ISM Report on Business Services PMI for November
Today's Top Headlines/Must Reads:
- Signs of a Weakening Job Market, in Five Charts
- China's Colossal Hidden-Debt Problem Is Coming to a Head
- Green Investors Were Crushed. Now It's Time to Make Money.
Stock futures fell early on Tuesday as traders awaited the first
of a slew of labor data that in coming days will likely set the
tone into next week's Federal Reserve meeting.
"Markets have lost a little of their recent poise over the last
24 hours, " Deutsche Bank said.
"There hasn't been a specific catalyst for the softness, but the
astonishing rally in November and long positioning has led to some
skepticism about how much further it's able to run, at least until
we get some more data that's soft-landing friendly."
Investors will be keen to see if jobs reports coming over the
next few days can support that narrative.
Hong Kong's Hang Seng index fell 1.9% and the Shanghai Composite
lost 1.7%, both to their lowest in more than 12 months.
Moody's downgraded its outlook on China's debt and highlighted
the difficulties facing the world's second biggest economy.
GitLab rose 16% ahead of the opening bell after the company's
quarterly revenue trumped analyst forecasts.
Palantir Technologies slipped more than 1%, having dropped more
than 9% on Monday. Late last week, William Blair analysts said that
a four-year army contract that is about to expire will likely be
less lucrative after it is renewed.
Take-Two Interactive Software released a trailer of "Grand Theft
Auto VI" a day early, following a leak. Shares fell more than
Monday's Post-Close Movers
Joann logged a wider loss in the three months ended Oct. 28, as
sales sank over 4%. The company's adjusted loss of 21 cents a share
was in line with expectations. Shares fell 6.7%.
Travere Therapeutics will slash its workforce by about 20% and
will dedicate resources to two ongoing programs, a treatment for a
Berger's disease and classical HCU. The company said Monday that
the move would extend its cash runway into 2028. Shares rose
The dollar should recover this week as its recent correction
lower looks to have gone too far, TD Securities said.
Positioning and short-term valuations are stretched, increasing
the risk that the dollar rallies if Friday's nonfarm payrolls data
are strong, it added.
It also upgraded its view on the dollar until year-end and now
expects EUR/USD to finish the year at 1.08.
Big downward moves in bond yields aren't imminent but there is
scope for lower yields further out, with higher volatility along
the way, Hargreaves Lansdown said.
"Investors should not be put off by this outlook--we think this
could be the most interesting entry point for bond investors in
There is potential that investors could be rewarded either with
income from higher-for-longer yields, or growth, as yields fall,
"Volatility is hard to stomach but can offer opportunities for
good quality active fund managers to take advantage of price
Lazard Asset Management Germany said the earnings power of bonds
has been restored in both the eurozone and the U.S. and clearly
exceeds the dividend yield of a global equity portfolio, with
Bonds again fulfill criteria that a basic investment must meet
in asset allocation, such as calculable and secure returns,
continuous liquidity and serving to diversify with a low
correlation to risky assets, it said.
"We are experiencing a renaissance of this asset class."
Oil prices edged higher amid demand concerns, market skepticism
following OPEC+ output cuts and tensions in the Middle East.
Prices declined on Monday after OPEC+'s voluntary curbs
announcement left traders disappointed, raising questions over
compliance and future supply policy.
Meanwhile, the Israel-Hamas conflict and a series of attacks in
Middle-Eastern waters fueled supply concerns, and falling U.S.
factory orders in October contributed to investor fears of a
broader economic slowdown.
Capital Economics said crude prices should decline by the end of
next year as a result of less constrained global supply and modest
It assumes OPEC+ production will gradually rise starting from
April, likely driving supply growth at a time of only moderate
growth in demand.
"We think that the oil market will be in a slight deficit on
average over most of 2024 but with a surplus in the final
Capital Economics forecasts Brent at $75 a barrel and WTI at $70
a barrel by the end of 2024, from previous expectations of $85 a
barrel and $80 a barrel, respectively.
Base metals were weaker on worries about the economy and demand
for industrial goods, while gold edged up.
"The macroeconomic environment is on the bearish side of the
ledger," Peak Trading Research said, citing weakness in crude oil
and commodity currencies like the Australian dollar and Brazilian
Peak added that markets will be looking ahead to Friday's
nonfarm payrolls figure in the and in turn how that affects Fed
policy, though said it's unlikely the Fed will hike rates
TODAY'S TOP HEADLINES
Meta and IBM Launch AI Alliance
Meta Platforms and International Business Machines launched a
coalition of more than 50 artificial intelligence companies and
research institutions that are pushing a so-called open model of
AI, hoping to gain traction in a fast-growing market.
The AI Alliance, whose members include Intel, Oracle, Cornell
University and the National Science Foundation, said it is pooling
resources to stand behind "open innovation and open science" in AI.
Its members largely support open source, an approach in which
technology is shared free and draws on a history of collaboration
among Big Tech, academics and a fervent movement of independent
CVS Plans to Overhaul How Much Drugs Cost
CVS Health, the nation's largest drugstore chain, will move away
from the complex formulas used to set the prices of the
prescription drugs it sells, shifting to a simpler model that could
upend how American pharmacies are paid.
Under the plan, CVS's roughly 9,500 retail pharmacies will get
reimbursed by pharmacy-benefit managers and other payers based on
the amount that CVS paid for the drugs, in addition to a limited
markup and a flat fee to cover the services involved in handling
and dispensing the prescriptions. Today, pharmacies are generally
paid using complex measures that aren't directly based on what they
spent to purchase specific drugs.
'The pivot is in.' Key ECB official doesn't rule out
interest-rate cuts next year
Isabel Schnabel, a European Central Bank board member, declined
to rule out interest-rate cuts next year in an interview published
Her remarks helped to further cement market odds the ECB will
cut rates next year, to 69% in March and 90% in April.
Short Sellers Are More Bearish Than They've Been in Two
Short sellers recently turned more bearish than they have been
since the bursting of the dot-com bubble more than 20 years ago.
That bodes ill for the stock market's prospects over the coming
Contrarians will disagree with this assessment, since they
believe it's bullish when bearish sentiment reaches extreme levels.
But the contrarians are wrong, at least when it comes to what
aggregate shorting means for the overall market, according to
Matthew Ringgenberg, a finance professor at the University of
Israel, Hamas Engage in Some of Fiercest Fighting of War
TEL AVIV-Israel and Hamas are locked in some of their fiercest
fighting of the two-month-old war, including at close quarters, as
Israel launched its offensive in the south while trying to finish
its operations in and around Gaza City.
The Israeli military has essentially cornered Hamas fighters in
two of their last strongholds in the northern Gaza Strip-the
Shajaiya neighborhood of Gaza City and the city of Jabalia,
immediately to the north.
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TODAY IN CANADA
Descartes Syss Grp 3Q
Economic Calendar (ET):
0815 Nov Official International Reserves
0930 Nov Services PMI
Stocks to Watch:
Atlas Lithium Achieves Fully Funded Status With First Production
Expected in 2024
Buhler Industries: Still Working With Origin Merchant Partners
to Identify Long-Term Investment Partner; Lenders Extend Maturity
Date of Credit Facilities to Dec. 8 From Dec. 4
Expected Major Events for Tuesday
00:01/UK: Nov BRC-KPMG Retail Sales Monitor
00:30/JPN: Nov Japan Services PMI
06:00/RUS: Nov Russian Services PMI
07:45/FRA: Oct Industrial production index
08:45/ITA: Nov Italy Services PMI
08:50/FRA: Nov France Services PMI
08:55/GER: Nov Germany Services PMI
09:00/UK: Nov UK monthly car registrations figures
09:30/UK: Nov S&P Global / CIPS UK Services PMI
09:30/UK: Nov UK Official Reserves
11:00/FRA: Oct OECD CPI
13:15/CAN: Nov Official International Reserves
13:55/US: 12/02 Johnson Redbook Retail Sales Index
14:30/CAN: Nov Canada Services PMI
14:45/US: Nov US Services PMI
15:00/US: Oct Job Openings & Labor Turnover Survey
15:00/US: Nov ISM Report On Business Services PMI
15:00/US: Dec RCM/TIPP Economic Optimism Index
16:00/US: Nov Global Services PMI
21:30/US: 12/01 API Weekly Statistical Bulletin
All times in GMT. Powered by Kantar Media and Dow Jones.
Expected Earnings for Tuesday
AeroVironment Inc (AVAV) is expected to report $0.59 for 2Q.
America's Car-Mart (CRMT) is expected to report $0.79 for
Asana Inc (ASAN) is expected to report for 3Q.
AutoZone Inc (AZO) is expected to report $31.64 for 1Q.
Axcella Health Inc (AXLA) is expected to report for 3Q.
Box Inc (BOX) is expected to report $0.05 for 3Q.
Broadway Financial Corp (BYFC) is expected to report for 3Q.
CSP Inc (CSPI) is expected to report for 4Q.
Cohbar Inc (CWBR) is expected to report for 3Q.
Conn's (CONN) is expected to report $-1.46 for 3Q.
Core & Main Inc (CNM) is expected to report for 3Q.
Daktronics (DAKT) is expected to report $0.13 for 2Q.
Dave & Buster's Entertainment Inc (PLAY) is expected to
report $-0.14 for 3Q.
Descartes Systems Group Inc (DSG.T,DSGX) is expected to report
$0.46 for 3Q.
Designer Brands Inc (DBI) is expected to report for 3Q.
G-III Apparel (GIII) is expected to report $2.09 for 3Q.
Greenlane Holdings Inc (GNLN) is expected to report for 3Q.
Healthequity Inc (HQY) is expected to report $0.06 for 3Q.
Hennessy Advisors Inc (HNNA) is expected to report for 4Q.
Home Capital (HCG-T) is expected to report $0.49 for 3Q.
Hovnanian Enterprises Inc (HOV) is expected to report for
IES Holdings Inc (IESC) is expected to report for 4Q.
J.Jill (JILL) is expected to report for 3Q.
JM Smucker Co (SJM) is expected to report $2.44 for 2Q.
Lands' End Inc (LE) is expected to report for 3Q.
MongoDB Inc (MDB) is expected to report $-1.03 for 3Q.
Ooma Inc (OOMA) is expected to report $-0.01 for 3Q.
Perma-Pipe International Holdings Inc (PPIH) is expected to
report for 3Q.
Phreesia Inc (PHR) is expected to report for 3Q.
Powell Industries (POWL) is expected to report $1.21 for 4Q.
Rent the Runway Inc (RENT) is expected to report for 3Q.
SentinelOne Inc (S) is expected to report for 3Q.
Skillsoft Corp (SKIL) is expected to report for 3Q.
Spark Networks SE - ADR (LOVLY) is expected to report for
Stitch Fix Inc (SFIX) is expected to report $-0.25 for 1Q.
TAG Oil (TAO.V,TAOIF) is expected to report for 2Q.
Toll Brothers Inc (TOL) is expected to report $3.71 for 4Q.
Yext Inc (YEXT) is expected to report $-0.02 for 3Q.
Powered by Kantar Media and Dow Jones.
ANALYST RATINGS ACTIONS
3M Raised to Equal-Weight From Underweight by Barclays
Adobe Raised to Outperform From Neutral by KGI Securities
Alaska Air Group Cut to Market Perform From Strong Buy by
Antero Resources Cut to Hold From Buy by Truist Securities
Arrowhead Pharmaceuticals Shares Rise 6.3% On BofA Buy
Carvana Raised to Neutral From Underweight by JP Morgan
Citizens Financial Group Cut to Equal-Weight From Overweight by
CNX Resources Raised to Buy From Hold by Truist Securities
East West Bancorp Raised to Overweight From Equal-Weight by
Equitrans Midstream Cut to Peer Perform From Outperform by Wolfe
Fisker Cut to In-Line From Outperform by Evercore ISI Group
Fluence Energy Raised to Buy From Neutral by Roth MKM
General Motors Raised to Buy From Neutral by Mizuho
Genesco Cut to Neutral From Buy by Seaport Global
Gentherm Cut to Hold From Buy by Argus Research
Hawaiian Holdings Raised to Buy From Hold by Deutsche Bank
Herc Holdings Cut to Sector Weight From Overweight by
Immunogen Cut to Equal-Weight From Overweight by Barclays
Immunogen Cut to Neutral From Overweight by Piper Sandler
Incyte Raised to Buy From Neutral by Guggenheim
Insulet Raised to Overweight From Equal-Weight by Morgan
Mersana Therapeutics Raised to Buy From Neutral by Citigroup
Oncternal Therapeutics Raised to Buy From Hold by Brookline
Oneok Raised to Buy From Neutral by B of A Securities
Repligen Cut to Hold From Buy by Benchmark
Stewart Info Services Raised to Buy From Neutral by BTIG
Teleflex Raised to Overweight From Equal-Weight by Morgan
United Rentals Cut to Sector Weight From Overweight by
This article is a text version of a Wall Street Journal
newsletter published earlier today.
(END) Dow Jones Newswires
December 05, 2023 06:13 ET (11:13 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
Grafico Indice FTSE 100
Da Gen 2024 a Feb 2024
Grafico Indice FTSE 100
Da Feb 2023 a Feb 2024