🧮Equity markets took a pause🕹

Stocks fell across the board as the latest economic data points to a firmer inflation narrative. As predicted, Fed officials swarm in to dampen any expectation of a looser monetary policy. It comes as the San Francisco Fed President Daly conveyed that the Fed isn’t on any path to stop rate hikes. Then, we hear from Fed Governor Christopher stressing the same sentiment. These do not bode well for the equity market.

Market investors took a breather and reassessed their outlook, and profit-taking took place. This comes as retail sales reaffirm an underlying strength in inflation. Retail sales jumped 1.3% on an MoM basis, overshooting economists’ forecast of 1.2%. As such, any hope of a fast downward spiral in inflation is put on hold.

💣Earnings warning is back again💸

Target dampens the risk-on sentiment with its third-quarter earnings missed estimates, sending selling pressure across related counters. It comes as investors grappled with the worry of retailers having extensive inventories. This often leads to deep discounts that hurt the profit margin and are reflected in upcoming earnings. 

Pika World will consider the weakening retail sales segment in any upcoming economic data as it rekindles the corporate earnings recession narrative.

💎A successor for Twitter?🗽

Elon Musk doesn’t have the intention to run Twitter indefinitely., At least, this is what he had conveyed during testimony in court. He plans to find an able person to run the company to reduce time spent in the company. 

The saga appears to have been a headwind for Tesla as it hurts shareholders’ concern about Elon Musk’s attention to the competition in the electric vehicle space. 

📮What’s on the menu today?📊

At 9 pm, we will have FOMC Bullard speaking. It may be another round of talking down on the market. 

Building permit data will arrive at 9.30 pm. Again, we should see slight moderation to 1.512M from 1.564M in the prior period. 

Initial jobless claim data will be released at the same time. It should maintain at 225K. 

Then we have the Philadephia Fed Manufacturing index for Nov, which is expected to register yet another decline of 6.2, better than the prior -8.7. 

FOMC member Bowman will speak at 10.15 pm, and Fed Governor Jefferson will speak at 10.40 pm. 

It will be a busy Thursday of economic data and Fed officials speaking.