Q3 Earnings Begin, PPI Ahead Of Tomorrow's CPI

Good Morning Everyone!

Short selling is at an abnormally high level. Almost as bad as 2007. Are we near peak pessimism?

Prices as of 4 pm EST, 10/11/22; % YTD

MARKET UPDATE

S&P 500 bouncing off key 3600 support as we get CPI tomorrow

• Tax-loss selling picking up as we get closer to the October fiscal year-end for many hedge funds

8:30am

• U.S. September PPI +8.5% year-over-year, estimate 8.5%

• U.S. September PPI ex-food and fuel, up 7.2%, estimate 7.3%

• MoM change:

Crude $88

• OPEC cuts estimate for global oil demand by almost 1 million barrels

• Polish authorities said that there is a leak on the Druzhba pipeline that takes crude oil into Germany. 

Yesterday: Louis Vuitton reports Q3 strong revenue growth

• Luxury market is holding up well

• Revenues +19% organic, helped by Fashion & Leather +22%

Meta (NASDAQ: META)

• NBCUniversal and Meta partnering to bring VR experiences to Quest headsets in 2023

Disney DIS

• Price hikes for its Genie+ service at Disney World and Disneyland

• Intel INTC

• Planning job cuts to reduce costs amid slowdown in PC market

Yesterday: Uber -10% UBER, Lyft -12% LYFT, DoorDash -6% DASH

• Department of Labour proposed a new rule on the classification of gig workers

• Employees rather than contractors

Earnings

• Pepsi organic sales grew 16% y/y in Q3 driven by a 17% increase in prices

  • Can you say inflation.

• Q3 U.S. bank earnings start Friday

CRYPTO UPDATE

GOOGL chooses COIN

• Google will allow select customers to pay for services with crypto

  • Early 2023

  • Allow more customers to pay with crypto over time

  • 10 currencies including Bitcoin BTC/USD, Bitcoin Cash BCH/USD, Dogecoin DOGE/USD, Ethereum ETH/USD and Litecoin LTC/USD

  • Also exploring Coinbase Prime

    • Crypto storage and trade execution service

• Coinbase will move some applications from AWS to Google’s cloud

Polygon MATIC/USD launches zkEVM public testnet

• zkEVM = zero-knowledge Ethereum Virtual Machine

• Scaling tool for lower-cost transactions

• “The next step for Ethereum”

Bitcoin Fear & Greed Index