MARKETS TODAY March 29th, 2023 (Vica Partners)
Good Wednesday Afternoon,
Yesterday, major indices ended lower as the Nasdaq/FANG+ lead decliners. Energy, Materials outperform while Information Technology lagged.
Overnight, Asian markets finished mixed as the Hang Seng gained 2.06%, the Nikkei 225 rose 1.33% and the Shanghai Composite lost 0.16%. Premarket, European markets closed higher today with shares in France leading the region. The CAC 40 up 1.39%, Germany’s DAX up 1.23% and London’s FTSE 100 up 1.07%. S&P futures were trading near session highs at 0.8% above fair-value.
US markets, Key Indices closed higher with Nasdaq/FANG+ leading advancers. All 11 of the S&P 500 sectors were higher/ Information Technology and Real Estate out preformed, Health Care lagged. Bitcoin up >4% while Bloomberg Commodity Index, Oil futures, and Gold declined. In economic news, pending U.S. home sales beat estimates and mortgage apps gained for a third consecutive week. US crude oil inventories for the week fell the most since Nov ’22 along with gasoline stocks.
Takeaways
- Banking sector fears soften
- Nasdaq/FANG+ mega cap growth lead rally
- Tech outperforms while Defensives lag
- Yields rise across the curve (10-2 yield spread rising -0.54)
- Fear & Greed Index rating moderating = 40/ Mild Fear
- Bitcoin regains $28K, up >4%
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Sectors/ Commodities/ Treasuries
Key Indexes (50d, 100d, 200d)
S&P Sectors
- All 11 of the S&P 500 sectors were higher. Information Technology +1.92%, Real Estate +1.74% outperform/ Health Care +0.35%, Consumer Staples +.74% underperform.
Commodities
US Treasuries
Notable Earnings This Week (bold denotes today)
- + BioNTech (BNTX), Walgreens Boots (WBA), McCormick&Co (MKC), Carnival Corp (CCL), PVH (PVH), Cintas (CTAS), Lululemon Athletica (LULU), Paychex (PAYX)
- – Anhui Conch Cement Co (AHCHY), Huazhu (HTHT), Micron (MU), Constellation Software (CNSWF), Concentrix (CNXC)
- * Strong support – Baidu Inc (BIDU), Sociedad Quimica y Minera de Chile (SQM), Alibaba Group Holdings (BABA), Qualcomm (QCOM), Vale (VALE)
Economic Data
US
- Pending U.S. home sales; period Feb., act 0.8%, fc -3.0%, prev. 8.1%
- MBA Mortgage apps: period March, act +3.0%, <36%> same week one year ago.
- US crude oil inventories; declined by 7.489 million barrels in the week ended March 24, the most since November last year and against market expectations of a 0.092 million barrel increase. Gasoline stocks declined by 2.904 million, above expectations of a 1.617 million draw.
- Tomorrow; Jobless Claims, Fed President Speakers
News
Company News/ Other
- Elon Musk, Other AI Experts Call for Pause in Technology’s Development – WSJ
- Apple launches ‘buy now, pay later’ service in US – Reuters
- Exclusive: ICU Medical to compete against GE Healthcare for Medtronic units –sources – Reuters
Central Banks/Inflation/Labor Market
- Biden says White House response to banking stress is ‘not over yet’ – Reuters
- SVB Mess Festered Under Fed’s Bureaucracy and Feel-Good Culture – Bloomberg
- Privacy and Central Bank Digital Currency – Ripple
China
- Mainland EV makers like BYD have potential to establish foothold in Southeast Asian markets, panel at Post’s China Conference hears – South China Morn Post
- China’s green loans exceed $3.2 trln, central bank chief says – Reuters
- Meet the Xi Jinping Loyalist Now Overseeing China’s Economy – NY Times
