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Good Morning Everyone!
Hope you're ready for another short squeeze. Bed Bath & Beyond stock is up 20% pre-market after the company said it was heading for bankruptcy last week.
MARKET UPDATE
Today:
Positive headlines out of China
Offset by
2023 earnings estimates at risk as Q4 results begin this week
This week:
Thursday CPI
Friday U.S. bank earnings
Q4 earnings kick off on Friday
JP Morgan, Citi, Bank of America, Wells Fargo
Today: RBC Canadian Bank CEO Conference
Today: Management group seeking to take Canaccord Genuity private
Today: Goldman Sachs to eliminate 3,200 jobs (largest cut ever)
Issues going into the bank Q4 quarter:
Higher credit provisions
Higher expenses/comp inflation
Higher deposit funding
Mild recession (see chart below)
Focus: management forward guidance during Q4 results
2-10 curve is extremely inverted
Getting to 1980 levels
Most investors calling for a mild recession later this year
What’s the U.S. dollar doing?
Crude 76 +3%
Oil up on news:
China re-opened air, land and sea borders on Sunday
China increased crude oil import quotas for China’s refiners
Apple
Expects to be exporting more than $2.5 billion iPhones from India from April to December
Nearly twice the previous year
Trend: accelerating shift from China with geopolitical tensions on the rise
Earnings None
CRYPTO UPDATE
Digital asset fund flows
Outflows continue, $9.7 million
3rd consecutive week
Bitcoin: -$6.5 million
Volumes remain low, ~$5 billion per day
2022 average = $9 billion
Short-Bitcoin: +$1.2 million
Ethereum: -$3.1 million
XRP: +$3 million
Suggests legal case with SEC could be heading towards positive outcome
SBF thinks he should retain the $450 million of he purchased with customer funds
Says his ability to pay for lawyers is more important than debtors’ ability to recover losses
MEME OF THE DAY
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