Stansberry Research

Friday Morning Market Preview, Calendars

C. Scott GarlissStansberry NewsWire

Morning Market Preview:

S&P futures are lower, down 17 to 18 points, as...

  • Fourth-quarter earnings season formally gets underway with JPMorgan Chase (JPM), Citigroup (C), and Wells Fargo (WFC) releasing results this morning.
  • Federal Reserve Bank of St. Louis President James Bullard said he'd like to see interest rates above 5% as soon as possible and then pause hikes.
  • Federal Reserve Bank of Philadelphia President Patrick Harper said it would be appropriate to raise interest rates by 25-basis-point increments moving forward.
  • Federal Reserve Bank of Richmond President Thomas Barkin said he favors a slower path of interest-rate hikes from here.

European markets rose as...

  • German gross domestic product ("GDP") growth stagnated in the final quarter of 2022 and grew 1.9% over the full year, adding to signs that Europe's largest economy may - at least over the winter - dodge a recession.
  • Bank of England Monetary Policy Committee member Catherine Mann called for continued aggressive rate hikes, saying underlying inflation growth remains "robust."
  • European Central Bank Governing Council member Yannis Stournaras said he's encouraged by the lack of wage-price growth, which is helping to keep inflation from worsening.
  • The European Central Bank said consumers' inflation expectations for the next 12 months have started to ease, falling from 5.4% in October to 5% in November.

Asian markets were mixed as…

  • The Bank of Korea raised its benchmark seven-day repurchase rate by another 25 basis points to 3.5% as Governor Rhee Chang-yong said the economy likely contracted in the fourth quarter.
  • Chinese export contraction for December was less than expected as the pace of decline in shipments to Canada, Japan, and the U.S. eased.
  • Japanese Prime Minister Fumio Kishida and U.S. President Joe Biden are meeting at the White House to discuss regional security and limiting China’s access to semiconductor technology.
  • Chinese Premier Li Keqiang said the government will enact more policies to cut red tape for small- and medium-sized businesses to boost economic growth.

And ahead of…

  • Export, Import Prices for December (8:30 a.m.)
  • University of Michigan Preliminary Consumer Sentiment for January (10 a.m.)
  • Baker Hughes Rig Count Data (1 p.m.)
  • CFTC Commitment of Traders Report (3:30 p.m.)

Pre-Market Levels:

S&P -0.42%

Asia:

Japan's Nikkei -1.25%, Japan's TOPIX -0.28%, China's Shanghai Composite +1.01%, Hong Kong Hang Seng Index +1.04%, South Korea's KOSPI +0.89%, Taiwan's TSE +0.63%

Europe:

EuroStoxx 50 +0.42%, UK FTSE +0.53%, German DAX +0.23%, French CAC +0.13%, Italian MIB +0.14%, Spanish IBEX +0.67%       

Currencies:

Dollar +0.12%, Japanese Yen -0.44%, Euro -0.39%, British Pound -0.30%, Swiss Franc +0.24%, Chinese Yuan -0.23%

Risk:

VIX +2.18%

Bitcoin -0.35%

Ethereum -1.58%

Growth:

WTI Crude +0.71%

Brent Crude +0.62%

Nat Gas +1.03%

Copper -0.60%

Safety:

Gold +0.27%

Silver -0.60%

Sovereign Bonds:

U.S. Treasury 10-yr yield +2.2 bps at 3.47%

U.S. Treasury 2-yr yield +1.4 bps at 4.15%

German 10-yr yield -4.7 bps at 2.12%

French 10-yr yield -4.1 bps at 2.58%

Italian 10-yr yield -7.4 bps at 3.92%

Japanese 10-yr yield -0.7 bps at 0.50%

Earnings:

BLK, DAL, FRC, UNH, BK, BAC, JPM, WFC, C, CNBB, FNGR, MYBF, PIXY, and SMIT before the open.

Calendar:

Bank of Korea Rate Policy Announcement
U.K. – Construction Output for November
(2 a.m.)
U.K. – Gross Domestic Product (GDP) for November
(2 a.m.)
U.K. – Index of Services for November (2 a.m.)
U.K. – Industrial, Manufacturing Production for November (2 a.m.)
U.K. – Trade Balance for November (2 a.m.)
France – CPI (Final)  for December (2:45 a.m.)
Eurozone – Industrial Production for November (5 a.m.)
Eurozone – Trade Balance for November (5 a.m.)
Export, Import Prices for December (8:30 a.m.)
University of Michigan Preliminary Consumer Sentiment for January (10 a.m.)
Baker Hughes Rig Count Data (1 p.m.)
CFTC Commitment of Traders Report (3:30 p.m.)