Core PCE, Amazon, Snap – market today (April 28th)

Today’s main global market news –

1. The core #PCE price index in the United States in March was at an annual rate of 4.6%, expected to be 4.5%, and the previous value was 4.60%.
2. Bank of Japan raises inflation expectations while maintaining yield curve management.
3. Amazon earnings and inflation statistics are in focus as Dow futures drop 130 points.
4. The German economy avoids recession for the time being.
5. Chevron’s first-quarter profit exceeded expectations amidst strong refining results.
6. High inflation and slow growth put the ECB in a difficult situation.
7. Asian equities increase in response to Wall Street advances and a dovish BOJ.
8. Gold prices decline as Fed worries are fueled by high inflation and poor labour market indicators.
9. Official statement from the EU calling for inclusion of its debt in government bond indices
10. Lufthansa said it hopes to complete the ITA contract soon.
11. Thai March manufacturing production declines 4.56% year over year, worse than anticipated.
12. Starbucks operator Alsea reports increased earnings from increased sales.
13. U.S. equities increased as Meta’s excellent profits lifted the technology sector.
14. First-quarter U.S. GDP declines to 1.1%
15. Argentina anticipates a significant rate increase to 91% to stop the peso’s collapse and inflation.
16. Linde anticipates over $50 billion in investments in sustainable energy.
17. Valero begins US refiners’ reports with a profit beat in the first quarter on strong margins.
18. HubSpot PT increased as BofA anticipated strong billings growth.
19. At a civil trial, Trump’s attorneys plan to refute a writer’s allegation of rape.
20. After a significant sell-off, First Republic shares briefly recover.
21. As Humira meets new competition, AbbVie reports lacklustre sales of newer medications, and its shares decline.
22. Aspen Technology plummets on strong results and poor forecast
23. As people continue to spend money, Mastercard ignores concerns about the economy.

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U.S. market today

Market Technical -by Gurmeet Sohi

Market rise more than 500 points yesterday

Big green candle after taking support on 50 EMA

Trend is still up in short term

Resistance is near 34320 

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MARKET MOVERS

STOCKS IN NEWS 

Caterpillar (CAT) Q1 adjusted EPS $4.91 vs. est. $3.82; Q1 revenues up 17% year over year to $15.86B vs. est. Revenue for the Machinery, Energy, and Transportation division was $15.32 billion, up 17% year over year.
eBay Inc. (EBAY) Q1 adj EPS $1.11 vs. est. $1.07; Q1 revenues $2.5B vs. est. $2.48B; Q1 GMV $18.4B, down 5% on an as-reported basis; adjusted EPS for Q2 is 96c-$1.01 vs. estimate. $0.99; anticipates Q2 sales $2.47B-$2.54B, above consensus $2.43B.
Merck & CO (MRK) Q1 adj EPS $1.40 above estimate $1.32; Q1 revenues surpass expectations by $14.49B. $13.79B; claimed KEYTRUDA sales increased 20% to $5.8B; reduces FY23 revenue outlook from $57.2B-$58.7B (estimated $58.28B) to $57.7B-$58.9B.
Pilgrim’s Pride Corporation:– PPC reported a 2% y/y decline in revenue and a quarterly profit down to $5M from $280M y/y due to increasing expenses for gasoline, labour, and bird feed;
Unilever plc:- UL reported underlying Q1 sales of 14.8 billion euros ($16.4 billion), up 10.5%, above analysts’ average projection of a 7.2% growth; prices rose by 10.7%, while volumes fell by 0.2%;
Tyson Foods, Inc:- In an effort to save expenses, TSN said it was laying off 10% of its corporate workforce and 15% of its senior leadership;Domino’s Pizza Inc:- DPZ Q1 comp sales increased by 3.6% vs. expected increases of 1.95 and $1.02 billion in total revenues, respectively; Expected gain.
Lear Corp:- Sales increased 12% y/y to $5.85B vs. expectations, while LEA’s Q1 adj EPS topped expectations by 22c. $5.59B with a negative FCF of -$147.4M as opposed to the
O’Reilly Automotive Inc:-In the auto retail sector, ORLY announced 1Q23 comps of 10.8%, above expectations of +6.8%. EPS of $8.28 surpassed expectations of $7.98, driven by stronger sales (+$0.24), a better gross margin (+$0.12), lower SG&A (+$0.03), and higher other income (+$0.03).
Harley-Davidson Inc:- In the leisure/bikes sector, HOG reports Q1 revenue of $1.79 billion, above the $1.36 billion estimate; quarterly net profit increases to $304 million, or $2.04, from $222.5 million, or $1.45, a year earlier; motorcycle and associated goods sales were up 21% at $1.56 billion; FY23 projection is reiterated.
Mattel Inc:- MAT Q1 adjusted EPS loss (-$0.24) vs. estimated loss (-$0.19); Q1 revenues $814.6M vs. estimated $740.73M; confirms 2023 adjusted EPS $1.10-$1.20 vs. estimated $1.21; Q1 gross margins 40%;
Hasbro, Inc:– HAS exceeds Q1 sales forecasts on to strong demand for its digital games. sales decreased by 14% year over year to $1.0B, but it was above the forecasted $885.3M, while EPS came in at $0.01, barely below the forecast (the company’s main business unit had a 23% decline in revenue).
Crocs, Inc:- CROX’s current-quarter earnings and sales exceeded expectations, while the company’s Q2 projection and mid-year revenues came in considerably below expectations;
Helen of Troy Limited:- HELE’s Q4 results were better than expected, and its FY24 estimate of $8.50 to $9 is higher than the $8.43 consensus;
Overstock.com Inc:- OSTK reports a less severe quarterly loss than anticipated;
Tractor Supply Co:- TSCO Q1 revenue comes in at $3.3 billion, barely shy of the $3.32 billion expectation, due to less favourable spring weather patterns and reduced demand for its seasonal merchandise.
Brunswick Corporation:– BC reported stronger Q1 EPS and revenue but a weaker Q2 profit projection;
CoMarineMax Inc:- HZO reported a significant headline miss and lowered its guidance as inventories increased. The company also lowered its FY EPS outlook, lowering it to $5.25 at the midpoint from the Street’s estimate of $7.25. Despite these negative developments, shares of HZO recovered.
Pioneer Natural Resources:- PXD stated Rich Dealy would succeed Scott Sheffield as CEO of YE23, increased the basic dividend by 14% to $5 per share annually, and repurchased $500 million worth of stock;
Antero Resources Corp:- AR good quarter in the field and slightly higher-than-expected volumes helped AR mitigate its 7% EBITDA loss compared to forecasts.
Nov Inc:- NOV EBITDA decreased by 4% in comparison to the Street owing to weaker-than-anticipated C&P and Wellbore results; PTEN EBITDA increased by 11% due to improved drilling cash margins and stable pumping performance;
Oceaneering International Inc:- OII 1Q EBITDA of $55MM vs. $50MM on the Street as a consequence of excellent Manufactured Products results that exceeded forecast;
HP Inc:– HP shares decline despite the company’s 2Q beat, but its fiscal 3Q EBITDA is expected to be 15% to 20% lower than expected. Additionally, CAPEX is being reduced this year from $425MM to $475MM to $400M-450M.
CMS Energy Corporation:- While CMS Q1 revenue declined -3.8% year over year to $2.28B, missing $2.33B, Q1 EPS of $0.70 was beaten.
Sunnova Energy International Inc:- NOVA exceeded expectations with its 1Q customer additions and PF EBITDA plus P&I. Midpoint FY23 customer acquisition guidance was raised by 10,000, while full-year EBITDA guidance was maintained;
Entergy Corp:- Weather and timing of O&M were cited as a 1Q shortfall by ETR;

ECONOMIC CALANDER  

Friday, April 28, 2023

•  TIME                                EVENT

  08:30                      Core PCE Price Index (MoM) (Mar)

  08:30                     PCE Price index (YoY) (Mar)

  08:30                     PCE price index (MoM) (Mar)

  09:45                    Chicago PMI (Apr)

  10:00                    Michigan Consumer Expectations (Apr)

  12:55                    Dallas Fed PCE (Mar)

  13:00                    U.S. Baker Hughes Oil Rig Count

  16:30                    CFTC Crude Oil speculative net positions

  16:30                    CFTC Nasdaq 100 speculative net positions

  16:30                    CFTC S&P 500 speculative net positions

   

  Major Events for This week

• Earnings of European banks

The following week will see the release of earnings reports from many renowned European banks, including UBS (SIX:UBSG), Deutsche Bank (ETR:DBKGn), Santander (BME:SAN), and Barclays (LON:BARC).

• GDP for Europe

On Friday, the Eurozone will reveal preliminary figures on first-quarter GDP, and the same day, the region’s three major economies—Germany, France, and Spain—will issue their April inflation numbers.

• The BOJ will be headed by a new governor.

Despite not anticipating any changes to the ultra-dovish monetary policy of the central bank, new Bank of Japan Governor Kazuo Ueda will preside over his maiden policy meeting on Friday.

• Major economic events

FRIDAY 

PERSONAL INCOME & SPENDING (MAR),

EMPLOYMENT COST INDEX (Q1),

CHICAGO PMI (APR)

EURO AREA:-  GDP GROWTH FLASH (Q1CY23)

EARNING BEFORE THE  OPENING :

xxon Mobil (XOM) Chevron (CVX) Cameco, colgate pamolive, Newyork community bancorp inc, Charter communication, W.P. CAREY, CHART, GENTEX CORPORATION, SAIA. Daimler (MBGAF) Aon (AON) Colgate-Palmolive (CL) Charter Communications (CHTR) Neste (NTOIY) Fomento Economico Mexicano (FMX) Natwest Group (NWG) Hexagon ADR (HXGBY) Imperial Oil (IMO) LyondellBasell Industries (LYB) W P Carey Inc (WPC) Norsk Hydro ASA ADR (NHYDY) OMV AG PK (OMVKY) Erste Group Bank AG PK (EBKDY) TDK ADR (TTDKY) Avantor (AVTR) Cameco (CCJ) Newell Brands (NWL) Portland General Electric (POR) Systems ADR (TMRAY)

EARNING AFTER THE CLOSE:   

Advantage Oil&Gas (AAVVF)

Economic data

 The U.S. Q1 GDP QoQ rose:- Real consumer spending increased by 3.7% in Q1 compared to 1.0% in Q1 last year, while core PCE prices increased by 4.9% in Q1 compared to +4.7% expected. The U.S. Q1 GDP QoQ rose by 1.1% versus +2.0% expected and slower than the 2.6% growth in 4Q. However, Atlanta GDPNow recently revised their estimate down to 1.1%, so this is not a complete shock to the markets.

Weekly Jobless Claims decreased  to 230K from 246K the previous week and below estimates of 248K; the 4-week moving average decreased to 236K from 240K; Continued Claims down to 1.858M from 1.861M the prior week and below estimates; and the U.S. Insured Unemployment Rate remained steady at 1.3%.

March Pending Home Sales Index (-5.2%) vs. Expected +0.5%; March Pending Home Sales -23.2% Year-over-Year.

Other Key Events:

•     American Academy of Neurology, 4/24-4/27, in Boston, MA
•     Ladenburg Technology Expo 2023, 4/27 in New York
•     RSA Conference 2023, 4/24-4/27, in San Francisco, CA

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Indian Market 

FII AND DII 

FII BOUGHT         97.07 CR

DII BOUGHT      1,652.95 CR

On April 27, domestic institutional investors (DII) and foreign institutional investors (FII) respectively acquired shares worth Rs 97.07 crore and Rs 1,652.95 crore, according to preliminary data from the National Stock Exchange.

Indian markets NEWS

1. 1. Market optimism on Friday as Sensex rises 463 points and Nifty reclaims 18,000
   2. 140 tonnes of gold would be imported by India from the UAE at a reduced cost.
   3. Glenmark Life reaches a 52-week high as positive mood is boosted by solid Q4 results
   4. Zudio’s Q4 margins cause a 3% decline in Trent.
   5. HUL announces a stable end to FY23, while brokerages cut EPS forecasts due to the Q4 shortfall.
   6. IRB Infra gains 4% after receiving a construction project from the city of Hyderabad
   7. Aarti Surfactants rises 17% on a double-digit increase in Q4 earnings.
   8. Despite an 18% increase in Q4 net profit, Shriram Finance shares are down 6.57 percent.
   9. PI Industries rises 9% after purchasing a stake in US pharmaceutical company’s Indian subsidiary
   10. Brokers expect Kotak Mahindra Bank‘s net profit to increase 6.7% in the fourth quarter.
   11.  

Indian market Today  

INDIAN MARKET MOVERS  

STOCK IN NEWS

Wipro said on April 27 that its consolidated net profit for the quarter ended March 2023 (Q4FY23) has decreased by 0.4 percent YoY to Rs 3075 crore from Rs 3,087 crore the previous year. In the previous quarter, the business had posted a profit of Rs 3,053 crore.

AXIS BANK:- The cost of purchasing Citi Bank’s India consumer business during the quarter resulted in a standalone loss of Rs 5,728.42 crore for the March quarter of FY23, according to a report released by private sector lender Axis Bank on April 27.Without the effects of unusual items, the profit for the quarter would have been Rs 6,625.29 crore, a whopping 61 percent increase over the reported profit of Rs 4,117.77 crore in the comparable period previous year.

Tech Mahindra: Due to subpar operating results and slower topline growth, the IT services firm reported a 13.8% sequential fall in consolidated profit at Rs. 1,117.7 crore. On every count, the numbers fell short of analysts’ predictions. During the quarter, revenue decreased by 0.1% QoQ to Rs 13,718.2 crore. Constant currency sales growth in Q4 FY23 was 0.3%, whilst contract wins totaled $582 million.

LTIMindtree: The IT business said that its sales climbed by 0.8% to Rs 8,691 crore from the previous quarter and that its consolidated profit improved by 11.3% QoQ to Rs 1,113.7 crore. Operating figures remained solid, which improved the bottom line. Revenue in constant currency climbed by 0.7%, while revenue in dollar terms increased by 1% QoQ to $1,057.5 million. The board advocated for the ultimate dividend.

HFCL:- Reliance Retail has placed orders worth Rs 65.72 crore with HFCL and its material subsidiary HTL for the delivery of optical fibre cables to one of the nation’s top private telecom providers.

CC: The cement company’s Q4FY23 consolidated earnings fell by 40.5% year over year to Rs 235.7 crore, in part due to subpar operating results and an unusual loss. For the quarter, revenue increased by 8.2% YoY to Rs 4,790.9 crore. Operating-wise, EBITDA decreased by 26.2% year over year to Rs 468.52 crore, while margin decreased by 456 bps year over year to 9.78% during the quarter. For FY23, the board has proposed a dividend per share of Rs 9.25.

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