Stansberry Research

Thursday Morning Market Preview, Calendars

C. Scott GarlissStansberry NewsWire

Morning Market Preview:

S&P futures are higher, up 5 to 6 points, as…

  • Federal Reserve minutes from the most recent monetary-policy meeting showed officials believe further rate increases are still needed but economic-growth risks are tilted lower.
  • Investors await December employment figures from payroll and benefits administrator Automatic Data Processing (ADP) for clues on the strength of the domestic labor market.
  • The Federal Reserve Bank of New York warned there will likely be a surge in credit-card and auto-loan delinquencies if the government’s student debt relief plan fails.
  • Cloud-based services and online-retail giant Amazon (AMZN) said it will reduce headcount by more than originally anticipated as the company downsizes due to slowing customer demand.

European markets are mixed as…

  • Eurozone Producer Price Index (“PPI”) growth for November registered its third straight month of Y/Y declines, recording the lowest annual growth rate since December 2021 as pricing pressures continued to ease. 
  • European Energy Exchange data showed Germany produced a record amount of power from wind, as the region experiences above-average temperatures, easing natural-gas demand.
  • British Prime Minister Rishi Sunak pledged to reduce the nation’s debt load, ease inflation, and spur economic growth in an attempt to garner more public support for the Tory party.
  • European Central Bank researchers suggested higher prices should boost nominal economic output and governments’ ability to service previously issued sovereign debt.

Asian markets rose as…

  • The People’s Bank of China said it will use multiple monetary policy tools and ensure there’s an ample amount of liquidity in the financial system to support economic growth.
  • Samsung Electronics Consumer Products CEO Hong Jong-hee said he doesn’t expect demand for technology goods to rebound until the second half of 2023.
  • Taiwan’s government said it will hold trade talks with the U.S. in Taipei in mid-January, potentially stoking political tensions with China.
  • Japanese Prime Minister Fumio Kishida said he would encourage businesses to increase employee pay, signaling inflation may force the Bank of Japan to tighten monetary policy.

And ahead of…

  • ADP Employment Survey for December (8:15 a.m.)
  • Continuing, Initial Jobless Claims (8:30 a.m.)
  • Imports, Exports for November (8:30 a.m.)
  • PMI Composite (Final) for December (9:45 a.m.)
  • Markit PMI Services (Final) for December (9:45 a.m.)
  • Energy Information Administration Weekly Petroleum Inventories (11 a.m.)

Pre-Market Levels:

S&P +0.14%

Asia:

Japan's Nikkei +0.40%, Japan's TOPIX +0.08%, China's Shanghai Composite +1.01%, Hong Kong Hang Seng Index +1.25%, South Korea's KOSPI +0.38%, Taiwan's TSE +0.72%

Europe:

EuroStoxx 50 -0.13%, UK FTSE +0.45%, German DAX -0.10%, French CAC +0.05%, Italian MIB +0.09%, Spanish IBEX +0.42%       

Currencies:

Dollar -0.03%, Japanese Yen -0.10%, Euro +0.04%, British Pound -0.22%, Swiss Franc -0.27%, Chinese Yuan -0.24%

Risk:

VIX +0.14%

Bitcoin +0.02%

Ethereum +0.09%

Growth:

WTI Crude +2.05%

Brent Crude +2.11%

Nat Gas -3.98%

Copper +2.43%

Safety:

Gold -0.39%

Silver -1.46%

Sovereign Bonds:

U.S. Treasury 10-yr yield -2.1 bps at 3.69%

U.S. Treasury 2-yr yield +0.2 bps at 4.39%

German 10-yr yield +0.2 bps at 2.28%

French 10-yr yield -0.6 bps at 2.79%

Italian 10-yr yield -1.0 bps at 4.28%

Japanese 10-yr yield -3.5 bps at 0.43%

Earnings:

BKE, MSM, ANGO, RPM, SCHN, SMPL, STZ, WBA, CAG, and LW before the open.

DCT, EDUC, FC, KRUS, AEHR, BBBY, CCF, and PKE after the close.

Calendar:

Germany – Imports, Exports for November (2 a.m.)
Germany – PMI Construction for December (3:30 a.m.)
U.K. – CIPS Services PMI (Final) for December (4:30 a.m.)
Eurozone PPI for November (5 a.m.)
Challenger Layoffs for December (7:30 a.m.)
ADP Employment Survey for December (8:15 a.m.)
Continuing, Initial Jobless Claims (8:30 a.m.)
Imports, Exports for November (8:30 a.m.)
PMI Composite (Final) for December (9:45 a.m.)
Markit PMI Services (Final) for December (9:45 a.m.)
Energy Information Administration Weekly Petroleum Inventories (11 a.m.)