Wake Up Wall Street (SPY) (QQQ): Inflation is not transitory, and the Nasdaq is not happy
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UNLOCK OFFERHere is what you need to know on Wednesday, October 13:
So far so good after another inflation-confirming CPI report. Inflation is here for a bit longer than transitory, but so far the yield on the 10-year is remaining stable at 1.57%. The bond market may have been asleep at the wheel, but the dollar knew what to do and ralllied hard. The Nasdaq did not like that as the dollar is preempting higher yields. Later today the Fed releases minutes of its last meeting, which may give some clues as to just how hawkish it plans to become after its massive stimulus program.
Stocks are likely to tread water ahead of that. Well, not all stocks. With earnings season now upon us, those making the news will likely see some activity. JPMorgan kicks off the investment banking round with a positive tone. Higher yields should suit the banking sector anyway, and with record dealmaking investment banking revenues should be strong, certainly the JPMorgan case.
Supply chain issues once again jump to the forefront with a Bloomberg report yesterday on Apple having to curtail production of the new iPhone 13 due to supply issues around semiconductor chips, see more here. We will hear more of this in the coming earnings season.
The dollar remains strong at 1.1530 versus the euro and is rallying further as we speak post CPI data. Oil is at $80, gold at $1,762, and Bitcoin lower but still above $55,000.
See forex today.
European markets are higher: Eurostoxx +0.8%, FTSE +0.2% and DAX +0.8%.
US Futures are flat, having dropped now on the dollar strength and CPI.
Wall Street (SPY) (QQQ) top news
US CPI monthly 0.4% versus 0.3% expected. Yearly 5.4% versus 5.3% expected.
Iraq's oil minister says the price of oil is unlikely to go higher. President Putin says we do not want oil prices to skyrocket.
President Putin says Russia is ready to meet Europe's gas needs.
Port of LA to go 24/7 to try to alleviate shortages and supply chain issues. CNBC.
US to end the ban on non-essential travel to the US next month, all international travelers will need to be vaccinated. (DAL, AAL, IAG etc)
Blackrock (BLK): beats on EPS and revenue. AUM grew less than expected.
JPMorgan Chase (JPM): EPS well ahead of estimates, revenue also beats. Investment banking was strong.
SAP raises outlook.
Delta (DAL): EPS beats estimates, revenue also ahead.
Plug Power (PLUG) announces partnership with Airbus. Morgan Stanley upgrades.
Boeing (BA), American Airlines (AAL), and Southwest (LUV) to require workers to be vaccinated against covid.
Qualcomm (QCOM) announces share buyback.
Amazon (AMZN): British workers delivering for Amazon should get minimum wage among other entitlements, according to a lawyer launching an employee rights claim-Reuters.
Apple (AAPL) likely to cut iPhone 13 production by up to 10 million units, according to Bloomberg report, see more.
British American Tobacco (BTI) (BATS): US FDA authorized some e-cigarettes.
Blackberry (BB) up 3% premarket after a report on Tuesday announcing a collaboration with Google and Qualcomm for next-gen vehicle cockpits.
Earnings, Upgrades, Downgrades and premarket movers
Source: Benzinga Pro
Economic releases
Here is what you need to know on Wednesday, October 13:
So far so good after another inflation-confirming CPI report. Inflation is here for a bit longer than transitory, but so far the yield on the 10-year is remaining stable at 1.57%. The bond market may have been asleep at the wheel, but the dollar knew what to do and ralllied hard. The Nasdaq did not like that as the dollar is preempting higher yields. Later today the Fed releases minutes of its last meeting, which may give some clues as to just how hawkish it plans to become after its massive stimulus program.
Stocks are likely to tread water ahead of that. Well, not all stocks. With earnings season now upon us, those making the news will likely see some activity. JPMorgan kicks off the investment banking round with a positive tone. Higher yields should suit the banking sector anyway, and with record dealmaking investment banking revenues should be strong, certainly the JPMorgan case.
Supply chain issues once again jump to the forefront with a Bloomberg report yesterday on Apple having to curtail production of the new iPhone 13 due to supply issues around semiconductor chips, see more here. We will hear more of this in the coming earnings season.
The dollar remains strong at 1.1530 versus the euro and is rallying further as we speak post CPI data. Oil is at $80, gold at $1,762, and Bitcoin lower but still above $55,000.
See forex today.
European markets are higher: Eurostoxx +0.8%, FTSE +0.2% and DAX +0.8%.
US Futures are flat, having dropped now on the dollar strength and CPI.
Wall Street (SPY) (QQQ) top news
US CPI monthly 0.4% versus 0.3% expected. Yearly 5.4% versus 5.3% expected.
Iraq's oil minister says the price of oil is unlikely to go higher. President Putin says we do not want oil prices to skyrocket.
President Putin says Russia is ready to meet Europe's gas needs.
Port of LA to go 24/7 to try to alleviate shortages and supply chain issues. CNBC.
US to end the ban on non-essential travel to the US next month, all international travelers will need to be vaccinated. (DAL, AAL, IAG etc)
Blackrock (BLK): beats on EPS and revenue. AUM grew less than expected.
JPMorgan Chase (JPM): EPS well ahead of estimates, revenue also beats. Investment banking was strong.
SAP raises outlook.
Delta (DAL): EPS beats estimates, revenue also ahead.
Plug Power (PLUG) announces partnership with Airbus. Morgan Stanley upgrades.
Boeing (BA), American Airlines (AAL), and Southwest (LUV) to require workers to be vaccinated against covid.
Qualcomm (QCOM) announces share buyback.
Amazon (AMZN): British workers delivering for Amazon should get minimum wage among other entitlements, according to a lawyer launching an employee rights claim-Reuters.
Apple (AAPL) likely to cut iPhone 13 production by up to 10 million units, according to Bloomberg report, see more.
British American Tobacco (BTI) (BATS): US FDA authorized some e-cigarettes.
Blackberry (BB) up 3% premarket after a report on Tuesday announcing a collaboration with Google and Qualcomm for next-gen vehicle cockpits.
Earnings, Upgrades, Downgrades and premarket movers
Source: Benzinga Pro
Economic releases
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