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US equity markets climbed as investors weighed a flurry of bank earnings results for the fourth quarter and fresh data on consumer sentiment and inflation expectations - Dow rose +113-points or +0.33%, Caterpillar Inc rose +1.33% to US$258.46, logging a fourth consecutive record closing high after Bank of America analysts turned bullish on the company in the belief that the construction- and mining-equipment maker will weather a 2023 recession better than many might expect. Bank of America upgraded their rating on Caterpillar to ‘Buy’ from ‘neutral’, and lifted their target price by +36% to US$295. The broader S&P500 added +0.40%, with Consumer Discretionary (up +0.97%) sitting atop the primary sector leaderboard on Friday (13 January) and leading eight of the eleven primary sectors higher. The more defensive Real Estate (down -0.61%) and Utilities (-0.44%) underperformed. Tesla Inc fell -0.94% after the electric vehicle cut prices in the U.S. and Europe again, according to listings on the company’s website last Thursday night AEST (12 January). The Nasdaq gained +0.71%. The small capitalisation Russell 2000 added +0.58%.

US equity markets advanced as investors digested the latest inflation report that saw the cost of living cool for the first time on a monthly basis since the onset of the COVID pandemic in 2020, while the annual rate of inflation fell for the sixth month in a row - Dow rose +217-points or +0.64%. Walt Disney Co rose +3.61% after the company announced Mark Parker, the executive chairman of Nike Inc (down-0.04%), as its new chairman. In addition, the company opposed Nelson Peltz of Trian as he pushes for a seat on the board, igniting a proxy battle. The broader S&P500 added +0.34%, with Energy (up +1.87%) and Real Estate (+1.09%) gaining over >1% to lead eight of the eleven primary sectors higher. The more defensive sectors underperformed overnight, with Consumer Staples (down -0.79%), Utilities (-0.64%) and Health Care (-0.39%) all settling in the red. It marked the first time the S&P 500 has risen three days in a row since early November. American Airlines Group Inc jumped +9.71% after the carrier boosted its revenue and profit estimates for the fourth quarter. The airline, which reports earnings 26 January, cited strong demand and high fares for the hike in estimates. Tesla Inc edged +0.28% higher. Retail traders unloaded US$746 million worth of stock in the electric vehicle maker over the past week, bringing the total outflow over the last three weeks to US$2.1B, according to data from JPMorgan. The selling came even as investors piled back into stocks, buying US$1.2B worth of equities in the past week. That buying included US$157M of Amazon.com Inc (up +0.19%) and US$102M of Apple Inc (down -0.06%). The Nasdaq climbed +0.65%, extending its gains into a fifth consecutive session and marking the longest winning streak for the technology-centric index since 8 June last year. The small capitalisation Russell 2000 +1.74%.

US equity markets rallied ahead of the release of the latest monthly consumer inflation figures tonight AEST - Dow gained +269-points or +0.80%, The broader S&P500 +1.28%, with Real Estate (up +3.60%) and Consumer Discretionary (+2.68%) climbing over >2.5% to lead all eleven primary sectors higher. Ford Motor Co (up +2.96%) extended its rally into a ninth straight session and logged its highest settlement since 14 December. The Nasdaq rallied +1.76%, with the technology-centric index logging its first four-day rally since September. The small capitalisation Russell 2000 gained +1.05%. Carvana Co jumped +24.43% to US$5.50 on heavy volume and had rebounded ~47.8% since closing at a record low of US$3.72 on 27 December. The rally came despite no stock specific news (the company hasn’t issued a press released or a filing with the Securities and Exchange Commission yet this year) although there was an analyst note published saying data sources indicated wholesale used vehicle prices showed signs of normalisation through the last couple months of the fourth quarter, and the average daily sales conversion rate improved in December from November.

US equity markets climbed as investors continue to eye inflation figures and fourth quarter corporate earnings later in the week - Dow rose +186-points or +0.56%, Boeing Co (down -0.90%) reported that it had delivered 69 planes in December and 152 planes in the 2022 fourth quarter overall, marking its best month of deliveries in four years and the highest quarterly delivery figure since the fourth quarter of 2018, when the planemaker delivered 238 planes. Deliveries dropped off in 2019 after the 737 MAX was grounded worldwide that March, with that plane not flying commercially again until late 2020. After the MAX’s issues came COVID-19, which hurt demand for air travel and airline profits and saw deliveries bottom out at 20 planes in the second quarter of 2020. For the full year, Boeing delivered 480 jets in 2022, up from 340 delivered in 2021. Boeing delivered 806 jets in 2018, the year before any impact from the 737 MAX’s grounding or the COVID-19 pandemic. The broader S&P500 gained +0.70%, with Communication Services (up +1.29%), Consumer Discretionary (+1.26%) and Materials (+1.02%) all rising over >1% to lead ten of the eleven primary sectors higher. Consumer Staples (down -0.16%) was the only sector to decline overnight. The technology-centric Nasdaq rallied +1.01%, securing its first three day winning streak since November. The small capitalisation Russell 2000 outperformed with a +1.49% advance.

US equity markets retreated, fumbling solid gains logged earlier in the session - Dow fell -113-points or -0.34%, relinquishing an earlier rally of over >300-points. Goldman Sachs Group Inc rose +1.41% following reports the investment banking giant will begin cutting up to 3,200 jobs within days. The cut represents ~6.5% of Goldman’s 49K workforce but is below the worst-case scenario of 3,900 jobs chief executive David Solomon and his management team had discussed late last year. The broader S&P500 dipped -0.08%, with Health Care (down -1.66%) and Consumer Staples (-1.03%) both falling over >1% to be the worst performing primary sectors overnight. Information Technology (up +1.09%) was the leading sector performer. Tesla Inc gained +5.93% continuing a rebound that saw the stock reverse an intraday loss last Friday (6 January) of ~8% to close up +2.5%. The initial dip came after Tesla said it has slashed prices in China for the second time in three months. However, the technology centric Nasdaq rose +0.63%. The small capitalisation Russell 2000 added +0.17%.

US equity markets rallied sharply on Friday (6 January) after the latest jobs report recorded a cooling in wages growth, ending the first week of 2023 higher - Dow rallied +701-points or +2.13% to 33,630.61, with all 30 index constituents advancing. The index also climbed back above its 50-day moving average (33,346.77).The broader S&P500 gained +2.28%, with Materials (up +3.4%), Information Technology (+2.99%), Real Estate (+2.86%), Consumer Staples (+2.71%) and Industrials (+2.69%) all climbing over >2.5% to lead all eleven primary sectors higher. Tesla Inc rose +2.5% despite news that the electric vehicle (EV) maker has slashed prices in China for the second time in three months. Prices for the Model 3 sedan and Model Y SUV were cut by more than >10%, according to Tesla’s website, with the Model 3 falling to ¥229,900 (~US$33,415) from ¥265,900 (~US$38,647), and the Model Y dropping to ¥259,900 (~US$37,775) from ¥288,900 (~US$41,990). Tesla generated 24% of its total third-quarter revenue from China, and the company’s Shanghai factory produces more than half of the EVs sold worldwide. Costco Wholesale Corp jumped +7.26% following a strong December sales update after the close of the previous session. Southwest Airlines Co settled +4.62% higher despite the carrier warning Friday (6 January) that it expects to report a surprise net loss for the fourth quarter after cancelling thousands of flights over the holidays. It was the best day for the Dow and S&P 500 since 30 November and the best for the Nasdaq since 29 December. The Nasdaq jumped +2.56%. The small capitalisation Russell 2000 rallied +2.26%.

US equity markets’ pre-Christmas rally spluttered overnight following another round of upbeat economic data reinforced expectations the Federal Reserve and other central banks will continue monetary policy tightening into 2023 - Dow fell -349-points or -1.05%, paring an earlier decline of over >800-points. The broader S&P500 lost -1.45%, with Consumer Discretionary (down 2.59%), Information Technology (-2.54%) and Energy (-2.31%) all down over >2% and leading all eleven primary sectors lower. Tesla Inc dropped -8.88% after the company offered a US$7,500 discount on its Model 3 and Model Y vehicles delivered in the United States by year-end, as well as 10,000 miles of free supercharging for those vehicles. Separately, the National Highway Traffic Safety Administration has initiated two more special crash investigations into incidents that involved Tesla electric vehicles, and where the company’s advanced driver assistance systems are thought to have been a factor in the crash. Tesla is the biggest decliner during the December market sell-off, down -36% this month (and down more than >64% in 2022). The Nasdaq dropped -2.18%, with semiconductor companies under particular pressure following memory chip specialist Micron Technology Inc (down -3.44%) underwhelming fiscal first quarter result released after the close of the previous session. Advanced Micro Devices Inc fell -5.64%, Nvidia Corp -7.04% and Lam Research Corp -8.65%. The small capitalisation Russell 2000 lost -1.29%.

US equity markets rallied for a second session following upbeat earnings releases after the close of the previous session from FedEx Corp (up +3.43%) and Nike Inc (+12.18%), and strong consumer confidence data - Dow gained +527-points or +1.60%, The broader S&P500 rallied +1.49%, with Energy (up +1.89%) the leading sector performer for a second session running and lifting all eleven primary sectors (with eight logging gains of over >1%). Nike’s result boosted other athletic apparel and footwear makers, with Under Armour Inc up +5.21, Skechers USA Inc +4.16% and Lululemon Athletica Inc +3.13%. Tesla Inc slipped -0.17%, with Elektrek reporting that the electric vehicle maker is planning another round of layoffs for the first quarter and is instituting a hiring freeze. The Nasdaq climbed +1.54%. The small capitalisation Russell 2000 rose +1.62%.

US equity markets advanced, recovering from some initial weakness after the Bank of Japan (BoJ) surprised the market with a policy shift - Dow added +92-points or +0.28%, Boeing Co rose +1.41% after the 4,155 page omnibus spending package included an extension for the aircraft maker's 27 December deadline for 737 MAX 7 and 10 certification. The measure in the omnibus bill will require some safety improvements, but short of what current law would demand on all 737 MAX jets to be manufactured under certification rules by safety officials. Boeing has said it would be forced to scrap the MAX 7 and the MAX 10 if it had to meet a deadline of 27 December to get approval for new cockpit-alerting systems for pilots. The broader S&P500 edged +0.10% higher, with Energy (up +1.52%) comfortably the leading performer and lifting seven of the eleven primary sectors into positive territory. Consumer Discretionary (down -1.13%) was the wort performing primary sector overnight. Tesla Inc continued to slide, dropping a further -8.05% to US$137.80. Sources told CNBC that Chief Executive Officer (CEO) Elon Musk is searching for a new chief executive of Twitter. Mr Musk wrote on Sunday (18 December) that “The question is not finding a CEO, the question is finding a CEO who can keep Twitter alive.” The latest drop pushed Tesla’s market capitalisation below Exxon Mobil Corp (up +1.45%) and left it as ninth most valuable equity by market capitalisation in the S&P 500 index after previously ranking as high as No. 5 on that list. The Nasdaq eked out a +0.01% rise. The small capitalisation Russell 2000 rose +0.54%.

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