US STOCKS: Late Equities Roundup: Drifting Near Highs
Jan-23 20:01
- US stocks remain mixed late Thursday, the DJIA outperforming since President Trump addressed the World Economic Forum in Davos - demanding an immediate drop in interest rates and oil prices.
- Currently, the DJIA trades up 329.87 points (0.75%) at 44485.06, S&P E-Minis up 14.5 points (0.24%) at 6134.5, Nasdaq down 41.8 points (-0.2%) at 19966.92.
- Industrials and Health Care sectors led gainers in the second half, transportation stocks supporting the former with General Electric +6.30%, Union Pacific +5.14%, GE Vernova +3.69%.
- The Health Care sector was buoyed by pharmaceutical makers: Moderna +6.86%, Abbott Labs +3.68%, Bristol-Myers Sqibb +3.38%.
- On the flipside, Information Technology sector shares underperformed with profit taking weighing on semiconductor stocks after Wednesday's strong gains: Micron Tecnology -4.14%, Lam Research both -3.13%, Applied Materials -2.93% and Teradyne -2.65%.
- Earnings expected from Texas Instruments, CSX Corp and Intuitive Surgical after the close.
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LOOK AHEAD: Thursday Data Calendar: Weekly Claims, Tsy Bills & 7Y Note Sale
Dec-24 18:38
- US Data/Speaker Calendar (prior, estimate)
- Dec-26 0830 Initial Jobless Claims (220k, 223k)
- Dec-26 0830 Continuing Claims (1.874M, 1.881M)
- Dec-26 1130 US Tsy $75B 4W, $70B 8W bill auctions
- Dec-26 1300 US Tsy $44B 7Y Note auction & $64B 17W bills
STIR: FED Reverse Repo Operation
Dec-24 18:24
RRP usage climbs to $180.989B this afternoon from $116.004B yesterday. Compares to $98.356B last Friday - the lowest level since mid-April 2021. The number of counterparties climbs to 52 from 47 prior.
US TSYS: Late Session Rebound, Post-Auction Short Sets Unwound
Dec-24 18:19
- Treasury futures look to finish Tuesday's shortened Christmas-eve session near session highs, TYH5 +2.5 at 107-17 vs. 108-19 high, after trading much of the session weaker. The 10Y contract had breached a couple levels of technical support on it's way down to 108-09.5 low, 10Y yield climbing to 4.8160% high last seen in late May.
- Rates recovered soon after the $70B 5Y note auction (91282CMD0) stopped 0.2bp through (second consecutive stop since June): drawing 4.478% high yield vs. 4.480% WI; 2.40x bid-to-cover vs. 2.43x for the prior auction.
- The bounce helped projected rate cuts into early 2025 look steady to slightly higher vs. this morning (*) as follows: Jan'25 steady at -2.1bp, Mar'25 at -12.6bp (-11.7bp), May'25 -17.2bp (-16.7bp), Jun'25 -24.6bp (-23.1bp).
- No substantive reaction to regional Fed data:
- -6.0 reading for December's Philadelphia Fed's Nonmanufacturing current regional activity index (-2.4 expected) represented a steady outturn from -5.9 prior, and suggested a regional services sector that remained "weak", per the report.
- Richmond Fed's regional manufacturing survey index came in in at -10 as expected in December, the best reading since June (-14 prior). The shipments and employment subindices were flat, but new orders saw a solid improvement to -11 from -19 prior.
- Markets closed for Christmas holiday Wednesday, Globex pre-open Wednesday evening at 1700ET/re-open at 1800ET. Full sessions Thursday & Friday.
