Second estimate 3Q GDP; ADP National Employment Report for
November; Chicago Business Barometer for November; EIA Weekly
Petroleum Status Report; Royal Bank of Canada earnings
Today's Headlines/Must Reads
- Jerome Powell Will Offer a New Mantra: Slow and Steady
- U.S. Not Seeking Decoupling From China, Commerce Chief
- Covid Controls Hit Chinese Factories, Adding Risks to Global
- Junk Bonds Rally on Hopes Inflation Has Peaked
- Eurozone Inflation Eased in November, but Further Rate Rises
- India's Central Bank to Launch Retail Pilot of Digital
- Twitter's Former Trust and Safety Chief Says He Left When
System of Governance Went Away
Follow WSJ markets coverage here
Stock futures were slightly firmer on Wednesday as traders
looked ahead to a speech from Jerome Powell.
Equities were closing out the month on a mildly positive note as
traders eschewed big bets ahead of a speech by the Federal Reserve
Chairman and a raft of crucial economic data in the next few
Despite fresh news of contracting China manufacturing, concerns
about Covid restrictions in that country impacting the global
economy appeared to have died down for now, allowing investors to
refocus on the topic that has been driving stocks for much of the
year: the Fed's monetary policy trajectory.
"A speech by Powell later today is expected to reiterate the
central bank's determination to focus on inflation as its core
objective, regardless of the potential ramifications," Interactive
"Although such comments should be of little surprise, inevitably
those searching for confirmation that the Fed will slow its round
of rate hikes are likely to be disappointed once more."
Powell is due to speak at the Brookings Institution at 1.30 p.m.
Deutsche Bank noted Powell's comments would likely be his last
before the Fed begins its blackout period this weekend ahead of its
December 14th policy meeting.
"In addition, today [Wednesday] will bring the latest data on
job openings and the quits rate for October, which have recently
been cited by the Fed and others as a key gauge of inflationary
pressures from the labour market."
Global markets broadly rose, too. Travel, leisure and auto
stocks helped push the Stoxx Europe 600 up 0.4%.
In Asia, China's Shanghai Composite Index added 0.1%. and the
Hang Seng rose 2.2%, putting the Hong Kong benchmark on track for
its biggest one-month advance since 1998.
Stocks to Watch
Crowdstrike: Predicted revenue of $619 million to $628 million
for the current quarter, which fell short of the $634 million
consensus estimate. Shares fell 19% after-hours.
Hewlett Packard Enterprise: Shares added 2.1% off hours after it
reported a quarterly loss but gave an upbeat outlook for the coming
Horizon Therapeutics: Said it was fielding takeover interest
from companies including Johnson & Johnson, Amgen and Sanofi,
confirming an earlier Wall Street Journal report. Horizon shares
rose 31% in after-hours trading.
Intuit: Beat expectations for revenue and earnings per share
during the recent quarter. Its shares added 1.5% after hours.
NetApp: Reported fiscal second-quarter earnings above
expectations but guidance came in lower than estimates. Its shares
dropped 11% off hours.
Wayfair: Reported a bump in sales during the five-day shopping
period from Thanksgiving through Cyber Monday. Wayfair recorded a
low single-digit sales increase in the U.S. over the same period
last year. Repeat customers accounted for 73% of holiday orders for
the five-day period. Shares rose 11% after-hours.
Workday: Reported higher revenue for the recent quarter and
lifted the low end of its subscription revenue guidance for fiscal
2023. Shares gained 8.5% off hours.
Alibaba, Baidu, JD.com and Pinduoduo: Shares in the Chinese tech
companies rose 3%-5% premarket, suggesting they could build on
Rate volatility has declined as the market seems to expect the
Fed to let off the interest-rate-hike accelerator, PGIM Fixed
"As the market gains more clarity about the pace of hikes, more
normal functioning may return to the bond market and more levered
capital that depends on volatility metrics, such as value at risk,
could return," PGIM said.
Nascent signs of that happening may emerge as off-the-run four-
and six-year notes have been trading well lately even when one
would expect to see investors demanding higher liquidity
The dollar has been under less selling pressure lately, but ADP
jobs data and Powell's speech could leave it vulnerable to further
weakness, UniCredit Research said.
Investors "could return to selling the U.S. unit" if ADP data
show an additional deceleration in net job creation.
More critically, when Jerome Powell discusses the economic
outlook and the labor market later, any hints of the Fed slowing
the pace of rate rises might prove negative for the dollar,
although month-end position adjustments could help offset this,
Read Dollar Heads For Biggest Monthly Loss Since 2010
Eurozone inflation data for November are expected to show an
easing in price pressures but this is unlikely to materially move
the euro, ING said.
"The impact of the inflation story on the EUR/USD has been,
predictably, limited. External factors and dollar dynamics continue
to drive the pair's performance, and we see downside risks today
given that Powell is scheduled to speak."
A fall in EUR/USD below 1.0300 could fuel more downside
momentum, taking the pair to the 1.0200-1.0250 levels seen earlier
this week, ING said.
Read Chinese Yuan Faces Renewed Falls Amid Covid-19
Oil prices held minor gains in early European trading, helped by
a drawdown in crude stockpiles, but any rise for now has been
tapered by the expectation OPEC+ will keep production flat at its
meeting on Sunday.
Base metals were under pressure in London trading, while gold
gained, as investors continued to weigh China's Covid-19 rules and
any possible shifts in U.S. monetary policy.
Investors in Asia were weighing "Covid-zero evolutions in China
ahead of a much-anticipated speech from Jerome Powell," according
to SPI Asset Management.
Gold, which is up 7% this month, "looks headed for its biggest
monthly gain since May 2021 after the latest U.S. CPI reading sent
dollar bulls cowering for cover," SPI added.
TODAY'S TOP HEADLINES
Twitter's Former Trust and Safety Chief Says He Left When System
of Governance Went Away
Yoel Roth, Twitter Inc.'s former head of trust and safety, said
several factors led to his decision to leave the platform after
almost eight years, including the disruptions created by rapid-fire
changes from the company's new owner.
He said he left the company following the botched launch of the
upgraded Twitter Blue subscription program after Chief Executive
Elon Musk ignored his team's warnings about possible issues tied to
Airbnb Aims to Attract Big Landlords With a Cut of Its Rental
Airbnb Inc. is launching a listing service for rental apartments
with some of the biggest landlords and property managers in the
country, a bid to expand its business in multifamily buildings
where owners often shun short-term rentals.
The new service will feature more than 175 buildings managed by
Equity Residential, Greystar Real Estate Partners LLC and 10 other
companies, Airbnb said on Wednesday.
Apollo Taps Connecticut State Treasurer Shawn Wooden for New
Connecticut State Treasurer Shawn Wooden is joining Apollo
Global Management Inc. as a partner and chief public pension
strategist to help expand the New York firm's business with
retirement systems, which typically are the largest investors in
Mr. Wooden and Apollo "will comply with all relevant
restrictions," an Apollo spokeswoman said, adding that he would
join Apollo in late January.
Foot Locker Searches For a New Finance Chief
Foot Locker Inc. is searching for a new finance chief to succeed
Andrew Page, who is stepping down from the shoe-store chain as part
of a reshuffling of its senior ranks.
Mr. Page will transition out of his role after Foot Locker
reports its fiscal fourth quarter earnings next year, the company
said on Tuesday. Mr. Page, who has served as chief financial
officer for just over a year, is leaving to pursue other
opportunities, the company said. He was previously chief accounting
officer and controller at Advance Auto Parts Inc., a Raleigh,
N.C.-based auto parts retailer.
Horizon Therapeutics Fields Takeover Interest From Pharma
Drugmaker Horizon Therapeutics PLC said it is fielding takeover
interest, as large pharmaceutical companies compete for
fast-growing medicines to fuel sales.
Horizon, which develops medicines for rare and immune diseases,
said it is "engaged in highly preliminary discussions with Amgen
Inc., [Johnson & Johnson's] Janssen Global Services, LLC and
Sanofi" SA, confirming an earlier Wall Street Journal report on
Eurozone Inflation Eased in November, but Further Rate Rises
The annual rate of inflation in the eurozone fell in November
for the first time since mid-2021 , a development economists warned
wouldn't keep the European Central Bank from increasing interest
Consumer-price inflation across the 19 countries that share the
euro has increased since Russia's invasion of Ukraine, and the
Kremlin's decision to weaponize the country's vast stores of energy
to undermine European support for Kyiv.
Powell Will Offer a New Mantra: Slow and Steady
Federal Reserve Chairman Jerome Powell will have an opportunity
on Wednesday to lay the groundwork for where the central bank is
headed when policy makers meet next month-and he'll likely use it
to make the case for slower but steady interest rate hikes.
In a speech Wednesday afternoon at the Brookings Institution,
Powell is expected to reinforce the dual message central bank
officials have been making for weeks: that the Fed is on track to
ease up slightly on its pace of monetary policy tightening, likely
slowing to a 50 basis point increase next month after four straight
75 basis point hikes.
U.S. Not Seeking Decoupling From China, Commerce Chief Says
WASHINGTON-The U.S. isn't seeking to decouple from China, U.S.
Commerce Secretary Gina Raimondo will assert Wednesday, even as she
emphasizes steps the U.S. is taking to safeguard its technology to
ensure its economic competitiveness.
Ms. Raimondo is scheduled to speak Wednesday on U.S. competition
with China at the Massachusetts Institute of Technology. At a
briefing with reporters in advance, Ms. Raimondo highlighted the
importance of promoting trade and investment in areas outside of
core economic and national security interests.
Junk Bonds Rally as Investors Speculate Inflation Has Peaked
Investors are driving a modest end-of-year rally in junk bonds,
erasing some of 2022's biting losses in a bet that the economic
outlook for next year has stabilized.
Yields on below-investment-grade corporate bonds tracked by
Intercontinental Exchange's index have declined to 8.76% through
Monday's trading, down from a recent high of 9.61% on Oct. 13.
Investors say they are growing more confident that interest rates
might peak without putting many lower-rated companies' ability to
repay debt in serious jeopardy.
Biden Administration Pressed by Allied Nations to Revise EV
WASHINGTON-The Biden administration finds itself caught between
its domestic-policy goals and some of its closest allies as it
races against the clock to set the ground rules for new
The Treasury Department's Internal Revenue Service faces a
year-end deadline to propose a guideline for how to qualify for EV
tax incentives of up to $7,500 per vehicle under the tax and
climate spending legislation known as the Inflation Reduction Act
that President Biden signed in August.
Covid Controls Hit Chinese Factories, Adding Risks to Global
SINGAPORE-Economic activity in China contracted further in
November, adding pressure to a global economy already losing
momentum as the war in Ukraine drags on and central banks raise
interest rates to combat high inflation.
Gauges of activity in Chinese manufacturing, services and
construction deteriorated by more than expected this month, a sign
of weakening economic output as authorities persist in using
widespread curbs on business and daily life to respond to Covid-19
India's Central Bank to Launch Retail Pilot of Digital Rupee
India's central bank will launch its first pilot of a digital
rupee for individual users on Thursday, putting it ahead of many
major economies in the journey toward a sovereign virtual
The Reserve Bank of India has said a digital rupee could provide
Indians a safe alternative to risky private digital currencies.
Elon Musk's Neuralink Set to 'Show and Tell' Latest
Brain-Computer Advances at Event
Elon Musk's neuroscience startup Neuralink Corp. is expected to
give a progress report on its brain-implant technology in a highly
anticipated streamed event Wednesday night.
In a tweet last week, the company teased a demo for the event,
which begins at 9 p.m. New York time, with a short video that
slowly spelled out the message "please join us for a show and
tell." Some outside researchers said the video may indicate that a
Neuralink device has been used to decode brain signals to type
words on a screen, although they speculated that it would most
likely be through a monkey or a wearable device.
Write to email@example.com TODAY IN CANADA
Natl Bank of Canada 4Q
Royal Bank of Canada 4Q
Stocks to Watch:
Bausch Health Announces Unrestricting of Bausch + Lomb Under
Bausch Health Debt Documents; Bausch + Lomb No Longer Subject to
Covenants Under Bausch Health Debt Documents; Bausch Health
Continues to Evaluate Potential Options to Maximize Stakeholder
Enbridge Completes Partnership Agreement in Woodfibre; Enbridge
Now Has 30% Ownership Stake in the Woodfibre LNG Project; Pacific
Energy and Enbridge Will Each Make Pro-Rata Contributions During
Construction Through Combination of Expected Asset Level Financing
and Equity Investments; Enbridge: Project Remains on Track for
Targeted In-Service Date of 4Q 2027
Expected Major Events for Wednesday
00:01/UK: CBI Service Sector Survey
00:01/UK: Nov Shop Price Index
01:00/JPN: Oct Steel Imports & Exports Statistics
04:30/JPN: Oct Preliminary Report on Petroleum Statistics
05:00/JPN: Oct Construction Orders
05:00/JPN: Oct Housing Starts
07:45/FRA: Oct Housing starts
07:45/FRA: Oct Household consumption expenditure in manufactured
07:45/FRA: Oct PPI
07:45/FRA: Nov Provisional CPI
07:45/FRA: 3Q GDP - detailed figures
08:55/GER: Nov Labour market statistics (incl unemployment)
09:00/ITA: 3Q GDP
10:00/ITA: Nov Provisional CPI
10:00/ITA: Nov Cities CPI
12:00/US: 11/25 MBA Weekly Mortgage Applications Survey
13:15/US: Nov ADP National Employment Report
13:30/US: 3Q 2nd estimate GDP
13:30/US: Oct Advance Economic Indicators Report
13:30/US: 3Q Preliminary Corporate Profits
14:45/US: Nov Chicago Business Barometer - ISM-Chicago Business
Survey - Chicago PMI
15:00/US: Oct Pending Home Sales Index
15:00/US: Oct Job Openings & Labor Turnover Survey
15:30/US: 11/25 EIA Weekly Petroleum Status Report
19:00/US: U.S. Federal Reserve Beige Book
20:00/US: Oct Agricultural Prices
23:50/JPN: 3Q Quarterly Financial Statements Statistics of
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Expected Earnings for Wednesday
Allena Pharmaceuticals Inc (ALNAQ) is expected to report $-0.48
Amtech Systems Inc (ASYS) is expected to report $0.11 for
Box Inc (BOX) is expected to report $0.01 for 3Q.
Brp Inc (DOO.T,DOOO) is expected to report $2.45 for 3Q.
Build-A-Bear Workshop (BBW) is expected to report $0.38 for
Costco Wholesale Corp (COST) is expected to report.
Credo Technology Group Holding Ltd (CRDO) is expected to report
Donaldson Co (DCI) is expected to report $0.70 for 1Q.
Five Below (FIVE) is expected to report $0.15 for 3Q.
Genasys Inc (GNSS) is expected to report for 4Q.
Great Panther Mining Ltd (GPL,GPR-T) is expected to report for
Hennessy Advisors Inc (HNNA) is expected to report for 4Q.
Hormel Foods Corp (HRL) is expected to report $0.50 for 4Q.
Just Energy Group Inc (JE,JE.H.V) is expected to report for
KE Holdings Inc - ADR (BEKE) is expected to report for 3Q.
La-Z-Boy Inc (LZB) is expected to report $0.85 for 2Q.
Leslie's Inc (LESL) is expected to report for 4Q.
National Bank of Canada (NA.T,NTIOF) is expected to report $2.25
Nutanix Inc (NTNX) is expected to report $-0.60 for 1Q.
Okta Inc (OKTA) is expected to report $-1.39 for 3Q.
Ooma Inc (OOMA) is expected to report $-0.06 for 3Q.
PVH Corp (PVH) is expected to report $2.13 for 3Q.
Petco Health & Wellness Co Inc (WOOF) is expected to report
Portage Biotech Inc (PBT.U-L,PRTG) is expected to report for
Pure Storage Inc (PSTG) is expected to report $-0.04 for 3Q.
Rogers Sugar (RSGUF,RSI.T) is expected to report for 4Q.
Royal Bank of Canada (RY,RY.T) is expected to report $2.68 for
Salesforce Inc (CRM) is expected to report $0.11 for 3Q.
Schmitt Industries (SMIT) is expected to report for 1Q.
Semtech (SMTC) is expected to report $0.41 for 3Q.
Snowflake Inc (SNOW) is expected to report for 3Q.
Splunk Inc (SPLK) is expected to report $-1.04 for 3Q.
Synopsys Inc (SNPS) is expected to report $1.11 for 4Q.
TECSYS Inc (TCS.T) is expected to report $-0.01 for 2Q.
Titan Machinery (TITN) is expected to report $1.16 for 3Q.
Victoria's Secret & Co (VSCO) is expected to report for
Yext Inc (YEXT) is expected to report $-0.15 for 3Q.
nCino Inc (NCNO) is expected to report for 3Q.
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ANALYST RATINGS ACTIONS
American Homes 4 Rent Cut to Outperform From Strong Buy by
CinCor Pharma Cut to Equal-Weight From Overweight by Morgan
CinCor Pharma Cut to Perform From Outperform by Oppenheimer
Darden Restaurants Cut to Neutral From Outperform by Baird
Evergy Cut to Underperform From Outperform by Credit Suisse
Generac Cut to Underperform From Hold by Jefferies
Goodyear Tire Cut to Hold From Buy by Argus Research
Invitation Homes Cut to Outperform From Strong Buy by Raymond
Paccar Raised to Neutral From Underperform by Exane BNP
Roku Cut to Sector Weight From Overweight by Keybanc
Surrozen Cut to Underweight From Neutral by JP Morgan
United Parcel Service Raised to Buy From Hold by Deutsche
This article is a text version of a Wall Street Journal
newsletter published earlier today.
(END) Dow Jones Newswires
November 30, 2022 05:58 ET (10:58 GMT)
Copyright (c) 2022 Dow Jones & Company, Inc.