Stansberry Research

Thursday Morning Market Preview, Calendars

C. Scott GarlissStansberry NewsWire

Morning Market Preview:

S&P futures are lower, down 29 to 30 points, as…

  • The Federal Reserve’s Beige Book showed domestic economic growth has slowed and business contacts expect little change in the months ahead as spending power dwindles.
  • Federal Reserve Bank of Cleveland President Loretta Mester said inflation growth is finally starting to slow but interest rates need to rise above 5%.
  • Federal Reserve Bank of St. Louis President James Bullard said the central bank is close to achieving restrictive monetary policy and he favors interest rates topping 5% sooner than later.
  • Federal Reserve Bank of Philadelphia President Patrick Harker said inflation growth continues to slow and reiterated his support for raising interest rates by 25 basis points in February.

European markets fell as…

  • European Central Bank President Christine Lagarde said inflation remains far too elevated and vowed that the central bank remains committed to achieving a return to its targeted annual rate of price growth.  
  • The Bank of England’s credit conditions survey showed lenders expect mortgage and consumer loan availability to decrease in the December through February period and for the number of loan defaults to increase. 
  • German Chancellor Olaf Scholz said growth in Europe’s biggest economy is back on track after transitioning away from Russian energy supplies.
  • European Central Bank Governing Council member Olli Rehn said significant interest rate hikes are necessary in the near term to keep inflation expectations and growth subdued.

Asian markets were mixed as…

  • U.S. Treasury Secretary Janet Yellen said she would soon travel to Beijing to meet with Chinese Vice Premier Liu He in an attempt to rebuild relations between the two nations.
  • Japan’s trade gap for December eased compared to November as the yen strengthened and energy costs eased.
  • Australia’s consumer inflation expectations for January rose compared to December but remained below the June peak for the seventh straight month.
  • The People’s Bank of China added another $76 billion worth of funds to the financial system vis reverse repurchase operations to boost liquidity, bringing the two-day total to $220 billion.

And ahead of…

  • Building Permits for December (8:30 a.m.)
  • Continuing, Initial Jobless Claims (8:30 a.m.)
  • Housing Completions, Starts for December (8:30 a.m.)
  • Philadelphia Fed Manufacturing Index for January (8:30 a.m.)
  • Energy Information Administration Weekly Petroleum Inventories (11 a.m.)
  • ECB's Schnabel Speaks (12 p.m.)
  • Fed's Brainard Speaks (1:15 p.m.)
  • U.K. – GfK Consumer Confidence for January

Pre-Market Levels:

S&P -0.75%

Asia:

Japan's Nikkei -1.44%, Japan's TOPIX -1.05%, China's Shanghai Composite +0.49%, Hong Kong Hang Seng Index -0.12%, South Korea's KOSPI +0.51%, Taiwan's TSE +0.04%

Europe:

EuroStoxx 50 -1.67%, UK FTSE -1.04%, German DAX -1.56%, French CAC -1.53%, Italian MIB -1.33%, Spanish IBEX -1.77%       

Currencies:

Dollar -0.02%, Japanese Yen -0.39%, Euro +0.27%, British Pound +0.08%, Swiss Franc -0.04%, Chinese Yuan +0.56%

Risk:

VIX +5.60%

Bitcoin -0.14%

Ethereum -0.44%

Growth:

WTI Crude -0.62%

Brent Crude -0.48%

Nat Gas +1.69%

Copper -1.16%

Safety:

Gold +0.16%

Silver -0.58%

Sovereign Bonds:

U.S. Treasury 10-yr yield +1.5 bps at 3.39%

U.S. Treasury 2-yr yield +1.0 bps at 4.09%

German 10-yr yield +6.6 bps at 2.07%

French 10-yr yield +7.2 bps at 2.51%

Italian 10-yr yield +9.9 bps at 3.84%

Japanese 10-yr yield -2.0 bps at 0.41%

Earnings:

ADX, AMNB, BANF, BSET, CRSB, CVLY, CZNC, HIFS, HSBI, INDB, JDVB, PEO, UBAB, WABC, BANC, BKU, CMA, HOMB, KEY, MTB, NTRS, PG, SNV, TFC, CBSH, FITB, IIIN, FAST, and MNSB before the open.

AMTB, BANR, CNXC, CSTR, FPH, MCB, OCFC, OZK, PPG, NFLX, SIVB, SRCE, and IDW after the close.

Calendar:

Japan – Exports, Imports for December
U.K. – RICS House Price Balance for December
ECB's Lagarde Speaks (5:30 a.m.)
Fed's Williams Speaks (6:35 a.m.)
ECB Meeting Minutes (7:30 a.m.)
Building Permits for December (8:30 a.m.)
Continuing, Initial Jobless Claims (8:30 a.m.)
Housing Completions, Starts for December (8:30 a.m.)
Philadelphia Fed Manufacturing Index for January (8:30 a.m.)
Energy Information Administration Weekly Petroleum Inventories (11 a.m.)
ECB's Schnabel Speaks (12 p.m.)
Fed's Brainard Speaks (1:15 p.m.)
U.K. – GfK Consumer Confidence for January