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?

 

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

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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