Oil Down, Banks, Tesla, SpaceX – Top factors for Monday market (April 17th)

Today’s main global market news –

1. As Wall Street anticipates further earnings, stock futures have barely changed: constant updates
2. At IMF-World Bank meetings, concerns about banking stability are discussed behind closed doors.
3. PM Anwar: Malaysia will reconsider its $3.9 billion settlement agreement with Goldman Sachs.
4. According to Tencent, their own-developed video transcoding chip has started mass production.
5. speculators’ bets on a Fed rate rise cause the dollar to reach a one-month high versus the yen.
6. The US Government Gives SpaceX Permission To Launch The Starship Rocket – Bloomberg
7. When Cook starts his retail push, Apple India sales will be close to $6 billion.
8. Before American earnings, European equities reach new highs
9. Rovio Entertainment, the company behind Angry Birds, will be purchased by Sega for $775 million.
10. Russia is currently exporting more petroleum than it did before to the invasion of Ukraine as a result of China and India’s massive purchases of Russian oil.
11. IPH in Australia discloses that member firms’ systems were the source of the data leak.
12. Exor chooses Nohria to replace World Bank candidate Banga as chairman.
13. Porsche records record-breaking Q1 sales growth helped by China
14. According to the New York Times, Microsoft Bing may replace Google as the default search engine for Samsung devices.
15. Nationwide TikTok Ban Approved by Montana Legislators – WSJ
16. Merck will pay roughly $11 billion to acquire Prometheus Biosciences.
17. Alexa is down for thousands of customers on Amazon – Downdetector
18. US Supreme Court examines the refusal to work of a Christian mail carrier Sundays
19. American bank titans ride rate increases and dissipate storm clouds
20. Chinese automaker Xpeng wants to reduce costs using a new production platform.
21. As earnings season gets underway, the S&P 500 prediction becomes less dire.
22. SpaceX will attempt a launch on Monday morning local time.

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U.S. market today

Market Technical -by Gurmeet Sohi

Friday Market closed in red 

Trend is up in short term

Resistance is near 34320 

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MARKET MOVERS

STOCKS IN NEWS 

• @charliebilello: US retail sales grew by 1.5% during the last year, which is much less than the 4.8% historical average and the worst growth rate since May 2020. The situation is far worse when inflation is taken into account. Over the previous year, real retail sales decreased 3.3%; this was the 7th consecutive YoY loss.

  Lucid Group Inc LCID built 2,314 cars and delivered 1,406 during the first quarter compared to an estimate of 1,835

  Ferrari NV RACE:- As the business chairman warned of significant orders and the shareholders accepted all resolutions, including a proposal for a dividend of EUR 1.81 per share, RACE reached new all-time highs.

  TESLA:- Prices for TESLA’s electric vehicles have been drastically reduced in Europe, Israel, and Singapore, continuing a worldwide discounting campaign that started in China in January while also raising questions about the company’s leading profit margin.

  Elf Beauty Inc ELF announces its $156 million FY25 EBITDA forecast and increases its price goal at Truist from $75 to $100 in response to pricing adjustments and shelf space opportunities.

  Six years after purchasing it for $310 million, menswear company Bonobos, Inc. will be acquired by EXPR and global brand management company WHP Global for $75 million.

  Coliseum Capital Management, PRPL’s largest shareholder with a 44% ownership holding, and PRPL have agreed to a memorandum of understanding that will create a cooperative governance structure and put an end to their disagreement.

  The weekly Baker Hughes (BKR) rig statistics revealed that the U.S. rig count was down three from the previous week to 748 rigs, with oil rigs down two to 588, gas rigs down one to 157, and other rigs remaining at 3. The U.S. rig count is 55 more rigs than it was a year ago, when it was 693.

  JPMorgan reported record Q1 revenue (up 25% year over year) and a 52% increase in profit (Q1 EPS of $4.10 vs. $3.41; Q1 revenue of $38.3 billion vs. $36.23 billion; and net income of $12.62 billion from $8.28 billion). 

  Citigroup (C) Q1 adj EPS $1.86 above expectations $1.67 on higher revenues of $21.45 billion, up 12% year over year compared to the estimate of $20.03 billion, with Q1 ROE of 9.5%, RoTCE of 10.9%, CET1 capital ratio of 13.4%, and tangible book value per share of $84.21. The first quarter’s net profit increased by 7% from the same period last year; the cost of credit was roughly $2 billion as opposed to $0.8 billion.

  Wells Fargo & Co WFC’s first-quarter earnings and sales above expectations, with EPS of $1.23 exceeding predictions of $1.13 and beyond prior-year levels of $0.90. Revenue increased 17% year over year to $20.73 billion, over $20.08 billion expectations.

   PNC Financial Services Group Inc PNC Q1 EPS $3.98 vs. est. $3.67 as NII weaker and the beat drive by non-NII; Q1 revs $5.60B vs. est. $5.61B; Q1 provision for credit losses of $235M; Q1 average loans $325.5B vs $290.7B y/y; Q1 average deposits of $436.2B, increased $1.3B, or 0.3%. vs Q4; guides FY23 revs up 4%-5%, down from prior view of up 6%-8% and average loans up 5%-7%.

  BLACK ROCK BLK Q1 adj EPS $7.93 vs. est. $7.73 as profit fell 18%; Q1 revenues $4.24 vs. est. $4.25 B; Q1 AUM $9.09 T, down 5% y/y; SCHW investor GQG Partners liquidated their whole interest amid financial crisis, according to the FT.

  ROYAL BANK CANADA RBC Capital:- While predicting Q1/23 results, RBC Capital points out that both P&C and life insurers had a good start to the quarter.

  Hartford Financial Services Group Inc. HIG pre-announces Q1 core EPS of $1.68, below analysts’ expectations of $1.99 due to higher catastrophic losses, the personal lines unit’s subpar performance, and other unnamed causes, according to analysts

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Economic Calendar for Today

• 08:30 NY Empire State Manufacturing Index (Apr)

• 10:00   NAHB Housing Market Index (Apr)

• 11:30 3 & 6-Month Bill Auction

• 16:00   Overall Net Capital Flow (Feb)

• 16:00   TIC Net Long-Term Transactions (Feb)  

Major Events for This week

• Earnings season

Major American corporations, including Pinnacle Financial, Sify Technologies, and Amcon, will release their quarterly reports on April 17; Johnson & Johnson, Bank of America, Goldman Sachs, Netflix, Ericsson, Omnicom, Lockheed Martin, United Airlines; Tesla, Abbott, and Morgan Stanley; Philip Morris, AT&T, American Express, Blackstone, Nokia, Xerox; and Procter & Gamble; on April 18; and on April 19, respectively.

• Fed watch

Investors will have one last opportunity to hear from Fed officials in the coming days, including New York Fed President John Williams, Governor Michelle Bowman, Governor Christopher Waller, and Governor Lisa Cook, before they enter their customary blackout period before to the meeting.

• TODAY
  China GDP Q1
  China Industrial Production (March)
  April 18 (Tuesday)
  UK Unemployment Rate (Feb)
  April 19 (Wednesday)
  UK CPI, Core CPI (March)
  Eurozone CPI, Core CPI (March)
  April 20 (Thursday)
  Japan National CPI, Core CPI (March)
  April 21 (Friday)
  UK Services PMI, Manufacturing PMI, Composite PMI
  US Services PMI, Manufacturing PMI, Composite PMI (April) Preliminary
  Eurozone Services PMI, Manufacturing PMI, Composite PMI (April) Preliminary

EARNING CALENDAR

EARNING BEFORE THE  OPENING :

Charles Schwab (SCHW). State Street (STT). Guaranty Bancshares (GNTY). Hooker Furniture (HOFT). Midwest Energy Emiss (MEEC). Destiny Media Technologies Inc (DSNY), Laser Photonics Unt (LASE)

EARNING AFTER THE CLOSE:   

M&T Bank (MTB), JB Hunt (JBHT), Equity Lifestyle (ELS), GAP ADR (PAC), Pinnacle (PNFP), INVO Bioscience (INVO), CrossFirst Bankshares (CFB), ServisFirst Bancshares (SFBS),  FB Financial (FBK) 

Economic data

• March import prices declined (-0.6%) compared to consensus (-0.1%) and February (-0.2%), while March export prices fell (-0.3%) compared to est. (-0.1%) and February (+0.4%).
• Retail Sales Ex-Autos dropped (-0.8%) worse than est. (-0.3%) and Feb unchanged; March cars/parts sales declined (-1.6%) vs. Feb (-1.3%). Retail Sales Ex-Autos fell (-0.8%) worse than est. (-0.3%) and vs. Feb (-0.2%) from previous (-0.4%).
• Industrial output for March roseThe U.S. March motor vehicle assembly rate decreased to 10.11 million units/year from Feb.’s 10.31 million units/year, exceeding consensus expectations of +0.2% and +0.2%, respectively. Capacity utilisation rate for March was 79.8%, exceeding expectations of 79.0% and +79.6%, respectively.
• Sentiment at the University of Michigan was recorded as 63.5, compared to an estimate of 62.0; consumer current conditions index prelim April 68.6 (consensus 67.3) compared to final March 66.3; and consumer expectations index prelim April 60.3 (consensus 60.0) compared to final March 59.2
• Inflation forecasts for Michigan over the next year were projected at 4.6% (up from a prior estimate of 3.6%) and 2.9% (up from a prior reading of 2.9%)
• Business Inventories for February increased by 0.2% to $2,471.6 billion, above expectations of 0.3% and revisions of -0.2% for January.

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Indian Market 

FII AND DII 

On April 13, according to preliminary data from the National Stock Exchange, foreign institutional investors (FII) purchased shares worth Rs 221.85 crore while domestic institutional investors (DII) sold shares worth Rs 273.68 crore

Indian market news 

1. In March, wholesale inflation moderated to 1.34%, continuing its downward trend.
2. Gold loans at HDFC Bank have sharply increased by over 30%.
3. In Chennai, Origins by Mahindra, Mitsubishi Electric will build a manufacturing facility.
4. Va Tech Vabag will sell its whole share in the Swiss branch.
5. Eqova Healthcare obtains a further 34% share from Max Healthcare Institute.
6. From May 1, Tata Motors will raise the pricing of passenger automobiles.
7. TV18 surges 3% as a result of a strategic partnership for the Viacom18 subsidiary.
8. Exceptional loss drove GTPL Hathway’s Q4 loss to Rs. 11.75 crore, although revenue increased by 12.2%.
9. The biggest single-day decline in Infosys stock since 2019
10. The number of active cases in India has risen to 60,313 with over 9000 new covid infections registered each day.
11. Once Vijay Kedia purchases a 10 lakh share, Precision Camshafts shares increase by 15%.
12. Vedanta partners with 20 Korean display companies to establish an electronics manufacturing cluster in India.
13. Sales rise of 38% was reported by Volvo Automobile India for the January-March quarter.
14. The shoe company Nike and Adidas plans to open an office in India for Rs 2,000 crore.

Indian market Today  

INDIAN MARKET MOVERS  

STOCK IN NEWS

Infosys: The second-largest exporter of IT services in the nation reported a consolidated profit of Rs. 6,128 crore for the quarter ended March FY23, a decrease of 7% from the previous quarter as revenue fell by 2.3 % QoQ to Rs. 37,441 crore and EBIT fell by 4.3 % to Rs. 7,877 crore. EBIT margin for the quarter decreased by 50 bps sequentially to 21%. 

HDFC BANK :-The largest private sector lender in the nation, HDFC Bank, reported a standalone profit increase of 19.8% year over year to Rs 12,047.5 crore for the quarter ended March FY23.

Zee Entertainment Enterprises: According to reports cited by CNBC-TV18, Invesco Oppenheimer Developing Markets Fund is expected to sell its 5.65 percent share in Zee Entertainment Enterprises via block agreements. 

GTPL HATHWAY:– Compared to a profit of Rs 54.4 crore in the same time previous year, GTPL Hathway, a supplier of digital cable TV services, reported a consolidated loss of Rs 11.7 crore for the quarter ended March FY23. 

Zydus Lifesciences: The US Food and Drug Administration (USFDA) has given Zydus final clearance to produce and sell injectable isoproterenol hydrochloride. This injection is recommended for treating bronchospasm that occurs during anesthesia as well as distributive shock and shock owing to decreased cardiac output in patients.

Max Healthcare Institute: For Rs 68.86 crore, the business bought an additional 34 percent of Eqova Healthcare. As a result, the business now owns a 60 percent ownership position in Eqova, which has the only right to support the establishment of the hospital being built by Nirogi Charity and Medical Research Trust and to offer medical, healthcare, and allied services

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