Breakfast Bites - Sep 29, 2022

Rise and Shine Traderade Family

  • Hurricane Ida made landfall in Florida. Our thoughts and prayers go out to all those who are affected by this tragedy.

  • The dollar regains its strength this morning after yesterday’s pull back.

  • We’re seeing an active market in the European session yet again, with the DAX falling to yet another 2-year low before bouncing. The swings are quite wild today for a DAX trading session.

  • We have European sentiment data and German inflation data coming out later today. The sentiment data has been particularly awful in the past few months.

  • We’re seeing some softening in the commodity markets as the Crude and Gold both have minor pull backs before bouncing back up again.

  • Yields saw a slight overnight bounce but, we’re yet to reach levels seen earlier in the week.

  • In the UK, PM Liz Truss stands by her fiscal plan and UK bonds yields continue hold firm, causing bond prices to slide.

Asia and Australia

  • Chinese markets remain muted as the country heads into Golden Week, next week and businesses are hoping for a boost from the activity.

  • Container throughput data for the first 10 days of September declined 15% YoY in China, partially on port disruptions due to typhoons, which might drag on manufacturing activity growth.

Europe, Middle East, Africa

  • Porsche IPOs in Frankfurt, rising 1.8% in their first day of trading - largest IPO in Europe in over a decade with the company now valued at €75B

  • Lebanon may re-peg their currency if their recovery plan is approved. Interesting move with most countries actually feeling a threat of de-pegging given the strength of the USD.

  • H&M (Sweden) the world’s second biggest retailer ****slid 6.9% after reporting a significant drop in its third-quarter pretax profit amid cost inflation, slowing consumer spending and one-off expenses related to its exit from Russia. [We keep re-iterating our warning on retailers, particularly on apparel.]

  • EU announces new package of sanctions against Russia

The Americas

  • Biogen (BIIB) was up almost 39% yesterday on the news of a promising Alzheimer drug. A number of other Biotech stocks got upgrades as well yesterday, which caused a rally in XBI (along with the broader market)

  • Cal-Maine Foods (CALM) beats by $0.02, beats on revs, also increases dividend

  • Paychex (PAYX) beats by $0.06, beats on revs; guides FY23 EPS above consensus

  • Amazon (AMZN) wants call center staff to work from home so it can close call centers, according to Bloomberg

  • Boeing (BA) and China Airlines finalized an order for up to 24 787 Dreamliners

  • Railroad companies are getting downgrades and lower price targets across the board this morning

Calendars

Earnings today

  • Bed, Bath and Beyond ($BBBY) - Before Market Open

  • Nike ($NKE) - After Market Close

  • Micron ($MU) - After Market Close