PIPELINE: Late Equities Roundup: Bank, Chips & Media Stocks Lead Post-CPI Rally
Jan-15 2025 19:26
- Stocks surged higher Wednesday after core inflation data slowed for December. After a couple rounds of profit taking major indexes looked to test session highs again in late trade with the DJIA up up 706.28 points (1.66%) at 43225.25, S&P E-Minis up 105 points (1.79%) at 5987.5, Nasdaq up 445.2 points (2.3%) at 19489.8.
- Financials, Communication Services and Information Technology sectors continued to outperform in late trade, banks led gainers after better than expected earnings were reported by Blackrock +4.72%, Bank of NY Melon +7.97%, Wells Fargo +7.19%, JP Morgan +1.85%, Goldman Sachs +6.03% and Citigroup +7.33% this morning.
- Interactive media and entertainment shares helped the Communication Services sector rebound after declining the last couple sessions: Meta +4.27%, Alphabet +3.10%, Netflix gained 2.37%. Same for IT with semiconductor shares trading stronger despite ongoing curbs on China exports: Micron Technologies +6.00%, Qualcomm +3.5%, Advanced Micro Devices +3.38%, Nvidia +2.91%.
- On the flipside, Health Care and Consumer Staples sectors underperformed in late trade, pharmaceuticals weighing on the former with Viatris -2.94%, AbbVie -2.40%, Charles River Labs -1.56%. Food manufacturers weighed on the Consumer Staples sector: Hershey -3.01%, Conagra -1.98% and Kroger -1.3%.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
CANADA: TD Securities Expect T-Bill Issuance To Lead The Way
Dec-16 2024 19:26
- TD Securities write that the government is on pace to issue $228bn worth of GoCs, exactly in line with the 2024/25 DMS.
- They expect stable bond issuance into 2025 as the government would likely have already begun to increase auction sizes if it “anticipated a significant change in its issuance trajectory”.
- “We instead look for the $7bn increase in funding for 2024/25 to be sourced from money markets.”
- T-bill issuance is on pace to finish the year at C$270bn outstanding, close to $272bn T-bill stock from the 2024/25 DMS.
- “An increase to $279bn by the end of the fiscal year would be manageable for markets, though it's worth noting that we're already assuming that T-bill stock will need to increase by an additional $14bn in FY 2025/26.”
- “Drawing down cash reserves would also be plausible, though the 24/25 DMS already incorporated at $16bn reduction in cash holdings, and we doubt the government would be keen push cash on hand to below $20bn”
US: Trump's Agenda Broadly Popular But Voters Not Sold On Tariffs
Dec-16 2024 19:23
A new CNBC survey has found that “Americans say they are ready to support President-elect Donald Trump in his second term and majorities give a green light to some of his controversial promises on the campaign trail.”
- Yet, according to the survey, “the public is flashing yellow and red warning lights on some parts of the Trump agenda.”
- The survey notes support for tariffs is more lukewarm, "with 27% backing them outright and 24% saying it can be done later in the term. It’s opposed by 42% of respondents."
- The survey’s Republican pollster noted: “Trump’s walking into his second term with more sour moods about the current economy, but more hopeful attitudes about what’s to come.″
Figure 1: Green Lights for Trump Agenda
Source: CNBC
Figure 2: Yellow and Red Lights for Trump Agenda
Source: CNBC
NDP LEADER SINGH SAYS JUSTIN TRUDEAU MUST RESIGN
Dec-16 2024 19:19
- NDP LEADER SINGH SAYS JUSTIN TRUDEAU MUST RESIGN
- SINGH HASN’T DECIDED HOW TO VOTE ON FUTURE CONFIDENCE MOTIONS
