HK Weekly Recap & Analysis November 28th, 2022
The Week Ahead (November 28th – December 2nd)
KEY ECONOMIC DATA RELEASES TO WATCH
MARKET RECAP FROM THE PREVIOUS WEEK
Monday, November 21st
Disney jumped 6.3% after Bob Iger’s return as chief executive to the entertainment conglomerate. The market ended Monday roughly down, and the dollar and treasury yield rose today as on fears that China could resume stricter measures to fight COVID-19 after it said it faced its most severe test of the pandemic. Beijing said it would shut down businesses and schools in hard-hit districts and tighten the rules as infection rises. Oil fell almost 3% to the lowest level in four weeks as oil prices tumbled more than 5% after Saudi Arabia and other OPEC oil producers discussed an output increase. IPO such as GRND fell more than 46% from the broader market weakness after it rocketed on the previous Friday. Bitcoin fell to its lowest level in two years after Genesis, the digital-asset brokerage and lender, told investors it could be forced to file for bankruptcy if its current fundraising efforts are unsuccessful. Today, Dow is down 0.13%, S&P 500 is down 0.39%, and Nasdaq is down 1.09%.
Tuesday, November 22nd
It was a quiet session with low volume due to the Thanksgiving holiday ahead while the market slowly edges up. Biden extended student loan debt repayment until June 2023. Strong market rally due to low treasury yield. A negative tone of China yesterday has only added to fears about a US recession over the coming months. The VIX and the 10-year yield were down throughout the day. Today, Dow up 1.18%, S&P 500 up 1.36%, Nasdaq up 1.36%
Wednesday, November 23rd
Fed raises rates by 75 bps. FOMC participants agreed that inflation risk remains skewed to the upside. A few participants suggested that slowing the rate increases could reduce financial system risks, while others suggested that slowing should wait for more progress on inflation. The markets reacted on Wednesday afternoon to language from the Fed suggesting a “number of participants” said that it would “become appropriate to slow the pace of increase in the target range for the federal funds rate”. US S&P Manufacturing PMI Flash Actual 47.6 (Forecast 50, Previous 50.4) dollar weakened, S&P 500 and gold strengthened. US Initial Jobless Claims Actual 240k (Forecast 225k, Previous 222k). Today, S&P 500 is up 0.6%, the Dow is up 0.3%, and the Nasdaq is higher by 1%
Thursday, November 24th
Markets were closed due to Thanksgiving.
Friday, November 25th
Today is a mixed close for the market. It’s a low-volume day, and not much is happening with a shortened trading session due to the day after Thanksgiving. When the closing bell rang on Friday, the S&P 500 was down 0.03%, the Dow was up 0.45%, and the Nasdaq fell 0.52%.
THE WEEK AHEAD & EARNINGS
Monday – 11/28/2022
MarketWatch interviews St. Louis Fed President James Bullard - 12 noon
AM Earnings: Pinduoduo (PDD), Huazhu Group (HTHT)
PM Earnings: Arrowhead Pharmaceuticals (ARWR), The AZEK Company (AZEK), JOYY Inc (YY)
Tuesday – 11/29/2022
S&P Case-Shiller U.S. home price index (SAAR) - 9 AM ET
FHFA U.S. home price index (SAAR) - 9 AM ET
Consumer confidence index - 10 AM ET
AM Earnings: Bank of Nova Scotia (BNS), Bilibili (BILI), Cerence (CRNC), Elbit Systems (ESTL), Shaw Communications (SJR), KANZHU (BZ)
PM Earnings: Intuit Inc (INTU), Workday (WDAY), Hewlett Packard Enterprise (HPE), Crowdstrike (CRWD), Compass Minerals (CMP), NetApp (NTAP)
Wednesday – 11/30/2022
ADP employment report - 8:15 AM ET
Real GDP (SAAR) revision - 8:30 AM ET
Real gross domestic income (SAAR) -8:30 AM ET
Real domestic final sales (SAAR) revision - 8:30 AM ET
Trade in goods deficit (advance) - 8:30 AM ET
Chicago PMI - 9:45 AM ET
Job openings - 10 AM ET
Quits - 10 AM ET
Pending home sales index - 10 AM ET
Fed Chair Jerome Powell speaks at the Brookings Institution - 1:30 PM ET
Beige Book - 2 PM ET
AM Earnings: Royal Bank of Canada (RY), Hormel Foods (HRL), KE Holdings (BEKE), Donaldson Company (DCI), Xpeng (XPEV), BRP Inc (DOOO), Petco (WOOF)
PM Earnings: Salesforce (CRM), Synopsys (SNPS), Snowflake (SNOW), Splunk (SPLK), Pure Storage (PSTG), Okta (OKTA), Nutanix (NTNX), Elastic NV (ESTC), Box Inc (BOX), Victoria Secret (VSCO)
Thursday – 12/01/2022
Initial jobless claims - 8:30 AM ET
Continuing jobless claims - 8:30 AM ET
PCE price index - 8:30 AM ET
Core PCE price index - 8:30 AM ET
PCE price index (year-on-year) - 8:30 AM ET
Core PCE price index (year-on-year) - 8:30 AM ET
Real disposable income - 8:30 AM ET
Real consumer spending - 8:30 AM ET
S&P U.S. manufacturing PMI (final) - 9:45 AM ET
ISM manufacturing index - 10 AM ET
Construction spending - 10 AM ET
Motor vehicle sales (SAAR) - Varies
AM Earnings: Toronto Dominion Bank (TD), Bank of Montreal (BMO), Dollar General (DG), Canadian Imperial Bank (CM), Kroger (KR), Big Lots (BIG), Patterson Companies (PDCO)
PM Earnings: Marvell Technology (MRVL), Veeva Systems (VEEV), Ulta Beauty (ULTA), Zscaler (ZS), UiPath (PATH), Samsara (IOT), ChargePoint (CHPT), Asana (ASAN), Ambarella (AMBA), PagerDuty (PD)
Friday – 12/02/2022
Nonfarm payrolls (level change) - 8:30 AM ET
Unemployment rate - 8:30 AM ET
Average hourly earnings - 8:30 AM ET
Labor-force participation rate, 25 to 54-year-olds - 8:30 AM ET
AM Earnings: Cracker Barrel (CBRL), Genesco (GCO), Ehang Holding (EH), Kirkland's (KIRK)
