Wake Up Wall Street (SPX) (QQQ): More sideways trading likely before FOMC clarity
Here is what you need to know on Tuesday, December 6:
ISM fallout continued into Asia, but equities remain underpinned by more China reopening news. However, the US Dollar held most of its gains, and the bond market continues to reprice. On Tuesday morning oil remains subdued after the sharp fall off on Monday. Overall, pricing pressure remains, but the tanker pile-up in Turkey surely will cap the declines for now. The Royal Bank of Australia hiked 25bps as expected, but it looks like it is taking a more hawkish path. The situation is data dependant, but that all seems to point higher now. Bond yields are quieter this morning, and really we expect more choppy trading with an emphasis on risk-off themes until the FOMC next week.
The US Dollar is flat at 105.15 for DXY, while oil is lower at $75.67. Gold is a touch higher at $1,777, and Bitcoin is $16,990.
European markets: Eurostoxx flat, FTSE -0.2% and Dax -0.3%.
US futures: Dow -0.1%, Nasdaq and S&P both flat zzzzzzzzzzz
Wall Street top news
RBA hikes interest rates.
BOC decision tomorrow.
Herballife (HLF) down on convertible note offering.
GitLab (GTLB) up on strong earnings.
Signet Jewlers (SIG) up on strong earnings.
Reuters headlines
Meta Platforms (META) Oversight Board recommended that the company revamp its system exempting high-profile users from its rules.
NRG Energy Inc (NRG) & Vivint Smart Home Inc: Power generation company NRG will buy Vivint for $2.8 billion in cash.
American Airlines Group Inc (AAL), Delta Air Lines (DAL) Inc & United Airlines Holdings (UAL) Inc: Delta's offer to give pilots a 34% cumulative pay increase in a new four-year contract has boosted hopes of similar raises at rivals United Airlines, American Airlines.
American Express Co (AXP): The Australian securities regulator took the local unit of American Express (AmEx) to court alleging two of its credit cards co-branded with retailer David Jones were issued and distributed without ensuring customers understood them.
BioNTech SE (BNTX), Moderna Inc (MRNA) & Pfizer Inc (PFE): Pfizer and its German partner, BioNTech fired back at Moderna on Monday in a patent lawsuit over their rival COVID-19 vaccines, seeking dismissal of the lawsuit in Boston federal court and an order that Moderna's patents are invalid and not infringed.
Deutsche Bank AG (DB): Deutsche Bank and Rabobank were charged by EU antitrust regulators of taking part in a government bond cartel.
Goldman Sachs Group Inc (GS): The company plans to spend tens of millions of dollars to buy or invest in crypto companies after the collapse of the FTX exchange hit valuations.
Microsoft Corp & Sony Group Corp (MSFT): The company has offered Sony a 10-year contract to make each new "Call of Duty" release available on PlayStation the same day it comes to Xbox, according to an opinion piece in the Wall Street Journal on Monday from a Microsoft executive.
Textron Inc (TXT): The U.S. Army on Monday awarded the contract for its next-generation helicopter to Textron's Bell unit,
Taiwan Semiconductor Manufacturing Co Ltd (TSM): President Joe Biden will visit the Arizona plant of TSMC as the Taiwanese chipmaker is set to more than triple its planned investment in the factory to $40 billion, among the largest foreign investments in U.S. history.
Upgrades and downgrades
Source: WSJ.com
Economic releases
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Author
Ivan Brian
FXStreet
Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.
