Weekly Financial Market Insights 📈
Pending Home Sales Plunge 37.8%, New Covid Restrictions For Travel, Tesla Shutdown In Shanghai, Nio Cuts EV Guidance, Microstrategy Buys $45m Of Bitcoin, and Cal-Maine Earnings
Sunday Morning Markets ☕
Trading Week 52, covering Monday, Dec 26 through Friday, Dec 30. Your weekly financial markets update, in less than 5 minutes.
The Week In Review ⏪
A very quiet week following the holidays. Expect earnings and economic reporting activity to pick back up in the New Year.
Pending home sale volume plunged 37.8% from the year prior.
US home prices fell 0.5% in October, the fourth monthly decline in a row.
Elon Musk says he won’t sell more Tesla stock for about two years.
Chicago Fed’s PMI for December was much stronger than expected.
Rough week for EV producers; Nio cut its Q4 guidance & Tesla plans for more Shanghai gigafactory shutdowns.
Microstrategy buys another 2,500 BTC for $45m.
US Markets 🇺🇸
Pending home sales have plunged 37.8% from last November to the lowest level since April 2020 as higher mortgage rates have crowded out much of the marginal demand in housing. Contract signings fell in all regions across the country.
Home prices fell for the fourth consecutive month in October, the Case-Shiller index shows. Prices dropped 0.5% in the month and rose 8.6% for the year, down from 10.4%. The largest monthly declines were seen in Las Vegas (-1.8%), San Fran (-1.7%), and Phoenix (-1.6%).
Musk says he will not sell Tesla stock for two years after dumping nearly $40B of shares in the last year. "I won't sell stock until I don't know probably two years from now. Definitely not next year under any circumstances and probably not the year thereafter" Musk said on Twitter spaces.
Chicago PMI rebounds significantly in December but remains in contractionary territory after the index rose 7.7 points to 44.9, higher than the 40.5 expected and up from 37.2 in November.
Dallas Fed Manufacturing Index -18.8 vs -14.4 prior as the survey worsens in December. Production +9.7 (vs +0.8 prior), new orders -9.2 (vs -20.9), prices paid +23.7 (vs +22.6), employment +14.0 (vs +5.9), company outlook -12.8 (vs -15.2).
Rest of World 🌏
The U.S. will require negative Covid test results for all airline passengers traveling from China as concern grows that widespread transmission of the virus in the world’s most populous country could result in new variants.
Tesla to reduce output at Shanghai gigafactory for an extended break for the Chinese New Year. CMBI said in a report that Tesla’s average daily retail sales in China from Dec. 1 through Dec. 25 were down 28% from a year earlier.
Chinese EV maker NIO cuts their guidance for Q4, citing multiple Covid disruptions. They now expect to deliver just 39K vehicles after projecting between 43K to 48K before. Nio shares fell 13% this week.
Crypto ⚡
MicroStrategy adds 2,500 Bitcoins for $45M, bringing its total holdings up to 132,500 BTC. That's worth ~$2.25B at current prices, compared with MicroStrategy's acquisition cost of $4B.
The Kraken exchange to shutter its operations in Japan, blaming a “weak crypto market globally.” Kraken has been in cost-cutting mode after the firm slashed 1,100 jobs or ~30% of its workforce in November.
Bahamian regulator seized $3.5B of FTX’s crypto assets after it was targeted in a suspected hack that saw $477m drained from the firm’s crypto wallets. Regulators noted that the funds are being held on a “temporary basis” until it is directed by the country’s Supreme Court.
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Earnings Reports 💰
Cal-Maine ($CALM) — View report
Revenue: $802m vs $765m expected and $382m year ago (+110% YoY)
EPS: $4.08 vs $3.85 expected and $0.02 year ago (+20,300% YoY)
Metrics:
Volume Eggs Sold (Dozens): 284m vs 270m year ago (+5% YoY)
Net Selling Price (Per Dozen): $2.71 vs $1.40 year ago (+98% YoY)
Feed Cost (Per Dozen): $0.69 vs $0.50 (+30% YoY)
Important Notes: Major outbreak of HPAI will continue to exert downward pressure on the overall supply of eggs. Dividend of $1.35.
Market Reaction: -14.5%
Week Ahead 📅
Monday
Europe - S&P Manufacturing PMI (DEC) 🇪🇺
Germany - S&P Manufacturing PMI (DEC) 🇩🇪
China - Caixin Manufacturing PMI (DEC) 🇨🇦
Tuesday
US - S&P Manufacturing PMI (DEC) 🇺🇸
UK - S&P Manufacturing PMI (DEC) 🇬🇧
Germany - Inflation Rate (DEC) 🇩🇪
Wednesday
US - ISM Manufacturing PMI (DEC) 🇺🇸
US - JOLTS Job Openings (NOV) 🇺🇸
US - FOMC Meeting Minutes 🇺🇸
France - Inflation Rate (DEC) 🇫🇷
Earnings Reports: UniFirst💰
Thursday
US - Jobless Claims 🇺🇸
Japan - Consumer Confidence (DEC) 🇯🇵
Earnings Reports: Constellation Brands, Walgreens, ConAgra Brands💰
Friday
US - Nonfarm Payrolls (DEC) 🇺🇸
US - ISM Non-Manufacturing PMI (DEC) 🇺🇸
Canada - Ivey PMI (DEC) 🇨🇦
Europe - Inflation Rate (DEC) 🇪🇺
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