- Morning Briefing w/ KevinD
- Posts
- Friday May 12 @ 9:00am
“Millions saw the apple fall, but Newton was the one who asked why.”
📈 The Markets Overnight
🌏 Asia: Down
🌍 Europe: Up slightly
🌎 US Index Futures: Up a bit
🛢 Crude Oil: Up
💵 Dollar: Up a bit
🧐 Yields: Up
🔮 Crypto: Down
🌏 Major Global Catalysts
US China meeting attempts to reset relations.
High level debt ceiling meeting postponed.
💵 Economic Reports and Events Today
Consensus forecasts shown
8:30am Import Prices m/m 0.3% Change in the price of imported goods and services purchased domestically.
10:00am Prelim UoM Consumer Sentiment 63.0 Survey of about 500 consumers which asks respondents to rate the relative level of current and future economic conditions.
10:00am Prelim UoM Inflation Expectations Percentage that consumers expect the price of goods and services to change during the next 12 months.
📰 Selected Earnings Releases
Consensus Estimates shown
After Hours Today:
None
Pre-Market Tomorrow:
None
🔮 Selected Analyst Ratings Changes
HD Home Depot Baird Maintains Outperform Lowers to 320.00
EA Electronic Arts DZ Bank Upgrades to Buy Targets 142.00
NTR Nutrien Raymond James Upgrades to Outperform Targets 85.00
TWLO Twilio Mizuho Downgrades to Neutral Lowers to 55.00
📉 Stocks In Play
TSLA Tesla Up 2% after Elon announces he's found a CEO to replace him at Twitter.
SPRY ARS Pharmaceuticals Up 80% as an FDA committee endorses the company's epinephrine nasal spray.
Chinese stocks broadly lower ~1.5% on weak economic data.
FSLR First Solar Up 10% on company announcement of acquisition of a thin film photovoltaics company.
💬 Commentary
Yesterday, the markets continued the narrow range chop that we've witnessed throughout the week. Although they opened lower, they mostly traded sideways. This week, we have seen a lot of data indicating that inflation is slowing down, which is good news for the market as it could lead to lower interest rates. However, this positive development is offset by the possibility of a slowing economy. Unless an unknown catalyst emerges, it is unlikely that the market will break out of its current malaise.
The markets were higher overnight, but there is some leakage in the pre-market. What's interesting to note is that IWM is outperforming the more senior indices this morning, indicating an improvement in banking sentiment and a shift towards a more risk-on trade, which could improve this very thin breadth. If this risk-on sentiment can survive the opening hour, there's a chance of a nice trending day today.
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