Dow Futures contract was up 117 points, U.S. market news Dec 14

Dow Futures

 Dow futures contract was up 117 points, or 0.3%, the S&P 500 futures were up 13 points, or 0.3%, and the Nasdaq 100 futures were up 54 points, or 0.3%.

1. What’s influencing markets: gold rises, futures edge higher, and Costco beat on earnings
2. While the post-Fed bounce continues, Dow futures increase; flash PMI is scheduled
3. As Q1 profits above projections, Costco announces a special dividend; experts call the valuation “too rich.”
4. The highest eight-week influx into stocks since March 2022 was recorded by Bof
5. After the funding revelation, the CEO of OpenAI supports the cryptocurrency project Worldcoin.
6. Agriculture is the main driver of Sri Lanka’s economy’s recovery.
7. Exclusive: China will issue special debt sources and sustain a 3% GDP budget deficit in 2024.
8. Retail sales and China’s struggling real estate market sustain calls for intervention.
9. China’s rise in fiscal revenue picks up speed in November.
10. Biden’s climate policy is disrupted by Exxon’s low US tax payments.
11. Ahead of the Fed’s announcement, investors pulled out of global bond funds out of concern.
12. GM’s faltering Cruise division will lay off one-quarter of its workers.
13. GM will lay off 1,300 people at two Michigan operations.
14. The United States is planning a 5G security conference in response to Costa Rican eavesdropping worries.
15. The White House encourages employees to use trains and electric vehicles wherever possible.
16. The S&P 500 finishes higher as investors bet on lower interest rates.
17. Lennar, a homebuilder in the United States, tops quarterly revenue expectations due to consistent demand.
18. US authorities seize $18 million in illegal e-cigarettes.
19. Signature Bridge Bank, which is controlled by the FDIC, has sold a 20% stake in its $16.8 billion real estate portfolio.
20. Tesla receives $153 million in incentives from Mexico’s Nuevo Leon state.
21. Costco’s earnings were $0.18 higher than expected, and revenue exceeded expectations.

GLOBAL NEWS 

1. Japan’s markets are higher at the close of trade, with the Nikkei 225 up 0.93%.
2. Australia’s stocks are higher at the close of trade, with the S&P/ASX 200 up 0.88%.
3. The United States has launched an investigation into over 450,000 Nissan automobiles due to engine failure concerns.
4. Agriculture is driving growth in Sri Lanka’s economy.
5. China will run a budget deficit of 3% of GDP in 2024 and will issue special debt, according to sources.
6. China’s dismal property industry and retail sales kept calls for intervention alive.
7. In November, China’s fiscal revenue growth accelerates.
8. European stocks continue their post-Fed rise; H&M sales fall short
9. Google will test a new tool that will limit advertisers’ usage of browser tracking cookies.
10. Manufacturing PMI in Japan falls, but services PMI rises.
11. In November, China’s industrial production increased by 6.6%, while retail sales increased by 10.1%.
12. The Australian central bank will be given authority to take over insolvent clearing and settlement companies.
13. Citi’s Mexico unit will be spun out by late 2024, according to local media.
14. Citigroup’s municipal underwriting and market-making operation has been closed, according to a memo.
15. Asian stocks extend their post-Fed surge, as China data provides some support.
16. Asia FX is bullish, and the dollar is at a four-month low as markets anticipate rate cuts in 2024.
17. Although Chinese industrial production increased in November, some data disappointed.
18. Hedge funds succumb to success in the rush for cash
19. China’s crackdown on Hong Kong is in the spotlight as a senior democrat is on trial.
20. Indonesia’s trade surplus shrinks to $2.41 billion in November, falling short of expectations.
21. Indian equities reach fresh highs as the Fed-fueled surge continues.
22. Japan’s November CPI is expected to slow as energy prices fall: Reuters poll
23. Exclusive-China to sustain a budget deficit of 3% of GDP in 2024, issue special debt -sources
24. LATAM Airlines forecasts record earnings and more traffic in 2024.
25. China’s dismal property industry and retail sales keep stimulus requests alive.

Economic Data

November retail sales advanced rose +0.3% m/m above the expected (-0.1%) decrease and above the October reading of (-0.2%) slump; core retail sales rose 0.2% vs. (-0.1%) consensus and +0.1% prior. Nov gasoline sales fell (-2.9%) vs Oct (-1.2%) and ex-autos/gasoline +0.6% vs Oct +0.1% (prev +0.1%).

Weekly Jobless Claims reported at 202K vs. est. 220K; the 4-wk moving avg fell to 213,250 from 221,000 prior week; continued claims climbed to 1.876M from 1.856M prior week and the U.S. insured unemployment rate climbed to 1.3% from 1.2% prior week.

Export prices for November rose +0.9%, much better than the expected (-1.0%) decline and (-0.9%) prior (revised from -1.1%), while Nov Import prices fell (-0.4%) vs. (-0.7%) consensus and (-0.6%) prior (revised from -0.8%). Nov non-petroleum import prices +0.2%, year-over-year (-0.6%).

Business Inventories for October fell (-0.1%) vs. consensus unchanged and vs Sept +0.2%; Oct business sales (-1.0%) vs Sept +0.9% (prev +1.1%) and Oct retail inventories ex-autos unrevised at -0.9% (prev -0.9%).

World News

The People’s Bank of China offered commercial lenders a net 800 billion yuan ($113 billion) in one-year loans Friday—a record cash injection into the banking system through its one-year policy.

China retail sales rose 10.1% y/y in November, topping the 7.6% growth marked last month but below the 12.9% consensus estimate; China’s retail sales dropped from the previous month, recording a 0.06% contraction m/m.

China Industrial production climbed to 6.6% on year from 4.6% in October, topping the 5.9% increase expected.

UK consumer confidence rose two points to minus 22, its highest level since September.

The Eurozone Composite PMI Output Index fell to a 2-month low of 47.0 from 47.6 in November.

Economic Calendar

8:30 AM ET Empire Manufacturing for December
9:15 AM ET Industrial Production M/M for November
9:15 AM ET Capacity Utilization for November
9:45 AM ET S&P Global Manufacturing PMI, Dec-Flash
9:45 AM ET S&P Global Services PMI, Dec-Flash
10:00 AM ET NAHB Housing Market Index for December
1:00 PM ET Baker Hughes Weekly rig count data

Other Key Events

 Roth MKM 12th Annual Deer Valley Event, 12/13-12/16, in Utah

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