US CPI falls, BOC meeting – Whats driving the market today (April 12th)

Today’s main global market news –

1. US inflation falls to 5% vs Previous 6.0%, Expected 5.1
2. Bank of Canada likely hold its key interest rate steady at 4.5 per cent
3. Mercedes announces increase in Q1 sales driven by EVs and luxury vehicles
4. Volvo reports a record first quarter as sales and profits surpass expectations.
5. Volvo soars ahead of important U.S. inflation data as European markets make gains.
6. US union rejects Waymo, Aurora’s request for a driverless truck waiver
7. Delisting of TRON’s digital asset token on Binance US
8. Ford will invest $1.3 billion to establish a Canadian EV manufacturing cluster.
9. According to Goldman Sachs, property values are falling quickly in certain American locations.
10. The EPA proposed a rule on Wednesday requiring a 56% reduction in light-duty vehicle greenhouse gas emissions by 2032; the proposal predicts that 67% of cars and trucks sold in the United States in 2032 may be electric vehicles.
11. IMF Lowers Global GDP Growth Outlook for 2023 from 2.9% in January to 2.8%
12. TD Bank, the second-largest bank in Canada, has the world’s most overrated bank stock at the moment.
13. Earnings are anticipated to decline by 8% this season.
14. IN CHICAGO, Wallmart is closing a range of stores. According to Walmart, stores in Chicago lose tens of millions of dollars annually, and their losses have doubled over the past several years.
15. A Fox shareholder is suing Rupert Murdoch and the other directors for their coverage of the 2020 election.
16. Goldman Sachs will start doing transaction banking in Japan.
17. sources: a $8 billion merger between Emerson Electric and National Instruments is imminent.
18. Plan to divide audit and consulting departments by EY is scrapped.
19. Ex-Deutsche Bank investment banker accused of cryptocurrency fraud in the US.
20. The $406.2 million award for BOC Aviation’s jets that became trapped in Russia.
21. In exchange for transaction approval, Glencore makes a financial offer to Teck shareholders.
22. According to an appeals court decision, HP will be sued by shareholders for its sales.
23. With its EnergyX lithium venture, General Motors expands its mining operations.
24. Former Bombardier executive Di Bert will replace retiring Air Canada CFO Kazzaz as CFO.

Must read book about investing – check here 

U.S. market today

Market Technical -by Gurmeet Sohi

Closed in green and above all 20 EMA 50 EMA and 200 EMA

Short term trend is up

Long term trend is also switched to uptrend  

Midterm trend remains sideways

Swing lows are around 32246 and this may act as a support now.

My Favorite book on Trading –  Check Here

MARKET MOVERS

STOCKS IN NEWS 

• As a result of lower sales,Carmax Inc KMX reported an almost 57% decrease in Q4 profit. Mixed results were reported, with Q4 Earnings of $0.44 exceeding expectations by $0.20 (but falling short of $0.98 year over year) and 4Q used car sales of $4.53 billion compared to expectations of $4.8 billion. According to findings, KMX was one of the top gainers in the S&P. 
  According to Wells Fargo‘s quarter preview, their AN Q1 Earnings are below expectations. While prices have remained stable, new retail volumes are flat year over year, interest rates are rising, and both brand mix screens badly. Remain EW despite the cheap valuations because the consensus EPS most certainly needs to decrease.
• Albertsons Companies Inc ACI Q4 EPS of $0.79 above projections of $0.68 and stated that quarterly digital sales increased by 16% while ID sales increased by 5.6%. Overall sales increased by 5.1% to $18.27B, exceeding expectations of $18.22B.
• The PriceSmart, Inc PSMT Q2 Profit of $1.25 on $1.14 billion in revenue above expectations ($0.88/$1.13 billion) and comps for the 49 warehouse clubs that have been operational for longer than 13 12 calendar months were up 8.5%.

• Cleveland-Cliffs Inc CLF + 2%; forecasted $5.2 billion in revenue for the first quarter and 4.1 million net tonnes of steel exports (in line with estimates for revenue); plans to offer to sell $750 million in senior unsecured notes.

• While Bitcoin trades above $30,000, its greatest levels since June ahead of CPI data, strength in crypto-related equities (MSTR, RIOT, MARA) has increased.

• Regenxbio Inc RGNX +4% reported that the FDA has given its investigational medicine RGX-202, a potential once-off gene therapy for Duchenne muscular dystrophy, “fast-track” classification.

• Shockwave Medical Inc SWAV +7%; CMS released its proposed rule for the inpatient payment rates for 2024, which reflected a favourable update for the inpatient IVL coronary and co-pay. New IVL-specific codes would be established by CMS, and they would pay around $4k more than the current codes.

• Goldman Sachs said that although WW International IncWW’s subscriber base and earnings power have been declining, they feel that a catalyst for a turnaround has developed with its new obesity medicine on-ramp solution. WW +47%; upgraded to Buy from Neutral and boosted tgt to $13 from $3.80.

• Albertsons Companies Inc ACI -1%; Q4 Earnings $0.79 beat forecast of $0.68; quarterly digital sales up 16%; ID sales up 5.6%; total sales up 5.1% to $18.27B, beating estimate of $18.22B.

• Adtran Holdings Inc ADTN -24%; reports preliminary Q1 operating margin down 1% to up 2.5%; revenue is projected to fall short of forecast due to client inventory adjustments; earlier estimate was $355M-$375M vs. consensus $364.11M.

• Tilray Inc TLRY -6%; slides in the cannabis sector as quarterly revenue below expectations and is acquired by HEXO

Major TradingView discount – check here 

Economic Calendar for Today

• 07:00      MBA 30-Year Mortgage Rate
  
• 08:30      CPI (MoM) (Mar)
  
• 08:30      CPI (YoY) (Mar)
  
• 10:30      Crude Oil Inventories
  
• 11:00      IMF Meetings
  
• 14:00      Federal Budget Balance (Mar)
  
• 14:00      FOMC Meeting Minutes
  

Major Events for upcoming week

1. U.S. CPI: on Wednesday predicted 5.2%; previous 6.0%.
2. Fed minutes: On Wednesday, the Fed will release the minutes of its March meeting.
3. Bank earnings:- On Friday, JPMorgan (JPM) and Citigroup (C) BlackRock (BLK) , Wells Fargo (WFC)  are expected to publish their bank profits.
4. IMF predictions: On Tuesday, the IMF will release its most recent projection for world economic growth.
5. Central banks: On Wednesday, the Bank of Canada will convene its most recent policy-setting meeting. On Monday, Haruhiko Kuroda handed over control of the Bank of Japan to Kazuo Ueda.

EARNING CALENDAR

EARNING BEFORE THE  OPENING :

Apogee (APOG), Theratechnologies (THTX), SemiLEDS (LEDS)

EARNING AFTER THE CLOSE:   

Argan (AGX), Sportsmans (SPWH), Pure Cycle (PCYO), Rent the Runway (RENT) 

Economic data

• NFIB’s headline small business confidence declined:- NFIB’s flagship small company mood index fell -0.8 points to 90.1 in March, a depressing level that is below its panic-inducing 2020 Covid bottom. Owners anticipating improved business circumstances over the following six months remained unchanged month over month at -47, which is far below all previous recession bottoms (back to 1986). The availability of financing for small businesses is at its lowest point since late 2012, according to 9% of owners who often borrow money.

Must read book about investing – check here

Indian Market Today 

FII AND DII 

On April 11, according to preliminary data from the National Stock Exchange, domestic institutional investors (DII) sold shares worth Rs 264.02 crore, while foreign institutional investors (FII) purchased shares worth Rs 342.84 crore.

NEWS

1. he biggest winning streak for D-Street bulls in five months is sparked by $1 billion-FII inflows.
2. Due to a favourable base, March CPI inflation was expected to be at a 15-month low of 5.7%.
3. India’s import costs may increase as a result of the OPEC+ output reduction, according to the IEA.
4. RBI approves Karnataka Bank’s efforts to collect direct and indirect taxes.
5. Reliance Projects awards HFCL orders of Rs. 124 crore.
6. Suzlon Energy Receives an Order from Sembcorp for 50.4 MW
7. Adani Enterprises joins the coal washing industry; stock price increases
8. Max Healthcare saw a significant block deal.
9. Gold prices increase as investors anticipate US inflation data and FOMC minutes.

STOCKS IN NEWS

• DELTA CORP:- Due to subpar operating results, Delta Corp. reported a 6.4% year-over-year increase in Q4FY23 earnings at Rs 51.17 crore. For the quarter, total revenue increased by 4% YoY to Rs 227.16 crore.

• HDFC BANK:- With a private placement, HDFC Bank has sought to collect money totaling Rs 50,000 crore through bonds over the next 12 months. On April 15, the board will debate the aforementioned proposal.Titagarh Wagons  : In the Indian Railways’ mega-tender, the Bharat Heavy Electricals and Titagarh Wagons consortium was given an order for Vande Bharat trainsets.

• Marathon Nextgen Realty:- Sales for the quarter totaled Rs 226.4 crore, a 20% decrease. It sold 5.21 lakh square feet of space in FY23, a 12% decrease from FY22, but the sales value increased by 12% to Rs 753 crore within the same time frame. On a year-over-year basis, the net debt dropped from Rs 1,189 crore in FY22 to Rs 864 crore in FY23, a decrease of Rs 325 crore.

• Sula Vineyards: The company’s own brands sales in FY23 climbed by 26% to Rs 482.5 crore, while the wine tourism business showed a 30% rise at Rs 45 crore in FY23 compared to FY22, both of which represent significant YoY growth rates of 15% and 18%, respectively.

• KP Energy: At the Sidhpur location in Devbhoomi Dwarka, the business has successfully put into service a 52.5 MW (Phase-I) ISTS-connected wind power plant with 25 WTGs (wind turbine generators) of 2.1 MW each.

• Delhivery: Tiger Global Management’s venture capital fund, Internet Fund III Pte Ltd, sold 1.17 million equity shares, or 1.61% of the logistics firm, through open market transactions for a total of Rs 387.87 crore. This represents an average price of Rs 330 per share.

• Adani Enterprises: Pelma Collieries is a fully owned subsidiary of the Adani Group firm. Pelma will continue its operations to build, implement, and run coal washeries, including coal handling systems.

• Venus Pipes & Tubes : Ashish Rameshchandra Kacholia, a renowned investor, purchased 4 lakh equity shares, or 1.97% of the firm, through open market transactions for an average price of Rs 750 per share.

• Sagar Cements: PGIM India Mutual Fund sold 60.39 lakh equity shares in the cement business through open market transactions for a total of Rs 110.58 crore or an average price of Rs 183.1 per share. The purchaser was ICICI Prudential Mutual Fund.

Today’s India market at close

MARKET MOVERS

Must read book about investing – check here