US STOCKS: Early Equities Roundup: Off Early Highs
Feb-07 16:37
- Stocks reversed early Friday gains, extending lows in stages after mixed employment and inflation expectations data. Late morning headlines regarding "reciprocal tariff" implementation as early as today (vague Reuters reporting without stating which country/countries) saw a more significant risk-off move as stocks gapped even lower, while Treasuries bounced off lows briefly.
- Currently, the DJIA trades down 250.8 points (-0.56%) at 44495.81, S&P E-Minis down 41.5 points (-0.68%) at 6064.75, Nasdaq down 221.6 points (-1.1%) at 19571.7.
- Consumer Discretionary and Communication Services sectors underperformed in the first half, broadline retailers weighed on the Consumer Discretionary sector: DR Horton -4.33%, Amazon -3.7% after missing earnings late Thursday, Lennar Corp -3.65%.
- Interactive media and entertainment shares weighed on the Communication Services sector: Electronic Arts -3.52%, Match Group -2.89%, Alphabet -2.8%.
- On the positive side, Energy and Industrial sectors led gainers ahead midday. Oil & gas stocks buoyed the former with Texas Pacific +2.07%, Targa Resources +0.83%, Exxon Mobil +0.7%. Transportation stocks supported the Industrial sector with Uber +5.89%, Huntington Ingalls Ind +4.23%, TransDigm Group +1.5%.
- Earnings resume next Monday with ON Semiconductor, Rockwell Automation, Veradigm, McDonald's Corp, Astera Labs and Vertex Pharmaceuticals.
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FED: US TSY 17W BILL AUCTION: HIGH 4.190%(ALLOT 22.73%)
Jan-08 16:32
- US TSY 17W BILL AUCTION: HIGH 4.190%(ALLOT 22.73%)
- US TSY 17W BILL AUCTION: DEALERS TAKE 35.31% OF COMPETITIVES
- US TSY 17W BILL AUCTION: DIRECTS TAKE 5.56% OF COMPETITIVES
- US TSY 17W BILL AUCTION: INDIRECTS TAKE 59.13% OF COMPETITIVES
- US TSY 17W BILL AUCTION: BID/CVR 3.24
US-EU: Blinken And Barrot Downplay Greenland Comments, Indicate Gaza Progress
Jan-08 16:24
US Secretary of State Antony Blinken and French Foreign Minister Jean-Noël Barrot have spoken on a range of issues to reporters at a press conference in Paris, following a bilateral meeting earlier today.
- At the top of the presser, both ministers note that the Lebanon-Israel ceasefire agreement is operating as planned, with a withdrawal of 30% of Israeli troops from Lebanon underway.
- On Gaza, Blinken says: “We’re very close to a ceasefire and hostage agreement… I hope we can get it over the line in the time we have left but if we don’t, then the plan will be handed over to the [Trump administration].”
- Blinken reiterated that a “transformative” agreement to normalise relations between Israel and Saudi Arabia is “ready to go” if there is a ceasefire in Gaza.
- On US President-elect Donald Trump’s proposed acquisition of Greenland, Blinken said: “The idea expressed about Greenland is obviously not a good one, but maybe more important: It’s obviously one that is not going to happen, so we probably shouldn’t waste a lot of time talking about it.”
- Barrot says that the Franco-US relationship has survived 59 US elections, and “will survive the 60th”.
- Barrot: “Do we think the US will take Greenland? The answer is no… That being said we are entering a period of time where force is present everywhere…”
- Barrot quotes a comment from French President Emmanuel Macron on Monday saying that Europe needs to “wake up” and “strengthen up”.
CANADA: Fin Min LeBlanc Says He Won't Run For LPC Leader
Jan-08 16:20
Finance Minister Dominic LeBlanc has confirmed that he will not enter the race to succeed Prime Minister Justin Trudeau as leader of the centre-left Liberal Party of Canada (LPC). In a statement, LeBlanc - who took over from long-standing Finance Minister Chrystia Freeland following her resignation in December 2024 - said that his focus and that of his gov't departments must be on the threatened imposition of tariffs from the US once President-elect Donald Trump comes to office.
- The two frontrunners to take over from Trudeau remain Freeland and former BoC and BoE governor Mark Carney. Betting markets are somewhat divided.
- Polymarket has Carney as the favourite to become the LPC leader with a 40% implied probability to Freeland's 35%.
- Data from Kalshi shows bettors giving Freeland a 43% implied probability of being the next PM compared to 38% for Carney (the two websites ask slightly different questions, but the next LPC leader - barring unforeseen circumstances - will become the PM and as such can be seen as essentially the same).
- Whether Carney, Freeland, or another potential candidate emerges as LPC leader and PM they are unlikely to have a significant amount of time before an election campaign.
- The leftist New Democratic Party and the regionalist Bloc Quebecois, both crucial to avoiding defeat for the minority LPC gov't in previous confidence votes, have said they support an election at the nearest opportunity. Opinion polling continues to show the main opposition centre-right Conservatives on course for a comfortable majority.
