Markets Today: Stocks Moderately Higher on Strength in Tech and Lower Bond Yields

Morning Markets

December S&P 500 futures (ESZ22) this morning are up +0.35%, and December Nasdaq 100 E-Mini futures (NQZ22) are up +0.64%.  Strength in technology stocks is lifting the overall market, with Nvidia up more than +3% in pre-market trading.  Also, lower T-note yields are supportive for stocks, with the 10-year T-note yield down -2.5 bp at 4.189%

Nvidia is up more than +3% in pre-market trading to lead technology stocks higher after it said it began making a chip for China that meets a U.S. export ban, boosting hopes that the company won’t see a sizeable hit to its revenue from the export ban.

On the negative side, Take-Two Interactive Software is down more than -17% in pre-market trading after reporting Q2 net bookings of $1.50 billion, weaker than the consensus of $1.55 billion and cutting its full-year bookings estimate.  Also, Lyft tumbled -18% after reporting fewer than expected Q3 active riders. 

The Euro Stoxx 50 index today is up by +0.33% and posted a new 2-1/2 month high.  A rally in European semiconductor stocks is leading the overall market higher after Morgan Stanley named BE Semiconductor Industries NV and ASML Holding NV top European semiconductor picks.  European stocks also found support on today’s economic news that showed Eurozone Sep retail sales rose +0.4% m/m, right on expectations. 

Higher European government bond yields are negative for stocks after the 10-year German bund yield today rose to a 2-week high of 2.380%.  Bund yields rose on comments today from ECB Governing Council member and Bundesbank President Nagel, who said the ECB needs to continue raising interest rates even if it weighs on the economy.

Asian markets today settled mixed.  China’s Shanghai Composite closed down -0.43%, and Japan’s Nikkei Stock Index closed up +1.25%.

China’s Shanghai Composite today closed moderately lower.  Concern that pandemic restrictions will be maintained undercut stocks today after China reported 7,323 new Covid infections on Monday, the most in more than six months.

Japan’s Nikkei Stock Index today rallied to a 1-3/4 month high after Japan’s cabinet approved a 29.1 trillion yen ($198 billion) extra budget to fund an economic stimulus package. Also, signs of strong corporate quarterly earnings results were positive for the overall market.  Yamaha Motor surged +13% after beating quarterly profit estimates and raising its full-year profit forecasts, and Unicharm jumped +10% after the company reported better-than-expected Q3 operating income. 

Pre-Market U.S. Stock Movers

Nvidia (NVDA) jumped +3% in pre-market trading after it said it began making a chip for China that meets a U.S. export ban, boosting hopes that the company won’t see a sizeable hit to its revenue from the trading curbs. 

Global Payments (GPN) climbed more than +2% in pre-market trading on signs of insider buying after an SEC filing showed Chairmans Woods bought $499,829 of his company’s stock last Friday. 

Hims & Hers Health (HIMS) surged more than +20% in pre-market trading after reporting Q3 revenue of $144.8 million, above the consensus of $130.2 million and forecast full-year revenue of $519 million to $522 million, well above the consensus of $479.9 million. 

Dupont de Nemours (DD) climbed +3% in pre-market trading after reporting Q3 net sales of $3.32 billion, stronger than the consensus of $3.21 billion. 

Lumen Technologies (LUMN) rose more than +2% in pre-market trading on signs of insider buying after an SEC filing showed Chairmans Glenn bought $118,400 of his company’s stock last Friday. 

Lordstown Motors (RIDE) jumped +13% in pre-market trading after the company struck a deal to sell a $170 million stake to Foxconn and give two board seats to the company. 

Lyft (LYFT) plunged more than -18% in pre-market trading after reporting Q3 active riders of 20.31 million, below the consensus of 21.1 million.   

Take-Two Interactive Software (TTWO) sank more than -17% in pre-market trading after reporting Q2 net bookings of $1.50 billion, weaker than the consensus of $1.55 billion, and cutting its full-year bookings estimate to $5.4 billion-$5.5 billion from a prior estimate of $5.8 billion-$5.9 billion, below the consensus of $5.91 billion. 

Five9 Inc (FIVN) tumbled -13% in pre-market trading after cutting its full-year revenue forecast to $774.5 million-$775.5 million from a previous estimate of $780.5 million-$782.5 million, below the consensus of $783.5 million. 

Cryptocurrency-exposed stocks are falling in pre-market trading, with the price of Bitcoin down more than -4% at a 2-week low.  Marathon Digital (MARA) and Riot Blockchain (RIOT) are down more than -4%.  Also, Coinbase Global (COIN) and MicroStrategy (MSTR) are down more than -2%. 

TripAdvisor (TRIP) slumped more than -19% in pre-market trading after reporting Q3 adjusted EPS of 28 cents, well below the consensus of 38 cents. 

Today’s U.S. Earnings Reports (11/8/2022)

Akamai Technologies Inc (AKAM), Constellation Energy Corp (CEG), DuPont de Nemours Inc (DD), 

Expeditors International of Washington (EXPD), Jack Henry & Associates Inc (JKHY), News Corp (NWSA), 

NortonLifeLock Inc (NLOK), Norwegian Cruise Line Holdings (NCLH), Occidental Petroleum Corp (OXY), 

PerkinElmer Inc (PKI), Walt Disney Co/The (DIS).

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