US STOCKS: Midday Equities Roundup: Off Highs, Position Squaring Ahead Next FOMC
Dec-05 17:37
- Stocks are holding modest gains at midday Friday, inside session ranges after climbing to the best levels since late October (SPX eminis) to early November (DJIA). Currently, the DJIA trades up 48.89 points (0.1%) at 47898.98, S&P E-Mini Futures up 4 points (0.06%) at 6870.75, Nasdaq up 22.4 points (0.1%) at 23526.81.
- Sentiment was cautious positive ahead of an expected 25bp rate cut from the Fed next week (potential for hawkish messaging), while the morning's mixed data spurred some position squaring.
- U.Mich consumer sentiment was higher than expected in the preliminary December release, as better expectations offset disappointing current conditions. It was supported by lower inflation expectations but we continue to caution reading too much into these preliminary results.
- The delayed personal income and outlays report for September saw a decline in goods spending offset more-of-the-same for services consumption. It still left real spending up a solid 2.7% in Q3 whilst the savings rate saw a second month at its lowest since December.
- A mix of Materials, Health Care and Consume Discretionary sector shares led advances in the first half: Ulta Beauty +14.08% after beating Q3 earnings estimates, Albemarle +7.54%, Dollar Tree +7.09%, Cooper Cos Inc +7.06%, Dollar General +6.27%, Sandisk Corp +5.90% and Moderna Inc +5.53%.
- Meanwhile, leading decliners included: Paramount Skydance -7.35% (after Netflix struck a $82.7B deal to buy Warner Bros), W R Berkley -7.10%, Robinhood Markets -4.20%, Leidos Holdings -4.12%, Vistra Corp -4.10%, Huntington Ingalls Industries -3.71% and Netflix Inc -3.35%.
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US: Democrats Harden Stance On Deal To Reopen Govt In Light Of Election Results
Nov-05 17:27
Sarah Ferris at CNN reports on X, “Senate Dems involved in talks to end shutdown are using election to try to spur GOP to back a framework to temporarily extend ACA with some reforms to reopen govt, per 2 sources. “With that it ends fast; without we stare at each other another week.”
- The report appears to confirm that the ‘blue wave’ overperformance at yesterday’s elections has bolstered Democrats' position that a hardline stance on reopening the government is endorsed by voters.
- Senate Minority Leader Chuck Schumer (D-NY) said at a press conference a few moments ago: “Last night [election result] was clear, unmistakable, as a repudiation of Trump and a vindication of what Democrats have been fighting for over the past several months…”
- Schumer said voters, “know that Democrats are fighting for them and Republicans are doing nothing to address the healthcare crisis. And last night Republicans felt the political repercussions.”
- Schumer maintained that he will not endorse reopening the government until Republicans, “sit down with us and address the healthcare crisis.” Adds: “That’s the way to end the shutdown. Plain and simple.”
- When asked if he supports Senator Jeanne Shaheen’s (D-NH) initiative to reopen the government with a bipartisan deal, Schumer says: “I’ve always encouraged Republicans and Democrats to sit down and talk with each other but all Democrats agree that Trump should sit down and talk as a way to solve this.”
PIPELINE: Corporate Bond Update: Santos, CBRE, Mattel Launched
Nov-05 17:13
- Date $MM Issuer (Priced *, Launch #)
- 11/05 $1B #Santos Finance 10Y +168
- 11/05 $750M #CBRE Services 7Y +98
- 11/05 $600M #Mattel 5Y +130
- 11/05 $Benchmark Equinix 5Y +85
- 11/05 $Benchmark Polaris +5Y +200a
- 11/05 $Benchmark KEPCO 3Y SOFR+62, 5Y +47
- 11/05 $Benchmark Intercontinental Exchange 3Y +45, +5Y +60
- 11/05 $Benchmark Apollo Global Mgt 5Y +110a, 10Y +130a
- 11/05 $Benchmark Transcontinental Gas Pipeline 10Y +120a, 30Y +130a
FED: US TSY TO SELL $58.000 BLN 3Y NOTES NOV 10, SETTLE NOV 17
Nov-05 17:05
- US TSY TO SELL $58.000 BLN 3Y NOTES NOV 10, SETTLE NOV 17
