DHUnplugged #626: Dizzy Bats

Directionless - markets have lost all sense of trend.

Volatility expands, 5% swings daily - not since the great financial crisis..

Earnings are out and we take a peek.

A new Closest to The Pin announced.

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Warm Up

- Hysteria - moves widening - Future soar Tuesday overnight

- U Turn after U Turn After We Turn - Feel Like Dizzy Bats

- Gates are Giving Big $$$ for another Disease

- ANNOUNCING - A New CTP

Market Update

- What's the point? Up one Day Down the next

- Lows hit last Thursday for 2022 then massive bounce (5% intraday move)

- 4% 10-year is recent top?

- Economics, Mixed

- Earnings - beating lowered bar

- Apple News - Rotten

This!

- BlackRock: MO State Treasurer Scott Fitzpatrick announces MOSERS has pulled $500 million in state pension funds from BLK due to ESG initiatives 

- "At the MOSERS Board of Trustees meeting in June, the board directed staff to require BlackRock to abstain from voting proxies on behalf of the plan, due to concerns with their public statements and record of prioritizing ESG initiatives over shareholder return. BlackRock refused the Board's demand to abstain from voting the plan's proxies. As a result, MOSERS proceeded with, and has now completed, the sale of all of its equity holdings with BlackRock. The funds are now primarily managed through contracts held by NISA, a St. Louis-based investment manager."

ECONOMICS

- NAHB Housing Market Index 38 vs. 44 Briefing.com consensus; prior 46

- September Industrial Production 0.4% vs. 0.1% Briefing.com consensus; prior revised to 0.4% from -0.2%

- September Capacity Utilization 80.3% vs. 79.9% Briefing.com consensus; prior revised to 80.1% from 80.0%

Goldman Says

- After beating lowered earnings....

- Goldman Sachs CEO David Solomon cautioned Tuesday that the U.S. economy might be headed for a downturn that could make investing and business decisions more difficult.

- “That environment heading into 2023 is one that you’ve got to be cautious and prepared for,” he told CNBC.

- His remarks came just a few days after his counterpart at JPMorgan Chase, Jamie Dimon, also warned of looming trouble for the U.S. economy.

Wow

- U.K. Finance Minister Jeremy Hunt used his first Monday on the job to announce that "almost all" tax measures announced by his predecessor would be reversed.

- BTW - new Finance Minister - Kwarteng ousted after his bad move..

Bank of America Earnings

- Reports Q3 (Sep) earnings of $0.81 per share, $0.03 better than the S&P Capital IQ Consensus of $0.78; revenues rose 7.6% year/year to $24.5 bln vs the $23.46 bln S&P Capital IQ Consensus.

- Provision for credit losses of $898 million increased $1.5 billion. Net reserve build of $378 million vs. net reserve release of $1.1 billion in Q3-21. Net charge-offs of $520 million increased 12%. Net interest income (NII)(E) up $2.7 billion, or 24%, to $13.8 billion, driven by benefits from higher interest rates, including lower premium amortization expense, and solid loan growth.

- Average loan and lease balances up $114 billion, or 12%, to $1.0 trillion led by strong commercial loan growth as well as higher credit card balances.

Netflix Earnings (JCD has on Game)

- Big move after hours +14%

- Better sub additions - much better outlook

- Taking NAZ100 futures higher

Someone getting Smart?

- Germany plans to extend the life of three of the country's nuclear power plants to mid-April 2023, according to Bloomberg

American Express September Card Metrics

- Reports September U.S. Consumer Card Member loans net write-off rate of 0.8% vs 0.8% prior month (0 bps change) with consumer loans 30 days past due 0.9% vs 0.