Market dynamics in the moment (futures):
📈 S&P 500: +0.18% (4017 p.)
📈 Nasdaq: +0.26% (11787 p.)
📈 Dow Jones +0.06% (34148 p.)
🌕 Gold: -0.21% ($1736)
⚫️ Brent oil: -3.48% ($85.31)
🇺 US Treasuries 10 years: +0.37% (3.772%/year).
U.S. stock index futures are trading moderately higher at the premarket. There is low trading activity in the market, as investors take a wait-and-see attitude before the release of a large block of macrostatistics. The release of the minutes of the Fed’s latest meeting, October durable goods orders and the University of Michigan’s November consumer sentiment index are especially noteworthy. European stock indices are trading in the green zone, Asian stock markets closed on the plus side.
🟡 The European Union is considering introducing a $65-70 per barrel price ceiling on Russian-produced oil, Bloomberg writes. Earlier, the introduction of a ceiling at a lower level, including from $40 a barrel, was discussed. Such a high price threshold could have minimal impact on Russia, especially given the discount with which oil is delivered.
🟡 New York State Governor Kathy Hochul signed into law a bill that imposes restrictions on cryptocurrency mining using electricity from non-environmental sources in the state. The law is the first of its kind in the United States.
🔴 Widespread worker protests began at the Foxconn plant in Zhengzhou, China, due to dissatisfaction with management’s actions to prevent the spread of COVID-19. It is the world’s largest manufacturing facility for Apple’s #AAPL iPhone smartphones.
🟡 HP #HPQ due to high macroeconomic uncertainty has unveiled a cost-cutting plan that will save at least $1.4 billion by the end of fiscal year 2025. Among other things, the company intends to lay off 4,000 to 6,000 employees worldwide, which is up to 10% of its workforce.
🔴 The Reserve Bank of New Zealand raised its key rate by 75 bps to 4.25%, the largest increase in its history. The regulator also signaled its intention to implement even more aggressive tightening.
🟢 General Motors #GM announced its plan to launch more than 15 new electric car models for the Chinese market by 2025. The automaker expects electric car profits to match those of internal combustion vehicles by 2025.
🟢 The owners of Manchester United #MANU have instructed investment bankers to explore a process that would include a full or partial sale of the soccer club.
💎 Liquidity in the stock market is well below average due to the upcoming U.S. Thanksgiving. Therefore, the dynamics of quotes may not be justified from a fundamental point of view. We believe that current levels in a number of sectors are worth using to reduce positions.
The key risk in the mid-term perspective is the overestimation of investors’ expectations regarding the financial performance of the companies in the coming quarters. We do not exclude that the next earnings season will “open our eyes” to how much harder it is for corporations to make money in an environment of high rates and declining economic activity.
It is during this period of time that broad indexes could correct appreciably and provide an excellent buying opportunity.