All eyes are on Nvidia’s earnings report today. Expect the market to move according to results versus expectations, which are high. Analysts are expecting the company to beat, so now it comes down to how much they can surpass the expectations. Nvidia options reflect that traders are ready for a ~11% swing post-earnings tonight, per Reuters and Reuters.
Applications for US mortgages for home purchases were down last week to a near-3-decade low. Unsurprisingly, when rates are high, people can’t cover a big mortgage bill, so they wait to buy a house or refinance. A 30-year fixed rate is 7.5%, per Mortgage News Daily.
Peloton is down over -25% after a soft revenue and profit print, citing a bite recall as one culprit. Foot Locker was down -30% premarket after slashing its 2023 earnings forecast and noting ‘consumer softness’. Nike posted a record streak of losses due to China weakness and inventory issues, per Reuters. Kohl’s, though, beat on profits after working through inventory, and Abercrombie increased its 2023 outlook. The FT noted that consumer goods price raises may have peaked, but consumer are still feeling the pinch.
That’s what full-time workers are hoping for, per a CNBC survey. 81% only want a 4-day work week and are willing to work longer hours, change jobs/industries, and even work odd hours. They don’t want a pay cut, though, to make it happen or have a longer commute….so there are limits to their give-and-take. Still in demand? Remote work, but there are fewer positions offering it.
Canadian banks are in a world of hurt, versus other financial stocks in country, and versus global peers. Inflation has brought on higher rates which eroded consumer spending power and borrowing demand and increased funding costs.
Consumers are ditching pay TV, which BBG notes is expected to decline by -8.5% in 2023. That would be 40% higher than 2022. They note that the pay-TV industry lost almost 25mm total users from 2015-2022.
That’s what BlackRock has for supporting environmental and social issues—they’re backing only 7% of shareholder proposals related to climate chance and social issues for the year ending June, versus 22% for the same period a year earlier. Seems like you can’t have your cake and eat it too (or at least for too long). After becoming an ESG powerhouse and then getting backlash for it, eventually they will need to pick a side.
The FT is citing the challenging economic conditions that are forcing P/E firms to sell off distressed companies. I don’t think there are any sympathy cards to be played here.
UBS notes that UST yields can stay high because growth expectations are solid, and if there is a soft landing, yields won’t be pressures. They offer that bonds are still the most preferred asset class. Getting the long bond call this year has been tough.