This Week: CPI And Bank Earnings

Benzinga – Good Morning Everyone!

Hope you’re ready for another short squeeze. Bed Bath & Beyond stock is up 20% pre-market after the company said it was heading for bankruptcy last week.

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Prices as of 4 pm EST. 1/6/23; % YTD

MARKET UPDATE
Today:

• Positive headlines out of China
• Offset by
• 2023 earnings estimates at risk as Q4 results begin this week

This week:

• Thursday CPI
• Friday U.S. bank earnings

Q4 earnings kick off on Friday

• JP Morgan (NYSE: JPM), Citi (NYSE: C), Bank of America (NYSE: NYSE:), Wells Fargo (NYSE: NYSE:)

Today: RBC Canadian Bank CEO Conference

Today: Management group seeking to take Canaccord Genuity private

Today: Goldman Sachs (NYSE: NYSE:) to eliminate 3,200 jobs (largest cut ever)

Issues going into the bank Q4 quarter:

• Higher credit provisions
• Higher expenses/comp inflation
• Higher deposit funding
• Mild recession (see chart below)
• Focus: management forward guidance during Q4 results

2-10 curve is extremely inverted

• Getting to 1980 levels
• Most investors calling for a mild recession later this year

What’s the U.S. dollar doing?

Crude 76 +3%

• Oil up on news:
  • China re-opened air, land and sea borders on Sunday
  • China increased import quotas for China’s refiners

Apple (NASDAQ: NASDAQ:)

• Expects to be exporting more than $2.5 billion iPhones from India from April to December
• Nearly twice the previous year
• Trend: accelerating shift from China with geopolitical tensions on the rise

Earnings None

CRYPTO UPDATE

Digital asset fund flows

• Outflows continue, $9.7 million
• 3rd consecutive week
• (CRYPTO: BTC): -$6.5 million
  • Volumes remain low, ~$5 billion per day
    • 2022 average = $9 billion
• Short-Bitcoin: +$1.2 million
• (CRYPTO: ETH) : -$3.1 million
• : +$3 million
  • Suggests legal case with SEC could be heading towards positive outcome

SBF thinks he should retain the $450 million of (NASDAQ: HOOD (NASDAQ:)) he purchased with customer funds

• Says his ability to pay for lawyers is more important than debtors’ ability to recover losses

MEME OF THE DAY

Eggs are the new bitcoin. pic.twitter.com/rXyTgPxaDD

— Genevieve Roch-Decter, CFA (@GRDecter) January 8, 2023

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