The final triple witching day of 2024 20/12/2024

HOT stories for today

Stocks on the move:

• FedEx (FDX): Shares climbed 8% after the delivery giant reported stronger-than-anticipated earnings. For its fiscal second quarter, FedEx posted adjusted earnings of $4.05 per share, exceeding the $3.90 per share analysts polled by LSEG had forecast. However, revenue fell short of expectations. The company also revealed plans to spin off its freight business.
• Nike (NKE): The retailer’s stock surged approximately 6% following its fiscal second quarter results, outperforming Wall Street’s projections. Nike reported earnings of 78 cents per share on revenue of $12.35 billion, surpassing analysts’ estimates of 63 cents per share on $12.13 billion in revenue, according to LSEG.
• Mission Produce (AVO): Shares jumped 9% after the company’s fiscal fourth-quarter results topped analyst expectations. Mission Produce reported adjusted earnings of 28 cents per share on revenue of $354.4 million, a significant improvement from the 11 cents per share in adjusted earnings and 37% higher revenue compared to last year.
• U.S. Steel (X): Shares declined over 4% after the steel manufacturer provided weak guidance for its fourth quarter. U.S. Steel forecasted a loss between 25 cents and 29 cents per share for the quarter, while analysts surveyed by FactSet had anticipated a profit of 22 cents per share.

Today’s action

• Asia-Pacific markets mostly declined on Friday as investors processed inflation data from Japan and a Chinese interest rate decision. The People’s Bank of China kept its loan prime rates steady, maintaining the one-year rate at 3.1% and the five-year rate at 3.6%. The one-year LPR influences corporate and household loans, while the five-year LPR is a reference for mortgage rates.
• U.S. stock futures fell on Friday morning as traders awaited key economic data. Futures linked to the Dow Jones Industrial Average dropped 88 points, or about 0.2%. S&P 500 futures declined by 0.3%, and Nasdaq 100 futures slid 0.6%. Futures weakened further after a Trump-backed House Republican proposal to fund the government for three months and avert a shutdown failed on Thursday night.
• Investors now focus on November’s reading of the personal consumption expenditures (PCE) price index, the Federal Reserve’s preferred inflation gauge. Scheduled for release on Friday, the PCE report could carry additional weight after Fed Chair Jerome Powell highlighted that the 12-month inflation rate remains above the central bank’s 2% target. Other economic data due on Friday include the University of Michigan’s consumer sentiment index, which will offer further insight into economic conditions and consumer confidence.

Wahtclist: FDX, MU, COIN, X, NKE, AVO, TSLA, PLTR, CCL

 

Bitcoin

• Bitcoin (BTC) experienced a sharp decline on Thursday, plunging to an intraday low of $95,578 per coin and losing over 7% of its value against the U.S. dollar in a single day. The broader cryptocurrency market followed suit, shedding more than 11% in value as BTC’s downturn sent ripples across the sector. The steep drop left 370,433 crypto traders liquidated, with significant losses across multiple assets. Besides BTC and ETH, meme coins were hit particularly hard, with PNUT dropping 27.71% and NIERO falling 25.06 against the U.S. dollar. Dogecoin (DOGE) saw over $58 million in long positions liquidated.
• The turbulence underscores traders' extreme challenges in navigating the 2024 bull cycle heading into 2025. With over a billion dollars wiped out from derivatives markets and widespread liquidations, the volatility of the crypto market is on full display. As of 3:25 p.m. ET, bitcoin had clawed its way back above $96,000, but uncertainty remains high as traders brace for the next move.
  Watchlist: Bitcoin: 95 000-108 000, Ethereum: 3300-4200, Solana: 180-265

Forex

• The Japanese Yen (JPY) saw a modest recovery on Friday, gaining some traction after Japan’s National Consumer Price Index (CPI) surpassed expectations. The market risk-off sentiment and a decline in U.S. Treasury bond yields further supported the lower-yielding JPY. However, the yen’s recovery lacked momentum as uncertainty persists about when the Bank of Japan (BoJ) might consider raising borrowing costs.
• Meanwhile, the EUR/USD pair remained under pressure, consolidating in a narrow range just above a two-year low hit earlier this month. The European Central Bank’s (ECB) dovish outlook has been weighing on the euro, especially in the face of a strengthening USD. The pair hovered around the 1.0360 level during the Asian session on Friday and appeared set to post its weakest weekly close since November 2022. Traders are now focusing on the release of the U.S. Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred inflation gauge. This index could provide fresh direction for the USD and broader forex markets.
  Watchlist: EUR/USD: 1.0300-1.0650, USD/JPY: 149-158

Basic Materials

• West Texas Intermediate (WTI) crude oil prices extended their decline for the fifth straight session on Friday, trading near $68.90 per barrel during Asian market hours. The weekly downturn is largely attributed to a stronger U.S. Dollar (USD), which increases the cost of crude oil for international buyers, thereby suppressing demand. Additionally, caution from central banks regarding further rate cuts has added to the pressure on oil prices. Analysts at J.P. Morgan predict that oil supply will outpace demand by 1.2 million barrels per day in 2025, further fueling bearish market sentiment.
• Meanwhile, gold (XAU/USD) struggled to gain traction during the Asian session, remaining below the $2,600 level. Although concerns over a potential U.S. government shutdown have driven some safe-haven demand, the Federal Reserve’s hawkish stance continues to limit gold’s upside. The Fed’s signals of a slower pace of rate cuts in 2025 have bolstered the USD, which recently hit a two-year high, creating a headwind for the non-yielding yellow metal. Both crude oil and gold markets are now focused on the upcoming U.S. Personal Consumption Expenditures (PCE) Price Index report, expected later in the day, for fresh market direction.
  Watchlist: GOLD 2530-2790, US Oil: 65.00-73.00

The TEFS Analyst team wishes you a successful day!