Amazon (NASDAQ:AMZN) announces record sales during Black Friday and Cyber Monday, and introduces a new data center chip to intensify competition with Microsoft.
Boeing (NYSE:BA) joins the business coalition for net-zero emissions.
BlackRock’s (NYSE:BLK) shares are on an upward streak, potentially marking the longest winning streak since August 2014.
US Thanksgiving weekend sees over 200 million shoppers for the first time, according to a report.
Micron Technology (NASDAQ:MU) revises its financial targets, facing a decline in share price despite the update.
Accenture (NYSE:ACN) extends its partnership with SAP.
General Motors (NYSE:GM) plans to cut investment in its Cruise driverless vehicles unit.
Eli Lilly plans to open a Gateway Labs site in San Diego in the first half of 2024.
GE HealthCare gets FDA clearance for its Critical Care Suite 2.1 for pneumothorax diagnosis.
Dow’s board approves a $6.5 billion ethylene cracker plant project.
Rupert Murdoch to be deposed in Smartmatic defamation case against Fox.
3M, Corteva – A U.S. appeals court on Monday overturned a lower court ruling that allowed all Ohio residents to seek compensation through a lawsuit against the makers of toxic “forever chemicals” for their liability on these substances.
Faraday Future (NASDAQ:FFIE) gains 3.6% in pre-market trading, as the electric vehicle manufacturer claims to have received 300 reservations for its limited-edition FF 91 2.0 Futurist aiFalcon model.
Zscaler (NASDAQ:ZS): The cloud security specialist falls 6.5% in pre-market trading after reporting a rise in operating costs to $431.4 million in the first quarter of its fiscal year.
Novavax (NASDAQ:NVAX) gains 3.5% in pre-market trading after the World Health Organization (WHO) gives emergency approval for use of its updated COVID-19 vaccine.
Shein has filed for an IPO on Wall Street.
Stocks Climb on Dovish Fed Speak
What you need to know…
The S&P 500 Index today is up +0.16%, the Dow Jones Industrials Index is up +0.33%, and the Nasdaq 100 Index is up +0.24%.
Stocks this morning are moderately higher, with the Dow Jones Industrials posting a 3-1/2 month high. Dovish Fed comments today knocked the 10-year T-note yield down to a 2-1/4 month low and is giving stocks a boost. Stocks extended their gains after this morning’s U.S. Nov consumer confidence report came in stronger than expected.
On the negative side, Micron Technology is down more than -3% after forecasting Q1 adjusted operating expenses well above expectations. Also, Zscaler is down more than 1% after forecasting 2024 calculated billings below consensus. In addition, Morgan Stanley, Edward Lifesciences, and Shopify are down more than -1% after being downgraded.
Comments from Fed Governor Waller suggest he favors pausing Fed rate hikes when he said, “I am increasingly confident that Fed policy is currently positioned to slow the economy and get inflation back to 2%.”
The U.S. Sep CoreLogic composite-20 home price index rose +3.92% y/y, stronger than expectations of +3.90% and the largest increase in 9 months.
The Conference Board U.S. Nov consumer confidence index rose +2.9 to 102.0, stronger than expectations of 101.0.
The U.S. Nov Richmond Fed manufacturing survey fell -8 to -5, weaker than expectations of 1.
The markets are discounting a 4% chance for a +25 bp rate hike at the next FOMC meeting on Dec 12-13 FOMC and a 4% chance for that +25 bp rate hike at the following FOMC meeting on Jan 30-31, 2024. The markets are then discounting a 30% chance for a -25 bp rate cut at the March 19-20, 2024, FOMC meeting and a 78% chance for that same -25 bp rate cut at the Apr 30-May 1, 2024, FOMC meeting.
U.S. and European government bond yields today are lower. The 10-year T-note yield fell to a 2-1/4 month low of 4.352% and is down -3.1 bp at 4.356%. The 10-year German bund yield fell to a 2-3/4 month low of 2.490% and is down -5.7 bp at 2.492%. The 10-year UK gilt yield is down -5.3 bp at 4.159%.
Overseas stock markets are mixed. The Euro Stoxx 50 is down -0.30%. China’s Shanghai Composite Index closed up +0.23%. Japan’s Nikkei Stock Index closed down -0.12%.
Across the markets…
December 10-year T-notes (ZNZ23) this morning are up +10 ticks, and the 10-year T-note yield is down -3.1 bp at 4.356%. Dec T-note prices this morning climbed to a 2-1/4 month high, and the 10-year T-note yield dropped to a 2-1/4 month low of 4.352%. A decline in inflation expectations is bullish for T-notes as today’s 10-year breakeven inflation rate fell to a 4-1/4 month low of 2.212%. Also, dovish comments from Fed Governor Waller today supported T-notes when he signaled that he favored a pause in Fed rate hikes. Limiting gains in T-notes was today’s stronger-than-expected report on U.S. Nov consumer confidence and supply pressures as the Treasury will auction $49 billion of 7-year T-notes later today.
The dollar index (DXY00) today is down by -0.18% and dropped to a 3-1/2 month low. The dollar today is under pressure on dovish comments from Fed Governor Waller who said that Fed policy is well-positioned, signaling he favors a continued pause to Fed rate hikes. Also, hawkish ECB comments today boosted EUR/USD to a 3-1/2 month high and undercut the dollar. The dollar recovered from its worst levels after U.S. Nov consumer confidence rose more than expected.
EUR/USD (EURUSD) today is up by +0.32% and posted a 3-1/2 month high. A weaker dollar today is supportive of the euro. Also, hawkish comments today from ECB Governing Council member and Bundesbank President Nagel boosted the euro when he said the ECB isn’t at the point where it should consider lowering interest rates.
The Eurozone Oct M3 money supply fell -1.0% y/y, weaker than expectations of -0.9% y/y.
The German Dec GfK consumer confidence index unexpectedly rose +0.5 to -27.8, stronger than expectations of a decline to -28.2.
ECB Governing Council member and Bundesbank President Nagel said, “It would be premature for the ECB to lower interest rates soon or to speculate about such steps.”
USD/JPY (USDJPY) today is down by -0.61%. The yen today is moderately higher against the dollar. The yen is finding support today on some month-end rebalancing. Also, lower T-note yields today are bullish for the yen.
December gold (GCZ3) today is up +15.2 (+0.76%), and Dec silver (SIZ23) is up +0.089 (+0.36%). Precious metals prices today are moderately higher, with gold climbing to a 6-1/2 month high. Today’s slump in the dollar index to a 3-1/2 month low is bullish for metals. Also, lower T-note yields today are supportive of precious metals. In addition, dovish comments today from Fed Governor Waller supported gold when he signaled that he favored a pause in Fed rate hikes.