Morgans AM

The S&P500 and Nasdaq extended losses into a third straight session as investors look ahead to some key economic releases and Federal Reserve Chair Jerome Powell’s scheduled speech at the Hutchins Centre on Fiscal and Monetary Policy at The Brookings Institution tonight AEST - Dow eked out a +0.01% gain. The broader S&P500 slipped -0.16%, with Information Technology (down -0.98%) leading six of the eleven primary sectors lower. Real Estate (up +1.71%) and Energy (+1.28%) both climbed over >1%.The Nasdaq -0.59%. The small capitalisation Russell 2000 added +0.31%.

US equity markets posted their steepest single session losses since 9 November – the first session after the US midterm elections - as social unrest from China’s prolonged COVID restrictions and some hawkish commentary from Federal Reserve speakers weighed on sentiment - Dow fell -498-points or -1.45%. UnitedHealth Group Inc edged ~0.5% lower in the extended session (after a -1.0% decline in the regular session) after the health-care and insurance company issued guidance ahead of its investor day tonight AEST, with some elements falling short of analysts’ expectations. The broader S&P500 -1.54%, with Real Estate (down -2.80%), Energy (-2.74%, with Exxon Mobil down -3.00%, Chevron Corp -2.91%, and Occidental Petroleum Corp -2.92%), Materials (-2.20%) and Information Technology (-2.13%) all fell over >2% to lead all eleven primary sectors lower. The Nasdaq -1.58%. Turmoil at Apple Inc’s (down -2.63%) key manufacturing hub of Zhengzhou is likely to result in a production shortfall of close to 6M iPhone Pro units this year, according to a person familiar with assembly operations, according to a Bloomberg report citing a person familiar with assembly operations. The small capitalisation Russell 2000 dropped -2.05%.

US equity markets mixed following a muted, shortened Black Friday trading session - Dow gained +153-points or +0.45% to 34,347.03, the highest close for the 30-stock index since 21 April. The broader S&P500 dipped -0.03%, The Nasdaq fell -0.52%. Apple Inc fell -1.96% after Wedbush Securities said that iPhone shortages have gotten worse in the past week as protests continue at Foxconn, which builds the smart phones for Apple. Microsoft Corp dipped -0.04%, with Politico reporting the Federal Trade Commission is likely to sue to block the company’s US$69B acquisition of video game company Activision Blizzard Inc (down -4.07%) The small capitalisation Russell 2000 rose +0.30%.

European bourses extended their recent rally in thin volume trade, with the Chemicals sector (up +1.1%) leading all major sectors into positive territory and lifting the pan-European Stoxx 600 index (which includes UK equities) +0.46%. Germany's DAX gained +0.78%. France's CAC added +0.42%. Remy Cointreau dipped -0.06% despite reporting a stronger-than-expected +27.2% organic jump in first-half operating profit, driven by strong demand for its premium cognac in China and the US and cost controls. In broader stock moves, Credit Suisse Group AG (down -1.91%) confirmed the final terms of its 4B Swiss franc (~US$4.2B) capital raise, making 889M shares available to existing investors at 2.52 Swiss francs. Switzerland’s second largest bank also confirmed it has issued 462M new shares to qualified investors via a placement, with Saudi National Bank the largest investor (buying 307M new shares to afford it a 9.9% stake). In economic data, The German Ifo Business Climate index rose to 86.3 in November from a revised reading of 84.5 in October, better than economists’ forecast for a reading of 85.0. The index of the current situation fell to 93.1 in November from 94.2 in October, while the gauge assessing companies’ expectations rose to 80.0 from 75.9.

US equity markets climbed amid a choppy session, gaining ground after minutes of the Federal Reserve's early November policy meeting reinforced expectations that policy makers will shift to smaller rate increases at their December meeting - Dow rose +96-points or +0.28%, The broader S&P500 +0.59%, with Consumer Discretionary (up +1.33%), Communication Services (+1.21%) and Utilities (+1.04%) all rising over >1% to lead ten of the eleven primary sectors higher. Energy (down -1.16%) was the only primary sector to settle in the red. Tesla Inc rebounded +7.82%, buoyed an upgrade from Citi to ‘neutral’ from ‘sell’. The Nasdaq +0.99%. The small capitalisation Russell 2000 added +0.17%.

US equity markets rallied as investors looked past a fresh tightening of COVID policies in China and the latest downgraded economic growth forecasts from the Organisation of Economic Development (OECD), and focussed on some upbeat quarterly results from a number of retailers - Dow rose +398-points or +1.18%, The broader S&P500 climbed +1.36% to 4,003.58, settling above 4,000 for the first time since September. Energy (up +3.18%) and Materials (+2.23) both rallied over >2% to lead all eleven primary sectors higher. The Nasdaq +1.36%. The small capitalisation Russell 2000 +1.16%.

US equity markets after a choppy session to open the holiday-shortened trading week - Dow fell -45-points or -0.13%, Walt Disney Co rose +6.30% after announcing that Chief Executive Officer (CEO) Bob Chapek is stepping down from the post and will be replaced by his predecessor, Robert Iger. Mr Iger served as Disney’s CEO from 2005-2020, and has served as executive chairman and chairman of the board since 2021. The broader S&P500 -0.39%, with Consumer Discretionary (down -1.41%), Energy (-1.39%) and Information Technology (-1.13%) all falling over >1% and leading four of the eleven primary sectors lower. More defensive sectors outperformed for a second straight session, with Consumer Staples up +0.98%, Real Estate +0.72% and Utilities +0.50%. Tesla Inc fell -6.84%, with the electric vehicle company’s shares touching their lowest level since July 2020. The Nasdaq -1.09%. The small capitalisation Russell 2000 lost -0.57%.

US equity markets ticked higher in the after afternoon session last Friday (November) to end the week on an upbeat note - Dow up +199-points or +0.59%. The broader S&P500 +0.48%, with the more defensive Utilities (up +2.00%), Real Estate (+1.29%), Health Care (+1.20%) and Consumer Staples (+1.04%) leading nine of the elven primary sectors higher. Energy (down -0.90%) and Communication Services (-0.35%) were the only primary sectors to settle in the red. The Nasdaq settled flat. The small capitalisation Russell 2000 rose +0.58%.

US equity markets logged their first back-to-back losses in two weeks following some hawkish commentary from Federal Reserve officials - Dow dipped -8-points, The broader S&P500 -0.31%, with Utilities (down -1.79%) and Consumer Discretionary (-1.27%) leading eight of the eleven primary sectors lower. Information Technology sat atop the primary sector leaderboard with a +0.21% rise. General Motors (up +0.17%) hosted its annual investor day and raised its full year guidance, noting it expects its electric vehicle (EV) portfolio in North American to be profitable in a couple of years as it ramps up EV capacity in the region to more than 1>M EVs per year. The automaker projected full year adjusted earnings before interest and tax (EBIT) will be in a range between US$13.5B and US$14.5B compared to a prior guidance of US$13B and US$15B. The Nasdaq -0.35%. Cisco Systems Inc gained +4.96% after the networking-technology company delivered better-than-expected numbers on the top and bottom line, accompanied by encouraging guidance after the close of the previous session. The small capitalisation Russell 2000 lost -0.76%.

US equity markets retreated after a choppy session, with investors parsing the latest earnings results from retailers - Dow slipped -39-points or -0.12%, The broader S&P500 fell -0.83%, with Energy (down -2.15%), Consumer Discretionary (-1.46%) and Information Technology (-1.45%) all fell over >1.5% to lead nine of the eleven primary sectors lower. The more defensive Utilities (up +0.87%) and Consumer Staples (+0.46%) were the only primary sectors to advance. The Nasdaq -1.52%. The small capitalisation Russell 2000 lost -0.49%.