MARKET WRAPS
Watch For:
Remembrance Day observed in Canada, markets open. APEC Finance Ministers meeting concludes
Today's Top Headlines/Must Reads:
- The Clearest Sign Yet That Commercial Real Estate Is in Trouble
- Private Debt Was Supposed to Collapse When Rates Rose. Instead It Is Everywhere
- Texas-Size Electricity Demand Is the Grid's Big Future
Opening Call:
Stock futures pointed lower on Monday as Wall Street looked ahead to a week filled with inflation readings and the possibility of another government shutdown.
"The consumer price index stands as the focal point for investors this week, with anticipation building for the next market-moving event," SPI Asset Management said.
Adding to the reticent mood early on Monday was anxiety about another looming budget deadline.
"This week, we will plunge back into the U.S. political saga, as the government short-term funding deadline is due 17th of November and not much progress has been made to seal a fresh deal," Swissquote Bank said.
"Depending on the new funding resolution - or the lack thereof - we could see the 10-year yield return above 4.80%," Swissquote added.
Overseas markets were mixed. Travel-and-leisure stocks boosted Europe's Stoxx 600, while Japanese and mainland Chinese indexes were little changed.
Premarket Movers
Boeing was up 3.1% after a report from Bloomberg said the Chinese government was considering lifting a commercial freeze for the plane maker's 737 MAX jet later this week when Joe Biden and Xi Jinping meet during the APEC Summit in San Francisco. A separate report said Boeing was closing in on a major order for its 777X widebody model from Emirates.
U.S.-listed shares of Novo Nordisk were rising 1% after data from a large international clinical trial showed the company's weight-loss drug, Wegovy, helped people without diabetes reduce their risk of suffering heart attacks, strokes and cardiovascular deaths by 20%.
Plug Power fell a further 4.3% premarket. Shares slumped Friday after the company said it might go bust, in another setback for clean-energy companies.
StoneCo was up 6.3% after the company reported third-quarter earnings that more than doubled and revenue that topped estimates.
Forex:
The dollar edged lower after Moody's on Friday switched its AAA rating on the U.S. to negative, and the currency could fall further later in the week, ING said.
ING expects Tuesday's inflation data to give a flat reading on the month, which should be neutral for the dollar, though weak retail sales data on Wednesday could send it lower.
Uncertainty over whether the government can avoid a shutdown by the end of this week may also hurt the dollar, ING added.
Energy:
Oil prices were down more than 1% as worries about the global economy and growth weighed on prices.
Peak Trading Research said the macro mood was mixed but that energy markets were pulling the commodity space lower.
"Moody's downgraded its outlook on the U.S. credit rating this weekend, citing large deficits, rising interest costs, and political instability ahead of a possible government shutdown this Friday."
Investors in particular will be looking to Monday's OPEC oil market report, and Tuesday's sister report from the International Energy Agency.
Metals:
Base metals prices were mixed with gold ticked higher as weak economic growth counters against support from geopolitics.
"Renewed geopolitical tensions will protect the downside in gold prices, " ANZ said.
"This is in addition to the conclusion in the U.S. monetary tightening cycle and an imminent peak in the dollar."
ANZ added that central bank buying should provide further support, and prices will have to break below $1,930 an ounce before further selling.
TODAY'S TOP HEADLINES
Target Tries to Find Its Mark After Year of Misfires
All isn't merry and bright this holiday season at Target.
The Minneapolis retailer known for its trendy home décor and partnerships with high-end designers has in recent quarters reported falling sales as shoppers spend less on the splurge items that generate much of its revenue.
Fitch to Withdraw Ratings on Country Garden Services
Fitch Ratings will withdraw all ratings on Country Garden Services next month, a move that comes months after it downgraded the sister company of troubled Chinese property giant Country Garden Holdings.
The ratings company said Monday it would drop coverage of CGS around Dec. 12 for "commercial reasons," without elaborating.
'The Marvels' Disappoints at Box Office, Showcasing Disney's Studio Challenge
"The Marvels," Disney's latest superhero feature, landed with a thud at the box office only days after Chief Executive Bob Iger called for an overhaul of the entertainment company's studio business.
A sequel to 2019's hit "Captain Marvel" from Disney's Marvel Studios, the new movie features an all-female trio of stars in Brie Larson, Teyonah Parris and Iman Vellani. It sold $47 million in tickets in North America over its opening weekend, making it the weakest debut performance of any movie in the so-called Marvel Cinematic Universe.
This week's October inflation data looms large on Washington's economic radar
U.S. inflation data for October is clearly the economic highlight for markets, economists and policymakers this coming week. That's because if price pressures continue their cooling trend from the summer, the Fed might be able to refrain from any more interest-rate hikes.
Stock-market rally faces make-or-break moment. How to play U.S. October inflation data.
It has been a while since a hot inflation report sparked wild gyrations in U.S. stocks, like it frequently did in 2022, but that doesn't mean Tuesday's consumer price index for October is destined to be a snooze-fest for markets.
To the contrary, some Wall Street analysts believe it is possible, even likely, that the October CPI report could emerge as a critical catalyst for stocks, with the potential to propel the market higher on a softer-than-expected number.
FTX Marks a Year in Bankruptcy. What We've Learned From Crypto Restructurings.
Collapsed cryptocurrency exchange FTX, the biggest casualty of the "crypto winter" last year, just hit the first anniversary of its bankruptcy filing. Crypto lender Celsius Network, which collapsed in the summer of 2022, was cleared to exit bankruptcy last week. Their failures, along with those of crypto industry players like Voyager Digital and BlockFi, have tested a bankruptcy system with little experience with a decentralized and volatile sector with difficult to trace and value assets.
Many factors have led crypto bankruptcies like FTX's to drag on as so-called free fall cases, or when companies file for bankruptcy protection without restructuring agreements with creditors in place.
South Carolina Sen. Tim Scott Suspends Republican Presidential Campaign
Sen. Tim Scott of South Carolina had hoped his personal story and positive message would be enough to elevate his Republican presidential campaign, but he was unable to catch momentum in a crowded field dominated by former President Donald Trump. On Sunday evening, he withdrew from the race, acknowledging that his strategy wasn't working.
The 58-year-old senator, who had been the only remaining Black candidate in the GOP primary race, made his announcement Sunday on Fox News Channel during an interview with his close friend former Rep. Trey Gowdy (R., S.C.), who was hosting.
Black Voters Show Signs of Slipping Away From Biden in 2024
PHILADELPHIA-When Michelle Smith voted for President Biden in 2020, she thought he would help people like her, a Black mother working two jobs and raising three teenage boys in North Philadelphia. Now she says she won't vote for him again, citing higher prices, skyrocketing rent and a feeling she has been left behind.
"I really did think he was going to help people in my situation," said Smith, 46 years old, who earns $12.50 an hour working as a home health aide and makes Instacart deliveries for extra money. "It's like all of them talk a good game until they get elected."
Write to ina.kreutz@wsj.com
TODAY IN CANADA
Earnings:
Computer Modelling 2Q
DRI Hlthcare Trust 3Q
Enthusiast Gaming 3Q
Hamilton Thorne 3Q
Orla Mining 3Q
Pwr Corp of Canada 3Q
Q4 3Q
Shawcor 3Q
Sun Life Fincl 3Q
Economic Calendar (ET):
Remembrance Day observed
Expected Major Events for Monday
00:01/UK: Oct UK Regional PMI
00:01/UK: Nov Rightmove House Price Index
06:00/JPN: Oct Preliminary Machine Tool Orders
16:59/GER: Sep Balance of Payments
19:00/US: Oct Monthly Treasury Statement of Receipts and Outlays of the U.S. Government
All times in GMT. Powered by Kantar Media and Dow Jones.
Expected Earnings for Monday
Abeona Therapeutics Inc (ABEO) is expected to report for 3Q.
Air Industries Group (AIRI) is expected to report for 3Q.
Akerna Corp (KERN) is expected to report for 3Q.
Akoustis Technologies Inc (AKTS) is expected to report $-0.24 for 1Q.
Alaunos Therapeutics Inc (TCRT) is expected to report $-0.04 for 3Q.
Altus Power Inc (AMPS) is expected to report for 3Q.
American Shared Hospital (AMS) is expected to report for 3Q.
Astria Therapeutics Inc (ATXS) is expected to report for 3Q.
Avalo Therapeutics Inc (AVTX) is expected to report for 3Q.
Berkshire Grey Inc (BGRY) is expected to report for 3Q.
Broadwind Inc (BWEN) is expected to report $0.09 for 3Q.
CIRCOR International Inc (CIR) is expected to report $0.11 for 3Q.
Capital Product Partners LP (CPLP) is expected to report for 3Q.
Cassava Sciences Inc (SAVA) is expected to report for 3Q.
Celcuity Inc (CELC) is expected to report $-0.68 for 3Q.
Chesswood Group (CHW.T) is expected to report $0.00 for 3Q.
ContraFect Corp (CFRX) is expected to report for 3Q.
Crinetics Pharmaceuticals Inc (CRNX) is expected to report $-0.87 for 3Q.
Dundee Corp (DC.A.T,DDEJF) is expected to report for 3Q.
(MORE TO FOLLOW) Dow Jones Newswires
11-13-23 0611ET
