US OPEN: Wall Street opens lower after upbeat Trade in Goods balance data

Tuesday's session on Wall Street brings a bit of consternation after the Christmas break. The last trading week of 2022 is ahead of us, which, despite the lingering festive atmosphere, may involve a last rebalancing of portfolios by investors. Today, investors' attention is focused primarily on individual companies, as the calendar of macro readings during this period is severely limited.

The bullish momentum sustained during the European session was negated after the reading of Trade in Goods balance. A huge drop in the US goods deficit, the largest since 2009, triggered a deterioration in market bullishness. Better goods deficit data could support U.S. GDP in Q4 2022, which could herald the Fed's maintaining a more hawkish stance.

Source: U.S. Census

The Trade in Goods balance is rebounding strongly, and today's reading came as a big surprise to economists. Source: Bloomberg via ZeroHedge

The market is now pricing in a 43% chance of a 50 basis point rate hike at the Fed's next meeting in February 2023. Source: Bloomberg

US index quotes. Source: xStation 5

Compiled charts of the US500 and VIX index on the D1 interval. The benchmark of the largest companies in the US starts today's session lower. The VIX fear index is gaining nearly 1.2% today. Source: xStation 5

News:

• Tesla (TSLA.US) shares came under supply pressure again today, losing nearly 5% ahead of the opening of the Wall Street session, as the production slowdown at the Shanghai plant lasting into the last week of December will be extended and will also take place in January 2023, according to the latest company documents and reports from Reuters. For more details, click here.

• ADRs on Chinese companies listed in the U.S. are seeing gains early in today's Wall Street session on the back of another easing of restrictions in China. Visitors to the country will not be quarantined from January 8.

• Despite better sentiment among companies in the airline sector, Southwest Airlines (LUV.US) is losing more than 4% today due to a spate of flight cancellations over the holidays. 

Information and highest volatility among US companies. Source: Bloomberg