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Business

Stock futures are flat as investors await key November inflation report

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Stock futures were flat early Wednesday as Wall Street braced for November’s key inflation report and the beginning of the Federal Reserve December policy meeting.

Futures tied to the Dow Jones Industrial Average inched 0.01% lower, while futures connected to the S&P 500 and Nasdaq 100 traded flat, declining 0.08% and 0.14% respectively.

Oracle shares gained nearly 2% after hours on strong quarterly results.

Investors are looking ahead to the release of November’s consumer price index report, and hoping for signs of easing inflation. Economists surveyed by Dow Jones expect a 0.3% increase on a monthly basis or an annual pace of 7.3%. That would be a step down from October’s 0.4% monthly increase and annual gain of 7.7%.

Tuesday’s inflation report could play a key role in the Federal Reserve’s next rate-hiking decision expected at the conclusion of its two-day policy meeting on Wednesday.

Traders are largely pricing in a 50 basis point increase, a slight decline from the previous four hikes. They will also monitor updated economic projections and commentary out of Chair Jerome Powell’s press conference for signs of a potential policy pivot as fears of a recession linger on Wall Street.

Monday’s overnight moves follow a solid session for all the major averages after a tough down week. The Dow gained more than 528 points, or 1.58%, while the S&P and Nasdaq rose 1.43% and 1.26%, respectively.

All major S&P 500 sectors finished with gains, led to the upside by energy stocks, which rose as oil prices gained.

“I think this is a reflection of what’s anticipated out of the CPI number tomorrow, and a hope that the Fed will confirm a 50 basis point raise on Wednesday,” said Kevin Philip, partner at Bel Air Investment Advisors. “I think the market, as it’s done before, is banking, in my opinion, a little too heavily on some sort of Fed pivot and this bounce we got today is fragile at best.”

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Business

S&P 500 futures fall slightly as investors await Friday’s U.S. jobs data

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S&P 500 futures fell slightly Friday as investors looked ahead to the November jobs report.

Futures tied to the benchmark stock index were lower by 0.1%. Dow Jones Industrial Average futures were off by 46 points and Nasdaq 100 futures fell 0.2%.

Shares of tech companies were on the move in after-hours trading following quarterly results. Asana, Zscaler and Marvell all slipped.

In regular trading, the Dow closed lower by nearly 195 points, while the S&P 500 inched down 0.09%. The tech-heavy Nasdaq Composite gained 0.13%.

Those moves followed a mixed batch of economic data, including a core personal consumption expenditures report that was slightly better than expected on a monthly basis and a bigger-than-expected decline in the ISM Manufacturing Index. The so-called PCE deflator is one of the Federal Reserve’s preferred inflation gauges.

“Taken together, these two pieces of data may be suggestive of a soft landing for the US economy as long as growth does not slip much further,” Goldman Sachs’ Chris Hussey said in a note Thursday.

Investors are focused on the Labor Department’s report on non-farm payrolls, the unemployment rate and hourly wages, due at 8:30 a.m. ET on Friday. Economists expect the economy to have added 200,000 jobs in November, according to Dow Jones. That would be a decrease from the 261,000 it added in October.

Friday’s is the final monthly employment report before the Federal Reserve’s two-day meeting on Dec. 13 and 14, in which the central bank is expected to raise its fed funds target rate by a half percentage point.

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Business

Dow Jones Futures Await Jobs Report As Market Rally Holds Gains; Tesla Semi Deliveries Kick Off

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Dow Jones futures fell slightly overnight, along with S&P 500 futures and Nasdaq futures. Investors will turn to the November jobs report Friday morning.




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A Tesla Semi truck delivery event took place Thursday night with Tesla (TSLA) archrival BYD set to release booming EV sales numbers.

The stock market rally showed solid action on Thursday, with the indexes mixed but consolidating Wednesday’s huge gains on Fed chief Jerome Powell’s comments. Thursday’s PCE inflation report, the Fed’s favorite price gauge, showed smaller-than-expected monthly increases with overall and core inflation cooling slightly once again.

Ulta Beauty (ULTA) headlined earnings reports Thursday night. ULTA stock was little changed overnight after reporting strong earnings and raised guidance. Shares of the beauty products retailer are already at record highs, extended from buy points. Veeva Systems (VEEV) beat fiscal Q3 views, but Q4 guidance was slightly below the midpoint of consensus. VEEV stock fell modestly in extended trade. Shares closed above the 200-day line, right around an early entry.

Meanwhile, Dow giant Caterpillar (CAT) continues to look strong, with CAT stock just below a buy point. Cybersecurity leader Palo Alto Networks (PANW) and Marriott International (MAR) are also flashing buy signals.

Boeing stock is on SwingTrader. Caterpillar was Thursday’s IBD Stock Of The Day.

Dow Jones Futures Today

Dow Jones futures fell 0.2% vs. fair value. S&P 500 futures sank 0.3%. Nasdaq 100 futures declined 0.4%.

Dow futures, Treasury yields and more will swing on the November jobs report, due out at 8:30 a.m. ET.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

Jobs Report

Economists expect the November jobs report to show a nonfarm payrolls gain of 200,000, down from 261,000 in October. Pay attention to the household survey, which showed jobs down by 328,000 in October. The jobless rate, based on the household survey, is expected to hold steady at 3.7%, with the labor force participation rate edging up to 62.3%.

Other labor data this week has generally pointed to gradual slowing. Initial jobless claims unexpectedly fell, but continuing claims rose yet again. ADP reported a sharp slowdown in private-sector hiring last month, while the October JOLTS survey saw a modest decline in job openings.

Tesla Semi Delivery Event

A Tesla Semi model truck delivery event kicked off shortly after 5 p.m. PT.

Tesla CEO Elon Musk will hand over some Tesla Semi EVs to PepsiCo (PEP) on Thursday night. Speaking of late, the Tesla Semi was first unveiled six years ago and was supposed to enter production in 2020.

Musk says that the Tesla Semi, which will use the same Plaid drive units as the high-end Model S, has a 500-mile range on a single charge. Investors will be looking for precise specs on price, range and cargo. That will be important as the Tesla Semi takes on big-rig EVs already on the market from Volvo, Nikola (NKLA), BYD (BYDDF) and more.

Another big question is what will Tesla Semi production be in the coming months. Musk didn’t provide clarity on that front.

Meanwhile, Tesla is now offering $3,750 discounts for the Model 3 and Model Y in the U.S. this month. The idea is to encourage people to take delivery now. On Jan. 1, new U.S. tax credits of $7,500 come into effect, subject to certain price and income limits, spurring many would-be buyers to wait. The tax credits should apply to most Model 3 sedans and Model Y crossovers, though the government hasn’t provided clarity yet.

Tesla stock closed flat at 194.70 Thursday. On Wednesday, TSLA stock surged 7.7%, retaking its 21-day line, amid the big market rally and as China EV stocks soared.

Tesla Vs. BYD: Which EV Giant Is The Better Buy?

BYD Sales

China EV giant BYD is expected to release November deliveries on Friday or Saturday, with yet another record seen. BYD is expected to be China’s No. 1 auto brand for the month, overtaking Volkswagen (VWAGY). VW Group will likely remain No. 1 including Audi.

BYD stock fell 2.2% to 25.07 but it’s still above its 50-day line. BYDDF vaulted 9.9% on Wednesday, along with other China EV stocks.

Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live

Stock Market Rally

The stock market rally had a 30-minute tumble Thursday morning, but gradually improved to mixed, a solid performance following Wednesday’s big gain.

The Dow Jones Industrial Average fell 0.6% in Thursday’s stock market trading, with Salesforce.com (CRM) a big negative. The S&P 500 index dipped 0.1%. The Nasdaq composite rose 0.1%. The small-cap Russell 2000 retreated 0.2%.

U.S. crude oil prices rose 0.8% to $81.22 a barrel.

The 10-year Treasury yield plunged 17 basis points to 3.53%, the lowest since late September. In the wake of Fed chief Powell’s comments and the PCE inflation report, markets are close to locking in a 50-basis-point Fed rate hike on Dec. 14, ending a four-meeting string of 75-basis-point moves. Further, there’s now a 50-50 chance of just a quarter-point Fed rate hike in February.

The dollar, moving with yields, tumbled to the lowest level in nearly three months.

Stocks Near Buy Points

CAT stock dipped 0.3% to 235.69. Shares are pausing around a still-valid 238 buy point from a cup base going back to April, according to MarketSmith analysis. Investors could see 239.95 as another buy point, either as a high handle to the seven-month cup base or as a traditional handle to a larger consolidation starting in June 2021.

Cybersecurity firm Palo Alto Networks’ stock climbed 5% to 178.40, jumping above its 200-day line, retaking that key level for the first time since mid-September. That comes after it rebounded from its 50-day line intraday Wednesday, shrugging off a big earnings sell-off in peer CrowdStrike (CRWD). Investors could view PANW stock as having a big, double-bottom base with a 193.01 buy point. But shares are already actionable from clearing the 200-day line and a downward-sloping trendline from the April peak.

MAR stock dipped 0.1% to 165.19, staying above the 164.99 handle buy point from a bottoming base starting Aug. 16. On Wednesday, Marriott stock rebounded from its 200-day line, rising 2.5% in heavy volume.

ETFs

Among the best ETFs, the iShares Expanded Tech-Software Sector ETF (IGV) climbed 1.1%, even with major holding CRM stock selling off. The VanEck Vectors Semiconductor ETF (SMH) dipped 0.3%.

SPDR S&P Metals & Mining ETF (XME) fell 0.8% and the Global X U.S. Infrastructure Development ETF (PAVE) edged up 0.1%. U.S. Global Jets ETF (JETS) dipped 0.4%. SPDR S&P Homebuilders ETF (XHB) climbed 1.25%. The Energy Select SPDR ETF (XLE) declined 0.3% and the Financial Select SPDR ETF (XLF) sank 0.6%. The Health Care Select Sector SPDR Fund (XLV) advanced 0.3%

Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) rose 1.1% and ARK Genomics ETF (ARKG) climbed 0.6%. Tesla stock is a major weight across Ark Invest’s ETFs. Cathie Wood’s Ark also has a small position in BYD stock.

Five Best Chinese Stocks To Watch Now

Market Rally Analysis

The stock market rally showed constructive action on Thursday, essentially holding onto Wednesday’s big gains.

The S&P 500 index rebounded intraday from a pullback to its 200-day moving average, after finally retaking that key level on Wednesday. The Russell 2000 also held its 200-day line. The Nasdaq still has work to do to get back to its 200-day.

The Dow Jones gave up only a portion of Wednesday’s gains, largely due to Salesforce. Several Dow Jones stocks, including Caterpillar, Boeing and UNH stock, are showing strength. That reflects broader strength in industrials, financials, health services and more.

The October PCE inflation report was slightly better than expected. After Wednesday’s powerful market rally on Fed chief Jerome Powell — who frankly didn’t sound especially dovish — just holding onto those gains Thursday was constructive.

Friday’s jobs report is yet another hurdle. If the employment data points to some labor market slack, it could provide a further tailwind for stocks. But a hot labor market could trigger a big sell-off.

Treasury yields and the dollar have fallen hard the past two days and the past few weeks, providing a big tailwind for stocks. A rebound in yields and the greenback wouldn’t be a surprise.

Keep in mind that the market rally has had a number of big one-day gains, followed by sideways or sliding action. That’s made it tricky for investors to make headway even as the indexes trend higher over the past several weeks.

Time The Market With IBD’s ETF Market Strategy

What To Do Now

There were reasons to buy or stand pat on Wednesday’s big move. On Thursday, investors could have added a little exposure, but the jobs report is a big question mark.

A Friday market rally on the November jobs report could trigger a number of buying opportunities. But don’t cheat on promising stocks ahead of big news. Instead, work on your watchlists so you’re ready to act. But also be ready to reduce exposure if the market or your holdings head sharply south.

Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.

Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.

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Business

Dow sheds more than 100 points as investors digest mixed economic signals, await Powell speech

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The Dow Jones Industrial Average fell Wednesday as Wall Street waded through new economic data and awaited an afternoon speech on the economy from Federal Reserve Chair Jerome Powell.

The 30-stock index lost 179 points, or 0.5%. The S&P 500 shed 0.2%, while the Nasdaq Composite added 0.2%.

Investors were hit with conflicting economic reports Wednesday morning. Payroll processing firm ADP reported fewer job listings in October than expected, pointing to a contracting workforce. But while the Labor Department also said job openings fell in the month, it said there were still more available than there were workers.

Another indicator of the tightening economy came when October data from the National Association of Realtors showed a fifth consecutive month of declines in pending home sales. But that was tempered with the Bureau of Economic Analysis’ upward revision on third-quarter gross domestic product, which indicated the economy was stronger than previously thought.

“The data was somewhat mixed,” said Edward Moya, senior market analyst at Oanda. “But it does show there’s a lot of resilience in this economy. And it still is highlighting a labor market that is weakening, but is still in relatively good shape. I think that we’re not going to get any answers on what will policy be like at the end of next year based on these reports.”

Investors are waiting for Powell’s speech at the Brookings Institution this afternoon that may give further insight into the central bank’s thinking on future interest rate increases.

The Fed is slated to meet later this month and is largely expected to deliver a smaller 0.5 percentage point rate hike after four consecutive 0.75 percentage point increases to tame high inflation. Any signal of a pivot on future rate hikes would likely send markets higher.

“All eyes will be on Chairman Powell’s speech today, but we don’t believe he will break any new ground,” said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance. “He wants the stock market lower and he’s willing to endure a recession in order to get inflation back under control.”

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Business

Dow sheds more than 100 points as investors digest mixed economic signals, await Powell speech

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The Dow Jones Industrial Average fell Wednesday as Wall Street waded through new economic data and awaited an afternoon speech on the economy from Federal Reserve Chair Jerome Powell.

The 30-stock index lost 175 points, or 0.5%. The S&P 500 shed 0.2%, while the Nasdaq Composite climbed 0.3%.

Traders were hit with conflicting economic reports Wednesday morning.

Payroll processing firm ADP said Wednesday that private companies added just 127,000 positions for the month, well below the 190,000 consensus estimate from economists polled by Dow Jones. It signaled the job market could be cooling, raising hopes the Federal Reserve would slow its aggressive rate-hiking campaign.

Jobs opening data from the Labor Department released later Wednesday showed the number of openings falling and coming in below expectations in October. But there were still more openings than available workers.

The Bureau of Economic Analysis reported third-quarter GDP increased at a 2.9% annual rate, according to its second estimate. That was revised higher from the 2.6% first estimate, showing the economy is stronger than previously thought.

Meanwhile, pending home sales declined for the fifth consecutive month in October, according to data from the National Association of retailers.

Investors are waiting for Powell’s speech at the Brookings Institution this afternoon that may give further insight into the central bank’s thinking on future interest rate increases. The Fed is slated to meet later this month and is largely expected to deliver a smaller 0.5 percentage point rate hike after four consecutive 0.75 percentage point increases to tame high inflation. Any signal of a pivot on future rate hikes would likely send markets higher.

“All eyes will be on Chairman Powell’s speech today, but we don’t believe he will break any new ground,” said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance. “He wants the stock market lower and he’s willing to endure a recession in order to get inflation back under control.”

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Business

Stock futures fall as investors await October retail sales

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Traders work on the floor of the New York Stock Exchange (NYSE) in New York, November 15, 2022.

Brendan McDermid | Reuters

Stock futures fell in overnight trading as investors weighed another lighter-than-expected inflation report and looked ahead to retail sales data due out Wednesday.

Futures tied to the Dow Jones Industrial Average fell 60 points, or about 0.2%. S&P 500 and Nasdaq 100 futures slipped 0.2% and 0.17%, respectively.

All the major averages finished the regular trading session higher Tuesday, with the S&P 500 closing up 0.87% and the Dow adding 56.22 points, or 0.17%. The Nasdaq jumped 1.45% and is the only major average on pace to eke out slight gains for the week. The producer price index report, which measures wholesale prices, came in below expectations, which alleviated some of investors’ concerns around inflation.

Chinese technology stocks were among the best performers Tuesday, with the KraneShares CSI China Internet ETF gaining 9.56% for its best daily performance since March 16. Nine out of 11 S&P 500 sectors rose, led to the upside by communication services and information technology. Both health care and materials posted slight losses.

Stocks have staged a solid run following last week’s better-than-feared consumer price index report. The S&P 500 last week posted its best weekly stretch since June and all the major averages are on track to finish the month with gains.

Some investors say a near-term retreat is, however, on the horizon.

“In the short term, the market is very extended and overdue to pull back and digest the recent rally,” said Adam Sarhan, CEO of 50 Park Investments.

Retail sales due out Wednesday could offer another look at consumer behavior amid inflation. Earnings season also continues with reports from Target, Cisco and Nvidia.

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US

Democrats await Nevada election result that could seal their U.S. Senate majority

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PHOENIX, Nov 12 (Reuters) – Democrats on Saturday were one seat away from majority control of the U.S. Senate next year, as vote-counting in deeply divided Nevada continued following Tuesday’s midterm elections and campaigning kicked off for a Dec. 6 runoff in Georgia.

If incumbent Democratic Senator Catherine Cortez Masto manages to fend off Republican Adam Laxalt in Nevada, her party would then control 50 of the Senate’s 100 seats.

A Democratic victory in Georgia next month would then give the party outright majority control of a 51-49 Senate. A Democratic loss in Georgia and a win in Nevada would still put Democrats in charge of a 50-50 Senate, as Democratic Vice President Kamala Harris can break tie votes.

The Senate currently is split 50-50 between Democrats and Republicans. The newly-elected Senate will be sworn in on Jan. 3.

With nearly 97% of the vote counted in the Nevada Senate race, Laxalt was leading by around 800 votes. However, uncounted votes from Cortez Masto strongholds could vault her to victory.

Suspense over control of the Senate came as it also was still unknown which party will hold the majority in the U.S. House of Representatives for the next two years. Republicans continued to have an edge, but returns were still flowing in for several races, including many in liberal-leaning California.

It could take at least a few more days before the outcome of enough House races are known to determine party control of that 435-seat chamber.

Democrats got an important boost late on Friday when Democratic Senator Mark Kelly was projected to hold onto his seat in Arizona, defeating Republican Blake Masters, who has not yet conceded the race.

Kelly, a former Navy combat pilot and astronaut, delivered a short victory speech to his supporters in Phoenix on Saturday with his wife, former Democratic Representative Gabby Giffords, at his side. His remarks focused on working in Congress in a bipartisan manner.

Kelly did not mention Masters, but said: “We’ve seen the consequences that come when leaders refuse to accept the truth and focus more on conspiracies of the past than solving the challenges that we face today.”

Tuesday’s midterm elections saw many Republican candidates, including Masters, echo former President Donald Trump’s false contention that he lost the 2020 election to Biden because of massive voter fraud.

No winner was projected yet in the race for Arizona governor, where Democrat Katie Hobbs holds a narrow lead over Republican Kari Lake.

(Live election results from around the country are here)

JUDICIAL NOMINATIONS AT STAKE

A Democratic-controlled Senate would provide insurance to President Joe Biden that his nominees to fill dozens of federal judgeships would win confirmation under the guidance of Majority Leader Chuck Schumer.

That would be particularly crucial to Democrats if a seat on the U.S. Supreme Court, which now has a 6-3 conservative bent, were to open up in the final two years of Biden’s term.

When the outgoing Senate returns on Monday for a post-election work session that could run through late December, Schumer aims to immediately confirm two more federal judges awaiting final votes.

However, if Cortez Masto fails to outpace Laxalt and Democrats also lose in Georgia, Schumer will have to spend far more time pushing through judicial nominations before relinquishing power on Jan. 3, after which Senate Republicans would have the ability either to reject or slow-walk confirmation of Biden nominees.

Hovering over the 2022 midterm elections all year has been Trump, who used his continued popularity among hard-right conservatives to influence the candidates the Republican Party nominated for congressional, gubernatorial and local races.

With Republicans’ lackluster performance on Tuesday — even if they do win narrow majority control of either the Senate or House — Trump has been blamed for boosting candidates who were unable to appeal to a broad enough electorate.

Both Laxalt and Herschel Walker, the Republican running to unseat Senator Raphael Warnock in Georgia, won Trump’s backing. Republican losses in either of these two races could further dampen Trump’s popularity as advisers say he considers announcing a third run for the presidency in 2024.House Republicans, if they manage to pull out a victory, have pledged to try to roll back Biden victories on battling climate change and want to make permanent a series of 2017 tax cuts that will expire. They also have planned investigations into Biden administration activities and probes of the president’s son, who has had business dealings with Ukraine and China.

Reporting by Tim Reid and Richard Cowan; Editing by Daniel Wallis

Our Standards: The Thomson Reuters Trust Principles.

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Business

Stock futures inch higher as investors watch midterm results, await inflation data

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Stock futures inched higher Thursday as investors awaited new inflation data and eyed U.S. election results.

Futures connected to the Dow Jones Industrial Average rose 28 points, or 0.1%. S&P 500 futures added 0.1%, while Nasdaq 100 futures gained 0.2%.

It follows a day of losses with the Dow dropping 646.89 points, or 1.95%. The Nasdaq Composite and S&P 500 shed nearly 2.5% and about 2.1%, respectively.

The declines came amid uncertainty stemming from U.S. midterm elections. The market had hoped Republicans would take sweeping control of the House of Representatives and the Senate on Tuesday – a situation that would create gridlock in Washington, D.C. Instead, key Senate races in Arizona, Georgia and Nevada remain tightly contested. Indeed, the Senate race between Raphael Warnock, the Democratic incumbent, and Herschel Walker will head to a December runoff.

Stocks’ suffering worsened late Wednesday after crypto exchange Binance said it’s backing out of plans to acquire its rival FTX. This dragged down the tech sector and pulled bitcoin’s price to lows last seen in 2020.

Lack of clarity around the election, as well as uncertainty around incoming October consumer price index data and corporate earnings reports were the drivers around the selloff, said Chris Zaccarelli, chief investment officer at the Independent Advisor Alliance.

“Those three things are leading to uncertainty,” he said. “And, as everyone knows, markets really don’t like uncertainty.”

October’s CPI report, due Thursday at 8:30 a.m. ET, is the next focal point for investors. Economists polled by Dow Jones expect that headline CPI rose in October by 0.6% from September, or 7.9% over a year ago. It’s a key report for the Federal Reserve, which will meet again in mid-December.

Weekly jobless claims are also due out on Thursday morning.

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Business

Dow futures lower as investors await midterm elections and inflation report

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Traders work on the floor of the New York Stock Exchange (NYSE), September 6, 2022.

Brendan McDermid | Reuters

U.S. stock futures slightly fell on Sunday as investors looked ahead to a week packed with the Congressional midterm elections, as well as the latest consumer inflation report.

Dow Jones Industrial Average futures fell by 31 points, or 0.1%. S&P 500 and Nasdaq 100 futures was 0.15% and 0.25% lower, respectively.

Apple shares may fall after the tech company said iPhone production has been temporarily reduced because of Covid-19 restrictions in China.

Those moves follow Friday’s rally, when the Dow Jones Industrial Average gained nearly 402 points, or 1.3%. The S&P 500 rose 1.36%, and the Nasdaq Composite was 1.28% higher. Still, the major averages closed the week with losses. The Dow ended a four-week win streak on rate hiking fears.

Tuesday’s midterm election will determine which party will control Congress, and impact the direction of future spending. Democrats currently control the House, and have a majority in the Senate. A Republican sweep could signal greater support of oil and gas companies.

On the economic front, investors are anticipating Thursday’s CPI report will give further insight into the Federal Reserve’s efforts to squash inflation. A hot inflation report could signal to investors that a pivot from higher interest rates, for longer, could be further away than expected.

“[In] order for the equity and bond markets to match the post-peak inflation performance noted in the table, inflation needs to keep coming down — and at a faster pace than we’ve yet seen. Until the Fed signals the ‘pivot’ is near, things could remain challenging,” Baird’s Ross Mayfield wrote in a recent note.

Elsewhere, several companies are expected to report Monday including Palantir Technologies, Activision Blizzard, Lyft and Take-Two Interactive. Corporate earnings season is winding down with a majority of companies in the S&P 500 having reported results.

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Business

Asia-Pacific markets higher as investors await China trade data; U.S. midterms ahead

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China reopening still ‘months away’ despite talk of preparations: Goldman Sachs

Speculation of China’s reopening led to a rally in markets last week, but economists at Goldman Sachs say that it’s still “months away.”

“The actual reopening is still months away as elderly vaccination rates remain low and case fatality rates appear high among those unvaccinated based on Hong Kong official data,” economists led by Hui Shan said in a note.

They added that the government is probably working on an exit strategy, and that the firm expects the country to reopen in the second quarter of 2023.

— Jihye Lee

CNBC Pro: Morgan Stanley says this global battery material stock could soar by over 80%

Morgan Stanley expects shares in an Asian battery materials maker to rally by 85% by the end of next year.

This under-the-radar battery materials supplier to Tesla, which already has triple-digit revenue growth, plans to expand manufacturing into the United States.

Even JP Morgan’s analysts who use a “conservative valuation approach” expect the stock to rally by 25% in a year.

CNBC Pro subscribers can read more here.

— Ganesh Rao

Apple says iPhone production temporarily reduced because of Covid-19 restrictions in China

Apple said iPhone 14 production has been temporarily reduced because of Covid-19 restrictions at its assembly plant in Zhengzhou, China, according to a statement Sunday.

The warning could mean the tech company may struggle to meet demand in December as it deals “significantly reduced capacity” at the plant. The company has previously signaled slowing growth in its iPhone business in its earnings report last month.

The warning from Apple comes as China in the past week ordered lockdowns in Zhengzhou, where Apple does the majority of its iPhone production. According to Reuters, employees have fled the facility because of Covid restrictions and outbreaks.

— Sarah Min, Kif Leswing

CNBC Pro: There are still opportunities in tech — here’s how to trade it: Analysts

Tech firms are facing a double whammy of bad news, with disappointing earnings and continued rate hikes by the Federal Reserve both weighing on the sector.

But with the tech-heavy Nasdaq down more than 30% year-to-date, analysts say there are some bright spots that could offer opportunities to investors.

Here are some of their top picks, including one stock with an average upside of over 50%.

CNBC Pro subscribers can read more here.

— Weizhen Tan

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