This was a somewhat unexpected stance from Jerome Powell, who wants to end the extraordinary monetary support measures a little earlier than expected. Until now, Powell has positioned himself more in the camp of soft and accommodating central bankers. The new orientation towards an earlier end of the asset purchase program is a consequence, he made no secret, of the central bank’s concern about the strength of inflation.
The Wall Street dropout yesterday was gradual, but it was accentuated by the discovery of a first case of the Omicron variant in California. As in previous waves and on the basis of relentless logic, America will follow Europe’s path. The news is saturated with the new variant and its consequences, without having the necessary hindsight to draw any conclusions. This uncertainty will continue to fuel volatility in the days to come. The main markers to watch out for will be the virulence of the disease, the capacity of health systems to absorb cases requiring hospitalization and the impact on children.
At the macro level, there are several events to watch out for today. First, partial US employment statistics on the eve of monthly labor market data. The first jobless claims totaled 222,000 seasonally adjusted for the week ending Nov. 27, the Labor Department said. This is higher than last week, but lower than the 240,000 expected from Wall Street.
Today’s agenda also includes a multitude of Fed bankers at various meetings. They should comment on their boss’ latest outing and give their take on inflation and the impact of the new pandemic wave. Finally, OPEC + is meeting in a particular context of falling oil prices, under the double impact of the release of part of the strategic reserves of large consuming countries and the resurgence of the coronavirus. Will the cartel decide to put a stop to its plans to increase production in an attempt to raise prices? The decision will come in a few minutes now.
The mood in the stock markets is once again a little strange this morning, with US leading indicators very bullish, as if the indices want to erase their correction from the previous day. Volatility remains high as the VIX index crossed the 30 point mark for the first time since February.
Economic highlights of the day:
European employment figures for October, US Challenger survey of layoffs and weekly jobless claims.
The dollar is trading at $ 0.8823 this morning, while gold remains around $ 1,775. Oil is rebounding after falling again yesterday to $ 68.31 for Brent and $ 65.05 for WTI. US 10-year debt pays 1.44% (-1 point) while the Bund is unchanged at -0.35%. Bitcoin is trading around 56,374 USD.
On the stairs :
* Apple has told its suppliers that demand for its iPhone 13 lineup is weakening as shortages and delivery delays have caused some consumers to forgo purchasing the smartphone for the holiday season, Bloomberg reported on Wednesday. Apple shares are down 1.4% in pre-market trading while those of its suppliers, such as QUALCOMM, SKYWORKS, BROADCOM and QORVO, are down 0.3% to 1.6%.
* Boeing company gains 4.3% in pre-market trade after China’s aviation authority released new navigation guidelines that pave the way for a possible lifting of the ban on the 737 MAX, an aircraft involved in two crashes fatalities in Ethiopia and Indonesia in 2018 and 2019, to fly to China.
* Vir Biotechnology – GlaxoSmithKline said Thursday that preliminary analysis showed its antibody-based COVID-19 treatment developed with Vir Biotechnology to be effective against the new Omicron variant of the coronavirus. Shares of Vir Biotechnology jumped 8% in pre-market trading.
* Kellogg said Thursday it had reached a deal with a labor organization after a two-month strike by workers at several of the company’s US grain factories.
* Grab – The Asian ride-hailing giant, which has merged for $ 40 billion with a SPAC (an investment vehicle) run by private equity firm Altimeter Growth, is expected to debut on the Nasdaq on Thursday.
* Digital World Acquisition – Trump Media and Technology Group (TMTG), which is in the process of merging with SPAC (an investment vehicle) Digital World Acquisition, seeks to raise up to $ 1 billion more for the social network of the former US president, two sources familiar with the matter told Reuters. Shares of Digital World Acquisition jumped 28% in after-hours trading.
* Square – The digital payments company headed by Jack Dorsey, the founder and now ex-CEO of Twitter, announced on Wednesday that it now wants to be called “Block Inc”, a name change that should reflect its desire to be diversify into new technologies like blockchain.
* Twitter announced Thursday it had deleted 3,465 user accounts that were operating for the benefit of six foreign states, including Mexico, China and Russia.
* Uber Technologies on Thursday announced plans to launch a new feature in India that would allow customers to make vehicle reservations through WhatsApp messaging from Meta Platforms, which has more than 500 million users.
* Tesla on Thursday launched an electric four-wheeled quad for children in the United States called “Cyberquad for Kids” for $ 1,900 (1,675 euros).
* Weibo – The Chinese social network is up 3.6% in pre-market trading after announcing a listing proposal in Hong Kong to raise $ 385 million, three sources said.
Analyst recommendations:
- Ambarella: Craig-Hallum adjusts his price target to $ 250 against $ 170, reiterates his buy rating
- American Tower: Morgan Stanley adjusts price target to $ 294 from $ 316, maintains even weight rating
- Callaway Golf Company: Berenberg adjusts price target to $ 43 from $ 40, maintains buy rating
- Crown Castle International: Morgan Stanley adjusts price target to $ 208 from $ 213, maintains overweight rating
- Cushman & Wakefield: Morgan Stanley adjusts its price target to $ 23.75 from $ 21.75, maintains its overweighting
- EasyJet: Berenberg remains Buy with a target lowered to 750 GBP from 800 GBP.
- Hewlett Packard Enterprise: Goldman Sachs Adjusts $ 14 Price Target to $ 13, Maintains Sell Rating
- International Business Machines: Evercore ISI has restored coverage. with an inline recommendation. PT up 6.9% to $ 125.
- Microchip Technology: Jefferies Adjusts Price Target To $ 109 From $ 98, Maintains Buy Rating
- NetApp: Northland Capital adjusts price target to $ 111 from $ 107, continues to outperform rating
- Salesforce.com: Goldman Sachs always views the stock as a buying opportunity. Previously set at $ 360, the target price has changed slightly to $ 370.
- Superdry: RBC’s industry upgrades manage to outperform with a target of 425 GBP.
- Twitter: Citigroup Adjusts Price Target To $ 47 From $ 60, Keeps Neutral Rating
- United Utilities: AlphaValue goes from Sell to Hold with GBp1026 goal.
- UnitedHealth Group: UBS adjusts price target to $ 452 from $ 435, maintains rating neutral
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