Wake Up Wall Street (SPY) (QQQ): Apple bites back as stocks remain on track for a happy Christmas
Here is what you need to know on Wednesday, December 8:
Apple surged to more all-time highs on Tuesday as stocks rebounded sharply. Volume was strong in what was another broad-based rally. Indeed, the percentage of rising volume was over 80% of total volume, a strong signal of the broad strength of the market and a useful signal for future health going forward.
Wednesday may see investors pause for breadth after two strong solid days, but with more and more benign data from Omicron being released it appears we can relax and look forward to Christmas dinner with the family without the hazmat suits after all. At least the hazmat suits are elasticated for post-turkey expansion.
Speaking of expansion, the Fed balance sheet is due to be trimmed down after a notable few years of feasting, and this has investors worried. We will soon be publishing our S&P 500 forecast for the year, and so far all the data we have poured through makes us think that the Fed does have a chance of managing its balance sheet reduction without hammering equities. It will be a tightrope walk. We do live in interesting times, as the Chinese say, and they certainly seem intent on making it interesting for investors in Chinese tech anyway. Weibo finished 7% lower in its Hong Kong debut.
The dollar is largely flat this morning at 1.1285 versus the euro. Gold is at $1,785, and Bitcoin is a touch lower after a strong rally at $49,200 now. Oil is also pausing after a strong rally and steady at $72. The Vix is back near 20, and yields are again lower, but again the yield curve remains a tad flat for our liking.
See forex today
European markets are lower: Eurostoxx -0.5%, FTSE flat, and Dax -0.4%.
US futures are positive: S&P, Nasdaq and Dow are all a neat +0.3%.
Wall Street (SPY) (QQQ) stock news
Pfizer (PFE) and BioNTech (BNTX): WSJ reports that three doses neutralize Omicron.
FT reports that the UK to unveil further covid-related restrictions.
Stitch Fix (SFIX) down 23% premarket on lower guidance.
PagerDuty (PD) up 10% on earnings.
Goodyear Tires (GT) upgraded by Deutsche Bank.
Campbell Soup (CPB) beats EPS but revenue behind.
Weber (WEBR) beats on EPS, shares up 1%.
Toll Brothers (TOL) beats on earnings, up 1% premarket.
Robinhood (HOOD) files to end a share sale by backers.
Apple (AAPL): production of iPhone 13 is 20% short of plans for September and October, according to Nikkei. see more.
Visa (V) launces a global crypto advisory service.
Upgrades and downgrades
Source: Benzinga Pro
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.
