Canada strike, Top earnings & Oil fall, Futures down – Key Factors for market today(April 19th)

Today’s main global market news –

1. Futures decline, Tesla falls as Treasury rates increase.
2. Canada 155,000 fed workers will go on strike after talks with the government failed to produce an agreement
3. Glencore puts more pressure on Teck Resources by indicating a higher offer
4. Core inflation in the euro zone edged higher in March, putting the ECB on guard.
5. Asian equities decline as attention returns to the Fed
6. European equities decline before to the March inflation data
7. After results, Netflix is down 0.4% as the Dow futures move lower.
8. More American consumers are having payment issues.
9. Australia’s Recession Likelihood Decreases to 35% Due to Halt in Policy
10. United Airlines exceeds forecasts as demand for foreign travel helps it
11. Revenue surpassed expectations while Omnicom’s profits outperformed them by $0.18
12. Netflix Q1 results above expectations, but a bleaker revenue outlook hurts.
13. Public employees in Canada are going on strike over a wage issue
14. CDW Corp’s profits were off by $0.01 and its revenue was below expectations.
15. Star Entertainment announces 500 job losses and lowers earnings expectations as the economy deteriorates
16. S&P 500 flat as tech backs and Goldman results disappoint
17. CEO of Bloomberg: Boeing hasn’t changed the 737 supplier schedule for the new issue.
18. American Wages Are Growing Faster Than Inflation
19. Southwest flights restart following a minor technical snag on the ground.
20. Tesla Shanghai employees who are upset over bonus reduction confront Elon Musk.
21. According to an FAA announcement, all planes operated by Southwest Airlines are no longer grounded – CNN
22. Fed’s Bostic: Fed is expected to raise rates once more before remaining stable.
23. BofA’s earnings exceed expectations as it benefits from increased interest rates.
24. Microsoft is developing its own artificial intelligence chip in an effort to save time and money.
25. With banking issues, the White House is closely monitoring commercial real estate, according to Bernstein

Must read book about investing – check here 

U.S. market today

Market Technical -by Gurmeet Sohi

Monday market closed in slightly red, almost flat

Trend is up in short term

Resistance is near 34320 

My Favorite book on Trading –  Check Here

MARKET MOVERS

STOCKS IN NEWS 

• Goldman Sachs Group Inc., a component of the Dow Jones Industrial Average (Dow), reported lower Q1 profit as net earnings of $3.09B compared with $3.83B year over year while earnings of $8.79 topped $8.10 estimate; said investment bank revenue of $12.2B missed estimates of $12.79B while Q1 deposits were $375B compared to $387B a year ago

• Bank of New York Mellon Corp. BK shares increase as Q1 earnings above expectations with EPS of $1.13 vs. $1.12 and in-line revenue of $4.4B – reported at qtr-end aum of $1.9 trillion, dropped 16%, mostly due to market effect.

• Johnson & Johnson JNJ Q1 adj EPS $2.68 exceeds consensus $2.51; Q1 revenue $24.7 billion surpasses expected $23.67 billion; FY23 adj EPS raised to $10.60-$10.70 from $10.45-$10.65 (est. $10.51) and FY23 revenue view raised to $97.9 billion-$98.9 billion from $96.9 billion-$97.9 billion (est. $97.71 billion); dividend also increased

• Shares of BABA increase after Reuters reported that Chinese regulators are anticipated to reduce a fine on Ant Group from an early anticipated value of more than $1 billion to $700 million.

• Lockheed Martin Corp LMT rises at record highs after reporting better-than-expected Q1 earnings of $6.43 on higher revenues, but the company also warns that supply-chain problems brought on by the pandemic are still affecting F-35 production levels.

• Douglas Dynamics Inc PLOW announced a larger-than-expected Q1 loss due to lower revenue and lower-than-anticipated FY23 adjusted EPS guidance of $1.55-$2.00 and FY23 revenue guidance of $620M-$650M (estimated $646.8M).

• Commerce Bancshares, Inc. (CBSH) reported Q1 EPS of $0.95 beats the estimate of $0.92; Q1 revenue $389.24M beats estimate. $388.83M; Q1 net interest income was $251.6M, a reduction of $3M from the prior quarter.

• JB Hunt (JBHT) The revenue decline was primarily caused by volume declines of 25% in Integrated Capacity Solutions (TM) (ICS), 5% in Intermodal (JBI), and 17% in Final Mile Services(R) (FMS), as well as a 17% decline in revenue per load in truckload. JB Hunt (JBHT) 1Q EPS: $1.89 vs. est. $2.00 on revs fell -7% y/y to $3.23B vs est. $3.40B.

• Bank America (BAC):– Q1 EPS $0.94 vs. est. $0.82; Q1 Trading revenue excluding Debit Valuation Adjustment (DVA) $5.05 billion, vs. est. $4.46 billion.

• Equity Lifestyle (ELS) Q1 EPS $0.44 vs. expected $0.51; Q1 revenues $370M vs. expected $368M; Normalized FFO $0.74 per share, indicating a 2.0% growth over the same time in 2022.

• FB Financial (FBK) reported Q1 earnings per share of $0.76 versus an estimate of$0.72; Q1 revenue of $127.2 million versus an estimate of $131.3 million; Q1 net income of $103.7 million versus an estimate of $110.71 million; growth in deposits of 12.2% annualised; increase in adj tangible BV/shr to $27.06; and allowance for credit losses at 1.48% of loans HFI versus 1.44% at the end of 2022.

Major TradingView discount – check here 

Economic Calendar for Today

• 07:00 MBA 30-Year Mortgage Rate

• 07:00 Mortgage Market Index

• 10:30 Crude Oil Inventories

• 13:00 20-Year Bond Auction

• 14:00   Beige Book

• 19:00 FOMC Member Williams Speaks  

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.

• 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 :

ASML ADR (ASML), Abbott Labs (ABT), Morgan Stanley (MS), Elevance Health (ELV), U.S. Bancorp (USB), Travelers (TRV), Baker Hughes (BKR), Nasdaq Inc (NDAQ), Antofagasta (ANFGF),  Synchrony Financial (SYF), Ally Financial Inc (ALLY), New Oriental Education&Tech (EDU), Lithia Motors (LAD), Barco ADR (BCNAY), VectivBio Holding AG (VECT), Just Eat Takeaway.com  (JTKWY)

EARNING AFTER THE CLOSE:   

Tesla (TSLA), IBM (IBM), Rio Tinto ADR (RIO), Lam Research (LRCX), Crown Castle (CCI) Las Vegas Sands (LVS), Discover (DFS), Steel Dynamics (STLD), Rexford Inl Rty (REXR), F5 Networks (FFIV), Alcoa (AA), RLI (RLI), First Industrial RT (FR), Zions (ZION), Wintrust (WTFC), FNB (FNB) Calix (CALX), Cohen Steers (CNS), Equifax (EFX), Kinder Morgan (KMI), Liberty Oilfield (LBRT)Banner (BANR), SL Green (SLG), Monarch (MCRI), National Bank Holdings (NBHC),  Eagle (EGBN), Brandywine (BDN), Great Southern Bancorp (GSBC),  Martin Midstream (MMLP), Yayyo (YAYO), Mind Technology (MIND).

Economic data

• March housing starts decreased (-0.8%) to 1.42M unit rate compared to estimate 1.4M and vs. Feb +7.3% at 1.432M units; single-family starts increased (+2.7% to 861K unit rate); multifamily -5.9% to 559K; and March housing permits decreased (-8.8%) to 1.413M unit rate compared to consensus 1.450M and Feb 1.55M unit rate.

• China’s economy expanded in Q1 as its gross domestic product (GDP) was recorded at +4.5% y/y in the first three months of the year, according to statistics from the National Bureau of Statistics (NBS). This was higher than the 2.9% growth in Q4 and above expectations for a 4.0% increase, making it the fastest growth in a year. Industrial output in China for the first quarter fell short of expectations by 3.9% and retail sales by 10.6%.

• U.S. February net total capital flow increased by $28.0 billion over the previous month (+183.1 billion); the February net long-term flow (excluding swaps and other transactions) increased by $71.0 billion over January (+31.9 billion). China had $849 billion in Treasury securities in February compared to $859 billion in January.

Must read book about investing – check here

Indian Market 

FII AND DII 

FII Sold         533.20 CR

DII BOUGHT  269.65 CR

Foreign institutional investors (FII) sold shares worth Rs 810.60 crore, whereas domestic institutional investors (DII) bought shares worth Rs 401.66 crore on April 18, National Stock Exchange’s provisional data showed.

Indian market news 

1. JK Tyre would invest Rs 800 crore to increase production to 34 million units annually.
2. According to the IMF, China and India will drive global growth over the next five years.
3. As Blinkit stores reopen following pay protests, Zomato gains 5%
4. .Once BEML lists its demerged non-core company, BEML Land Assets sees a 5% decline.
5. Bajaj Electricals shines following a significant block transaction
6. Once the US FDA completes its examination at a US site, Piramal Pharma gains 10%.
7. After purchasing the controlling interest in Dashanya Tech Parkz, Prestige Estates Projects saw a 4% increase.
8. With the USFDA’s approval of an osteoporosis medication, Zydus Lifesciences reaches a 52-week high.
9. Mukul Agrawal, a renowned investor, increased his investment in Sula Vineyards to 2.38% in the fourth quarter.
10. By a preferred issuance, Speciality Restaurants raises 127 crore rupees.

Indian market Today  

INDIAN MARKET MOVERS  

STOCK IN NEWS

TATA COFFEE:- Notwithstanding a decline in operational numbers, Tata Coffee, a division of Tata Consumer Products, reported a consolidated profit of Rs 48.8 crore for the January-March FY23 quarter, up 19.7 percent from the same period in 2012. More other revenue and lower tax costs contributed to the profitability.

ICICI LOMBARD:- On April 18, ICICI Lombard General Insurance Company announced a 40% increase in net profit for the fourth quarter ended March 2023, coming in at Rs 437 crore. In the equivalent period of 2021–2022, the non-life insurer reported a net profit of Rs 313 crore.

State Bank of India, said that the Executive Committee of the Central Board has approved the long-term fund-raising in single or multiple tranches up to $2 billion through a public offering and/or private placement of senior unsecured notes in US dollars or any other convertible currency during FY24.

Bank of India: The public sector lender announced that the board of directors had approved raising capital up to Rs 6,500 crore for FY24, 

Pidilite Industries: The business has a contract for the sale of certain of its assets, including its technology, design, trademark, copyright, domain name, trade dress, and others, with US-based Basic Adhesives LLC. Over a period of time, the corporation will pay the consideration in installments.

Piramal Pharma: The US Food and Drug Administration (USFDA) has finished inspecting the business’s production plant in Sellersville, USA, and has published an Establishment Inspection Report (EIR) for the same location.

Bajaj Healthcare: The board of directors has authorised the reappointment of Sajankumar Bajaj as the company’s chairman and managing director, Anil Jain as the managing director, and Dhananjay Hatle, Namrata Bajaj, and Rupesh Nikam as full-time directors, all of which will take effect on April 1. With effect from June 30, Pakshal Jain has also been reappointed as the company’s Full Time Director.

Zydus Lifesciences: The pharmaceutical firm has been given the go-ahead by the US Food and Drug Administration (USFDA) to produce and sell the Estradiol Transdermal System in the US.

Must read book about investing – check here