Morgans AM: Thursday, 12 January 2023

Morgans Financial Limited

US equity markets rallied ahead of the release of the latest monthly consumer inflation figures tonight AEST - Dow gained +269-points or +0.80%, The broader S&P500 +1.28%, with Real Estate (up +3.60%) and Consumer Discretionary (+2.68%) climbing over >2.5% to lead all eleven primary sectors higher. Ford Motor Co (up +2.96%) extended its rally into a ninth straight session and logged its highest settlement since 14 December. The Nasdaq rallied +1.76%, with the technology-centric index logging its first four-day rally since September. The small capitalisation Russell 2000 gained +1.05%. Carvana Co jumped +24.43% to US$5.50 on heavy volume and had rebounded ~47.8% since closing at a record low of US$3.72 on 27 December. The rally came despite no stock specific news (the company hasn’t issued a press released or a filing with the Securities and Exchange Commission yet this year) although there was an analyst note published saying data sources indicated wholesale used vehicle prices showed signs of normalisation through the last couple months of the fourth quarter, and the average daily sales conversion rate improved in December from November.