Weekly Market Roundup (07th Nov – 11th Nov)
11-14 10:00uSMART

Last week, U.S. markets closed higher after a stellar rally Thursday that saw Big Tech stocks soar on the back of weaker-than-expected consumer price index (CPI) data for October. The S&P 500 closed up more than 5% for the week, its best week since June.

Macro

1、Not Too-Hot CPI Print

CPI slowed for a 4th consecutive month to 7.7% in October, fuelling stock market rally on Thursday. S&P 500 posted its biggest one-day rally since 2020. As inflation is quoted in year-over-year change in price, CPI may move down faster in November and December 2022 due to higher base in 4th quarter 2021. The better-than-expected inflation data will also likely prompt Fed to slow their rate hike pace.

2、Elon Musk Sold Tesla Stock Again

According to SEC filings published on 8th November, Elon Musk sold 19 million shares of Tesla, which were worth $3.95 billion. The purpose of the said share sale is unknown. However, it is widely expected share sale is to fund Elon Musk’s Twitter deal. Elon Musk is losing credibility with Tesla investors as he previously said he is ‘done selling Tesla shares’.

3、Midterm Elections May See Key Runoff

While Republican is favoured to win US House, the fate of Senate could be determined in December runoff election, at the time of writing (11 Nov 2022). Investors view that a clean sweep of Senate and House by the Republicans could set stage for a market rally as it could mean that no major economic and fiscal legislation will be pushed through in the next two years, and hence less inflationary spending. Regardless of the US midterm election results, US stocks are likely to do better post midterm. Since 1962, the S&P 500 index generated positive forward 6-month and 1-year return of 15.1% and 16.3%, respectively on average post mid-term election.

Stocks making the biggest moves on Earnings Release Dates

Lyft tumbled 23% as its earnings disappointed. Despite raising ride hailing prices, it attracts fewer riders than expected, losing out to Uber.

Take-Two Interactive dropped 14% as the company missed hugely on earnings and cut its outlook in the current quarter and fiscal 2023.

Walt Disney fell 13% due to earnings dived 46% year-over-year. However, the silver lining is Disney + soars past 235M streaming subscriptions and theme park revenues also hit new record.

Lucid fell 16% due to earnings and revenue miss. Lucid said that it is on track to meet 2022 production goals. However, Lucid said in Aug that it had over 37,000 customer reservations and now said that there is 34,000 reservations as of November 7, 2022.

Roblox Corp shares tanked 21% as its loss per share missed expectation by 46%.  However, Roblox reported 58.8 million average daily active users, up 24% year over year. Users also spent more than 13.4 billion hours engaged in Roblox during the third quarter.

NIO surged more than 11% despite widening losses. It expects to deliver 43,000 and 48,000 vehicles in the fourth quarter, beating market expectations.

In the week ahead

   

Previous

Forecast

15-Nov

PPI MoM

0.40%

0.50%

 

Core PPI MoM

0.30%

0.40%

16-Nov

Retail Sales MoM

0.10%

0.60%

 

Core Retail Sales MoM

0.00%

0.90%

17-Nov

Unemployment Claims

   
 

Building Permits

1.56M

1.52M

 

Housing Starts

1.44M

1.43M

18-Nov

Existing Home Sales

4.71M

4.38M

Earnings Calendar / EPS Forecasts

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