FOMC Minutes, Existing Home Sales for October, Canadian CPI for
October; Earnings from Nvidia, Kohl's, Best Buy, HP, Nordstrom
Today's Top Headlines/Must Reads:
- October Home Sales Likely Fell to New 13-Year Low
- Biden's Electric-Vehicle Push Hits a Speed Bump
- Global platinum market on track to post largest supply deficit
Stock futures were a touch softer on Tuesday, as traders adopted
a more cautious stance ahead of potentially market-moving results
"Their Q1 earnings in May saw markets ride a wave of huge AI
momentum so it's becoming an important macro event," Deutsche Bank
Options trading suggests Nvidia shares - which are up 245% year
to date - could see a positive or negative swing of 8% after the
earnings, according to Swissquote Bank.
"Better-than-expected results could send Nvidia to a fresh high,
but anything less than stellar is poised to trigger substantial
profit-taking. If confidence falters, the $500 psychological
benchmark becomes an attractive target for sellers," Swissquote
Minutes of the Federal Reserve's rate-setting meeting will be
published later, potentially providing more insight into the
central bank's thinking.
Markets are pricing in a 99.8% probability that the Fed will
leave interest rates unchanged at a range of 5.25% to 5.50% after
its next meeting on December 13th, and there is a similar chance of
no change at the January meeting, too, according to the CME
Agilent Technologies posted a higher profit in the fiscal fourth
quarter despite a nearly 9% drop in revenue. Its adjusted and
unadjusted earnings topped estimates in the quarter. Shares rose
Baidu reported third-quarter earnings that topped analysts'
expectations as revenue rose 6%. ADRs of Baidu were up 1.9%.
Keysight Technologies reported fiscal fourth-quarter earnings
that beat expectations, and shares were rising after the company
said its "strategic customer engagement is high, and we are
continuing to capitalize on opportunities across a broad and
diverse set of end markets, positioning us well for an eventual
recovery." Shares rose 2.3%.
Microsoft rose 0.4% in premarket trading after rising 2% on
Monday to a record $377.44 following the announcement that former
OpenAI CEO Sam Altman and former OpenAI President Greg Brockman
would both be joining the technology giant to lead a new advanced
artificial-intelligence research team.
Nvidia was up 0.2% ahead of the earnings report. The key
question for investors is what management will say about Nvidia's
progress in alleviating supply constraints to meet rising demand,
particularly for graphic processing units.
Zoom was up 0.4% after it raised its full-year sales and profit
Monday's Post-Close Movers
MorphoSys said that its study of a treatment for myelofibrosis,
a rare form of blood cancer, met its primary endpoint but did not
say it met its key secondary endpoints, with a "strong positive
trend" for those metrics. The company has previously said that its
secondary endpoint of change in symptoms will be important in
seeking regulatory approval. Shares fell 24%.
Symbotic's revenue climbed ahead of expectations in its fourth
quarter, leading the company to post its first quarter of adjusted
profit. The company expects revenue to rise ahead of estimates in
the fiscal first quarter and to post another adjusted profit.
Shares rose 22%.
The dollar traded weaker as investors pondered the possibility
of a first interest-rate cut by the Fed in the first half of 2024,
DHF Capital said.
"The dollar began the week with a relatively weak performance,
extending its selloff from last week," it said.
Market expectations continued to lean toward no interest-rate
hikes in December and a potential rate cut as early as May, and
weighed on the currency, as inflation eased and Treasury yields
retreated, DHF added.
Donner & Reuschel said the U.S. interest-rate advantage
versus the eurozone's could narrow, weighing on the dollar and
lifting the euro, if the Fed looks likely to begin interest-rate
cuts before the European Central Bank.
Fed rate cuts could start from spring 2024 given economic
slowdown and expected further decline in inflation, while a second
rate cut could follow in early summer as central bankers aren't
expected to implement any monetary policy measures close to
elections, it said.
Meanwhile, the ECB isn't likely to follow suit until later.
"Even if the imminent run-up to the EUR/USD 1.10 mark prevents
further appreciation for the time being, the common currency is
expected to strengthen in the coming months."
Core fixed income assets can help balance portfolios through
episodes of geopolitical instability and growth volatility, given
higher yields can provide a potential buffer, Goldman Sachs Asset
Management said in an outlook for 2024.
"And when growth concerns are in check, holding core bonds also
makes sense given fixed income once again delivers income."
Following a reset higher in bond yields, the age of "There Is No
Alternative" [TINA] to equities or other risks assets has ended,
Goldman Sachs AM said.
"We believe we are now in the early phases of 'There Are
Reasonable Alternatives' [TARA], such as core fixed income,
including high-quality government and corporate bonds, it
Crude futures were slightly weaker, with the market eyeing
Sunday's OPEC meeting in Vienna.
"Speculators will not want to go into this weekend with sizable
short positions," ING said.
"Given expectations, we will likely have to see at least Saudi
Arabia rolling over their additional voluntary cut into 2024."
The African Energy Chamber said Africa's crude oil production
will likely trend lower next year amid output outages in top
producers including Nigeria, Angola and Equatorial Guinea.
Monthly crude production is expected to decline from 6.9 million
B/D in January 2024 to around 6.62 million B/D in December
Base metals and gold gained, as a weaker dollar helped ease the
pressure on commodities backed by the greenback.
BMI expects gold prices to stay firm over the next year, with
lower interest rates expected to boost demand for the precious
It maintained its price forecast at $1,950 a troy ounce for 2023
and 2024, saying rate cuts, geopolitical tensions and a weaker
dollar were all supporting gold.
TODAY'S TOP HEADLINES
OpenAI's Path Ahead Is Unclear as Employees Threaten to Quit
Unless Board Resigns
The future of OpenAI was in jeopardy Monday, as the vast
majority of employees threatened to quit if the board that fired
the company's CEO, Sam Altman, didn't resign itself and restore him
Microsoft CEO Satya Nadella said late Sunday that the company
was hiring Altman and Greg Brockman, OpenAI's president who
resigned in protest after Altman was ousted, and was opening its
doors to more joining from the company behind viral chatbot
SEC Charges Kraken With Operating As Unregistered Exchange
The Securities and Exchange Commission on Monday charged
cryptocurrency trading platform Kraken with operating as an
unregistered securities exchange.
The charges are the latest effort by regulators to crack down on
crypto companies, some of which the SEC views as illegally selling
securities without registering with the commission.
Elon Musk's X sues Media Matters for defamation over report
about antisemitic content
Elon Musk's X Corp. sued Media Matters on Monday, claiming the
media watchdog group defamed the social-media company last week
with a report that pro-Nazi posts were appearing next to ads by
The lawsuit, filed in U.S. District Court for the Northern
District of Texas, claimed Media Matters "knowingly and
maliciously" manufactured misleading images and portrayed them as
if they were a typical user experience, and accused the
organization of a "smear campaign" against X, the former
Chinese Premier Heads New Financial Body, Warns of Risks
Chinese Premier Li Qiang on Monday chaired a meeting as head of
the Communist Party's new agency that oversees the nation's
financial sector, urging to step up regulation and ward off
Li was named as head of the Central Financial Commission, which
was set up earlier this year as part of efforts to enhance the
party's supervision and control over the country's financial
sector, according to the state-run Xinhua News Agency.
Bonds Could Be the Star Asset Class of 2024 - Talking
Bond investors are increasingly optimistic that 2024 will be a
good year for fixed-income assets as interest-rate hikes finally
look to have come to an end.
With inflation dropping back and economies faltering, investors
are now looking to the prospect of rate cuts as early as in the
first half of next year.
Write to firstname.lastname@example.org
TODAY IN CANADA
George Weston 3Q
Economic Calendar (ET):
0830 Oct CPI
0830 Oct New Housing Price Index
1600 Canadian Finance Minister Chrystia Freeland presents the
Fall Economic Statement
Stocks to Watch:
MDA Confirms Plans to Expand in the U.K.; Set to Double U.K.
Workforce; Aims to Hire 75 New Employees in the U.K. by End-2024;
to Also Expand Operations Across the U.K.
Expected Major Events for Tuesday
07:00/UK: Oct Public sector finances
08:59/JPN: Sep Final Labour Survey - Earnings, Employment &
11:00/FRA: 3Q OECD Quarterly National Accounts: GDP growth
13:30/CAN: Oct CPI
13:30/US: Oct Chicago Fed National Activity Index (CFNAI)
13:30/CAN: Oct New Housing Price Index
13:55/US: 11/18 Johnson Redbook Retail Sales Index
15:00/US: Oct Existing Home Sales
21:30/US: 11/17 API Weekly Statistical Bulletin
All times in GMT. Powered by Kantar Media and Dow Jones.
Expected Earnings for Tuesday
Abercrombie & Fitch Co (ANF) is expected to report $1.10 for
Accord Financial (ACD.T) is expected to report for 3Q.
American Eagle Outfitters (AEO) is expected to report $0.48 for
Analog Devices (ADI) is expected to report $1.18 for 4Q.
Axcella Health Inc (AXLA) is expected to report for 3Q.
Best Buy Co Inc (BBY) is expected to report $1.19 for 3Q.
Broadway Financial Corp (BYFC) is expected to report for 3Q.
Burlington Stores Inc (BURL) is expected to report $0.96 for
Caleres Inc (CAL) is expected to report $1.28 for 3Q.
Chico's FAS Inc (CHS) is expected to report $0.01 for 3Q.
CohBar Inc (CWBR) is expected to report for 3Q.
Dick's Sporting Goods Inc (DKS) is expected to report $2.39 for
Digital Media Solutions Inc (DMSL) is expected to report for
Dycom Industries Inc (DY) is expected to report $1.76 for
ENGlobal (ENG) is expected to report for 3Q.
Embecta Corp (EMBC) is expected to report for 4Q.
Excellon Resources (EXN.T) is expected to report for 3Q.
Greenlane Holdings Inc (GNLN) is expected to report for 3Q.
Hibbett Inc (HIBB) is expected to report $1.11 for 3Q.
Home Capital (HCG-T) is expected to report $0.49 for 3Q.
Jacobs Solutions Inc (J) is expected to report for 4Q.
Kodiak Sciences Inc (KOD) is expected to report $-1.22 for
Kohl's Corp (KSS) is expected to report $0.39 for 3Q.
Lordstown Motors Corp (RIDE) is expected to report for 3Q.
Lowe's Cos (LOW) is expected to report $3.03 for 3Q.
Medtronic plc (MDT) is expected to report $0.84 for 2Q.
Movado Group Inc (MOV) is expected to report $0.70 for 3Q.
NVIDIA Corp (NVDA) is expected to report $3.03 for 3Q.
Navidea Biopharmaceuticals Inc (NAVB) is expected to report for
New Jersey Resources Corp (NJR) is expected to report $0.30 for
Prairie Provident Resources Inc (PPR.T) is expected to report
Quince Therapeutics Inc (QNCX) is expected to report for 3Q.
Reliv International Inc (RELV) is expected to report for 3Q.
SOPerior Fertilizer Corp (SOP.H.V) is expected to report for
Spark Networks SE - ADR (LOVLY) is expected to report for
StageZero Life Sciences Ltd (SZLS.T) is expected to report for
Urban Outfitters (URBN) is expected to report $0.78 for 3Q.
Weston (George) Ltd (WN.T,WNGRF) is expected to report $3.88 for
dLocal Ltd (DLO) is expected to report for 3Q.
iMedia Brands Inc (IMBIQ) is expected to report for 3Q.
Powered by Kantar Media and Dow Jones.
ANALYST RATINGS ACTIONS
2seventy bio Cut to Neutral From Outperform by Wedbush
Adtran Cut to Hold From Buy by Argus Research
Arvinas Raised to Buy From Neutral by Guggenheim
Biotricity Cut to Neutral From Buy by HC Wainwright &
Boeing Raised to Buy From Hold by Deutsche Bank
ChargePoint Cut to Hold From Buy by Stifel
Chegg Cut to Underweight From Equal-Weight by Morgan Stanley
Children's Place Cut to Neutral From Buy by B. Riley
Compass Minerals Raised to Neutral From Underweight by JP
Destination XL Group Cut to Hold From Buy by Craig-Hallum
Dorian LPG Raised to Buy From Hold by Jefferies
Dutch Bros Raised to Overweight From Neutral by JP Morgan
Energizer Holdings Cut to Neutral From Buy by UBS
KB Home Cut to Neutral From Outperform by Wedbush
Kingstone Cut to Underweight From Neutral by Piper Sandler
Krispy Kreme Cut to Neutral From Overweight by JP Morgan
LGI Homes Cut to Neutral From Buy by Seaport Global
Morgan Stanley Cut to Neutral From Outperform by Exane BNP
NanoString Technologies Cut to Market Perform From Outperform by
PENN Entertainment Raised to Buy From Neutral by B of A
Ryan Specialty Holdings Cut to Neutral From Buy by Goldman
Six Flags Raised to Buy From Hold by Jefferies
Spectrum Brands Cut to Equal-Weight From Overweight by Wells
Wingstop Cut to Neutral From Buy by Northcoast Research
WiSA Technologies Cut to Hold From Buy by Maxim Group
This article is a text version of a Wall Street Journal
newsletter published earlier today.
(END) Dow Jones Newswires
November 21, 2023 06:06 ET (11:06 GMT)
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