Wall Street extends its gains Friday with a 0.8% rise in the US100 index; Alphabet 9GOOGL.US) and Meta Platforms (META.US) lead gains among BigTech. US 10-year Treasury yields are down slightly today, at 4.16%.
- The software industry is still on the rise; Palantir gains 6%, AppLovin jumps 9%. Oracle and Adobe shares gain 2.5%.
- UoM sentiments are above expectations (however the expectations sub-index is lower than expected); short-term inflation expectations are higher (2.9% vs. 2.7% exp.)
- The NFP report indicates a decline in private employment; U.S. unemployment rate slightly higher than expected and wage growth higher than expected
- Comments from Fed members point to a rate cut at the December or January meeting; however, the scale of rate cuts in 2025 may be smaller than markets anticipate.
Macro US
Non-agricultural jobs in the United States (November): 227k (forecast 220k, previous 12k)
- Private jobs: 194k vs 205k exp. and -28k previously
- Manufacturing jobs: 22k vs 30 exp. and -46k previously
Unemployment rate: 4.2% vs. 4.1% exp. and 4.1% previously
- Average American salary YoY: 4% vs 3.9% exp. and 4% previously
- Average US MoM salary: 0.4% vs 0.3% exp. and 0.4% previously
- US Average weekly working hours: 34.3 vs. 34.3 exp. and 34.3 previously
The University of Michigan Consumer Sentiment Report (Preliminary) came in at 74, up from 73.2 and 71.8 previously.
- Expectations: Actual 71.6 (Forecast 77.7, Previous 76.9)
- Condition Prelim: 77.7 (Prediction 65.2, Previous 63.9)
University of Michigan 1-Year Inflation Preliminary Actual 2.9% (Forecast 2.7%, Previous 2.6%)
- Preliminary 5-year inflation from the University of Michigan: 3.1% (forecast 3.1%, previous 3.2%)
Buyers once again dominate the session on Wall Street.
Source: xStation5
Lululemon jumps after 3rd quarter results
Retail company Lululemon (LULU.US) reported revenue of $2.4 billion in the third quarter of 2024, up from $2.2 billion a year ago, more than 2. 36 billion dollars expected by Bloomberg analysts. Earnings topped estimates by $2.75 per share, to the $2.87 level; well above the $2.53 EPS reported in Q3 2023. Lululemon expects Q4 revenue ($3.48 billion to $3.51 billion) to be nearly in line with consensus estimates ($3.5 billion).
Lululemon forecast fourth-quarter earnings per share in the range of $5.56 to $5.64, below estimates of $5.70. The retailer raised its full-year revenue forecast to between $10.45 billion and $10.49 billion, up from $10.38 billion to $10.48 billion previously. Expected earnings per share are $14.08 to $14.16, up from $13.95 to $14.15 previously expected. Gross margins increased by 1.5 pp to 58.5% compared to 0.8 pp in Q2 2024. The company approved a $1 billion share repurchase program, effective December 3 .
Source: xStation5
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