Lower than expected Treasury bill issuance lifts sentiment.

The equity market rose sharply across major indices after treasury yield fell sharply. This is on the back of lower-than-expected bond issuance supply from the Treasury Department. 

There was also robust corporate news on Monday. Let’s get into the details. 

🎯Sofi Technology rose sharply as the finance technology company hit its first-ever quarterly profit of $594.25 million in revenue. This is higher than the expected revenue breakeven point of $572 million. 

🎯Shares of iRobot had a tough day after Amazon terminated the acquisition move. It comes from regulatory pressure and the possibility of acquisition not receiving approval. The company is set to lay off around one-third of its workforce. 

🎯Tesla rose, given that it expects to spend around $10 billion in capital expenditure on new plants and equipment for the year. This is estimated to be about 8.9% of the 2024 expected sales, lower than 9.2% in 2023. 

🎯Boeing was approved to resume its 737 Max 9 jet service after the FAA grounded the aircraft due to an emergency door plug incident with a blowout on an Alaska Air flight. 

🎯A once property giant, Evergrande Group, is set to face liquidation as its debt woes continue to linger on its operational ability. It is set to liquidate with an excess of $300 billion in liabilities by a ruling in a Hong Kong court. It failed to identify a viable plan to restructure its business. Shares had already fallen by 90% over the past year. There is also a concern if the ruling of the Hong Kong court will have jurisdiction power in the execution of assets in China.

🥁What’s on the menu today? 🎲

1) At 11 pm, we will have the CB Consumer Conference for Jan, which we expect to rise from 110.7 to 115. 

At the same time, we will welcome the JOLTs Job Openings (dec), which is expected to moderate further from 8.79M to 8.75M. This is an important piece of economic data to re-afiirm that the labor market is cooling at a moderate pace, sufficient to tame inflation and avoid a recession, reaching a soft landing outcome. 

Cheers