China PMI Surprises To Upside

Good Morning Everyone!

China stuns the world with manufacturing activity expanding at the fastest pace in more than a decade in February. 

The Hong Kong stock index is up +4%. Maybe the economy won’t crash after all.

Prices as of 4 pm EST 2/28/23; % YTD

MARKET UPDATE

S&P 500

• February -2.6%    

FOMC meeting is March 22

We start March 2023 sitting on the 200-day moving average

10 a.m. ISM manufacturing data

Crude 76.50 -1%

• Good news: China PMI

• Bad news: weekly API crude build and higher OPEC+ production in February

China

• Next week National People’s Congress

• Will release new growth target

• Overnight, China reported strong PMI of 52.6

• Second straight month of expanded economic activity

• Home sales expanded in China for the first time in 20 months

• Export orders expanded for the first time in almost 2 years

Eli Lilly LLY

• To cut prices of Insulin drugs by 70%

Tesla TSLA

• Investor day

• Update on battery targets, Gen 3 manufacturing platform, Scale

• Model Y revamp for 2024

• Update on the Cyber truck or a DeLorean pickup as some people call it

Earnings

• Monster MNST -4% sales and EBIT below consensus

• Agilent A -3% top line beat, Q2 guide light        

• Ross ROSS -2% Q4 EPS beat, conservative guide

• HP HPQ +3% revenue light but better than expected 

• Rivian RIVN -8% losses better than expected, slow volume ramp

• Lowe’s LOW +1% inline quarter and guide, inventory looks healthy

• Dollar Tree DLTR -3% Q4 EPS inline, SSS up 7.4%, 2023 guide below street

CRYPTO UPDATE

FTX saga

• Former Director of Engineering Nishad Singh pleaded guilty to 6 criminal charges

Yuga Labs

• Next NFT drop will be on Bitcoin BTC/USD blockchain

• NFTs minted on Ordinal

• 300-piece collection, “TwelveFold”

• Yuga Labs is also being Bored Apes (BAYC)

Crypto Fear & Greed