns would lead to much more money printing (bullish for cryptos which are a hedge to central bank idiocy) while the quick elimination of negative Omicron consequences would just lead to more inflation (also bullish for cryptos which have emerged as inflation hedges). Still, confusion remained. “We really need some more answers to figure out the impact on growth,” said Priya Misra, global head of rates strategy at TD Securities. “Risk assets are pricing in uncertainty.” Naturally, Moderna’s chief medical officer - sniffing out an opportunity to buy an even bigger yacht - said a reformulated shot to combat the new strain could be available early in the new year. In other words, everything that has been done so far has been for nothing, because science, and because let's do more of what hasn't worked to fight what is coming. Tyler Durden Sun, 11/28/2021 - 18:51.....»»

Category: dealsSource: nytNov 28th, 2021

The stock market"s fear gauge is soaring and it could signal investors are in for a "difficult 2022" if it closes above this key level

"The pullback comes at a time when many market players are out of the office, contributing to low volume and high volatility," Katie Stockton said. Traders work on the floor of the New York Stock Exchange (NYSE) on March 18, 202Spencer Platt/Getty ImagesConcerns of a new COVID-19 variant sent Wall Street's fear gauge soaring as much as 51% on Friday.The volatility surge could signal an end to the low volatility regime of 2021, according to Fairlead Strategies.This is the level the VIX needs to close above to signal a "difficult 2022" for the stock market.US stocks plunged on Friday, with Wall Street's fear gauge soaring as concerns of a highly mutated variant of COVID-19 spread across markets.The Cboe Volatility index, known as the VIX, helps measure the level of fear among investors. It jumped as much as 51% on Friday to a high of 28.02, alongside an 800-point plunge in the Dow Jones Industrial Average.Fairlead Strategies' Katie Stockton believes the surge in volatility on Friday could signal an end to the low-volatility regime in 2021 that delivered more than 20% gains for the broader market, and the start of a "more difficult tape in 2022," according to a Friday note.That's if the VIX closes above the key 25 level both today and next Friday, as the move higher would be confirmed on a consecutive weekly basis. That level represents a key risk threshold and "would suggest that the market has entered a high-volatility regime after having been in a low-volatility regime for most of 2021," Stockton explained.Friday's move catapulted the VIX well above the 20 level, which is a key threshold monitored by quantitative and systematic investment funds that tend to add more equity leverage when the index falls below 20. That leverage is likely being pulled back on Friday as the risk-off trade hits everything from airline stocks to the energy sector.On the flip side, stay-at-home stocks popular with growth investors like Ark Invest's Cathie Wood surged on Friday, led by names like Zoom Video, Peloton, and Teladoc.Despite the sharp move in stocks on Friday, Stockton wouldn't be quick to react during the shortened post-Thanksgiving trading day, with markets closing at 1 p.m."The pullback comes at a time when many market players are out of the office, contributing to low volume and high volatility. Momentum has weakened enough to give us pause, but we would not be reactive today, rather awaiting a return to normal volumes next week," Stockton said. The VIX pared its earlier gains and traded around 25.44 Friday morning.Markets InsiderRead the original article on Business Insider.....»»

Category: topSource: businessinsiderNov 26th, 2021

Black Friday Turns Red On "Terrible News" - Global Markets Crater On "Nu Variant" Panic

Black Friday Turns Red On "Terrible News" - Global Markets Crater On "Nu Variant" Panic The Friday after thanksgiving is called black Friday because that's when retailers finally turn profitable for the year. Not so much for market, however, because this morning it's red as far as the eye can see. The culprit: the same one we discussed late last night - the emergence of a new coronavirus strain detected in South Africa, known as B.1.1.529, which reportedly carries an "extremely high number" of mutations and is “clearly very different” from previous incarnations, which may drive further waves of disease by evading the body’s defenses according to South African scientists, and soon, Anthony Fauci. British authorities think it is the most significant variant to date and have hurried to impose travel restrictions on southern Africa, as did Japan, the Czech Republic and Italy on Friday. The European Union also said it aimed to halt air travel from the region. "Markets have been quite complacent about the pandemic for a while, partly because economies have been able to withstand the impact of selective lockdown measures. But we can see from the new emergency brakes on air travel that there will be ramifications for the price of oil," said Chris Scicluna, head of economic research at Daiwa. As a result, what was initially just a 1% drop in US index futures, has since escalated to a plunge of as much as 2% with eminis dropping the most since September, at one point dropping below 4,600 after closing on Wednesday above 4,700 as a post-Thanksgiving selloff spread across global markets amid mounting concerns the new B.1.1.529 coronavirus variant - which today will be officially called by the Greek lettter Nu - could derail the global economic recovery.  Russell 2000 contracts sank as much as 5.4%. Technology shares may be caught in the net too as Nasdaq 100 futures slid. The VIX increased as much as 9.4 vols to 28, it's biggest jump since January. It was last seen up 7.4 points, or the biggest increase since February. Adding to the pain, there is nothing on today's macro calendar and the US market closes early which will reduce already dismal liquidity even more, exacerbating some of the moves throughout the session. Headlines are likely to center on various nations preventing travel from South Africa whilst potentially imposing more stringent COVID measures domestically, as well as which countries "find" the Nu variant. Amid the panicked flight to safety, 10Y TSY yields tumbled as traders slashed bets on monetary tightening by the Federal Reserve (just hours after Goldman predicted that the Fed would double the pace of its taper and hike 3 times in 2022, oops) ... ... as did oil amid fears new covid lockdowns will lead to a collapse in crude demand (they will also certainly force OPEC+ to put on pause their plans to keep hiking output by 400K every month). Paradoxically, even cryptos are tumbling, which is surprising since even the dumbest algos should realize by now that a new covid outbreak means more dovish central banks, no tightening, and if nothing else, more QE and more liquidity which is precisely what cryptos need to break out to new all time highs. Cruise ship operator Carnival slumped 9.1% in premarket trading and Boeing slid 5.8% as travel companies tumbled worldwide. Stay-at-home stocks such as Zoom Video rallied.  Didi Global shares fell after Chinese regulators reportedly asked the ride-hailing giant to delist from U.S. bourses. Here are some of the other big premarket movers: Airlines and other travel stocks slumped in premarket trading on growing concern about a new Covid-19 variant identified in southern Africa. The European Union is proposing to halt air travel from several countries in the area and the U.K. will temporarily ban flights from the region. United Airlines (UAL US) fell 8.9%, Delta Air (DAL US) -7.9%, American Airlines (AAL US) -6.7%; cruiseline-operator Carnival (CCL US) -12%; hotelier Marriott (MAR US) -6.1%; lodging company Airbnb (ABNB US) -6.9%. Stay-at-home stocks that benefit from higher demand in lockdowns rose in premarket, with Zoom Video (ZM US) gaining 8.5% and fitness equipment group Peloton (PTON US) +4.7%. Vaccine stocks surged in premarket, while Pfizer and BioNTech got an added boost after their coronavirus shot won European Union backing for expanded use in children. Moderna (MRNA US) rose 8.8%, Novavax (NVAX US) +6.2%, Pfizer (PFE US) +5.1%, BioNTech (BNTX US) +6.4%. Small biotech stocks gained in premarket as investors sought havens. Ocugen (OCGN US) added 22%, Vir Biotechnology (VIR US) +7.8%, Sorrento Therapeutics (SRNE US) +5%. Cryptocurrency-exposed stocks fell as Bitcoin dropped as investors dumped risk assets. Marathon Digital (MARA US) declined 9%, Riot Blockchain (RIOT US) -8.8%, Coinbase (COIN US) -4.6%. Didi Global (DIDI US) declined 6% in premarket after Chinese regulators were said to have asked the ride-hailing giant to delist from U.S. bourses. Selecta Biosciences (SELB US) dropped 13% in Wednesday’s postmarket ahead of Thursday’s Thanksgiving closure, after saying the U.S. FDA placed a clinical hold on a trial. Quotient Technology (QUOT US) gained 3.9% in Wednesday’s postmarket on news that a board member bought $150,000 of shares. What happens next will matter and so, all eyes are on the opening bell for the U.S. markets, set to return from the holiday for a shortened trading session. Tumbling futures and a soaring VIX signaled that the rout in Asia and Europe won’t spare New York equities, while lack of liquidity will only make the pain worse. The Japanese yen emerged as the main haven currency of the day, with the dollar languishing. “Every trader in New York will be rushing to the office now,” said Salm-Salm & Partner portfolio manager Frederik Hildner, adding that news of the new variant could mean the end of the inflation and tapering debate. The worsening pandemic poses a dilemma for central banks that are preparing to tighten monetary policy to curb elevated price pressures, according to Ipek Ozkardeskaya, senior analyst at Swissquote. “It’s terrible news,” Ipek Ozkardeskaya, a senior analyst at Swissquote, said in emailed comments. “The new Covid variant could hit the economic recovery, but this time, the central banks won’t have enough margin to act. They can’t fight inflation and boost growth at the same time. They have to choose.” “We now have a new Covid variant that’s ‘very’ different from the ones we knew so far, a rising inflation, and a market bubble,” she said.  “The only encouraging news is the easing oil prices, which could tame the inflationary pressures and give more time to the central banks before pulling back support.” In the meantime, the World Health Organization and scientists in South Africa were said to be working “at lightning speed” to ascertain how quickly the B.1.1.529 variant can spread and whether it’s resistant to vaccines. The new threat adds to the wall of worry investors are already contending with in the form of elevated inflation, monetary tightening and slowing growth. In Europe, the Stoxx 600 index headed for the biggest drop in 13 months plunging 2.7%; travel and banking industries led the Stoxx Europe 600 Index down as much as 3.7%, the biggest intraday drop since June 2020. Airbus slumped 8.6% in Paris and British Airways owner IAG tumbled 12% in London, while food-delivery stocks gained.  Here are some of the biggest European movers today: Stay-at-home stocks and Covid testing firms such as TeamViewer and DiaSorin are among the biggest gainers as worries over a new Covid variant send the Stoxx 600 tumbling on lockdown fears TeamViewer and DiaSorin rise as much as 6% and 7%, respectively On the down side, travel and leisure stocks plunge, with the likes of IAG, Lufthansa and Carnival posting double- digit falls IAG drops as much as 21% Software AG shares rise as much as 9.5% after Bloomberg reported that the firm is exploring strategic options, including a potential sale, with Morgan Stanley saying the company’s biggest headwinds are behind it. Evolution gains as much as 4.6%, recouping part of Thursday’s 16% plunge, with Bank of America saying the share price’s “crazy time” amounts to a good buying opportunity. Skistar rises as much as 3.7%, bucking steep declines for travel and leisure stocks, after Handelsbanken upgraded the stock, saying bookings for the Scandinavian ski resort operator are “set to surge.” Telecom Italia climbs as much as 2.8% following a Bloomberg report that private equity firms KKR and CVC are considering teaming up on a bid for the company. ING Groep falls as much as 11% after Goldman Sachs analyst Jean-Francois Neuez cut his recommendation to neutral from buy. Getlink drops as much as 6% as French fishermen start protests aimed at stepping up pressure on the U.K. in a post-Brexit fishing dispute. Earlier in the session, MSCI's index of Asian shares outside Japan fell 2.2%, its sharpest drop since August. Casino and beverage shares were hammered in Hong Kong, while travel stocks dropped in Sydney and Tokyo. Japan's Nikkei skidded 2.5% and S&P 500 futures were last down 1.8%. Giles Coghlan, chief currency analyst at HYCM, a brokerage, said the closure of the U.S. market for the Thanksgiving holiday on Thursday had exacerbated moves. "We need to see how transmissible this variant is, is it able to evade the vaccines - this is crucial," Coghlan said. "I expect this story to drag on for a few days until scientists have a better understanding of it." Indian stocks plunged as the detection of a new coronavirus strain rattled investor sentiment globally, raising concerns over a likely setback to the nascent economic recovery.  The S&P BSE Sensex lost 2.9%, the most since mid-April, to 57,107.15 in Mumbai, taking its loss this week to 4.2%, the biggest weekly drop since January. The NSE Nifty 50 Index declined by a similar magnitude on Friday. Reliance Industries was the biggest drag on both measures and declined 3.2%.  “There is fear of this new variant spreading to other countries which might again derail the global economy,” said Hemang Jani, head of equity strategy at Motilal Oswal Financial Services Ltd.   Of the 30 shares in the Sensex index, 26 fell and 4 gained. All but one of 19 sub-indexes compiled by BSE Ltd. retreated, led by a index of realty companies. The S&P BSE Healthcare index was the only sub-index to gain, surging 1.2%. While researchers are yet to determine whether the new virus variant is more transmissible or lethal than previous ones, authorities around the world have been quick to act. The European Union, U.K., Israel, and Singapore placed emergency curbs on passengers from South Africa and the surrounding region. Travel stocks were among the hardest hit. InterGlobe Aviation Ltd. fell 8.9%, Spicejet Ltd. slipped 6.7% and Indian Hotels Co. Ltd. plunged 11.2%, the most since March 2020.  “Nervousness on the new variant of coronavirus and expectations of the U.S. Fed increasing the pace of tapering have led to recent market weakness,” Amit Gupta, fund manager for portfolio management services at ICICI Securities Ltd. said. “This trend may take some time to recover as the WHO meeting on the new mutant variant impact and hospitalization rates in US and Europe will be watched by the market very closely.” Crude oil to emerging markets completed this picture of mayhem. In rates, fixed income was firmly bid as Treasuries extended their advance led by the belly of the curve, outperforming bunds, while money markets pared rate-hike bets amid fears that a new coronavirus strain may spread globally, slowing economic growth. Cash Treasuries outperformed, richening 12-14bps across the short end, with Thursday’s closure exacerbating the optics. As shown above, 10Y Treasury yields shed as much as 10 basis points while the Japanese yen jumped the most since investors’ March 2020 rush for safety. Yields across the curve are lower by more than 8bp at long end, 13bp-15bp out to the 7-year point, moves that if sustained would be the largest since at least March 2020 and in some cases since 2009. Short-term interest rate futures downgraded the odds of Fed rate increases. Gilts richened 10-11bps across the curve, outperforming bunds by 4-5bps. Peripheral and semi-core spreads widen. In FX, JPY and CHF top the G-10 scoreboard with havens typically bid. In FX, the Bloomberg Dollar Spot Index was little changed after earlier touching a fresh cycle high, and the greenback was mixed versus its Group-of-10 peers as the yen and the Swiss franc led gains while the Canadian dollar and Norwegian krone were the worst performers as commodity prices plunged. Traders pushed back the timing of a 25-basis-point rate increase by the Federal Reserve to July from June, with only one further hike expected for the remainder of 2022. It’s a similar story in the U.K. where the Bank of England is now expected to tighten policy in February instead of next month. Wagers that the ECB will raise its deposit rate by the end of next year have also been slashed, with only a six basis-point increase priced in, half of that seen earlier this week. The European Union is proposing to follow the U.K. in halting air travel from southern Africa after the new Covid-19 variant was identified there. The yen is at the epicenter of skyrocketing currency volatility as the new virus variant shakes markets. The cost of hedging against swings in the Japanese currency over the next week, which captures the release of the next U.S. payrolls report, is the most expensive in more than a year. In commodities, crude futures are hit hard. WTI drops over 7% before finding support near $73, Brent drops over 5% before recovering near $78. Spot gold grinds higher, adding $21 to trade near $1,809/oz. Base metals are sharply offered with much of the complex off as much as 3%. Looking at the otherwise quiet day ahead, data releases include French and Italian consumer confidence for November, as well as the Euro Area M3 money supply for October. Otherwise, central bank speakers include ECB President Lagarde, Vice President de Guindos, and the ECB’s Visco, Schnabel, Centeno, Panetta and Lane, and BoE chief economist Pill. Market Snapshot S&P 500 futures down 1.9% to 4,607.50 STOXX Europe 600 down 2.8% to 468.04 MXAP down 1.8% to 193.33 MXAPJ down 2.2% to 628.97 Nikkei down 2.5% to 28,751.62 Topix down 2.0% to 1,984.98 Hang Seng Index down 2.7% to 24,080.52 Shanghai Composite down 0.6% to 3,564.09 Sensex down 2.7% to 57,234.83 Australia S&P/ASX 200 down 1.7% to 7,279.35 Kospi down 1.5% to 2,936.44 Brent Futures down 5.8% to $77.46/bbl Gold spot up 0.9% to $1,805.13 U.S. Dollar Index down 0.33% to 96.46 German 10Y yield little changed at -0.31% Euro up 0.4% to $1.1259 Top Overnight News from Bloomberg The European Union is proposing to halt air travel from southern Africa over growing concern about a new Covid-19 variant that’s spreading there, as the U.K. said it will also temporarily ban flights from the region Those close to the Kremlin say the Russian president doesn’t want to start another war in Ukraine. Still, he must show he’s ready to fight if necessary in order to stop what he sees as an existential security threat: the creeping expansion of the North Atlantic Treaty Organization in a country that for centuries had been part of Russia Bitcoin tumbled 20% from record highs notched earlier this month as a new variant of the coronavirus spurred traders to dump risk assets across the globe Germany’s Greens tapped their two co- leaders to run the foreign ministry and take charge of an influential portfolio overseeing economy and climate protection in the country’s next government under Social Democrat Olaf Scholz A more detailed breakdown of global markets courtesy of Newsquawk Asian equity markets declined and US equity futures were also on the backfoot on reopen from the prior day’s Thanksgiving lull with markets spooked by new COVID variant concerns related to the B.1.1.529 variant in South Africa that was first detected in Botswana. The new variant showed a high number of mutations and was said to be the most evolved strain ever which spurred fears it could be worse than Delta and is prompting both the UK and Israel to halt flights from several African nations. ASX 200 (-1.7%) was negative with heavy losses in energy and broad underperformance in cyclicals leading the downturn across all sectors, while the much better than expected Australian Retail Sales data was largely ignored. Nikkei 225 (-2.5%) underperformed and gave up the 29k status as selling was exacerbated by detrimental currency inflows and with SoftBank shares among the worst hit on reports that China is said to have asked Didi to delist from US exchanges on security fears, which doesn't bode well for SoftBank given that its Vision Fund is the top shareholder in the Chinese ride hailing group with a stake of more than 20%. Hang Seng (-2.5%) and Shanghai Comp. (-0.7%) conformed to the risk aversion with the mood not helped by ongoing geopolitical concerns after a Chinese Defense Ministry spokesperson noted they are ready to crush Taiwan independence bid "at any time”, while China also said it opposes US sanctions on its companies and will take all necessary measures to firmly defend the rights of Chinese companies. Beijing interference further contributed to the headwinds amid the request by China for Didi to delist from US which reports stated regulators could backtrack on and with Tencent subdued after some Chinese state-run companies restricted the use of Tencent's messaging app. Top Asian News Stocks in Asia Set for Worst Day Since March on Virus Woes Mizuho CEO Steps Down After Regulator Hit on System Issues Meituan 3Q Revenue Meets Estimates Japan’s Kishida Delivers $316 billion Extra Budget for Recovery European equities are trading markedly lower (Stoxx 600 -2.9%) with losses in the Stoxx 600 extending to 3.8% WTD. Sentiment throughout the week has been hampered by various lockdown measures imposed across the region with the latest leg lower accelerated by new COVID variant concerns related to the B.1.1.529 variant in South Africa. The new variant has shown a high number of mutations and is said to be the most evolved strain so far. This has spurred fears it could be worse than Delta and has prompted multiple nations to halt flights from several African nations.The handover from the overnight session was an equally downbeat one with the Nikkei 225 (-2.5%) dealt a hammer blow by the risk environment and unfavourable currency flows. Stateside, futures are lower across the board with the RTY the clear laggard with losses of 4.2% compared to the ES -1.8%, whilst the tech-heavy NQ is faring better than peers but ultimately still lower on the session to the tune of 1.6%. Note, early closures in the US and subsequent liquidity conditions could exacerbate some of the moves throughout the session. With the macro calendar light, focus for the session is likely to centre on various nations preventing travel from South Africa whilst potentially imposing more stringent COVID measures domestically. Any further clarity on the spread of the variant and its potential to evade vaccines will be of great interest to the market and likely be the main driving force of price action today. Sectors in Europe are lower across the board with the Stoxx 600 Banking (-5.1%) sector bottom of the pile amid the declines seen in global bond yields as markets scale back expectations of central bank tightening (e.g. pricing now assigns a 63% chance of a 15bps hike by the BoE next month vs. 93% a week ago). Oil & Gas names (-4.8%) are suffering on account of the declines in the crude space with WTI crude in freefall with losses of 6.7% given the potential impact of travel restrictions on demand. Travel restrictions on South Africa (from UK, Israel, EU et al) and the potential for further announcements has crushed the Travel & Leisure sector (-5.7%) with airline names dealt a hammer blow; IAG (-13.5%), easyJet (-11%), Deutsche Lufthansa (-12%), Air France (-9.5%). Elsewhere, there are a whole raft of other laggards which are very much in-fitting with the March 2020 playbook but there are simply too many to list for the purpose of this report. Defensives and Tech are faring better than peers but ultimately still lower on the session to the tune of 1% and 1.9% respectively. Finally, for anyone wanting some positivity from today’s session, the potential for further lockdowns has proved to be beneficial for the likes of HelloFresh (+3.2%), Ocado (+2.1%) and Delivery Hero (+1.9%). Top European News Airlines Skid on South Africa Travel Bans Tied to Variant German Coalition Proposes a Combustion-Car Ban Without Saying So Putin Pushes Confrontation With NATO as Hardliners Prevail Siemens Is Said to Kick Off Sale of Postal Logistics Business In FX, the index has been under pressure in the risk-averse environment amid a slump in yields and gains in its basket components – namely the JPY, CHF, EUR (see below) – and with liquidity also thinned by Thanksgiving. From a technical perspective, the index has declined from its 96.787 overnight high, through the 96.500 mark, to a low of 96.332 – with the weekly trough at 96.035. Ahead, the US calendar is once again light, with the US also poised for an early Thanksgiving closure; thus, impulses will likely be derived from the macro environment. JPY, CHF, EUR - Haven FX JPY and CHF are the clear outperformers as a function of risk-related inflows. USD/JPY has retreated from a 115.37 peak and fell through its 21 DMA (114.15) to a base around 113.66 - with the current weekly low around 113.64. USD/CHF retreated from 0.9360 to 0.9260 – with the 50 and 100 DMAs seen at 0.9234 and 0.9219, respectively, ahead of 0.9200. EUR/USD meanwhile gains on what is seemingly an unwind of the carry trade amid a spike in volatility. EUR/USD found support near 1.1200 before rebounding to a current 1.1288 peak. AUD, NZD, CAD, GBP - The non-US Dollar risk currencies bear the brunt of the latest market downturn, with losses across industrial commodities not helping. The Loonie has taken the spot as the biggest G10 loser as hefty COVID-induced losses in the oil complex keep the currency suppressed. USD/CAD trades towards the top of a current 1.2647-2774 range. AUD is also weighed on by softer base metal prices – AUD/USD fell from a 0.7200 overnight high to a current low at 0.7110. On that note, Westpac sees AUD/USD pushed down to 0.7000 by Jun 2022 (prev. 0.7700) amid rate differentials with the US; Westpac made significant changes to its FOMC policy forecast and now expect consecutive increases in the fed funds rate in Jun, Sept, and Dec 2022. NZD/USD is slightly more cushioned amid smaller exposure to commodities, and as the AUD/NZD cross takes aim at 1.0450 to the downside. GBP, meanwhile, was initially among the losers amid its high-beta status but thereafter nursed losses in a move that coincided with EUR/GBP rejecting an upside breach of its 21 DMA at 0.8475. EM - The ZAR is the standout laggard given the new South African COVID variant - B.1.1.529 COVID-19 variant (expected to be named Nu) – which is said to be the most evolved strain so far and thus prompted several countries to halt travel to the country of origin. USD/ZAR currently trades within a 15.9375-16.3630 intraday band. Meanwhile, the downturn oil sees USD/RUB north of 75.00 and closer to 76.00 from a 74.2690 base. The Lira also feels some contagion despite the lower oil prices (Turkey being a large net oil importer) – USD/TRY is back on a 12.00 handle and within 11.92-1226 parameters at the time of writing. In commodities, the crude complex has been hit by compounding COVID fears which in turn triggered various travel restrictions and subsequently took its toll on global crude demand prospects. The new and more evolved South African variant prompted the UK, Singapore, and Israel to expand their travel red lists to include some African nations (Israel reported its first case of the new COVID-19 variant known as B.1.1.529). Japan also imposed tighter border restrictions. China’s Shanghai city see flights impacted by its own outbreak. Europe also tackles its surge in daily cases - German Green Party's Baerbock (incoming Foreign Minister) does not rule out a German lockdown, according to Spiegel. EU Commission President von der Leyen is also to propose activation of the emergency air brake, to halt travel from southern Africa due to the B.1.1.529 COVID-19 variant. Losses in oil have exacerbated - with WTI Jan and Brent Feb now under USD 74/bbl (vs high 78.65/bbl) and USD 77/bbl (vs high 80.42/bbl), -6.0% and -5.0% respectively. This comes ahead of the OPEC+ confab next week, whereby OPEC watchers have suggested that oil prices will be a large contributor to the final decision. It is difficult to see how OPEC+ will increase output to the levels the US et al. will be content with, with the latest COVID downturn building the case for a pause in planned output hikes. Elsewhere, haven demand sees spot gold extend on gains above USD 1,800/oz after topping the 100 DMA (1,792.95/oz), 200 DMA (1,791.38/oz), 50 DMA (1,790.13/oz) overnight. Base metals are softer across the board amid the risk aversion. LME copper posts losses of around 3% at the time of writing, as prices threaten a more convincing downside breach of USD 9,500/t. US Event Calendar Nothing major scheduled DB's Jim Reid concludes the overnight wrap Things have escalated on the covid front quite rapidly over the last 12 hours. Yesterday new covid variant B.1.1.529 was slowly starting to gather increasing attention but overnight it has begun to dominate markets and has caused a notable flight to quality with 10 year USTs -8bps lower. It was originally identified in Botswana and is starting to spread rapidly in Africa. The South African Health Minister has said it is "of serious concern". Almost 100 cases have already been identified in South Africa and the UK moved to put the country back (along with 5 other African nations) on a reinstated red travel list last night with others following this morning. The variant is said to be the most heavily mutated version yet and the WHO will meet today to decide if it is a variant of interest or a variant of concern. So a lot of eyes will be on how severe it is and whether it completely evades vaccines. At this stage very little is known. Mutations are often less severe so we shouldn’t jump to conclusions but there is clearly a lot of concern about this one. Also South Africa is one of the world leaders in sequencing so we are more likely to see this sort of news originate from there than many countries. Suffice to say at this stage no one in markets will have any idea which way this will go. Overnight in Asia all benchmarks are trading lower on the news with the Shanghai Composite (-0.50%), CSI (-0.64%), KOSPI (-1.27%), Hang Seng (-2.13%) and the Nikkei (-2.90%) all lower. Airlines and other travel stocks have obviously fallen heavily. Hong Kong has detected two confirmed cases of the new variant just as Hong Kong and China were considering quarantine-free travel. S&P 500 (-0.93%) and DAX (-1.82%) futures are also much weaker. Elsewhere, in Japan, CPI rose +0.5% year-on-year (+0.4% consensus and +0.1% previously), on the back of 16-month high fuel prices. With the US out on holiday for Thanksgiving, there wasn’t much going on yesterday after a very quiet day in markets. The variant news was only slowly creeping into the news flow so it hardly impacted trading. But in keeping with the theme of recent days, both inflation and the latest covid wave in Europe remained very much in the picture as jitters continue to increase that we could see further lockdowns as we move towards Christmas. Starting with the headline moves, European equities did actually show signs of stabilising yesterday, with the STOXX 600 up +0.42% thanks to a broad-based advance across the continent. In fact that’s actually the index’s best daily performance in over three weeks, although that’s not reflecting any particular strength, but instead the fact the index inched steadily but persistently towards a record high before selling off again a week ago. Other indices moved higher across the continent too, with the FTSE 100 (+0.33%), the CAC 40 (+0.48%) and the DAX (+0.25%) all posting similar advances. These will all likely reverse this morning. One piece of news we did get came from the ECB, who released the account of their monetary policy meeting for October. Something the minutes stressed was the importance that the Governing Council maintain optionality in their policy settings, with one part acknowledging the growing upside risks to inflation, but also saying “it was deemed important for the Governing Council to avoid an overreaction as well as unwarranted inaction, and to keep sufficient optionality in calibrating its monetary policy measures to address all inflation scenarios that might unfold.” Against this backdrop, 10yr bond yields moved lower across multiple countries, with those on bunds (-2.3ps), OATs (-2.3bps) and BTPs (-1.9bps) all declining. There was also a flattening in all 3 yield curves as well, with the 2s10s slope in Germany (-3.0bps), France (-3.7bps) and Italy (-2.8bps) shifting lower. And the moves also coincided with a continued widening in peripheral spreads, with both the Spanish and the Greek spreads over 10yr bund yields widening to their biggest levels in over a year. Of course, one of the biggest concerns in Europe right now remains the pandemic, and yesterday saw a number of fresh measures announced as policymakers seek to get a grip on the latest wave. In France, health minister Veran announced various measures, including the expansion of the booster rollout to all adults, and a reduction in the length of time between the initial vaccination and the booster shot to 5 months from 6. Meanwhile in the Czech Republic, the government declared a state of emergency and approved tighter social distancing measures, including the closure of restaurants and bars at 10pm. And in Finland, the government have said that bars and restaurants not using Covid certificates will not be able to serve alcohol after 5pm. All this came as the European Medicines Agency recommended that the Pfizer vaccine be approved for children aged 5-11, which follows the decision to approve the vaccine in the US. Their recommendation will now go to the European Commission for a final decision. There wasn’t much in the way of data at all yesterday, though German GDP growth in Q3 was revised down to show a +1.7% expansion (vs. +1.8% previous estimate). Looking at the details, private consumption was the only driver of growth (+6.2%), with government consumption (-2.2%), machinery and equipment (-3.7%) and construction (-2.3%) all declining over the quarter. To the day ahead now, and data releases include French and Italian consumer confidence for November, as well as the Euro Area M3 money supply for October. Otherwise, central bank speakers include ECB President Lagarde, Vice President de Guindos, and the ECB’s Visco, Schnabel, Centeno, Panetta and Lane, and BoE chief economist Pill. Tyler Durden Fri, 11/26/2021 - 08:12.....»»

Category: blogSource: zerohedgeNov 26th, 2021