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key Apple Inc (NASDAQ:AAPL) iPhone assembler Hon Hai Precision Industry Co Ltd (OTC: HNHPF), operating as Foxconn Technology Group, relaxed most anti-Covid restrictions at its factory in Zhengzhou, China.
Foxconn ended its "point-to-point" system, relaxing employees' daily movements between their dormitories and the campus, Bloomberg reported. Foxconn also reopened its on-site cafeteria.
Foxconn first shut its cafeterias and limited workers' movements in October to limit the pandemic resurgence.
Also Read: Key Apple Supplier Foxconn Ropes Taiwan Semiconductor Chip Veteran For Newly Created Role
The shutdown triggered a food crisis and trash-filled facilities, prompting workers' exodus.
After Foxconn teamed up with local authorities to hire new staff, the workers revolted in November over compensation and safety practices.
Violent protests broke out as hundreds of workers clashed with security personnel.
Apple and Hon Hai warned against iPhone production loss due to the Zhengzhou crisis, responsible for Apple's high-end Pro models.
However, Foxconn stopped providing them with three free meals per day. Foxconn will deduct the meal expenses from staff wages.
It agreed to provide subsidies to those who regularly work from December 16 to December 31.
Foxconn will provide free meals to Covid patients who choose to stay at company-appointed accommodations.
Foxconn was instrumental in persuading China to ease its Covid-19 policies.
Foxconn founder Terry Gou's letter to Chinese leaders warned against its strict Covid controls costing China's leadership in global supply chains.
Gou also sought more transparency into restrictions on the company's workers.
Capital One reports November card metrics (96.60)
Reports November Domestic net charge-off rate of 3.14% vs 2.93% last month (+21 bps sequential change) with delinquency rate of 3.32% vs 3.17% last month (+15 bps change).
Japan's Nikkei: -0.4%
Hong Kong's Hang Seng: -1.6%
China's Shanghai Composite: -0.3%
India's Sensex: -1.4%
South Korea's Kospi: -1.6%
Australia's ASX All Ordinaries: -0.7%
Cathie Wood Boosts Tesla, Coinbase Holdings on Dip-Buying Binge
PLUG
Plug Power price target raised to $21 from $20 at Citi
Citi analyst P.J. Juvekar raised the firm's price target on Plug Power to $21 from $20 and keeps a Buy rating on the shares. Juvekar says that while there is an inclination to go back to cyclical chemical names after having lagged in 2022, he has decided to "stay defensive" going into 2023. He believes the impact of higher rates and uncertainty of the China reopening situation is likely to continue to impact the industry. "A faster China recovery would push us towards cyclicals," Juvekar tells investors in a research note. He recommends focusing on defensive names and believes it is too early to jump into commodities.
Mercedes-Benz (MBGYY) signs a letter of intent with Norwegian Aluminium maker Hydro for a low-carbon technology roadmap between 2023 to 2030, a key milestone on the way toward enabling a green aluminium supply chain. Hydro and Mercedes-Benz agreed on the gradually supply of very low CO2 emission aluminium for automotive applications on the road to decarbonisation.
bp (BP) ventures has made a $20 million AUD investment in 5B Holdings Pty Ltd, an Australian renewable company with technology that enables rapid deployment of solar power at scale. The investment closes 5B's $55 million AUD Series B funding round, which was co-led by existing investors The AES Corporation and Artesian.
To continue operating the power grid safely and reliably in the future, GE Renewable Energy's Grid Solutions business (GE) and the transmission system operator TransnetBW have signed a contract for a turnkey solution to redesign the Pulverdingen 380 kV substation in the vicinity of Markgröningen, about 15 km northwest of Stuttgart.
BigCommerce provides plan to accelerate path to profitability; restructuring aims to move forward breakeven timeline to the fourth quarter of 2023; reaffirms Q4 guidance
FOMC maintains a hawkish line
The major indices were sitting near their best levels of the session just in front of the FOMC decision and the release of the updated Summary of Economic Projections. However, they moved abruptly lower in the wake of the decision to raise the target range for the fed funds rate by 50 basis points to 4.25-4.50% and the indication in the Summary of Economic Projections that the median estimate for the terminal rate in 2023 had been raised to 5.10% versus the September projection of 4.60%.
The vote to raise the fed funds rate was unanimous. Separately, it was announced that the Fed will continue to let $60 billion of Treasury securities and $35 billion of agency mortgage-backed securities roll off its balance sheet each month.
The so-called "dot plot" showed all 19 Fed officials with a fed funds rate forecast above 5.00% in 2023 and two of the 19 had their dots above 5.50%.
On balance, this was a hawkish-minded package that did not meet the market's more hopeful expectations for a more conciliatory Fed. The knee-jerk selling was a natural consequence of those expectations not being met and the rapid-fire, and instantaneous, selling had the markings of some computer-driven programs.
Everything fell in unison. As a result, the S&P 500 fell back below its 200-day moving average (4,032). Overall losses, though, remain modest in scope, as market participants seem to be maintaining an allowance for Fed Chair Powell to sound less hawkish than what has been conveyed in the the published materials. That allowance is predicated on the tone he adopted in his speech before the Brookings Institution on November 30.
The residual hope, therefore, is that he will maintain the same tone that launched a huge rally that day. If he doesn't, and reverts to the guise of a tough-minded inflation disciplinarian, then there is reason to think the selling pressure will increase.
His press conference is due to begin at 2:30 p.m. ET. The 2-yr note yield is up eight basis points to 4.29% (having been at 4.19% just before the FOMC decision) and the 10-yr note yield is up four basis points to 3.54% (having been at 3.51% just before the FOMC decision. The U.S. Dollar Index, which was down 0.4% just before the FOMC decision, is flat.
The Dow Jones Industrial Average is down 0.3%; the S&P 500 and Russell 2000 are down 0.5%; and the Nasdaq Composite is down 0.6%.
Treasuries and Wall Street slumped on the more hawkish policy stance than expected. The big CPI-inspired rally left the markets susceptible to a selloff. It was unlikely the policy was going to be as dovish as hoped for. Yet, rates have only increased about 2 - 4 bps through the curve. The 5-year is at 3.685%, with the 10-year at 3.532%, and the 30-year at 3.545%. Wall Street reversed its gains with the NADAQ down -0.6%, with the S&P 500 off -0.45% and the Dow -0.32% lower. The DXY dollar index jumped, however, climbing to 103.95 from 103.534.
NASDAQ market internals summary
Volume is above average for this time of day. Breadth is mixed with issues and volume bullish while new highs to new lows are bearish (negative divergence). Advancing Issues: 2210 / Declining Issues: 2214 -- for a ratio of 1 to 1. Advancing Volume: 1,486,597,000 / Declining Volume: 1,520,139,000 -- for a ratio of 1 to 1. New 52-Week Highs: 87 / New 52-Week Lows: 195.
Some Fed officials predict a recession next year
The U.S. economy could slow to a crawl in 2023 and unemployment could jump to as high as 4.6%, as the Federal Reserve tries to clamp down on high inflation, the central bank's latest forecast shows.
For the first time, several senior Fed officials also predicted a recession next year.
The central bank on Wednesday raised a key short short-term interest rate by 1/2-percentage point to a top end of 4.5% and signaled several more increases are likely in 2023. Most business and consumer loans are tied to the so-called fed funds rate.
The Fed estimate the jobless rate could rise sharply from the current level of 3.7% due to effect of rising interest rates on the economy. Higher borrowing costs typically slow growth and depress demand for labor.
A few million people who now have jobs could end up unemployed if the Fed's worst-scenario comes to fruition.
The Fed has jacked up its benchmark rate from near zero last spring to tame the worst bout of inflation in 40 years. The annual increase in the cost of living, using the consumer price index, had climbed to as high as 9.1% during the summer.
Seven officials see higher rates in range of 5.5%-5.75%
The Federal Reserve on Wednesday raised its benchmark interest rate by 0.5 percentage point and signals more tightening next year.
The half-point increase brings the Fed's federal funds rate up to a range of 4.25%-4.5%, the highest since 2007, The central bank has raised rates from near-zero in March to try to dampen inflationary pressures in the wake of the pandemic.
In new projections about future policy, Fed officials penciled in 5.25% as the top end for its benchmark rate. That's higher than their forecast of 4.75% in September. Seven Fed officials expect rates to go even higher, with two seeing rates topping out at 5.75%. One hawkish official sees rates staying at that level through 2025.
In its statement, the Fed said "ongoing increases would be appropriate." That signals the Fed thinks they are still several months away from pausing. Officials said recent data point to "modest growth" in spending.
Traders in the federal funds futures market expect the Fed to slow down the pace of tightening again in February to a quarter-point hike. They expect an additional quarter-point hike in March, for a top-end terminal rate of 5%.
Former New York Fed President William Dudley said that markets have been focusing on an optimistic inflation scenario all year. He sees rates rising somewhere in the 5%-6% range.
The median forecast of Fed officials is for tepid growth at an 0.5% annual rate in 2023. That's down from the prior forecast of 1.2% growth rate. Some Fed officials expect the economy to contract next year. Their forecasts see a slightly stronger growth rate returning in 2024.
Officials project the unemployment rate will rise to 4.6% in 2023 from 3.7% in November. That is not as high as the rate that many economists expect will be needed to bring inflation down.
Fed officials project steady declines in inflation, starting with a drop to 3.1% in 2023 and then moving lower to 2.1% by 2025.
Fed officials see 100 basis points of cuts in 2024 and 100 more in 2025. Financial markets are expecting a rate cut next September.
The yield on the 10-year Treasury note has fallen sharply since the last Fed meeting in November.
X
Fed releases updated projections from December meeting; sees 2022 PCE median inflation of 5.6% from 5.4% prior forecast; sees 2023 PCE median inflation of 3.1% from 2.8% prior forecast; sees 2023 Fed rates between 5.1-5.4% from 4.4-4.9% prior projection; sees 2024 Fed rates between 3.9-4.9% from 3.4-4.4% prior projection
Fed median projection for Federal funds rate rises to 5.1% for end 2023
The Federal Reserve released the economic projections of Federal Reserve Board members and Federal Reserve Bank presidents under their individual assessments of projected appropriate monetary policy, which shows that the group's median forecast now calls for a Fed funds rate of 5.1% at the end of 2023, up from 4.6% seen in the prior median projection. The "central tendency" of the group, which excludes the three highest and three lowest projections for each variable in each year, shows the projected Federal funds rate for the end of 2023 is now 5.1%-5.4%, up from the prior forecast of 4.4%-4.9%.
Fed Raises Interest Rates to Highest Level Since 2007
$CVNA +9% $COIN +7% $W +6% $EBIX +5% $HLF +5% $SNAP +5% $RBLX +4%
Generac (GNRC 103.18, +4.38, +4.4%): best performer in the sector, rising toward its December high (106.00).
J.B. Hunt (JBHT 189.01, +4.76, +2.6%): trading near the midpoint of yesterday's range.
Delta Air Lines (DAL 34.19, +0.81, +2.4%): opened above its 200-day moving average (34.55) before falling back below that mark. Company lowered its revenue guidance for Q4 but also raised its EPS guidance and issued better than expected earnings guidance for FY24.
Northrop Grumman (NOC 535.81, +10.22, +1.9%): revisiting yesterday's session high.
Expeditors International (EXPD 114.32, +1.89, +1.7%): trading near the midpoint of yesterday's range.
FedEx (FDX 179.85, +2.97, +1.7%): rising to the midpoint of yesterday's range.
Union Pacific (UNP 221.08, +3.06, +1.4%): rising to its best level since mid-September with its 200-day moving average (223.54) looming above.
Norfolk Southern (NSC 261.40, +3.47, +1.4%): rising to its best level since late August.
Honeywell (HON 217.29, +2.33, +1.1%): rising to the midpoint of yesterday's range.
Caterpillar (CAT 237.72, +2.23, +1.0%): hit its best level in nearly two weeks before narrowing its gain.
C.H. Robinson (CHRW 96.43, +0.86, +0.9%): staying just above its 50-day moving average (95.57).
United Airlines (UAL 40.68, -0.49, -1.2%): weakest performer among airlines, falling back below its 50-day moving average (41.38) to its 200-day moving average (40.59).
Masco (MAS 50.76, -0.66, -1.3%): weakest performer in the sector, deepening yesterday's pullback from its best level since mid-September.
Todays unusual option volume $ERIC 12x normal $RADI 9x normal $RNA 275x normal $OM 160x normal $LIVN 15x normal $STAA 17x normal $STWD 7x normal $VIRT 7x normal $FND 7x normal $IART 16x normal $KDP 6x normal
The broader market is higher for a third consecutive session, gains paced by a 195 point move in the Dow Jones Industrial Average (+0.57%) to 34,303, while the S&P 500 adds 20 (+0.51%) to 4,040, and the Nasdaq Composite advances 55 (+0.49%) to 11,311. Action comes on lower than average volume (NYSE 250 mln vs. avg. of 314 mln; NASDAQ 2,199 mln vs. avg. of 2,289 mln), with advancers outpacing decliners (NYSE 1890/1031, NASDAQ 2534/1751), while advancing volume outpacing declining volume (NYSE 136/110 mln, NASDAQ 1,389/797 mln), and new lows outpacing new highs (NYSE 6/24, NASDAQ 6/103).
Relative Strength:
Sugar-SGG +3.0%, US Oil-USO +2.3%, Clean Energy-PBW +1.3%, Cloud Computing-SKYY +1.3%, Transportation-IYT +1.3%, Software-IGV +1.2%, Greece-GREK +1.1%, Global Wind Energy-FAN +1.1%, China Lg. Cap-FXI +0.9%, Switzerland-EWL +0.8%, Belgium-EWK +0.8%, Japan-EWJ +0.8%, Taiwan-EWT +0.8%, Spain-EWP +0.7%
Relative Weakness:
US Nat Gas-UNG -7.8%, Turkey-TUR -3.8%, Chile-ECH -2.3%, Short-Term Futures-VXX -2.3%, Latin Am. 40-ILF -1.8%, Brazil-EWZ -1.4%, US Telecoms-IYZ -1.3%, Mexico-EWW -1.2%, Rare Earth Metals-REMX -1.1%, Colombia-GXG -1.1%, Steel-SLX -0.9%, Silver Miners-SIL -0.9%, Hong Kong-EWH -0.7%, Lithium-LIT -0.6%
U.S. to remove some Chinese entities from red flag list soon-U.S. Officia
$TSLA
(OPTION ALERT) TSLA sees a call sweep on the ask - -TSLA Dec22 170 Calls 801 contracts at $1.21
Stocks with high short interest - $CVNA 46% - $BBBY 46% $BYND 42% $MSTR 39% $DBGI 39% $UPST 36% $BLNK 32%
Binance (CRYPTO: BNB) CEO Changpeng Zhao says the ongoing "crypto winter" is still ongoing and that the coming months can be difficult.
“While we expect the next several months to be bumpy, we will get past this challenging period — and we’ll be stronger for having been through it,” Zhao stated in an internal memo to Binance employees, according to Bloomberg.
Zhao, known as "CZ" in the crypto industry, said that Binance is now the subject of "a lot of extra scrutiny and tough questions" due to the collapse of prominent rival crypto exchange FTX (CRYPTO: FTT).
See Also: Canadian Regulator Gets Strict With Crypto Trading Platforms Following FTX Collapse
Sam Bankman-Fried, the founder and former CEO of FTX, was arrested on Tuesday by a U.S. grand jury of money laundering and conspiring to engage in fraud against FTX's clients and lenders.
He is currently in the custody of the Bahamas Department of Corrections after being denied bail.
Concerns Over Liquidity Trouble In Binance
A record number of Bitcoin and Ether withdrawals occurred on Binance on Tuesday as concern over the liquidity of centralized exchanges intensified.
The withdrawals of USD Coin (CRYPTO: USDC) were temporarily frozen due to the outflows, but Zhao mainly disregarded worries about liquidity problems at the exchange.
The U.S. Department of Justice is considering slapping criminal charges against cryptocurrency exchange Binance and specific individuals related to the firm, including Zhao.
$RARE $45.40s
Sweet molasses
Upgrades:
EQT Corp. (EQT) upgraded to Outperform from Peer Perform at Wolfe Research; tgt $59
Kone Oyj (KNYJY) upgraded to Buy from Neutral at Citigroup
PACCAR (PCAR) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt raised to $136
Playa Hotels & Resorts (PLYA) upgraded to Buy from Neutral at Citigroup; tgt raised to $8
PulteGroup (PHM) upgraded to Overweight from Equal Weight at Barclays; tgt raised to $58
RingCentral (RNG) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt lowered to $50
SolarEdge Technologies (SEDG) upgraded to Overweight from Equal Weight at Barclays; tgt raised to $396
StoneCo (STNE) upgraded to Neutral from Underperform at Grupo Santander; tgt $12.5
Telefonica S.A. (TEF) upgraded to Buy from Neutral at Goldman
Downgrades:
Badger Daylighting (BADFF) downgraded to Sector Perform from Sector Outperform at Scotiabank
FB Financial (FBK) downgraded to Market Perform from Outperform at Hovde Group; tgt $42
Healthcare Realty (HR) downgraded to Neutral from Buy at Citigroup; tgt lowered to $22
Healthpeak (PEAK) downgraded to Sector Perform from Outperform at RBC Capital Mkts; tgt lowered to $28
Latham Group (SWIM) downgraded to Equal Weight from Overweight at Barclays; tgt lowered to $5
MediaTek (MDTKF) downgraded to Neutral from Buy at Goldman
Moderna (MRNA) downgraded to Neutral from Buy at Chardan Capital Markets; tgt raised to $191
Offerpad Solutions (OPAD) downgraded to Underperform from Mkt Perform at Keefe Bruyette; tgt lowered to $0.40
QuantumScape Corporation (QS) downgraded to Sell from Neutral at Goldman; tgt lowered to $5
Skyline Champion (SKY) downgraded to Equal Weight from Overweight at Barclays; tgt lowered to $60
SL Green Realty (SLG) downgraded to Sell from Neutral at Citigroup; tgt lowered to $30
SPS Commerce (SPSC) downgraded to Neutral from Outperform at Robert W. Baird; tgt $151
Stock Yards Bancorp (SYBT) downgraded to Underweight from Neutral at Piper Sandler; tgt lowered to $73
Syneos Health (SYNH) downgraded to Neutral from Buy at Mizuho; tgt lowered to $38
Telia (TLSNY) downgraded to Neutral from Buy at Goldman
Vodafone PLC (VOD) downgraded to Buy from Conviction Buy at Goldman
Vornado Rlty Trust (VNO) downgraded to Sell from Neutral at Citigroup; tgt lowered to $19
Equinix initiated with an Outperform at Exane BNP Paribas
Exane BNP Paribas analyst Nate Crossett initiated coverage of Equinix with an Outperform rating and $886 price target
Morning Watch List : https://www.optionmillionaires.com/december-14th-2022-watch-list/
Baidu price target lowered to $150 from $195 at Susquehanna
Susquehanna analyst Shyam Patil lowered the firm's price target on Baidu to $150 from $195 and keeps a Positive rating on the shares. The analyst said relative improvement in COVID lockdowns led to revenue growth y/y in 3Q after declines in 2Q, though the COVID situation worsened in November. While macro uncertainty continues to mount, his long-term view of BIDU remains constructive as he sees the company as a leading player in China's search market, a key player in the feeds market, owner of one of the top video assets in the country, and a market leader in AI applications.
S&P 500 futures are 0.2% below fair value; the Nasdaq 100 futures are 0.1% below fair value; and the Dow Jones Industrial Average futures are 0.1% below fair value
Key factors driving the futures market:
Wait-and-see stance in front of FOMC decision and Summary of Economic Projections at 2:00 p.m. ET and Fed Chair Powell's press conference at 2:30 p.m. ET
Delta Air Lines (DAL) raises Q4 EPS above consensus and issues FY23 EPS guidance above consensus; DAL up 4.1%
Congress reaches framework on omnibus spending package that will fund government through September 30. House will vote on one week continuing resolution today to give Senate more time to vote on full ominous package, according to The Wall Street Journal.
IEA says world oil demand due to contract by 110 kb/d in Q4
China to stop counting coronavirus cases without symptoms and accelerate vaccinations, according to FT
U.S. to add 30 additional companies to China blacklist, according to Bloomberg
Brokerage research calls of note:
Upgrades: ANSS, BCS, DRI, DDOG, EGP, FTS, GNTX, LEN, NCNO, DOC
Downgrades: AGRO, AWI, AZO, BBY, AKR, MT, BDN, CZR, CSR, CERT, DLR, DEA, E, ESS, HLT, LEA, LBTYA, LTC, MGA, MAR, MLM, NTST, PENN, XPEV
WTI crude futures +0.5% to $75.73/bbl; nat gas futures -4.9% to $6.60/mmbtu; copper futures +0.2% to $3.85/lb
2-yr note yield -2 bps to 4.19% and 10-yr note yield +1 bp to 3.51%
The U.S. Dollar Index is down 0.1% to 103.90
Today's economic data: November Import and Export Price Index at 8:30 a.m. ET
Fed Day has finally arrived. Investors and economists alike have set a reminder for 2 p.m. ET, when the central bank will detail its latest rate decision, and another alarm for 2:30 p.m., as Fed Chair Jerome Powell takes the podium. They'll be watching updated interest rate and economic projections, which will largely define trading behavior and sentiment as the market heads into 2023. "The time for moderating the pace of rate increases may come as soon as the December meeting," Powell said in his last media appearance, and it looks like that is now a reality.
Wall Street Breakfast Survey: Out of the 100 responses received following yesterday's softer CPI print (see below), 95% are now predicting a 50 basis point rate hike, and only 5% believe the Fed will still go for 75 bps. It's a notable change from a day earlier. Prior to the latest inflation figure, 2/3 of the 2,100 survey participants felt that the central bank was set to announce a half-point increase, compared to 1/3 that saw the Fed going through with a fifth consecutive 75 bps hike.
All in all, the Fed has cranked up its key rate by 3.75 percentage points in less than a year, from the near-zero level that had stayed in place over 2020 and 2021. The key rate, formally known as the federal funds rate, is closely watched because it influences interest rates throughout the economy. For consumers, rising interest rates make it more expensive to take out a mortgage, carry a balance on credit cards, or get a loan to buy a car. For businesses, it increases the cost of bank loans and for raising capital in the debt markets.
Outlook: Following a 50 bps hike today, Hank Smith, head of investment strategy at Haverford Trust, sees a 25 bps rate increase in February and possibly another quarter-point hike in March. Then "we're going to have a pause and allow for the lag effects of this monetary tightening to play through," he said in an interview with Seeking Alpha. The Fed will also be careful not to call it a pivot and "whatever the terminal rate is - whether it's five, five and a quarter percent - it's going to stay there for a period of time, most likely through 2023." As for how the Fed's policy will affect investing, Smith expects continued volatility in equity and fixed income markets given his outlook for a mild and brief recession in the middle of next year. (64 comments)
Cooler than expected
Consumers breathed a sigh of relief on Tuesday as inflation showed further signs of subsiding in November. The three major U.S. equity indexes jumped following the release, before paring much of the big gains during the session, while the 10-year Treasury yield was pushed back down to a level of 3.50%. "Make no mistake, prices are still too high," President Biden said in a statement. "But things are getting better, headed in the right direction."
Snapshot: The Consumer Price Index rose 7.1% Y/Y (vs. +7.3% expected and +7.7% prior) to mark the fifth straight decrease since June. It's also the smallest annual increase in the inflation rate in more than a year, indicating that the Fed's aggressive rate-hiking moves are filtering through the economy to reduce demand. Meanwhile, core CPI climbed 6.0% (vs. +6.1% expected and +6.3% prior), as shelter, the largest contributor to the CPI, more than offset decreases in the energy index.
"As I had been expecting, we are finally seeing a more precipitous decline in both headline and core rates of inflation, as both the monthly and annual rates are reported below expectations," SA contributor Lawrence Fuller declared. "The declines in transportation services and medical care are encouraging, while shelter costs should follow early next year."
More commentary: "The report suggests we're on the road to a soft landing," added David Russell, VP of Market Intelligence for TradeStation Group. "The Fed will keep talking tough and probably inch up the dot plot, but we seem to have turned a corner on inflation. Santa could be coming to town this year." (369 comments)
Cancer treatments
Moderna (MRNA) was one of the most active stocks during the session on Tuesday, staging a massive rally in response to promising developments. Shares soared nearly 20% as its experimental melanoma vaccine combined with Merck (MRK) cancer treatment Keytruda cut the risk of skin cancer recurrence or death by 44%. That compared with a treatment of only Keytruda that took place in a phase 2b study called KEYNOTE-942, while preparations to launch a first phase 3 trial are already on the way.
Bigger picture: Moderna, which rose to fame and fortune on the back of its mRNA COVID-19 vaccine, has now shown that the mRNA technology is not a mere one-trick pony battling the coronavirus, but could be a disruptor in the cancer space as well. The news could continue to provide a much-needed boost for the biotech, which is still down around 16% YTD. Besides the latest vaccine known as mRNA-4157, where a phase 1 trial in multiple cohorts is ongoing as per a Nov. 3 filing - Moderna is developing three other programs within its cancer vaccines modality.
"We believe that this should work in many tumor types, not only melanoma," CEO Stéphane Bancel declared, going as far to call the advances "Immunotherapy 2.0."
Go deeper: Moderna and Merck are not the only ones in the race for cancer vaccines. Agenus (AGEN), Anixa Biosciences (ANIX), CureVac (CVAC), GeoVax Labs (GOVX), ImmunityBio (IBRX) and VBI Vaccines (VBIV) are all getting in the race with various technologies. Even Merck is not just exploring the mRNA space, as it works on a new investigational class of engineered circular RNA (oRNA) that include vaccines and therapeutics for infectious disease and oncology. (37 comments)
Patriot to Ukraine
Ukraine may soon get some air defense as the U.S. finalizes plans to supply the nation with its sophisticated Patriot system. It follows months of Russian missile and drone attacks on Ukraine's power and civilian infrastructure, and many urgent requests from President Volodymyr Zelenskyy. U.S. Defense Secretary Lloyd Austin could sign the directive as soon as this week, with President Biden approving the final request.
Thought bubble: Over the past year, the U.S. has held back on supplying its most advanced weaponry to Kyiv amid concerns that the war could escalate into a wider conflict with Russia. Items like General Atomics' MQ-1C Gray Eagle and Lockheed Martin's (NYSE:LMT) ATACMS have been off the table, which would allow for deep attacks into Russian territory. The Patriot is more defensive in nature, however, and the Biden administration appears to have softened its stance on providing the system.
Once the ink is on the dotted line, the Patriots are expected to ship within days and the Ukrainians will be trained to use them at a U.S. Army base in Germany. Millions of civilians in Ukraine are currently living with cuts to water, electricity and heating, as temperatures plummet in the thick of winter. Due to its long-range and high-altitude capability, Kyiv hopes the Patriot can potentially shoot down Russian missiles and drones miles away from their intended targets inside of the country.
Some history: The Patriot is produced by Raytheon Technologies (NYSE:RTX), with Lockheed Martin manufacturing the missiles it fires. The system has been around for many decades, but gained prestige prior to the 1991 Gulf War, when it was overhauled to provide capabilities against tactical ballistic missiles (in addition to enemy aircraft). In total, more than 240 Patriot fire units have been delivered to 17 U.S. allied nations, which have invested significantly in improvements, enhancements and upgrades. (2 comments)
Today's Markets
In Asia, Japan +0.8%. Hong Kong +0.4%. China flat. India +0.2%.
In Europe, at midday, London -0.3%. Paris -0.3%. Frankfurt -0.5%.
Futures at 6:30, Dow +0.1%. S&P +0.1%. Nasdaq flat. Crude +1.1% to $76.18. Gold -0.4% to $1817.50. Bitcoin +2.3% to $17,845.
Ten-year Treasury Yield unchanged at 3.50%
Today's Economic Calendar
7:00 MBA Mortgage Applications
8:30 Import/Export Prices
10:00 Atlanta Fed's Business Inflation Expectations
10:30 EIA Petroleum Inventories
2:00 PM FOMC Announcement
2:30 PM Jerome Powell Speech
Companies reporting earnings today »
What else is happening...
Bahamas judge denies bail for FTX founder Sam Bankman-Fried.
Apple (AAPL) may allow alt app stores on iPhones to meet EU rules.
Lawmakers are pushing bipartisan legislation to ban TikTok.
United Airlines (UAL) loses altitude on blockbuster aircraft deal.
U.K. inflation eases slightly in November on sliding fuel prices.
Ford (F) increases production capacity for electric F-150 truck.
Tesla (TSLA) touches 52-week low as investors decry Twitter distraction
Delta Air Lines (DAL 34.82, +1.44, +4.3%): raises Q4 EPS guidance; narrows Q4 revenue guidance; sees FY23 EPS and revs above consensus; sees FY24 EPS above consensus
Lennar (LEN 91.40, +0.81, +0.9%): upgraded to Overweight from Equal Weight at Barclays
Plug Power (PLUG 14.64, +0.53, +3.8%): USB initiated coverage with a Buy rating
Tesla (TSLA 159.49, -1.46, -0.9%): price target lowered to $235 from $305 at Goldman Sachs, according to CNBC; investors are concerned about CEO Elon Musk's focus on Twitter, according to WSJ
Braze (BRZE 27.26, -1.64, -5.7%): beats by $0.07, beats on revs; guides JanQ EPS above consensus, revs above consensus
Best Buy (BBY 81.72, -2.35, -2.8%): downgraded to Underperform from Neutral at BofA Securities
Upgrades:
Barclays PLC (BCS) upgraded to Outperform from Neutral at Exane BNP Paribas
Darden Restaurants (DRI) upgraded to Outperform from Neutral at Wedbush; tgt raised to $160
Datadog (DDOG) upgraded to Outperform from Perform at Oppenheimer; tgt $105
EastGroup (EGP) upgraded to Overweight from Sector Weight at KeyBanc Capital Markets; tgt $170
Fortis (FTS) upgraded to Equal Weight from Underweight at Wells Fargo
Gentex (GNTX) upgraded to Neutral from Sell at Goldman; tgt raised to $26
Lennar (LEN) upgraded to Overweight from Equal Weight at Barclays; tgt raised to $116
nCino (NCNO) upgraded to Outperform from Neutral at Robert W. Baird; tgt $35
Physicians Realty Trust (DOC) upgraded to Overweight from Sector Weight at KeyBanc Capital Markets; tgt $17
Downgrades:
Acadia Realty Trust (AKR) downgraded to Sector Weight from Overweight at KeyBanc Capital Markets; tgt lowered to $16
ArcelorMittal (MT) downgraded to Neutral from Buy at BofA Securities
Brandywine Realty (BDN) downgraded to Sell from Neutral at Citigroup; tgt lowered to $5
Caesars Entertainment (CZR) downgraded to Neutral from Buy at BofA Securities; tgt lowered to $55
Centerspace (CSR) downgraded to Neutral from Buy at Janney
Certara (CERT) downgraded to Neutral from Outperform at Robert W. Baird; tgt raised to $19
Digital Realty Trust (DLR) downgraded to Equal Weight from Overweight at Wells Fargo; tgt lowered to $115
Easterly Government Properties (DEA) downgraded to Neutral from Buy at Citigroup; tgt lowered to $15.50
Eni S.p.A. (E) downgraded to Sector Perform from Outperform at RBC Capital Mkts
Essex Property (ESS) downgraded to Neutral from Buy at Janney; tgt $241
Essex Property (ESS) downgraded to Sector Weight from Overweight at KeyBanc Capital Markets
Galp Energia (GLPEY) downgraded to Sector Perform from Outperform at RBC Capital Mkts
Hilton (HLT) downgraded to Neutral from Buy at Citigroup; tgt lowered to $148
Lear (LEA) downgraded to Equal Weight from Overweight at Wells Fargo; tgt lowered to $139
Liberty Global (LBTYA) downgraded to Neutral from Buy at Goldman
LTC Properties (LTC) downgraded to Sector Weight from Overweight at KeyBanc Capital Markets
Magna (MGA) downgraded to Equal Weight from Overweight at Wells Fargo; tgt $62
Marriott (MAR) downgraded to Neutral from Buy at Citigroup; tgt raised to $175
Martin Marietta (MLM) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt lowered to $399
NETSTREIT (NTST) downgraded to Sector Weight from Overweight at KeyBanc Capital Markets
PENN Entertainment (PENN) downgraded to Neutral from Buy at BofA Securities; tgt lowered to $40
XPeng (XPEV) downgraded to Sell from Buy at Daiwa Securities; tgt lowered to $8
AMC Theatres (AMC, APE) on Wednesday said it will launch the AMC Entertainment Visa Card, in partnership with Visa (V)
BRZE -5.7%, MASI -1.9%, ABM -1.6% (also approves additional $150 mln for share repurchases)
Other news:
PRTA -4.3% (commences 3 mln share public offering)
DLR -1% (CEO resigns; names new CEO)
GRND -0.8% (stock offering by selling shareholders)
CYTK -0.7% (receives outcome of FDA Advisory Committee Vote On Omecamtiv Mecarbil; committee voted 8-3 that benefits do not outweigh risks)
Analyst comments:
BBY -2.8% (downgraded to Underperform from Neutral at BofA Securities)
AGRO -2.1% (downgraded to Equal-Weight from Overweight at Morgan Stanley)
AZO -1.4% (downgraded to Underperform from Neutral at BofA Securities)
AWI -1% (downgraded to Hold from Buy at Jefferies)
Upgrades:
ANSYS (ANSS) upgraded to Outperform from Neutral at Robert W. Baird; tgt raised to $295
Downgrades:
Adecoagro S.A. (AGRO) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt lowered to $10
Armstrong World Industries (AWI) downgraded to Hold from Buy at Jefferies; tgt lowered to $71
AutoZone (AZO) downgraded to Underperform from Neutral at BofA Securities
Best Buy (BBY) downgraded to Underperform from Neutral at BofA Securities; tgt lowered to $69
Others:
Aclaris Therapeutics (ACRS) initiated with a Buy at Stifel; tgt $29
Archer-Daniels (ADM) initiated with a Buy at UBS; tgt $115
Bloom Energy (BE) initiated with a Buy at UBS; tgt $35
Bunge (BG) initiated with a Buy at UBS; tgt $133
Clean Energy Fuels (CLNE) initiated with a Buy at UBS; tgt $12
FuelCell Energy (FCEL) initiated with a Neutral at UBS; tgt $3.85
Pliant Therapeutics (PLRX) initiated with a Buy at Stifel; tgt $33
Travere Therapeutics (TVTX) initiated with a Hold at Stifel; tgt $22
Mattress Company Serta Simmons Prepares to File for Bankruptcy Protection
U.S. 30-year mortgage rates ticked up to 6.42% from an 11-week low of 6.41% in the latest week, according to the MBA, leaving what is still a big 7-week pull-back from a 21-year high of 7.16% in late-October. The drop has fueled a bounce in the MBA purchase data that will take pressure off pending, new, and existing home sales as analysts approach Q1. The MBA purchase index has posted gains of 5.5% thus far in December and 5.4% in November from an 8-year low in October. Analysts expect a -47% contraction rate for the purchase index in Q4. The purchase index has fallen -21% in 2022, which marks the largest decline since a -24% drop in both 2010 and 2009. The refi index has fallen -2.2% thus far in December, leaving a 22-year low and a 16th consecutive decline. Analysts're seeing an -85% contraction rate for the refi index in Q4. The refi index has fallen -72% in 2022, which is the largest decline since a -75% plunge in 1994.
US to Add More Than 30 Chinese Companies to Trade Blacklist
Crypto firm Binance says deposits returning after heavy withdrawals
US Plays Down Idea of CPI Leak Following Pre-Report Trading
$AZO
AutoZone downgraded to Underperform from Neutral at BofA
BofA analyst Elizabeth Suzuki downgraded AutoZone to Underperform from Neutral.
IEA says world oil demand is set to contract by 110 kb/d y-o-y in 4Q22, reaching 100.8 mb/d, up by 130 kb/d compared with last month’s report (65.86)
"World oil demand is set to contract by 110 kb/d y-o-y in 4Q22, reaching 100.8 mb/d, up by 130 kb/d compared with last month's Report. Strong gasoil use in key consuming countries outweighs weak European and Asian petrochemical deliveries. Oil demand growth has been increased to 2.3 mb/d (+140 kb/d) for 2022 as a whole and to 1.7 mb/d next year (+100 kb/d), when it will reach 101.6 mb/d.
World oil supply fell 190 kb/d in November to 101.7 mb/d, breaking a five-month uptrend, after Saudi Arabia and other Gulf countries curbed supply in line with lower OPEC+ output targets. A steeper drop is expected next month as the EU ban on Russian crude imports and the G7 price cap take effect. Following annual gains this year of 4.7 mb/d, growth of 770 kb/d in 2023 will raise supply to 100.8 mb/d."
Market Update:
Market Update: The weaker than expected inflation report out of the U.S. on Tuesday has revived risk appetite and boost bond as well as stock markets. A rising count of virus infections in China saw the CSI 300 underperforming, but the index still closed with a 0.2% gain, while Nikkei, ASX and Hang Seng managed gains of 0.7%. Stock futures are up across Europe and the U.S. and yields are coming down. The 10-year Bund rate is at 1.88%, -3.7 lower than yesterday. The 10-year Treasury rate meanwhile has dropped -4.2 bp to 3.5%. Gilts, which underperformed on Tuesday after higher than anticipated data on wage growth, will get a boost from the correction in headline and core inflation numbers. Analysts still see the BoE on course to hike rates by 50 bp on Thursday, but the data will give the bank some wiggle room and should allow Bailey to push back against overly pessimistic market bets on the final rate. The DXY dollar index is trading slightly above the 104 mark after closing at 103.98 yesterday. USD-JPY is at 135.48 amid wider strengthen in the yen. EUR-USD is holding above 1.06, cable above 1.23. The front end WTI contract meanwhile is trading at USD 75.34, with the bounce in oil prices stalled for now.
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FOSL | jimmybob | 02/14/2012 09:54:12 AM |
FOSL and SODA ~ WATCH!!! | jimmybob | 02/14/2012 09:50:52 AM |
uranium-pinto-beans | | Tuesday, February 14, 2012 12:43:05 PM | ||
Re: uranium-pinto-beans post# 82823 | | Post # of 87811 |
uranium-pinto-beans | | Tuesday, February 14, 2012 8:20:48 PM | ||
Re: uranium-pinto-beans post# 83085 | | Post # of 87811 |
jimmybob | | Friday, March 02, 2012 11:58:33 AM | ||
Re: jimmybob post# 87690 | | Post # of 87809 |
jimmybob | | Friday, March 02, 2012 12:10:44 PM | ||
Re: jimmybob post# 87692 | | Post # of 87809 |
jimmybob | | Monday, February 13, 2012 11:22:59 PM | ||
Re: jimmybob post# 80632 | | Post # of 87807 |
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