Monday was a typical low-volume chop fest, as the dollar popped higher along with bond yields as we slid toward the holiday shutdown. With a flurry of earnings reports this morning, we may get a bit more activity but expect volume to diminish quickly. It can be very easy to overtrade out of boredom, so be careful planning your trades and keep in mind a low-volume condition can produce a lot of head-fake entry signals that just as quickly disappear. Also, expect sensitivity to the news cycle as automated institutional algorithms churn prices to generate fees.
While we slept, Asian markets traded mixed as China held benchmark lending rates steady as pandemic concerns rose. Across the pond, European markets trade flat to bullish this morning as they ponder possible Chinese restrictions and the economic outlook. However, with a flurry of retail earnings reports and a very light economic calendar plan for a surge of activity in the morning session, volumes quickly decline, and likely price action becoming choppy here in the U.S.
Economic Calendar
Earnings Calendar
Due to the shortened holiday week, today is our biggest day for earnings reports, with a heavy concentration on retail. Notable reports include ANF, AEO, ADI, ADSK, BBY, BIDU, BURL, CSIQ, DKS, DLTR, GES, HPQ, JACK, MDT, JWN, VIPS, VMW, & WMG.
The market faces some complex challenges this week with the rising pandemic concerns in China, crypto market uncertainties, and rising U.S. layoffs as we slide toward a holiday shutdown. With earnings inspiration winding down, only one day of market-moving economic reports, expect news sensitivity, choppy conditions, and declining volume this week. Plan your risk carefully, as holiday weeks typically suffer declining volume as traders and investors head out for holiday plans.
Asian markets mostly declined while we slept, even as China held steady benchmark lending rates with pandemic concerns rising. European markets trade red across the board this morning as recession worries persist. U.S. futures point to a modestly bearish open as earnings inspiration declines and holiday travel sets the stage for choppy market conditions.
Economic Calendar
Earnings Calendar
Though the bulk of 4th quarter earnings has passed, we still have a few each day as the theme of retail reports continues. Notable reports include A, DELL, SJM, J, LI, URBN, WEBR, & ZM.
News & Technicals’
Bob Iger is back as CEO of Disney. Bob Chapek was named CEO in February 2020 and came under fire for various decisions. Shares of Dow 30 component Disney jumped in premarket trade Monday. Bob Iger has disapproved of several of Bob Chapek’s changes to Disney despite handpicking him as his successor in early 2020, sources have told CNBC. Disney shares have fallen more than 40% this year, including slumping on weak fiscal fourth-quarter results earlier this month. The biggest point of contention may be Chapek’s reorganization of the company, which established a new division called Disney Media and Entertainment.
Bitcoin hovered around a one-week low on Monday, and other major cryptocurrencies fell sharply as the impact of the dramatic collapse of FTX continued to ripple through the market. The cryptocurrency market has come under pressure over the last two weeks as problems at major exchange FTX came to light. From Nov. 6 — the day Binance CEO Changpeng Zhao said his exchange would liquidate its FTT tokens — the crypto market has lost more than $260 billion of value.
The latest NFIB monthly small business confidence and jobs reports show that Main Street is still looking to hire even as economic sentiment continues to decline. But the vast majority of open positions (90%) are seeing few to no qualified applicants apply even as layoffs mount throughout the economy. In addition, higher wages get harder for business owners to offer as inflation increases as a margin pressure amid a lower sales outlook. Still, other work benefits and perks can be used to attract talent.
As the Thanksgiving shutdown approaches, the market faces some complex challenges, with layoffs rising in the U.S., and new pandemic issues in China, while the crypto market uncertainty continues. As a result, expect exchange volumes to decline sharply this week as traders and investors head out for holiday plans. Chop may be the word of the week as earnings inspiration dwindles and all the potential market-moving economic reports bunched up on Wednesday morning. Holiday weeks can be very news-sensitive, so plan your risk accordingly.
The theme of the week continued with Thursday producing another big point whipsaw as robust economic data encouraged more hawkish statements from Fed members. Though the recovery rally left a lot of bullish engulfing patterns across charts, index volumes remained noticeably low with significant overhead resistance that the bulls have yet to breach. As you plan forward, keep in mind the holiday week ahead, and the likelihood of choppy light volume as traders hit the airports and byways.
After Japan reported the highest inflation in 40 years, the Asian markets closed the day mixed and relatively flat. However, European markets trade decidedly bullish this morning as rate hikes and recession worries linger. The U.S. futures point to another morning gap up, hoping to capitalize on yesterday’s recovery rally with housing data ahead as we slide into the weekend and toward the Thanksgiving holiday. Expect the volatility to continue.
Economic Calendar
Earnings Calendar
The Friday earnings calendar only has eight confirmed reports. Notable reports include BKE, FL, & JD.
News & Technicals’
Swedish and Danish investigators are investigating a flurry of detonations on the Nord Stream 1 and 2 pipelines on Sept. 26 that sent gas spewing to the surface of the Baltic Sea. The explosions triggered four gas leaks at four locations — two in Denmark’s exclusive economic zone and two in Sweden’s exclusive economic zone. The Swedish Prosecution Authority said in a statement that “residues of explosives have been identified on several of the foreign objects seized,” according to a translation.
St. Louis Fed President James Bullard noted that “the policy rate is not yet in a zone that may be considered sufficiently restrictive.” Using the so-called Taylor Rule for monetary policy, Bullard suggested the proper zone for the fed funds rate could be in the 5%-7% range, higher than current market pricing and unofficial Fed forecasts indicate.
Internal Slack messages shared with CNBC showed engineers and other employees posting goodbye messages to a “watercooler” chat group during the 5 p.m. ET Thursday deadline that Musk set just a day earlier. Hundreds of salute emojis (which convey the message “thank you for your service”) streamed by, along with dozens of goodbye messages. Amazon will continue to lay off employees in the coming year, CEO Andy Jassy wrote in a memo to workers on Thursday. The company began informing workers this week that they were being let go. “I’ve been in this role now for about a year and a half, and without a doubt, this is the most difficult decision we’ve made during that time,” Jassy wrote.
Thursday proved to be just another big point whipsaw, with the Dow swinging more than 350 points from low to high, reacting to better-than-expected economic data and hawkish Fed statements. However, after gapping sharply lower at the open, it was nothing but buying the rest of the day, leaving behind a lot of bullish engulfing patterns in the charts. Unfortunately, the index volumes were markedly low, and bulls still have significant overhead yet to breach. So, take caution over overtrading as we head into the weekend, remembering subsequent week volumes are likely to decline sharply due to the holiday.
With some confusing and contradictory data on Wednesday morning, the dollar bounced, and bond yields rallied as thoughts of recession danced in traders’ minds. The QQQ, SPY, and IWM felt some selling pressure while the Dow chopped in a frustrating 160-point range. In a time when good economic numbers are bad and bad numbers are good, how we react to today’s housing, jobless, and manufacturing numbers is anyone’s guess. The one constant we can seem to count on is the price volatility so plan your risk carefully!
While we slept, Asian markets struggled to close the day primarily red. European markets waiting on U.K. budget details trade mixed but mostly lower this morning. Finally, after a mix of post-market earnings results, U.S. futures point to a lower open ahead of earnings and economic data that could quickly reverse or worsen the open. Be prepared for more big-point price whips and challenging price action as the market reacts to the data.
Economic Calendar
Earnings Calendar
We have about 40 companies on the Thursday calendar; however, many are small-cap names. Notable reports include BABA, AMAT, BJ, DOLE, FTCH, GPS, KSS, M, NTES, PANW, ROST, STNE, PLCE, UGI, VIPS, & WB.
News & Technicals’
Markets were buoyed last week after U.S. inflation came in below expectations for October, prompting investors to bet that Federal Reserve policymakers would soon have to slow or stop the monetary policy tightening measures they have deployed to bring down inflation. Though surging stocks suggest markets are reaffirming hopes of a soft landing from the Fed, BlackRock’s top strategists disagreed and remained underweight developed market stocks.
Amazon sent out “voluntary severance” offers to some employees this week as it looks for ways to rein costs beyond the announced massive layoffs. Employees have until Nov. 29 to agree to resign, and their last day of employment will be Dec. 23, according to documents viewed by CNBC. In addition, more than 100 unionized Starbucks locations plan to strike on one of the chain’s biggest sales days of the year, Red Cup Day. At the 113 striking locations, the union will be distributing its own version of the reusable red cup that features the Grinch’s hand holding an ornament with the logo of Starbucks Workers United. The action comes after contract negotiations between Starbucks Workers United and the company broke down.
Nvidia reported fiscal third-quarter results on Wednesday for the period ending in October, with sales beating analyst expectations but earnings per share coming in light. Analysts and investors closely watch Nvidia as a leading indicator for the health of the technology industry because it sells chips and software to many PC makers and cloud providers. Cisco reported fiscal first-quarter results on Wednesday that beat analysts’ estimates on the top and bottom lines. The company cited an “easing supply situation” and lifted its guidance for fiscal 2023. Revenue increased 6% from a year earlier.
With a mix of confusing and contradictory data, Wednesday morning bond yields rose, the dollar bounced, and Dow chopped sideways in a 160-point range. Though the QQQ, SPY, and IWM experienced some selling pressure, no technical damage occurred. However, a mix of earnings results after the bell, with Fed members remaining hawkish, has many thinking about recession with 4th quarter rally hopes diminishing. This morning we face housing data, Jobless Claims, Philly Fed numbers, and a parade of Fed speakers to keep traders guessing what comes next. While there is a lot of uncertainty about the path forward, there is one thing that seems inevitable, challenging price volatility.
A smaller-than-expected rise in producer prices and geopolitical concerns served up another whipsaw day as the Dow shifted more than 600 points from high to low. The substantial overhead resistance and uncertainty of the market-moving economic reports we face this morning also played a role. Despite the volatility, the bulls remain in control, and although very dangerous to the trader, the huge point intraday swings have not technically damaged the index charts. However, plan carefully, as a busy day of earnings and economic reports could quickly produce another wild, emotionally driven ride today.
Asian markets closed mostly lower overnight. With U.K. inflation topping a 40-year high and the geopolitical tensions of the Poland missile strike, European markets are trading red across the board this morning. With a mix of early morning earnings results and the uncertainty of market-moving economic reports before the open, U.S. futures suggest a flat to slightly bearish open. However, anything is possible after the data is revealed, so plan carefully.
Economic Calendar
Earnings Calendar
On the Wednesday earnings calendar, we have nearly 30 companies confirmed, but many are non-market-moving small-cap names. Notable reports include CSCO, LOW, NVDA, BBWI, HP, KLIC, MANU, SONO, TGT, TJX, VSCO, & WSM.
News & Technicals’
Crypto.com CEO Kris Marszalek has taken to Twitter, YouTube, and the airwaves to reassure customers that their deposits are safe and the company is on solid footing. However, in the last few months, the company has reportedly cut over one-quarter of its staff, and concern has mounted since FTX’s collapse last week. “I understand that right now in the market, you’ve got a situation where everyone is done taking peoples’ word for anything,” Marszalek told CNBC on Tuesday.
Lowe’s reported third-quarter earnings Wednesday, beating analyst expectations. However, the home improvement retailer also lowered the top end of its full-year revenue guidance. Lowe’s reported results a day after rival Home Depot’s earnings topped expectations. In addition, Amazon has begun laying off employees in its corporate and tech workforce. CEO Andy Jassy has moved aggressively to cut costs across Amazon, and the company previously said it would freeze hiring in its corporate workforce.
Economists polled by Reuters had projected an annual increase in the consumer price index of 10.7%, and October’s print marks an increase from the 40-year high of 10.1% seen in September. “Indicative modeled consumer price inflation estimates suggest that the CPI rate would have last been higher in October 1981, where the estimate for the annual inflation rate was 11.2%,” the ONS said.
Tuesday served traders another whipsaw day, surging in the morning on a smaller-than-expected rise in PPI but pulling back by the close facing an uncertain Retail Sales report. Geopolitical-political concerns also played a role, with the Dow dangerously swinging more than 600 points from the day’s high to the low. Along with a busy economic calendar that will reveal the October retail numbers, we also have several big retailers fessing up to quarterly results. Index charts remain bullish; however quite dangerous due to the substantial point whips and the uncertainty of the path forward. I suspect with all the data coming our way today, wild price gyrations are likely to continue, so avoid overtrading and plan your risk carefully.
During the morning session on Monday, the bulls tried pushing higher, but the uncertainty of the PPI report inspired the profit-takers to reduce risk heading into the close. As a result, the indexes whipsawed, leaving behind shooting star patterns near price resistance levels but creating no technical damage to the charts. However, big-name earnings reports from HD and WMT and the reaction to the producer prices will likely create significant pre-market volatility. Unfortunately, we’ve yet to discover that it will inspire the bulls or the bears!
While we slept, Asian markets mostly rallied despite disappointing Chinese activity data as Hong King surged 4.11%. However, European markets are taking a more cautious stance this morning, trading flat as they wait on inflation data. On the other hand, U.S. futures push for a bullish open in the pre-market pump ahead of the producer price numbers that will likely set the tone for the day.
Economic Calendar
Earnings Calendar
We have about 20 companies confirmed on the Tuesday earnings calendar. Notable reports include HD, WMT, ARMK, AAP, ENR, AQUA, HUYA, DNUT, SE, & TME.
News & Technicals’
Americans grew more worried about inflation in October, with fears emanating primarily from an expected burst in gasoline prices. A New York Fed survey showed inflation expectations for the year ahead rose to 5.9%, while the three-year outlook increased to 3.1%. Home prices were expected to rise by 2%, tied for the lowest since June 2020. Home Depot reported third-quarter earnings on Tuesday, beating analyst expectations. The retailer reported revenue increased by nearly 6% to $38.87 billion. Wall Street is watching how rising costs and other macroeconomic headwinds affect the retailer.
Last week, when it filed for Chapter 11 bankruptcy protection, FTX indicated that it had more than 100,000 creditors. But in an updated filing Tuesday, lawyers for the company said: “In fact, there could be more than one million creditors in these Chapter 11 Cases.” In addition, over the past 72 hours, the lawyers wrote that FTX has been in contact with “dozens” of regulators in the U.S. and overseas.
At the 2022 Web Summit tech conference, startup founders and investors warned fellow entrepreneurs it was time to rein in costs and focus on fundamentals. “The multiples last year are not the same as this year,” said Guillaume Pousaz, CEO of London-based payments firm Checkout.com. Instead, multibillion-dollar unicorn companies will collapse in “spectacular failures,” Par-Jorgen Parson, partner at venture capital firm Northzone, told CNBC.
Monday’s price action tried to put on a brave face early in the day, but the uncertainty of the PPI report brought out the profit takers. Although the Dow swung more than 400 points from high to low, leaving behind shooting star patterns on all the index charts. That said, the move showed respect for overhead resistance, index charts suffered no technical damage despite the volatility. How things go from here will depend on the reaction to the PPI report and the earnings results from WMT and HD. We should plan for substantial pre-market gyrations; the results likely set the day’s tone. Will it be the bulls or the bears that find inspiration? Buckle up; we are about to find out!
Clearly, we still have a lot of challenges ahead for the economy, but last week I believe we experienced a substantial shift in institutional sentiment. Volume has grown in this relief rally, unlike the head-fake of the July/August surge upward with declining volume. However, the extreme point swings will continue to make this market very dangerous as we still face worldwide economic challenges and substantial geopolitical pressures. Perhaps a mix of long and short positions may be appropriate to hedge the uncertainty path forward.
Asian markets closed the day mixed but mostly lower, with a very volatile session in Hong Kong tech names. This morning, European markets trade with modest bullishness as bond yields and currencies continue to fluctuate. U.S. futures suggest a little rest for the bulls after the last week’s wild run-up that could trigger a bit of profit-taking to begin the week. Nevertheless, traders should continue planning for challenging price volatility as the bulls and bears duke out near substantial overhead resistance levels.
Economic Calendar
Earnings Calendar
Although we have a lot of companies listed on the Monday earnings calendar, many are unconfirmed or tiny small-cap names. Notable stocks include ACM, LI, JJSF, OTLY, TSEM, TSN, VVV, & WEBR.
News & Technicals’
Germany is open to strengthening ties with China but is not “stupid,” according to the country’s Economy Minister and Vice-Chancellor. The comments come after German Chancellor Olaf Scholz made a controversial solo trip to China to meet President Xi Jinping. A stronger dollar over the year has weighed heavily on many emerging market currencies. CNBC spotlights the performance of Ghana’s cedi, the Cuban peso, the Zimbabwean dollar, and more. The Zimbabwean dollar has lost a staggering 76.74% of its value against the dollar since January.
The investment cases for America’s largest automakers are increasingly diverging around electric and autonomous vehicles. For example, GM is diversifying as much as possible around its emerging battery and self-driving vehicle businesses while expanding to offer electric vehicles by 2035. Ford recently disbanded its autonomous vehicle business to concentrate on nearer-term technologies and EVs.
According to a source, Alameda Research, a trading firm founded by Sam Bankman-Fried, was trading billions of dollars from FTX accounts and leveraging the exchange’s native token as collateral. The source says that many employees and outside auditors were unaware that FTX did not have enough money to match customer withdrawals. Three sources familiar with the company told CNBC that FTX’s missteps blindsided them and that only a small cohort knew about the potential misuse of customer deposits.
Though we still have many challenges ahead for the economy, we experienced a substantial shift in sentiment to the buy side last week. The July/August rally suffered from a lack of volume, but this time volume continues to grow to suggest a promising institutional change. That said, we still have a lot of work to do, and the price action volatility will continue to make swing trading challenging as we face layoffs, worldwide recessionary economic impacts, and geopolitical tensions. As a result, a mix of long and short positions may be appropriate but plan carefully for sudden large point swings that will challenge even the most experienced trader.
Midterm uncertainty and rising layoffs brought the bears back to work on Wednesday ahead of today’s CPI reading. Unfortunately, failures of 50-day moving averages and lower highs in the SPY, QQQ, and IWM raise additional concerns technically. That said, the damage could quickly reverse or worsen this morning depending on the reaction to the CPI and Jobless numbers coming out before the bell. Plan for another opening gap and considerable price volatility as the market reacts.
Asian markets traded lower across the board overnight as Chinese producer prices declined. European markets trade flat in a choppy cautious morning session as they wait on U.S. inflation data. However, in the usual fashion of late, U.S. futures try to pump up a positive open ahead of the CPI despite the uncertainty of what it may reveal about the path forward. So, buckle up for another wild morning where anything is possible.
Economic Calendar
Earnings Calendar
Our most hectic day of the week on the earnings calendar, with nearly 200 verified companies reporting quarterly results; however, many of them are little small-cap names. Notable reports include MT, AXN, BZH, BDX, BAM, COMP, DDS, FLO, HNST, IAA, LZ, MTTR, NIO, POSH, RL, RYAN, SBH, SIX, SSYS, SWHC, TRP, TOST, UTZ, WRBY, WB, WRK, WE, & YETI.
News & Technicals’
Binance is backing out of its plans to acquire FTX, the company said Wednesday. “The issues are beyond our control or ability to help,” Binance said in a tweet. FTX, valued at $32 billion earlier this year, is now in jeopardy of collapsing. As possibilities of bankruptcy loom, venture capital firm Sequoia Capital will mark down to zero its investment of over $210 million in the cryptocurrency exchange FTX. “Based on our understanding, we are marking our investment down to $0,” the Silicon Valley-based firm said Wednesday.
New York-based Citigroup let go of roughly 50 trading personnel this week, according to people with knowledge of the moves who declined to be identified speaking about layoffs. Bloomberg reported Tuesday that the firm also cut dozens of banking roles amid a slump in deal-making activity. In addition, London-based Barclays cut about 200 positions across its banking and trading desks this week, according to a person with knowledge of the decision. Underperformers may also be at risk at JPMorgan Chase, which will use selective end-of-year cuts, attrition, and smaller bonuses to rein in expenses, according to a person with knowledge of the bank’s plans.
According to filings published Tuesday, Elon Musk sold nearly $4 billion of Tesla shares. That follows his sale of billions of dollars in stock last year and earlier this year. Tesla’s stock price has been sinking for much of 2022 due to economic concerns and Musk’s purchase of Twitter, which closed in late October. In addition, rocket Lab delivered quarterly results on Wednesday that boasted record revenue, with the space company tacking on additional contract wins across its business. The company reported third-quarter revenue of $63.1 million, up 14% from the second quarter. The spacecraft and components business also won several contracts during the third quarter.
The bears showed their teeth on Wednesday due to midterm uncertainty and rising layoff announcements. Technically, the DIA suffered no damage from its extended condition, but the lower highs in the SPY, QQQ, and IWM raise some concerns of more trouble ahead. In addition, the SPY and IWM dipping below their 50-day averages may signal that the earnings rally has run its course. Of course, today’s reading on CPI has the potential to reverse or confirm those concerns quickly. As a result, we should prepare for another market gap at the open and expect considerable price volatility as the market reacts.
With some steady low-volume buying, the Dow 30 eventually pulled the other indexes out of their intraday consolidation as the dollar fell and bond yield inversion continued to extend. The Dow closed more than 1000 points off the low in just three trading days making for a high-risk situation if a pullback were to occur. The QQQ lags way behind as the most vulnerable index while the DIA continues to extend. With a big day of earnings data and the midterm results just around the corner, anything is possible Wednesday morning, so plan carefully.
While we slept, Asian markets finished the day mixed and cautious, waiting on the U.S. election results. Likewise, European markets trade flat to modestly bullish in a choppy session as the midterm results raise investor caution. However, in the norm of late, U.S. futures are pumping up the premarket, suggesting a bullish open with a deluge of earnings data on the horizon. Watch the significant overhead resistance levels, price volatility, and intraday whipsaws as the day unfolds.
Economic Calendar
Earnings Calendar
Election day will be busy with earnings results, with over 160 companies confirmed to report results. Notable reports include DIS, DDD, AFRM, AKAM, BIRD, AMC, BLNK, BLDR, CEG, COTY, DD, ELAN, EXPD, GFS, GDRX, GO, GXO, HAIN, HALO, IAC, LMND, RIDE, LCID, LITE, MNKD, NEO, NWSA, NCLH, NVAX, OXY, OPK, PLNT, PLUG, SRG, SFM, SPWR, UPST, & WYNN.
News and Technicals’
Take-Two stock dropped more than 15% in extended trading on Monday after the company said its outlook in the current quarter and early 2023 would be significantly lower than expected. In addition, shares of Palantir fell Monday after the company released third-quarter earnings before the bell that missed analyst estimates for earnings but beat on revenue. Palantir’s revenue for the quarter increased 22% year over year, and its US commercial revenue grew 53%.
The German Port of Bremerhaven, Europe’s fourth largest auto hub, is seeing so much congestion due to driver shortages and overall trade volume that cars are piling up on land and at sea. As a result, Tesla, Chrysler, and Jeep parent companies Stellantis, Renault, BMW, and Volvo are all impacted. Leading vehicle carrier Wallenius Wilhelmsen has refused auto exports for October, November, and possibly into December.
Steady low-volume buying in the Dow eventually lifted the SPY and QQQ out of an intraday consolidation producing a bullish Monday even as bond yields continued to rise. Commodities had a good day, with oil and precious metals rallying as the dollar’s value declined. The SPY peaked above its 50-day average, but the QQQ lags significantly behind. The T2122 indicator is once again nearing an overbought condition, with the DIA the most extended with significant overhead resistance showing in all indexes. Today we will be subject to midterm election news and a blizzard of earnings data with a tranquil day on the economic calendar. Plan your risk carefully as election results are revealed this evening; anything is possible Wednesday morning in reaction.
Is it too much to ask for just one week of stable price action devoid of the enormous intraday whipsaws and the institutionally generated daily market gaps? Unfortunately, I would not expect it to calm down with a massive week of earnings, midterm elections, worldwide economic uncertainty, and a pending inflation report. Nevertheless, expectations for a holiday rally could undoubtedly happen as earnings help to drive high speculation despite the declining economic conditions. Therefore, expect the big price swings and challenging price action to continue in the week ahead.
Even though there was an annual drop in Chain’s exports, Asian markets were green across the board, with Hong Kong leading the buying up 2.69%. European though a bit more cautious, are also primarily bullish this morning. With midterm elections beginning Tuesday, a massive week of earnings, and a CPI read on Thursday, U.S. futures point to a gap-up open to being the week. Plan for the wild volatility to continue as the week unfolds.
Economic Calendar
Earnings Calendar
We have another crazy week of earnings with more than 700 companies on the calendar. Notable reports include ATVI, ADTN, ASH, BNTX, CHH, FANG, FN, GRPN, LYFT, MOS, NRG, PLTR, SEDG, TTWO, TRIP, VECO, & WELL.
News & Technicals’
Lidar makers Ouster and Velodyne have agreed to merge, combining roughly $400 million in market value. Under the deal, signed on Friday, Velodyne shareholders will receive 0.8204 shares of Ouster for each Velodyne share they hold – a premium of about 7.8% based on Friday’s market close. Intense investor interest in the potential of self-driving vehicles led many lidar startups to go public over the last few years. But valuations are now a fraction of what they were. According to a report from the Wall Street Journal, meta could begin to carry out large-scale layoffs as soon as Wednesday. The layoffs are expected to impact thousands of employees, the report said.
Berkshire’s operating earnings totaled $7.761 billion in the third quarter, up 20% from the year-earlier period. In addition, the conglomerate spent $1.05 billion in share repurchases, bringing the nine-month total to $5.25 billion. However, the Omaha-based company suffered a $10.1 billion loss on its investments during the third quarter’s market turmoil. China’s exports and imports fell in October in U.S.-dollar terms, according to customs data released Monday. That decline missed Reuter’s expectations for growth in both categories. China’s exports to the U.S. fell in October for a third-straight month. iPhone 14 production has been temporarily reduced because of Covid-19 restrictions at its primary iPhone 14 Pro and iPhone 14 Pro Max assembly plant in Zhengzhou, China. The factory, operated by Foxconn, is operating at “significantly reduced capacity,” Apple said. “The actual reopening is still months away as elderly vaccination rates remain low and case fatality rates appear high among those unvaccinated based on Hong Kong official data,” Goldman Sachs said in a note. The firm estimates that a full reopening could bring a 20% rally in the Chinese equity market, a separate note said.
It would sure be nice to have a week of stable price action, but with another crazy week of earnings and a CPI report later in the week, the challenging volatility will likely continue. Toss in the uncertainty of the midterm elections, and traders should be ready for just about anything! China’s annual exports declined for the first time since 2020, and with more pandemic lockdowns underway, Apple is warn’s of production losses. While next year does not look promising, we can not rule out the possibility of a holiday rally, especially with all the earnings enthusiasm generated this quarter. However, as worldwide economic activity continues to decline, plan for big intraday whipsaws and overnight reversals.
