Market Update
Pending Home Sales Drop 4% In November
Brian Turner
28 Dec, 2022
New York City
Pending home sales declined for the sixth month in a row in November, the National Association of Realtors said Wednesday.
The number of transactions declined in all four regions on a monthly basis and from a year ago.
Pending home sales index dropped 4.0% to 73.9 in November and plunged 37.8% from a year ago. The index of 100 is equal to contract level activities in 2001.
"Pending home sales recorded the second-lowest monthly reading in 20 years as interest rates, which climbed at one of the fastest paces on record this year, drastically cut into the number of contract signings to buy a home," said NAR Chief Economist Lawrence Yun.
Cautious Investors Weigh Earnings Against Slowing Economic Outlook
Barry Adams
28 Dec, 2022
New York City
Stocks meandered in thin trading and tech and energy stocks were in focus.
Benchmark indexes are set to close the worst year since 2008 after the Federal Reserve raised rates six times and lingering recession worries kept investors on edge.
The Nasdaq Composite index is down 34.3% and the S&P 500 index is down 20..2% in the year so far.
Investors are also bracing for earnings downward revision as the pandemic era stimulus fades and supply chain driven inflation stayed near multi-year high.
Indexes In Review
The S&P 500 index increased 0.3% to 3,839.43 and the Nasdaq Composite index advanced 0.4% to 10,394.14.
Crude oil decreased $1.80 to $77.18 a barrel and natural gas dropped 10% to $4.55 a thermal unit.
The yield on 2-year Treasury notes inched lower to 4.34%, 10-year Treasury notes eased to 3.837% and 30-year Treasury bonds to 3.92%.
Pending Home Sales Activities Drop In November
Pending home sales declined for the sixth month in a row in November, the National Association of Realtors said Wednesday.
The number of transactions declined in all four regions on a monthly basis and from a year ago.
Pending home sales index dropped 4.0% to 73.9 in November and plunged 37.8% from a year ago. The index of 100 is equal to contract level activities in 2001.
"Pending home sales recorded the second-lowest monthly reading in 20 years as interest rates, which climbed at one of the fastest paces on record this year, drastically cut into the number of contract signings to buy a home," said NAR Chief Economist Lawrence Yun.
U.S. Stock Movers
Tech stocks rebounded following a 7-day decline and a slight easing in bond yields.
Tesla jumped 4.2% to $113.60, Apple Inc inched up 0.1% to $130.16 and Microsoft added 0.6% to $238.60.
AMC Entertainment Holdings Inc fell 0.7% to $4.0 after chief executive Adam Aron requested the company's board to freeze his salary and recommended other executives to follow his move.
Southwest Airlines Co declined 1.9% to $33.30 and the discount carrier struggled to normalize its flight schedule after canceling thousands of flights over the holiday weekend.
The stock is nearing its one-year low.
Shares of ride hailing companies were in focus on the expectations of improving demand for travel services.
Lyft Inc increased 1.01% to $9.97 and dropped below $10 a share for the first time since the ride hailing company priced its public offering in 2019.
Lyft priced its initial public offering at $72 a share and sold 32.5 million shares and raised $2.3 billion on March 28, 2019.
Uber traded up 1% to $24.65 and extended this year's loss to 44%.
Uber priced its shares at $42 a share and raised $8.1 billion in a public offering on May 10, 2019.
China-linked stocks edged lower and trimmed previous day's gains after authorities stopped collecting data on coronavirus infection data.
With no data available from the government agencies, investors are struggling to understand the scope of the health epidemic and its impact on business activities.
Las Vegas Sands declined 2.8% to $47.09 and Wynn Resorts fell 2.6% to $82.14.
Alibaba Group Holding declined 2.3% to $87.73.
A Pop In Bond Yields Dragged Down Tech Stocks and Indexes
Barry Adams
27 Dec, 2022
New York City
Benchmark indexes closed down after tech stocks fell and bond yields rose.
A surge in bond yield dragged tech stocks lower and China sales worries also dragged Apple and Tesla stocks to one-year lows.
Moreover, wholesale inventories growth accelerated in November and the monthly international goods trade deficit dropped to the smallest level in two years.
In holiday-shortened trading, bond yields rose and investors weighed 2023 economic outlook and China reopening.
Chinese health regulators said international passengers arriving in China will no longer require mandatory quarantine from January 8.
The National Health Commission also said Chinese citizens will be allowed to resume international travel without specifying the date.
Health regulators are also bracing for a surge in travel in two weeks ahead of Chinese Lunar New Year and at least 255 million people are expected to travel to the countryside.
Tech Weakness Drags Indexes
Stocks lacked direction and energy prices rose on the expectations of higher demand from China as social mobility resumes.
The S&P 500 index fell 0.4% to 3,829.25 and the Nasdaq Composite index fell 1.4% to 10,353.23.
Crude oil price increased 5 cents to $79.61 a barrel and natural gas prices rose 11 cents to $5.19 a thermal unit.
Copper futures price rose to a six-month high of $3.09 per pound the expectations of rising demand from China.
The yield on 2-year Treasury notes increased to 4.41%, 10-year Treasury notes rose to 3.84% and 30-year Treasury bonds advanced to 3.92%.
Smallest International Goods Trade Deficit In Nearly Two Years
International goods trade deficit declined 15.6% or $15.5 billion from a month ago to $83.3 billion, the U.S. Census Bureau reported Tuesday in its preliminary estimates.
The November deficit was the smallest since December 2020.
Goods trade deficit in October was $98.8 billion.
November exports were $168.9 billion, a decline of $5.3 billion from October.
November imports were $252.2 billion, a decline of $20.8 billion from October.
Wholesale Inventories Growth Accelerated In November
Wholesale inventories in November increased 1.0% from October to $933.6 billion after adjusting for seasonal factors and trading days in the period, the U.S. Census Bureau reported Tuesday.
November inventories jumped 21.0% from a year ago.
October inventories increase from September were revised higher to 0.6% from the previous estimate of 0.5%.
Retail inventories at the end of November increased 0.1% to f $738.7 billion and rose 18.4% from a year ago, after adjusting for seasonal factors and trading day difference.
Retail inventories in October were downwardly revised to a decline of 0.4% from the previous estimate of a decline of 0.2%.
U.S. Stocks In Review
Tesla Inc declined 8.7% to $112.62 on the worries of falling sales in China despite the year-end discounts.
Tesla China sales were between 10,000 and 13,000 in the first three weeks of December and fell just below 9,000 in the week ending December 25, according to CnEVPost.
China's total new energy vehicle sales in the week ending on December 25 were about 182,000 units, an increase of 48.1% from a year ago and 12.6% from the previous week.
Tesla dropped to a new 52-week low.
Apple Inc dropped 1.3% to $130.07 and fell to its 52-week low after tech stocks continued to slide in Tuesday's trading.
Despite the weakness in tech stocks, some consumer staples and healthcare stocks traded at multi-year highs.
JM Smucker jumped 0.9% to $159.85 and traded at all-time high and Merck & Co advanced 0.3% to a multi-year high of $112.20.
Nio Inc ADR dropped 9.0% to $9.98 after the electric vehicle maker in China lowered its fourth quarter sales outlook to 39,000 from the previous estimated range between 43,000 and 48,000.
The company blamed a sales shortfall to supply chain disruptions due to Covid outbreaks in major cities in China.
China-linked stocks were also in favor after China relaxed travel restrictions.
Las Vegas Sands Corp increased 4.4% to $48.51 and Wynn Resorts jumped 4.6% to $84.44.
Alibaba Group Holding Ltd increased 3.7% to $88.95.
Southwest Airlines Co declined 4.7% to $34.37 after the company canceled 70% of its scheduled flights and warned of flight disruptions for the next several days.
China Optimism Lifts European Markets Higher
European markets traded higher on China optimism and a rise in resource stocks.
China's health regulator said international visitors will no longer need mandatory quarantine from January 8. The quarantine requirement was in place for three years.
Chinese officials also plan to lift international travel for Chinese citizens but did not announce the date.
Resource companies also traded higher after crude oil prices rose on the expectations of rising demand from China.
European Stock Indexes Advance, Bond Yields Rise
The DAX index increased 0.4% to 13,995.10, the CAC-40 index added 0.7% to 6,550.66 and the FTSE 100 index advanced 3.73 points to 7,473.01.
The yield on 10-year German Bunds increased to 2.51%, French bonds rose to 3.06%, UK gilts to 3.64% and Italian bonds to 4.61%.
Copper price increased to a 6-month high of $3.90 a pound on hopes of rising demand from China as social mobility resumes and business activities gather pace.
Crude oil traded higher but natural gas prices dropped to a six-month low on milder winter weather, above average wind power and ample gas supplies.
Natural gas storage facilities in the European Union were at 83.1% as of December 25th, according to Gas Infrastructure Europe.
Brent crude oil price increased 29 cents to $84.20 a barrel and the TTF natural gas futures price for immediate month delivery fell 3.5% to $80.04 per MWh.
Norway Retail Sales Rebound
Norway's retail sales adjusted for seasonal factors increased 0.9% in November reversing a 0.2% decline in October, according to preliminary data from Statistics Norway released on Tuesday.
The increase in total retail sales was driven by a rise in automotive fuel sales of 3.4% and non-store sales increased 3.2%.
Retail sales in November declined 3.6% from a year ago.
European Stock Movers
Tech stocks led the decliners following the rise in bond yields and a weakness in the U.S. tech stocks.
Infineon, Technologies, Hellofresh SE and ASML Holding declined between 2% and 3%.
Daimler Truck Holding, Mercedes Benz, Porsche Automobil advanced on the hopes of rising sales in China.
HSBC Holdings Plc increased 0.5%.
Glencore, Anglo American and Antofagasta advanced between 0.5% and 1%.
TotalEnergies, Shell, BP, Repsol and Eni gained between 0.3% and 1.5%.
China optimism also lifted French luxury stocks higher.
Hermes International and LVMH 1.9% and 2.5% respectively in Paris trading.
China Optimism Lifts Resource and Luxury Stocks In Europe
Bridgette Randall
27 Dec, 2022
Frankfurt
European markets traded higher on China optimism and a rise in resource stocks.
China's health regulator said international visitors will no longer need mandatory quarantine from January 8. The quarantine requirement was in place for three years.
Chinese officials also plan to lift international travel for Chinese citizens but did not announce the date.
Resource companies also traded higher after crude oil prices rose on the expectations of rising demand from China.
European Stock Indexes Advance, Bond Yields Rise
The DAX index increased 0.4% to 13,995.10, the CAC-40 index added 0.7% to 6,550.66 and the FTSE 100 index advanced 3.73 points to 7,473.0 in Thursday's trading.
London trading is scheduled resume on Wednesday.
The yield on 10-year German Bunds increased to 2.51%, French bonds rose to 3.06%, UK gilts to 3.64% and Italian bonds to 4.61%.
Copper price increased to a 6-month high of $3.90 a pound on hopes of rising demand from China as social mobility resumes and business activities gather pace.
Crude oil traded higher but natural gas prices dropped to a six-month low on milder winter weather, above average wind power and ample gas supplies.
Natural gas storage facilities in the European Union were at 83.1% as of December 25th, according to Gas Infrastructure Europe.
Brent crude oil price increased 29 cents to $84.20 a barrel and the TTF natural gas futures price for immediate month delivery fell 3.5% to
Movers: Alibaba. Apple, JM Smucker, Las Vegas Sands, Nio, Southwest Air, Tesla
Scott Peters
27 Dec, 2022
New York City
Tesla Inc declined 8.7% to $112.62 on the worries of falling sales in China despite the year-end discounts.
Tesla China sales were between 10,000 and 13,000 in the first three weeks of December and fell just below 9,000 in the week ending December 25, according to CnEVPost.
China's total new energy vehicle sales in the week ending on December 25 were about 182,000 units, an increase of 48.1% from a year ago and 12.6% from the previous week.
Tesla dropped to a new 52-week low.
Apple Inc dropped 1.3% to $130.07 and fell to its 52-week low after tech stocks continued to slide in Tuesday's trading.
Despite the weakness in tech stocks, some consumer staples and healthcare stocks traded at multi-year highs.
JM Smucker jumped 0.9% to $159.85 and traded at all-time high and Merck & Co advanced 0.3% to a multi-year high of $112.20.
Nio Inc ADR dropped 9.0% to $9.98 after the electric vehicle maker in China lowered its fourth quarter sales outlook to 39,000 from the previous estimated range between 43,000 and 48,000.
The company blamed a sales shortfall to supply chain disruptions due to Covid outbreaks in major cities in China.
China-linked stocks were also in favor after China relaxed travel restrictions.
Las Vegas Sands Corp increased 4.4% to $48.51 and Wynn Resorts jumped 4.6% to $84.44.
Alibaba Group Holding Ltd increased 3.7% to $88.95.
Southwest Airlines Co declined 4.7% to $34.37 after the company canceled 70% of its scheduled flights and warned of flight disruptions for the next several days.
Tech Stocks Lead Decliners, Tesla and Apple Drop to One-Year Lows
Barry Adams
27 Dec, 2022
New York City
Stocks lacked direction in early trading in thin trading in the last week of 2022 as investors reviewed portfolios for tax purposes.
Investors are reviewed latest data on wholesale and retail inventories and international trade deficit.
In holiday-shortened trading, bond yields rose and investors weighed 2023 economic outlook and China reopening.
Chinese health regulators said international passengers arriving in China will no longer require mandatory quarantine from January 8.
The National Health Commission also said Chinese citizens will be allowed to resume international travel without specifying the date.
Health regulators are also bracing for a surge in travel in two weeks ahead of Chinese Lunar New Year and at least 255 million people are expected to travel to the countryside.
Indexes In Review
Stocks lacked direction and energy prices rose on the expectations of higher demand from China as social mobility resumes.
The S&P 500 index eased 2.51 points to 3,841.12 and the Nasdaq Composite index fell 0.8% to 10,409.98.
Crude oil price increased $1.58 to $81.15 a barrel and natural gas prices rose 5 cents to $5.12 a thermal unit.
Copper futures price rose to a six-month high of $3.09 per pound the expectations of rising demand from China.
The yield on 2-year Treasury notes increased to 4.41%, 10-year Treasury notes rose to 3.84% and 30-year Treasury bonds advanced to 3.92%.
Smallest International Goods Trade Deficit In Nearly Two Years
International goods trade deficit declined 15.6% or $15.5 billion from a month ago to $83.3 billion, the U.S. Census Bureau reported Tuesday in its preliminary estimates.
The November deficit was the smallest since December 2020.
Goods trade deficit in October was $98.8 billion.
November exports were $168.9 billion, a decline of $5.3 billion from October.
November imports were $252.2 billion, a decline of $20.8 billion from October.
Wholesale Inventories Growth Accelerated In November
Wholesale inventories in November increased 1.0% from October to $933.6 billion after adjusting for seasonal factors and trading days in the period, the U.S. Census Bureau reported Tuesday.
November inventories jumped 21.0% from a year ago.
October inventories increase from September were revised higher to 0.6% from the previous estimate of 0.5%.
Retail inventories at the end of November increased 0.1% to f $738.7 billion and rose 18.4% from a year ago, after adjusting for seasonal factors and trading day difference.
Retail inventories in October were downwardly revised to a decline of 0.4% from the previous estimate of a decline of 0.2%.
U.S. Stocks In Review
Tesla Inc declined 8.7% to $112.62 on the worries of falling sales in China despite the year-end discounts.
Tesla China sales were between 10,000 and 13,000 in the first three weeks of December and fell just below 9,000 in the week ending December 25, according to CnEVPost.
China's total new energy vehicle sales in the week ending on December 25 were about 182,000 units, an increase of 48.1% from a year ago and 12.6% from the previous week.
Tesla dropped to a new 52-week low.
Apple Inc dropped 1.3% to $130.07 and fell to its 52-week low after tech stocks continued to slide in Tuesday's trading.
Despite the weakness in tech stocks, some consumer staples and healthcare stocks traded at multi-year highs.
JM Smucker jumped 0.9% to $159.85 and traded at all-time high and Merck & Co advanced 0.3% to a multi-year high of $112.20.
Nio Inc ADR dropped 9.0% to $9.98 after the electric vehicle maker in China lowered its fourth quarter sales outlook to 39,000 from the previous estimated range between 43,000 and 48,000.
The company blamed a sales shortfall to supply chain disruptions due to Covid outbreaks in major cities in China.
China-linked stocks were also in favor after China relaxed travel restrictions.
Las Vegas Sands Corp increased 4.4% to $48.51 and Wynn Resorts jumped 4.6% to $84.44.
Alibaba Group Holding Ltd increased 3.7% to $88.95.
Southwest Airlines Co declined 4.7% to $34.37 after the company canceled 70% of its scheduled flights and warned of flight disruptions for the next several days.
Smallest Goods Trade Deficit In 20 Months
Brian Turner
27 Dec, 2022
New York City
International goods trade deficit declined 15.6% or $15.5 billion from a month ago to $83.3 billion, the U.S. Census Bureau reported Tuesday in its preliminary estimates.
The November deficit was the smallest since December 2020.
Goods trade deficit in October was $98.8 billion.
November exports were $168.9 billion, a decline of $5.3 billion from October.
November imports were $252.2 billion, a decline of $20.8 billion from October.
Wholesale Inventories Growth Accelerates in November
Brian Turner
27 Dec, 2022
New York City
Wholesale inventories in November increased 1.0% from October to $933.6 billion after adjusting for seasonal factors and trading days in the period, the U.S. Census Bureau reported Tuesday.
November inventories jumped 21.0% from a year ago.
October inventories increase from September were revised higher to 0.6% from the previous estimate of 0.5%.
Retail inventories at the end of November increased 0.1% to f $738.7 billion and rose 18.4% from a year ago, after adjusting for seasonal factors and trading day difference.
Retail inventories in October were downwardly revised to a decline of 0.4% from the previous estimate of a decline of 0.2%.
Asia Indexes Advanced, Kuroda Comments Eased Yen
Arjun Pandit
26 Dec, 2022
New York City
In subdued trading, the Nikkei index advanced 0.7% to 26,405.87 following the easing of inflation in the U.S.
The yen also edged lower from the four-month high after comments from the Bank of Japan Governor Haruhiko Kuroda.
The widening of the yield range for the Japanese government bonds was "absolutely not a first step" in exiting from the ultra-low rate policy, Governor Haruhiko Kuroda said at a gathering today.
He added the move was designed to continue the implementation of a sustainable monetary easing."
In Shanghai stocks advanced despite the lingering Covid woes and rapidly rising infection rates.
In addition, health regulators said they will stop releasing daily Covid cases amid rising infection rates.
The Shanghai Composite index increased 0.7% to 3,065.56 but the Hang Seng Index declined 0.4% to 19,593.06.
Sensex In India Jumps 1.2%
Stocks in Mumbai advanced following a rise in Asian markets and optimism on Wall Street.
Benchmark indexes opened higher after the preferred inflation measure by the U.S. Federal Reserve cooled in November.
The Price Consumption Expenditure index, an alternative measure of inflation which understates the headline inflation but provides broader understanding of the consumer, rose at the slowest pace of 0.1% in November from October.
On an annual basis, the PCE index rose 5.5% in November slower than 6.1% in October, the slowest pace of increase since Oct 2021.
Food prices increased 11.2% and energy rose 13.6%.
The Sensex and the Nifty indexes accelerated gains in the final hour of trading after buying picked up in large cap stocks.
The Sensex index gained 721.13 points or 1.20% to 60,566.42, while the broader Nifty index added 207.80 points or 1.17% to close at 18,014.60.
Among the stocks traded on the BSE, 43 closed at new 52-week highs and 146 closed at new 52-week lows.
The Indian rupee closed at 82.65 against U.S. dollar and the yield on 10-year Indian government bonds rose to 7.31%.
In local trading, crude oil increased 2.9% to 6,621 a barrel and natural gas added 0.5% to 440 a thermal unit.