TradeTheNews.com Weekly
Market Update: Santa brings investors plenty of holiday cheer
Fri, 22 Dec 2017 16:03 PM EST
Stock markets kept on rising into the Christmas holiday as the final passage of
US tax cut legislation along with continued robust growth prospects globally
gave investors little reason to sell. Before Friday’s NY open, the UK’s FTSE
100 joined most of the major US major indices to reach fresh all-time highs.
Treasury markets sold off mid-week and yield curves began to steepen largely on
the prospects that fiscal stimulus will likely boost growth and finally
generate some inflation in 2018. Those prospects were exacerbated by news that
several large, high-profile US corporations were already offering their workers
wage increases and bonuses in response to the projected benefits from lower
corporate tax rates. Bitcoin/blockchain mania may have hit a crescendo when a
host of US micro caps surged 100% or more just on press releases suggesting a
name change. Friday saw bitcoin drop 20% at one point, along with a host of
cryptocurrencies and related equities. Copper moved up towards the Oct
multi-year highs above $3.20 and WTI crude prices drifted back up towards $60.
The Dollar index tread water and continued to consolidate around the 100-day
moving average despite exhibiting strength against the Mexican peso and
weakness versus the Loonie. For the week the S&P gained 0.3%, the Dow added
0.4% and the NASDAQ rose 0.3%.
In corporate news this week, Jack in the Box announced it would sell its Qdoba
Mexican food unit to Apollo Global Management for $305M in cash. UnitedHealth
said it would buy Chilean medical insurance provider Banmédica in a deal valued
at $2.8B as part of a plan to expand its growth to South America. Liberty
Global is reportedly close to a deal to sell its Austrian cable unit to
Deutsche Telecom for $2B, as DT seeks to expand broadband offerings to countries
with only mobile operations and Liberty reorganizes in preparation for a
possible Vodafone merger. Nike reported an earnings beat well above estimates,
but took a hit on gross margins from heavy price competition in the North
America market. FedEx noted a top and bottom line beat in its quarterly report
and projected a nearly $1.5B earnings boost from the US tax law changes.
SUNDAY 12/17
*(CN) CHINA NOV PROPERTY PRICES M/M: RISES IN 50 OUT OF 70 CITIES V 50 PRIOR
MONDAY 12/18
(US) Sen Collins (R-ME): I will vote for tax bill
TUESDAY 12/19
(UK) Ineos Spokesman: still assessing repair options for Forties oil pipeline;
timescale for repairs remains 2-4 weeks from Dec 11th - press
(DE) GERMANY DEC IFO BUSINESS CLIMATE: 117.2 V 117.5E (moves off record level);
CURRENT ASSESSMENT: 125.4 V 124.7E
(US) NOV HOUSING STARTS: 1.297M V 1.250ME; BUILDING PERMITS: 1.298M V 1.270ME
(US) House Min Whip Hoyer (D-MD): stopgap spending bill is headed to an impasse
in the House; Democrats have been asked to vote no on stopgap bill
(US) HOUSE PASSES TAX REFORM BILL (AS EXPECTED)
FDX Reports Q2 $3.18 v $2.87e, Rev $16.3B v $15.7Be; Qualifies FY18 GAAP EPS
guidance to be significantly different if Tax Cuts and Jobs Act is enacted
WEDNESDAY 12/20
*(US) SENATE VOTES TO PASS REPUBLICAN TAX LEGISLATION; FINAL VOTE 51 TO 48
(SE) SWEDEN CENTRAL BANK (RIKSBANK) LEAVES REPO RATE UNCHANGED AT -0.50%; AS
EXPECTED (ends QE program, but maintains heavy presence in bond markets)
BBBY Reports Q3 $0.44 v $0.36e, Rev $3.0B v $2.90Be
(JP) BANK OF JAPAN (BOJ) LEAVES INTEREST RATE ON EXCESS RESERVES (IOER)
UNCHANGED AT -0.10%; AS EXPECTED
THURSDAY 12/21
(FR) FRANCE DEC BUSINESS CONFIDENCE: 112 V 111E; MANUFACTURING CONFIDENCE: 112
V 113E
(TW) TAIWAN CENTRAL BANK (CBC) LEAVES BENCHMARK INTEREST RATE UNCHANGED AT
1.375%; AS EXPECTED
(CZ) CZECH CENTRAL BANK (CNB) LEAVES REPURCHASE RATE UNCHANGED AT 0.50%; AS
EXPECTED
(US) Q3 FINAL GDP ANNUALIZED Q/Q: 3.2% V 3.3%E; PERSONAL CONSUMPTION: 2.2% V
2.3%E
*(US) Q3 FINAL GDP PRICE INDEX: 2.1% V 2.1%E; CORE PCE Q/Q: 1.3% V 1.4%E
(CA) CANADA NOV CPI M/M: 0.2%E V 0.1% PRIOR; Y/Y: 2.1% v 2.0%E
(US) DEC PHILADELPHIA FED BUSINESS OUTLOOK: 26.2 V 21.0E
NKE Reports Q2 $0.46 v $0.39e, Rev $8.55B v $8.39Be
FRIDAY 12/22
(DE) GERMANY JAN GFK CONSUMER CONFIDENCE: 10.8 V 10.7E
*(FR) FRANCE Q3 FINAL GDP Q/Q: 0.6% V 0.5%E; Y/Y: 2.3% V 2.2%E
(UK) Q3 FINAL GDP Q/Q: 0.4% V 0.4%E; Y/Y: 1.7% V 1.5%E
*(US) NOV PRELIMINARY DURABLE GOODS ORDERS: 1.3% V +2.0%E; DURABLES
EX-TRANSPORTATION: -0.1% V 0.5%E
(US) NOV PCE DEFLATOR M/M: 0.2% V 0.3%E; Y/Y: 1.8% V 1.8%E
(US) NOV NEW HOME SALES: 733K V 655KE (highest level since 2007)
(US) Pres Trump: "Will be signing the biggest ever Tax Cut and Reform Bill
in 30 minutes in Oval Office. Will also be signing a much needed 4 billion
dollar missile defense bill."
XPO Home Depot reportedly mulled internally a bid for XPO in order to keep it
away from Amazon - Recode
