US STOCKS: Late Equities Roundup: Reversing Gains for Week
Oct-22 19:00
- Stocks indexes remain weaker late Wednesday, near session lows as gains for the week evaporate due to a confluence of factors including the ongoing US Gov shutdown, corporate earnings and China trade. Sentiment soured after Reuters reported the Trump administration is "considering broad restrictions of exports to China made with US software, citing an unnamed US official and three people briefed by US authorities."
- Currently, the DJIA trades down 367.47 points (-0.78%) at 46,560.8, S&P E-Minis down 52.5 points (-0.78%) at 6,720.5, Nasdaq down 306.2 points (-1.3%) at 22,648.52.
- Information Technology, Industrials and Consumer Discretionary sector shares lead the decline: laggers in the former include Texas Instruments -7.56%, Super Micro Computer -6.18%, Microchip Technology -6.11%, ON Semiconductor -5.68% and Lam Research -4.82%.
- Industrials: Lennox International -9.70%, Quanta Services -6.56%, Generac Holdings -5.43% and Carrier Global -4.65%. Consumer Discretionary: DoorDash -3.54%, Mohawk Industries -2.15%, Deckers Outdoor -2.14% and Amazon -2.07%.
- On the positive side, Consumer Staples and Health Care related shares lead gainers in the first half: Kenvue +2.95%, Philip Morris +2.75%, McCormick & Co +2.32% and Campbell's +1.77%. After reporting better than expected earrings Intuitive Surgical surged +14.13%, Boston Scientific +4.31%, Stryker +2.48% and HCA Healthcare +2.29%.
- Earnings expected to release after the close include Southwest Airlines, Raymond James, Churchill Downs, Alcoa, Crown Castle, United Rental, Lam Research, Tesla and IBM.
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PIPELINE: Corporate Bond Update: $5B Broadcom 3Pt Launched
Sep-22 18:58
- Date $MM Issuer (Priced *, Launch #)
- 09/22 $5B #Broadcom $1B 5Y +53, $2.25B +10Y +68, $1.75B +12Y +78
USDJPY TECHS: Holding On To The Bulk Its Latest Gains
Sep-22 18:55
- RES 4: 151.62 61.8% retracement of the Jan 10 - Apr 22 bear leg
- RES 3: 150.92 High Aug 1 and a key resistance
- RES 2: 149.64 76.4% retracement of the Aug 1 - Sep 17 bear leg
- RES 1: 148.38/149.14 High Sep 22 / High Sep 3
- PRICE: 147.73 @ 19:16 BST Sep 22
- SUP 1: 146.77/145.49 Low Sep 18 / 17 and a pivot support
- SUP 2: 145.40 50% retracement of the Apr - Aug upleg
- SUP 3: 144.10 61.8% retracement of the Apr - Aug upleg
- SUP 4: 143.45 Low Jul 3
USDJPY recovered sharply from last week’s low and the pair is holding onto the bulk of its latest gains. A bullish candle pattern on Sep 17 - a hammer formation - provided an early reversal signal. Last Wednesday, the pair breached a number of important short-term support levels, however, this has not confirmed a bearish threat. A continuation higher would open 149.14, the Sep 3 high. Pivot support is 145.49, the Sep 17 low.
BONDS: EGBs-GILTS CASH CLOSE: Mixed Curves Ahead Of PMIs
Sep-22 18:46
European yields were little changed Monday, with longer-end Gilts slightly outperforming their German counterparts.
- Yields opened the session a little higher coming in from the weekend, carrying on from a bond-bearish tone late last week, but gradually descended to session lows by mid-day London time with few immediate macro/headline movers in evidence.
- 10Y Gilt yields briefly hit a post-Sept 4 high (4.724%) but otherwise trade was largely within last week's ranges.
- Comments from BOE's Pill and Bailey didn't prove impactful. MNI's Macro team noted however that all seven of the non-dissenting MPC members are due to make public appearances before the end of September.
- On the day, the UK curve bull flattened, with Germany's twist steepening.
- Periphery/semi-core EGB spreads widened slightly. BTP spreads were a little wider, despite Friday's one-notch rating upgrade to Italy from Fitch; France's were little changed following Friday's one-notch downgrade from Morningstar DBRS.
- Tuesday's schedule includes flash September PMIs, and another appearance by BOE's Pill.
Closing Yields / 10-Yr EGB Spreads To Germany
- Germany: The 2-Yr yield is down 0.5bps at 2.018%, 5-Yr is down 0.6bps at 2.32%, 10-Yr is unchanged at 2.748%, and 30-Yr is up 2bps at 3.357%.
- UK: The 2-Yr yield is down 0.2bps at 3.98%, 5-Yr is down 0.2bps at 4.13%, 10-Yr is down 0.3bps at 4.712%, and 30-Yr is down 1.1bps at 5.548%.
- Italian BTP spread up 1.2bps at 79.7bps / Spanish up 0.3bps at 55.1bps
