S&P CoreLogic Case-Shiller Home Px Index for September;
Conference Board -- Consumer Confidence for November
Today's Top Headlines/Must Reads:
- The Stocks That AI Mania Left Behind
- Advertising Is Dead. Long Live Advertising.
- Microsoft Needs a Better Seat at OpenAI's Table
Stock futures wavered on Tuesday as the November rally took
another pause for breath.
With prospects for Federal Reserve policy still foremost in
investors' minds, the looming PCE inflation report for October may
be encouraging trader reticence, Hargreaves Lansdown said.
"Subdued sentiment is hanging around with investors keeping
their powder dry ahead of a key inflation report in the U.S., while
the impact of elevated interest rates on economies is still being
assessed," it said.
Europe's Stoxx 600 was lower as healthcare and food and drink
stocks weighed, and Japan's Nikkei 225 closed down 0.1%, while
mainland Chinese markets were higher.
Carlyle Group is set to join the S&P MidCap 400 index,
S&P Dow Jones Indices said late Monday. The change will force
funds that track the index to buy Carlyle shares. The stock rose
iRobot rose 1.5% in premarket trading after tumbling 17% on
Monday following a "statement of objections" from the European
Commission to the company's pending deal to be acquired by
Zscaler fell nearly 6% in premarket trading. It reported a
quarterly loss late Monday. Competitor CrowdStrike Holdings was
Monday's Post-Close Movers
Acelyrin said there was a programming error in its drug trial of
a treatment for psoriatic arthritis. Shares dropped 9%.
iBio announced a 20-to-1 reverse stock split. Shares declined
The dollar should fall further if consumer confidence data is
weaker than expected, potentially lifting EUR/USD to 1.10,
"Anything that suggests that a recession is looming and that Fed
Funds might soon fall again, seems to be taken as an opportunity to
trade the dollar weaker."
There is little chance of the dollar recovering even in the
event of surprising strong data as "the risks are asymmetrical - to
the dollar's disadvantage," Commerzbank said.
Lombard Odier said the dollar is expected to remain supported
against other major developed market currencies in the coming
This would see the euro moving toward the bottom of a 1.00-1.10
range versus the USD in 1H 2024. However, lower U.S. yields and a
global growth recovery could eventually shift the dollar lower in
2H 2024, it added.
Among other currencies Lombard Odier continues to favor the
Swiss franc, is more neutral on the euro, and remains cautious on
The higher interest-rate base gives bonds with good credit
ratings a new justification in a mixed portfolio, as they now offer
an adequate return and also act as a portfolio stabilizer, Eyb
& Wallwitz said.
"Interest rate cuts from the middle of next year will lead to a
further decline in yields on government and investment grade bonds,
which is why we are sticking to the duration build-up that has
already taken place," it said.
A renewed rise in core inflation is a key risk for bonds in
Oil prices edged higher on a weaker dollar and growing
expectations of deeper output cuts at the upcoming OPEC+ meeting on
"If OPEC+ want to provide more solid support to the market and
ensure that we do not see stocks building early next year, they
will need to agree on deeper and broader cuts," ING said.
Yet, "with aggressive cuts already in place, it does leave one
wondering the degree to which the group could surprise the market
with deeper-than-expected cuts."
Base metals and gold prices were little changed, with the
macroeconomic sentiment neither pushing prices one way or the
"Stock markets and the dollar still believe in the dovish Fed,
but Crude Oil and forward-looking inflation expectations are
bracing for softer demand and lower global growth," Peak Trading
Peak added that commodity markets will be looking ahead to
Thursday, with OPEC+ due to meet to discuss oil output, while the
U.S. PCE inflation reading is also due.
TODAY'S TOP HEADLINES
Fast-Fashion Giant Shein Files to Go Public
Shein, the China-founded online fashion company that won over
hundreds of millions of shoppers around the world, has
confidentially filed to go public in the U.S. in what could be one
of the biggest IPOs in years.
Goldman Sachs, JPMorgan Chase and Morgan Stanley have been hired
as lead underwriters on the offering, which could happen in 2024,
people familiar with the matter said.
5 Oil & Gas Companies on the Brink of Big Earnings
Energy stocks have been the worst performers in the market over
the past three months as oil prices have fallen.
Crude dropped on Monday for the fourth day in a row, but
earnings could be the key to the stocks' rebound.
PBOC Governor Calls for More Efforts to Transform China's
China's central bank governor warned against continuing to rely
on infrastructure and real-estate sectors, and pointed to the need
to nurture new growth drivers as Beijing looks to chart a new path
for the world's second-largest economy.
Though "the traditional model of relying heavily on
infrastructure and real estate might generate higher growth," it
delays structural adjustment and undermines the sustainability of
economic expansion, People's Bank of China Gov. Pan Gongsheng said
in a keynote speech Tuesday at a financial conference in Hong
Black Friday online spending reaches record levels, but Wall
Street is not impressed
Online spending on Black Friday reached record levels, and Cyber
Monday is expected to be the biggest online shopping day ever, as
inflation-fatigued shoppers zero on in the biggest holiday
But even amid signs of better demand after two years of
holiday-season disruptions, Wall Street's reservations,
particularly around physical stores, remain intact, and one analyst
said it was wise to keep "muted expectations" for the period.
S&P 500 may rise 10% by end of 2024 amid worries that
small-cap stocks 'can't hack' higher rates, says BofA
U.S. stocks will probably keep climbing next year, with S&P
500 companies in a stronger position to adapt to higher interest
rates than smaller ones, according to BofA Global Research.
BofA is forecasting that the S&P 500 will end 2024 at 5,000,
which is up about 10% from the index's closing level Monday at
4,550.43. The S&P 500 SPX, which tracks U.S. large-cap stocks,
has far stronger gains in 2023 than the small-cap-focused Russell
Bitcoin Prices Slip but 'Momentum Is Mounting.' Where Cryptos
Can Go Next.
Bitcoin and other cryptocurrencies slipped Tuesday, retreating
from recent highs, but crypto traders remain bullish on the latest
rally in digital assets with fundamentals and technicals alike
fueling bullish sentiment.
The price of Bitcoin has fallen 1% over the past 24 hours to
$37,100, with the largest digital asset falling further from an
18-month high notched last week above $38,000, the zenith of a
rally that has carried prices more than 30% higher since early
October. Bitcoin's gains largely have come amid optimism that U.S.
regulators will soon approve the first spot Bitcoin exchange-traded
fund (ETF), a move that is widely expected to usher in a fresh wave
of investor interest in cryptos.
Russian Court Extends Detention of WSJ Reporter
A Russian court ruled to extend the detention of Wall Street
Journal reporter Evan Gershkovich for a third time since he was
taken into custody in March on an allegation of espionage that he,
the Journal and the U.S. government vehemently deny.
The decision followed a judge's ruling in August to grant the
request of investigators from the Federal Security Service, or FSB,
that Gershkovich remains behind bars awaiting trial until Nov. 30.
Tuesday's ruling lengthens his detention through at least Jan. 30,
by which time he will have been held for 10 months.
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TODAY IN CANADA
Alimen. Couche-Tard 2Q
Bank of Nova Scotia 4Q
Economic Calendar (ET):
Stocks to Watch:
Calian Group 4Q EPS C$0.43; 4Q Rev C$175.9M; Sees FY24 Rev
C$730M-C$790M; 4Q Adj EPS C$1.07
Expected Major Events for Tuesday
00:01/UK: Oct Zoopla House Price Index
00:01/UK: Nov Shop Price Index
07:00/GER: Dec GfK consumer climate survey
07:45/FRA: Nov Consumer confidence survey
09:00/ITA: Oct Foreign Trade non-EU
13:55/US: 11/25 Johnson Redbook Retail Sales Index
14:00/US: 3Q U.S. Quarterly House Price Index
14:00/US: Sep U.S. Monthly House Price Index
14:00/US: Sep S&P CoreLogic Case-Shiller Indices
15:00/US: Nov Richmond Fed Business Activity Survey
15:00/US: Nov Consumer Confidence Index
18:00/US: Oct Money Stock Measures
21:30/US: 11/24 API Weekly Statistical Bulletin
23:50/JPN: Nov Provisional Trade Statistics for 1st 10 days of
All times in GMT. Powered by Kantar Media and Dow Jones.
Expected Earnings for Tuesday
AZEK Company Inc (AZEK) is expected to report for 4Q.
Alimentation Couche Tard Inc (ATD.T) is expected to report for
Axcella Health Inc (AXLA) is expected to report for 3Q.
Bank of Nova Scotia (BNS,BNS.T) is expected to report $1.37 for
Broadway Financial Corp (BYFC) is expected to report for 3Q.
Chico's FAS Inc (CHS) is expected to report $0.01 for 3Q.
Citi Trends Inc (CTRN) is expected to report $0.04 for 3Q.
CohBar Inc (CWBR) is expected to report for 3Q.
CrowdStrike Holdings Inc (CRWD) is expected to report for
Dollar Tree Inc (DLTR) is expected to report $1.01 for 3Q.
Excellon Resources (EXN.T) is expected to report for 3Q.
Greenlane Holdings Inc (GNLN) is expected to report for 3Q.
Hewlett Packard Enterprise Co (HPE) is expected to report $0.35
Home Capital (HCG-T) is expected to report $0.49 for 3Q.
Intuit Inc (INTU) is expected to report $0.20 for 1Q.
Leslie's Inc (LESL) is expected to report for 4Q.
NetApp Inc (NTAP) is expected to report $1.00 for 2Q.
Platinum Group Metals Ltd (PLG,PTM.T) is expected to report for
Spark Networks SE - ADR (LOVLY) is expected to report for
Splunk Inc (SPLK) is expected to report $0.16 for 3Q.
TAG Oil (TAO.V,TAOIF) is expected to report for 2Q.
Workday Inc (WDAY) is expected to report $0.20 for 3Q.
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ANALYST RATINGS ACTIONS
Ametek Cut to Market Perform From Outperform by TD Cowen
Carnival Raised to Buy From Hold by Melius Research
Corteva Cut to Hold From Buy by Berenberg
Empire State Realty Trust Cut to In-Line From Outperform by
Evercore ISI Group
Federal Realty Raised to Outperform From In-Line by Evercore ISI
Foot Locker Cut to Sell From Neutral by Citigroup
GE HealthCare Techs Cut to Sell From Neutral by UBS
Graphic Packaging Cut to Market Perform From Strong Buy by
Lifeway Foods Cut to Market Perform From Outperform by Noble
Lucid Group Cut to Hold From Buy by Needham
Mondelez Raised to Outperform From Sector Perform by RBC
NanoString Technologies Cut to Neutral From Overweight by JP
Nogin Cut to Sell From Neutral by Alliance Global Partners
Old Dominion Freight Cut to Hold From Buy by Deutsche Bank
PotlatchDeltic Cut to Market Perform From Strong Buy by Raymond
Roku Raised to Buy From Neutral by Cannonball Research
Splunk Cut to Hold From Buy by Jefferies
Urban Edge Properties Cut to In-Line From Outperform by Evercore
Weyerhaeuser Cut to Market Perform From Strong Buy by Raymond
This article is a text version of a Wall Street Journal
newsletter published earlier today.
(END) Dow Jones Newswires
November 28, 2023 06:11 ET (11:11 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
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