Morning Markets
December S&P 500 futures (ESZ22) are trending higher +1.11% this morning after three major US benchmark indices extended declines for the 5th consecutive session as investors continue to fret that higher interest rates could throw the U.S. economy into a recession. Three major U.S. stock indexes were weighted down primarily by losses in the Oil & Gas, Utilities, and Financials sectors.
Atlanta Federal Reserve president Raphael Bostic said the Fed “still has a way to go” to cool off inflation. Also, Boston Fed President Susan Collins said higher unemployment would be required to help bring down inflation. Meanwhile, U.S. rate futures have priced in a 31.7% chance of a 50 basis point rate increase and a 68.3% chance of a 75 basis point hike at November's monetary policy meeting.
"Investors are just throwing in the towel. It's the uncertainty about the high-water mark for the Fed funds rate. Is it 4.6%, is it 5%? Is it sometime in 2023?" said Jake Dollarhide, a Chief Executive Officer of Longbow Asset Management in Tulsa, Oklahoma.
Today, all eyes are focused on the U.S. CB Consumer Confidence data in a couple of hours. Economists, on average, forecast that September CB Consumer Confidence will stand at 104.5, compared to the previous value of 103.2.
Also, investors are likely to focus on the U.S. Core Durable Goods Orders data, which was at +0.3% m/m in July. Economists foresee the new figure to be +0.2% m/m.
U.S. New Home Sales data will be reported today as well. Economists forecast this figure to come in at 500K, compared to the previous value of 511K.
In the bond markets, United States 10-Year rates are at 3.835%, down -1.15%.
The Euro Stoxx 50 is up +0.57% this morning, attempting to rebound after a tough start to the week as market participants remain cautious about rising interest rates and growing recession concerns. Another supportive factor for European equities is the more than +7% jump in Italian payments group Nexi (NEXI.M.DX) after the company issued a strong business outlook. However, today’s gains are likely to be limited as overall sentiment remains weak. Moreover, the European Central Bank is expected to keep raising interest rates further over its "next several meetings," ECB president Christine Lagarde said on Monday.
Eurozone M3 Money Supply data was released today.
Eurozone August M3 Money Supply stood at 6.1% y/y, stronger than expectations of 5.4% y/y.
Asian stock markets today closed in the green. China’s Shanghai Composite Index (SHCOMP) closed up +1.40%, and Japan’s Nikkei 225 Stock Index (NIK) closed up +0.53%.
China’s Shanghai Composite today closed up after the People’s Bank of China injected about $24.7 billion of liquidity into the banking sector via repo market operations, which is expected to stimulate economic growth.
At the same time, Japan’s Nikkei Stock Index closed higher today, fueled by gains in the Power, Railway & Bus, and Steel sectors. The Nikkei Volatility, which takes into account the implied volatility of Nikkei 225 options, closed down 4.25% to 21.61.
The Japanese Corporate Services Price Index has been reported at +1.9% y/y, weaker than an economic forecast of +2.4% y/y.
Pre-Market U.S. Stock Movers
Cryptocurrency-exposed stocks are moving higher in pre-market trading, with the price of Bitcoin up about +5%. Marathon Digital (MARA) is up more than +6%. Also, Hut 8 Mining (HUT) is up about +6%, and Riot Blockchain (RIOT) is up more than +5%.
9 Meters Biopharma Inc (NMTR) spiked over +35% in pre-market trading after the company announced positive final results from the Phase 2 study of vurolenatide and the outcome of its End-of-Phase 2 meeting with the U.S. Food and Drug Administration.
Aridis Pharmaceuticals Inc (ARDS) plunged more than -27% in pre-market trading after the company announced a proposed public stock offering.
NVIDIA Corporation (NVDA) rose more than +1% in pre-market trading after Cathie Wood's ARK Investment bought 186K shares of the company yesterday.
Nautilus Group Inc (NLS) gained over +6% in pre-market trading after the company announced a comprehensive review of strategic alternatives, including a potential sale of the company.
Keurig Dr Pepper Inc (KDP) dropped about -1% in pre-market trading after Goldman Sachs downgraded the stock from buy to neutral with a price target of $37, down from $39.
Snap Inc (SNAP) rose more than +2% in pre-market trading after Piper Sandler boosted the company's price target to $12 from $11.
Today’s U.S. Earnings Spotlight: Tuesday - September 27th
Ferguson (FERG), Synnex (SNX), Jabil Circuit (JBL), Endava (DAVA), Sprott Physical Gold and Silver Trust (CEF), Neogen (NEOG), Cal-Maine (CALM), BlackBerry (BB), United Natural Foods (UNFI), Cracker Barrel Old (CBRL), Progress (PRGS), Skillsoft Corp Class A (SKIL), Cognyte Software (CGNT), Mesabi Trust (MSB), Niocorp Developments (NIOBF), Bridgford (BRID), Ibio (IBIO), Palatin (PTN), PharmaCyte Biotech (PMCB), Renalytix AI Nas (RNLX), NetSol (NTWK), Wolford ADR (WLFDY), Precision Optics (PEYE), US Gold (USAU), iPower (IPW), Applied Genetic (AGTC), Coffee Holding (JVA), Sears (SHLDQ), Aytu BioScience (AYTU), SunLink (SSY), Christopher Banks (CBKCQ), Bon-Ton Stores (BONTQ), Rosetta Genomics (ROSGQ), Shengkai (VALV).
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