Netflix added a lot more subscribers than folks expected, per the FT, sending the stock up 10% premarket. For those investing abroad, both ASML and SAP delivered big beats, with both companies eyeing strong future demand, per Bloomberg. ASML’s orders tripled q/q on the back of demand for cutting-edge chips that require its sophisticated machines. I couldn’t decide which chart to show, so you’re welcome—this morning you get both!
The long-UST positioning that fueled the last few months is under pressure given the back-up in yields, per Bloomberg. The drop in open interest in 10-yr note futures comes on the heels of 2 prior weeks of the same. CTA buying is peaking, and block trades are happening. Still, there has been a rotation from equities into bonds, even as bond returns have been low/negative.
Unemployment rates increased in 15 US states in Dec, per Reuters. Ebay is doing its part–planning to cut 1k jobs and reduce work for outside contractors, per Bloomberg.
Folks are saying that Tesla told its suppliers that it plans to build new EVs in mid-2025, per Reuters. That’s a while.
While it seems that teens never have enough sweat pants and tops, Puma warned on earnings, noting a tougher macro backdrop with softer demand, per Reuters.
A Boeing 757 lost its nose wheel while preparing for takeoff in Atlanta, per Reuters. Seems like these planes are more cheaply made than most furniture out there today.
Chinese equity markets were higher Wed. Hang Seng +3.56%, Shanghai +1.80%, Shenzhen +1%, ChiNext +0.51%. They surprised trades with a 50bp RRR cut and noted they’ll boost property lending to support the slowing economy, per Bloomberg.
It’s holding near its 50-day moving ave, a key support level. The path forward depends on the Fed’s rate path. With GDP for 4Q23 due tomorrow, and the core PCE deflator on Friday, the higher-for-longer signal will probably be negative for gold—and vice versa.