02 November, 2022 Market Close & Major Financial Headlines: Wall Street Finally Collapses After Fed’s 0.75-Point Hike. The Fed Hints At Possible Slower Tightening Policy.

Rising Interest Rates Weigh On Renewable Growth

Renewable energy stocks are having a hard time, even in the middle of Europe’s energy crisis. It seems that the sector needs central banks to take their foot off the gas in hiking interest rates, but it may have to wait a little longer. The European Renewables Index has lost most of its summer outperformance over the wider Stoxx Europe 600 Index. Since a year-to-date peak in August, renewable stocks have fallen 20%, and only real estate has performed worse. They’ve recovered a bit since Oct. 12 thanks to expectations for a change

Read more at: https://oilprice.com/Energy/Energy-General/Rising-Interest-Rates-Weigh-On-Renewable-Growth.html

Biden Unveils $13.5 Billion Package To Ease Home Energy Costs

U.S. President Joe Biden has announced plans to shell out $13.5 billion to help reduce energy costs for low- and moderate-income households. The vice president will highlight how President Biden’s economic plan will help households afford energy-efficient equipment when they need to make home repairs, so they can save money on their utility bills for years to come, the White House said on Wednesday. Vice President Kamala Harris will formally present the new steps during a stopover at a Boston union hall and training facility.

Read more at: https://oilprice.com/Latest-Energy-News/World-News/Biden-Unveils-135-Billion-Package-To-Ease-Home-Energy-Costs.html

The UK Looks To Repurpose Natural Gas Infrastructure For Hydrogen

As the hype around green hydrogen intensifies, several energy firms and governments are exploring the potential for transforming existing natural gas infrastructure to be used to transport hydrogen as the world transitions away from fossil fuels. Now, the U.K. has announced a new development, trialing a hydrogen-gas project to see if this vision can become a reality. The U.K. will trial using existing gas infrastructure with hydrogen to see whether it is possible to transform this infrastructure to be used in renewable energy projects, rather

Read more at: https://oilprice.com/Energy/Energy-General/The-UK-Looks-To-Repurpose-Natural-Gas-Infrastructure-For-Hydrogen.html

World’s Second-Largest Container Carrier Sees Global Trade Slowing

Europe is nearing a recession, and the U.S. may be right on its heels, the world’s second-largest container carrier told Bloomberg TV on Wednesday. Recession fears have put a cap on oil prices as analysts mull just how deeply a recession would cut into the demand for the commodity that is stealing the political limelight in Russia, OPEC countries, and the United States. And A.P. Moller-Maersk A/S which controls one-sixth of the worlds container trade sees global trade slowing between 2% and 4% in a stark warning for not

Read more at: https://oilprice.com/Latest-Energy-News/World-News/Worlds-Second-Largest-Container-Carrier-Sees-Global-Trade-Slowing.html

German Tech Firm To Launch $25,000 Solar Car Next Year

First, there were electric vehicles (EVs), and then there were hydrogen fuel cell vehicles (HFCVs), could the next innovation be solar-powered vehicles? According to one German company, solar cars are just around the corner with a release date set for 2023. While powering a car with the sun has long been talked about, Sono Motors appears to be the nearest to making this dream a reality, and at an affordable price. German automotive firm Sono Motors expects to release its first commercially available solar-powered EV, the Sion, in Europe

Read more at: https://oilprice.com/Energy/Energy-General/German-Tech-Firm-To-Launch-25000-Solar-Car-Next-Year.html

European Manufacturing Sector Has Tipped Into Recession

The eurozone manufacturing sector has tumbled into recession, driven by customers slashing spending in response to soaring prices and higher interest rates, a closely watched survey out today suggests. S&P Globals’ final manufacturing purchasing managers index (PMI) for the 19 countries using the euro fell to 46.4 last month, down from 48.4 in September. The reading was revised down from an earlier estimate and came in below analysts’ expectations. It also signaled eurozone factory output is shrinking quickly. The PMI has

Read more at: https://oilprice.com/Latest-Energy-News/World-News/European-Manufacturing-Sector-Has-Tipped-Into-Recession.html

Washington Commanders owner Dan Snyder hires Bank of America to explore possible sale

Washington Commanders owner Daniel Snyder has hired Bank of America to help facilitate a potential sale of the team.

Read more at: https://www.cnbc.com/2022/11/02/washington-commanders-owner-dan-snyder-hires-bank-of-america-to-explore-potential-transactions.html

Ford’s October sales slide 10% amid supply chain issues

Ford Motor’s U.S. sales last month declined by 10% as the automaker battled through supply chain issues that delayed shipments to dealers.

Read more at: https://www.cnbc.com/2022/11/02/fords-october-sales-slide-10percent-amid-supply-chain-issues.html

Boeing forecasts jump in aircraft deliveries, up to $5 billion in free cash flow next year

Boeing is planning to ramp up production and deliveries of new aircraft, propping up its forecast for higher cash in 2023.

Read more at: https://www.cnbc.com/2022/11/02/boeing-plans-to-ramp-up-airplane-production.html

Strong dollar weighs on Yum Brands even as sales rise at KFC and Taco Bell

Yum Brands missed Wall Street’s earnings estimates but beat quarterly revenue expectations.

Read more at: https://www.cnbc.com/2022/11/02/yum-brands-yum-q3-2022-earnings.html

CVS Health raises outlook as third-quarter results beat estimates

CVS Health beat Wall Street’s expectations in its third-quarter earnings report. The company also announced an opioid settlement.

Read more at: https://www.cnbc.com/2022/11/02/cvs-health-reports-q3-earnings.html

We still see Estee Lauder shares as a buy on weakness despite downbeat guidance

For Estee Lauder (EL), it’s all about China; and we believe it’s better to be opportunistic ahead of any change in Covid restrictions there.

Read more at: https://www.cnbc.com/2022/11/02/we-still-see-estee-lauder-shares-as-a-buy-on-weakness-despite-downbeat-guidance.html

Wells Fargo, Ford, and Apple are in the news. Here’s our take on the Club stocks

There were some noteworthy updates on Wells Fargo (WFC), Ford (F) and Apple (APPL) on Wednesday. Here are the headlines and our take, too.

Read more at: https://www.cnbc.com/2022/11/02/wells-fargo-ford-and-apple-in-the-news-the-club-take-.html

Here’s the key change in the Fed’s statement that’s moving markets

This is a comparison of Wednesday’s Federal Open Market Committee statement with the one issued after the Fed’s previous policymaking meeting on Sept. 21.

Read more at: https://www.cnbc.com/2022/11/02/heres-what-changed-in-the-latest-federal-reserve-statement.html

We’re impressed with health insurer Humana’s solid quarter and rosy outlook for next year

We continue to like Humana shares, especially into an economic slowdown as health care is an especially sticky sector in terms spending.

Read more at: https://www.cnbc.com/2022/11/02/were-impressed-with-health-insurer-humanas-solid-quarter-and-rosy-outlook-for-next-year.html

American Airlines pilots’ union rejects new contract proposal

Negotiations for new pilot contract have been difficult across the industry.

Read more at: https://www.cnbc.com/2022/11/02/american-airlines-pilots-union-rejects-new-contract-proposal.html

2 takeaways from our daily meeting: Stocks await Fed decision, Club earnings recap

The Investing Club holds its “Morning Meeting” every weekday at 10:20 a.m. ET.

Read more at: https://www.cnbc.com/2022/11/02/takeaways-from-daily-meeting-stocks-await-fed-club-earnings-.html

Paramount Global shares sink as results miss and TV revenue falls

Paramount Global missed revenue estimates as revenue declined for its TV networks and advertising.

Read more at: https://www.cnbc.com/2022/11/02/paramount-global-para-earnings-tv-revenue-falls-.html

Ferrari raises its 2022 guidance again on red-hot demand for sports cars

Ferrari raised its full-year guidance for the second time in 2022, after its third-quarter revenue and profit beat Wall Street’s estimates.

Read more at: https://www.cnbc.com/2022/11/02/ferrari-race-q3-2022-earnings-beat-estimates-automaker-raises-guidance.html

A (Long Overdue) Great Rotation From Tech Into Energy

Heading into today’s trading session, Goldman traders John Flood and Michael Nocerino made an interesting observation: while stocks continue to squeeze higher (on hopes the Fed is done destroying the economy, containing the inflation it spawned and generally breaking markets), or slide lower (following every Fed jawbone session vowing to keep hiking the global economy into a depression until Putin somehow unleashes commodity supplies again), inside the market there is a distinct rotation out of tech and into energy.

First, here is Nocerinio (full note available to pro subs in the usual place):

L/O supply on our desk today was noteworthy (ended with a -14% sell skew…highest since 10/10) and it was highly concentrated in defensive HC and super cap tech…. Supply was consistent and methodical. Only noteworthy L/O buy tickets we saw were in higher quality cyclicals (most notably energy… XOM 5th consecutive record high and 11 of the past 12 days). HF buy tickets were covers in lowest quality pockets of the market (China ADRs, Non Profitable Tech, 12M losers etc). Buybacks and CTAs currently prevented drawdown to S&P’s 50dma of 3829 (for now).

And here is Nocerino’s recount of Tuesday’s desk activity:

Another choppy session following surprising ISM/JOLTS data adding to the skittishness heading into tomorrow’s FOMC print – 75bps all but a lock at this point. Notably, most incomings where in regards to the weakness in MegaCap Tech – our basket (GSTMTMEG) finished bottom of the screens d …

Read more at: https://www.zerohedge.com/markets/long-overdue-great-rotation-tech-energy

‘Democracy Dies In Darkness’ – Unless You Want Pelosi Video Released

Update (1450ET): The Washington Post – which carries the slogan “Democracy Dies in Darkness” – is now suggesting that people who want to see video of the Pelosi attack are stoking conspiracy theories.

In a Wednesday article, columnist Philip Bump draws a line from 2020 election deniers, to QAnon, to people who think there’s something fishy about last week’s attack on the Pelosis’ San Francisco house by a mentally ill homeless man who was living at a house with a BLM flag, and who back-dated posts on one of his websites after registering it in September.

Bump writes;

Read more at: https://www.zerohedge.com/political/pelosi-house-cameras-caught-break-capitol-police-werent-watching-feed

Gold Is Best Place To Be, S&P The Worst As Fed Hikes

By Ven Ram, Bloomberg Markets Live reporter and strategist

Gold is the most resilient asset to own if the Federal Reserve continues to raise rates, while stocks are the worst place to be, with non-dollar currencies falling between the two.

Gold has had an empirical duration of just over three years in the current Fed cycle, compared with stocks at 7.1 years. The non-dollar currencies that make up the G-10 have seen a duration of 5.3 years.

Duration measures the percentage change of an asset in reaction to a 1 percentage point shift in interest rates.

Gold is still hovering near its low for this cycle of $1,615 an ounce, a 12% decline since the start of the year that has come as the Fed raised its benchmark interest rate by 300 basis points, with another 75 basis points priced in from this week’s policy review.

Non-dollar G-10 currencies have seen an average duration of 5.3 years in the current cycle, highlighting their sensitivity to any perceptible shift in interest-rate differentials. …

Read more at: https://www.zerohedge.com/markets/gold-best-place-be-sp-worst-fed-hikes

“It Makes Sense To Slow Down” – Wall Street Reacts To The Fed’s Unexpected “Soft Pivot”

While the range of outcomes and market reactions to today’s FOMC statement ran the gamut from +10% to -8% (according to JPM), the prevailing consensus was more “autopilot” from the Fed, and any potential dovishness would come in Powell’s presser, certainly not codified in the actual statement. However, as noted earlier, it was with Powell explicitly adding language warning about the “cumulative” effect of monetary policy, which works with a “lag.” The immediate impact was to send futures surging, and the dollar and yields tumbling.

Below we have compiled several reactions from Wall Street strategists and traders, sharing their post-FOMC take.

Ian Lyngen at BMO Capital Markets:

“‘Cumulative tightening’ and ‘lagged impact’ suggest that this will be the last 75 bp hike and in December the move will most likely be 50 bp. We’re somewhat surprised to see the ‘soft pivot’ in the statement itself and we expect that Powell will double down on this narrative at the press conference. Therefore, the bullish move has more room to run.”

Eric Winograd, AllianceBernstein

“The statement is clear that they would like to slow the pace of hikes. In addition to looking at the data and looking at markets, they are also now considering the cumulative impact of what they have already done. And the lag with that will hit the economy. Most estimates are that it takes 9-12 months for rate hikes to be felt, and 12-18 months for the maximum effect. We are on …

Read more at: https://www.zerohedge.com/markets/it-makes-sense-slow-down-wall-street-reacts-feds-unexpected-soft-pivot

The Fed hikes US interest rates to fresh 14-year high

The Federal Reserve is steering borrowing costs higher at the fastest rate in decades.

Read more at: https://www.bbc.co.uk/news/business-63488472?at_medium=RSS&at_campaign=KARANGA

Warning of fewer rental properties as landlords squeezed

Difficulties for some landlords to secure mortgages could mean less choice for tenants, MPs are told.

Read more at: https://www.bbc.co.uk/news/business-63486784?at_medium=RSS&at_campaign=KARANGA

UK battery firm staff agree to November pay cut

About 300 staff at Britishvolt have agreed to take a temporary pay cut as the company battles to stay afloat.

Read more at: https://www.bbc.co.uk/news/business-63483666?at_medium=RSS&at_campaign=KARANGA

Thursday’s RBI meet a non-event for D-Street as no rate action expected

The central bank’s meeting is primarily to discuss and draft an explanation to the government on the failure to adhere to the inflation target for three consecutive quarters.

Read more at: https://economictimes.indiatimes.com/markets/stocks/news/thursdays-rbi-meet-a-non-event-for-d-street-as-no-rate-action-expected/articleshow/95261484.cms

Tech View: Nifty forms bearish engulfing top as 18K turns make-or-break level. What traders should do on Thursday

Indicators such as MACD and RSI were slightly skewed on the negative side. Analysts say that the physiologically-important level of 18,000 is now becoming a make-or-break zone for the index.Options data suggests a broader trading range between 17,600 to 18,600 zones, while an immediate trading range in between 17,900 to 18,300 zones.

Read more at: https://economictimes.indiatimes.com/markets/stocks/news/tech-view-nifty-forms-bearish-engulfing-top-as-18k-turns-make-or-break-level-what-traders-should-do-on-thursday/articleshow/95254937.cms

6 stocks that look set for a strong rally in the near term

The headline indices have moved above the previous swing high, say market analysts. They believe select stocks are ready to deliver solid returns in the near term. Based on their recommendations, here are six stocks that can showcase a strong ral

Read more at: https://economictimes.indiatimes.com/markets/stocks/news/torrent-power-bharat-forge-among-6-stocks-set-for-a-strong-rally-in-the-near-term/money-making-ideas/articleshow/95250514.cms

The Margin: Vecna’s house on ‘Stranger Things’ is selling for $1.5 million — and it comes with a cast-iron urinal

The creepy ‘Creel House’ last sold for $350,000 in 2019. The listers joke that the previous resident, the evil demon Vecna, ‘has since been relocated.’

Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C06575-04D4-B545-7149-A96770A6C0E1%7D&siteid=rss&rss=1

The Tell: These ETFs point to ‘microcosm’ of 2022 performance trends as Nasdaq appears at ‘inflection point’ relative to S&P 500, says Bespoke

Exchange-traded funds tracking U.S. equity benchmarks have highlighted a split in the market created by struggling technology stocks, with the Nasdaq at a potential inflection point relative to the S&P 500, according to Bespoke Investment Group.

Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C06575-04D4-B545-7149-81B2436E569E%7D&siteid=rss&rss=1

The MarketWatch 50: Morgan Housel turned lessons he learned as a hotel valet into a breakthrough personal-finance book that’s sold 2.2 million copies in 2 years

Publishers said ‘The Psychology of Money’ would never work. Now, Morgan Housel is on the MarketWatch 50 list of the most influential people in markets.

Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C06575-04D4-B545-713E-5EDFA09F60D2%7D&siteid=rss&rss=1