Good morning. US equity futures are moderately higher, SPX +20pts, we’re set to open at 3841. USD is +0.2% at DXY 103.79. The precious metals are cooling back, Gold -$2, with Silver -1.1%. WTIC is +1.8% in the $77s.
sp’60min
Summary
Yesterday saw considerable minor chop. Whilst the bears could tout a new cycle low… it was fractional, and we did still settle net higher. S/t momentum settled on the moderately high side.
Overnight futures have been leaning upward, especially helped by European markets. Bulls should be content with +20/30pts today, for what is arguably just a floor building phase.
Natural target remains teal gap to the 3950s, before resuming lower. In theory, the Oct’ low of 3491 should be taken out by around mid Feb’. In the meantime, surrounding the holidays, price action will be inclined to be subdued.
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Early movers
AAPL +0.2%
ABNB +0.2%
AMZN +1.2%
AR +2.3%, higher Natgas
BA +0.7%
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CCL +2.5%, earnings **
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COIN +0.8%
Bitcoin is -0.3% at $16848
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DB +0.4%, UOA yesterday (Jan’ $11 PUTS)
F +0.6%
FCX +0.6%, with copper u/c at $3.80
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FDX +4.4%, post earnings gains
GOLD +0.2%
GM +0.6%, UOA yesterday (Feb’ $36 CALLS)
MRNA +1.2%
MU +0.4%, earnings due in AH
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NKE +11.4%, post earnings jump
OXY +1.6%
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RAD +6.6%, Rite Aid, EPS -14cents vs -31est. Rev’ y/y -2.3% to $6.1bn vs 5.9est. Weak guidance.
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RIG +1.1%
SLB +1.3%
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TGT -0.6%
TSLA +0.6%, battling to find a floor
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UAL +0.4%
UNG +2.0%, with Natgas $5.43
UPS +1.5%, higher with FedEx
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VIX -2% in the 20s
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X +1.6%
XOM +1.2%
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Overnight markets
Asian markets leaned weak, whilst European markets are broadly higher…
Japan: -0.7% to 26387
China: -0.2% to 3068
Germany: currently +0.8% to 13996
UK: currently +0.9% at 7438
Energy bills are hitting the UK’s ‘pubs’…
https://www.bbc.co.uk/news/business-64025508
… as the country is literally shutting down earlier each night.
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Meanwhile…
Maybe so, in which case … buying opportunity!
I keep saying that Fed rate is insane, because data I’m seeing says we’re already in deflation.
If true, then real rate of return of T-bills is roughly that of S&P500.
Very smart investor I spoke to today said he’s shorting S&P…
— Elon Musk (@elonmusk) December 21, 2022
… as Elon has not surprisingly taken another swipe at the Fed.
Have a good Wednesday