Credit Suisse, Oil, Bitcoin down, Gold rise – What is driving the market today (April 24th)

Today’s main global market news –

1. Sales of Valentino increased 10% in 2022, helped by directly-owned stores.
2. According to Standard Chartered, Bitcoin might reach $100,000 by the end of 2024.
3. China directs banks to lower deposit rates even further, according to sources.
4. YouTube lawsuit before the US Supreme Court may influence ChatGPT and AI safeguards
5. For the first time in Europe, LVMH’s market value surpasses $500 billion.
6. Strong Q1 results are expected from U.S. oil refiners, but the demand forecast is dismal.
7. Elon Musk requests business owners to “please refine lithium” when EVs encounter difficulties.
8. A return to epidemic levels of hunger might indicate economic instability.
9. After a protracted battle, Bed Bath & Beyond files for bankruptcy protection and starts a liquidation sale.
10. White House: All U.S. embassy personnel have left war-torn Sudan.
11. Foreign nations hurry to flee Sudan, and the US and UK withdraw their diplomats
12. Following the announcement of Merck’s purchase, Prometheus shares are up.
13. Following the news of the GSK acquisition, BELLUS shares increase by almost 100%.
14. Norman Keevil, Chairman of Teck Resources, issues a statement opposing the Glencore purchase.
15. Brookfield submits a $2.7 billion purchase bid for Network International.
16. NextPlat Corp and Alibaba Group Sign a Merchant Sourcing Agreement
17. Chinese Guangdong province’s first-quarter GDP increased by 4.0% year over year.
18. This week, the US House will vote on a Republican debt ceiling measure.

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U.S. market today

Market Technical -by Gurmeet Sohi

Market closed in green on Friday

Market staying in range bound

Trend is still up in short term

Resistance is near 34320 

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MARKET MOVERS

STOCKS IN NEWS 

• TESLA:- Following lower profitability and margins following earlier cost cuts, TSLA raised pricing on its variations of the more expensive Model S and Model X vehicles by $2,500 to $87,490 and $97,490, respectively.

  TOYOTA:-  Toyota’s CEO stated that the company must speed up its efforts to satisfy consumer expectations in China for EVs given that it only sold 24,466 battery EVs globally last year, including those from its luxury Lexus brand, representing for 0.25 percent of its 9.5 million global vehicle sales.

  Associated Banc Corp:- With strong credit, well-managed expenditures, and greater EOP deposits, ASB posted 1Q23 EPS of $0.66 vs. expectations of $0.64. However, NIB deposits were down, and NIM was under pressure. 

  Knight-Swift Transportation Holdings Inc:- KNX missed estimates for Q1 adj EPS ($0.73 vs. $0.81), Q1 revenues ($1.64 vs. $1.61), and 2023 adj EPS ($3.35-$3.55 vs. $3.85). Two analysts (DB, MSCO) stated that multiple expansion more than compensated the negative revisions.

  HCA Healthcare Inc:- HCA raised its yearly sales projection after reporting Q4 top and bottom line results that above consensus forecasts and FY EPS of $17.25 to $18.55, up from $16.40 to $17.60 in the prior year.    

  Cathay General Bancorp:-  CATY reported operational EPS of $1.30, exceeding the average estimate of $1.25, with improved NIE (+$0.03) largely offsetting poorer NII (EPS: -$0.05) and a higher LLP (-$0.02).

  Bank Ozk OZK:- generated record net income, record quarterly EPS, and record PPNR while posting record NII and EPS as NIM Expanded 8 Bps Q/Q.

  W R Berkley Corp:– WRB is one of the worst-performing stocks in the S&P, dropping to 52-week lows after Q1 EPS of $0.96 fell short of expectations of $0.31; Q1 revenue of $2.9 billion fell short of expectations of $2.86 billion; Q1 ROSE 17.4%; and Q1 Operating Income of $275.9 million.

  CSX Corporation:- CSX announced a 6% adj EPS beat and revenue that was 3.8% higher than expected. Bernstein points out that the business has lowered its volume projection due to the year-to-date pricing headwinds and the sluggish start of international intermodal.

  Baltic Dry Index :-  While Capesize increased by 10.34% to $16,270, Panamax up by 0.95 percent to $13,889, and Supramax increased by 1.9% to $13,211, the Baltic Dry Index increased by 5.03% to 1,504 in London, climbing for a third day.

  PPG Industries, Inc:-  PPG shares jumped early on mixed results as 1Q adj EPS of $1.82 topped estimates of $1.54 while revenues were in line. PPG also stated it anticipates 2Q aggregate sales volume to be flat and adj EPS of $2.05-2.15; it also expects sales volumes to be very similar to pre-pandemic levels.

  Procter & Gamble Co:- PG maintains FY EPS growth 0-4% but expects EPS towards the lower-end as previously stated; guides FY revenue growth 1% vs prior (1%)-0% and consensus +0.8%; guides FY organic growth 6% vs prior +4%-5%. PG reports Q3 EPS $1.37 on sales $20.07B, topping the consensus of $1.32/$19.28B with organic growth +7% vs est. +4.1% on strong Beauty +7%. 

  Autoliv Inc:- ALV shares decline on miss of Q1 EPS $0.90 vs. est. $0.92; Q1 revenues $2.49B vs. est. $2.31B; Net income decreased to $74M from $83M a year ago; Operating cash flow changed to negative $46M from $70M; and free cash flow was at negative $189M

         TIME                    EVENT

• 08:30   Chicago Fed National Activity (Mar)

• 10:30   Dallas Fed Mfg Business Index (Apr)

• 11:30   3 & 6 -Month Bill Auction

   

Major Events for This week

• Megacap earnings

All three companies are expected to report, with Microsoft (NASDAQ:MSFT), Alphabet, the parent company of Google (NASDAQ:GOOGL), and Amazon (NASDAQ:AMZN) doing so on separate days (Tuesday and Thursday, respectively). Wednesday’s sandwich features Meta Platforms, parent company of Facebook (NASDAQ:META).

• 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

TUESDAY

NEW HOME SALES, BUILDING PERMITS (MAR), S&P CASE-THIRILLER HOME PRICE (FEB)

WEDNESDAY 

API & EIA CRUDE OIL STOCK CHANGE, MBA MORTGAGE APPLICATIONS (FOR) WEEK ENDED APR 21: DURABLE GOODS ORDERS (MAR)

THURSDAY 

GDP GROWTH, PCE PRICES, REAL CONSUMER SPENDING (ADVANCES ESTIMATES Q1CY23); INITIAL JOBLESS CLAIMS (FOR WEEK  ENDED APR 22); PENDING HOME SALES (MAR)

EURO AREA :- ECONOMIC, INDUSTRIAL,  SERVICES SENTIMENT, CONSUMER CONFIDENCE (APR)

FRIDAY 

PERSONAL INCOME & SPENDING (MAR), EMPLOYMENT COST INDEX (Q1), CHICAGO PMI (APR)

EURO AREA:-  GDP GROWTH FLASH (Q1CY23)

EARNING BEFORE THE  OPENING :

Coca-Cola (KO), Nidec (NJDCY) Koninklijke Philips ADR (PHG), Vivendi SA PK (VIVHY) Credit Suisse ADR (CS), Dynex Capital (DX), Bank of Marin (BMRC), Sify (SIFY), Washington Trust (WASH), Garrett Motion (GTX)

EARNING AFTER THE CLOSE:   

Canadian National Railway (CNI), Cadence Design (CDNS), Alexandria RE (ARE) Brown&Brown (BRO) Packaging America (PKG),Crown (CCK), Grupo Aeroportuario Sureste ADR (ASR), Cleveland-Cliffs (CLF), Whirlpool (WHR), Range Resources (RRC), Medpace Holdings (MEDP), AGNC Invest (AGNC), Hexcel (HXL), Tenable (TENB), Simpson Manufacturing (SSD), Simpson Manufacturing (SSD) ChampionX Corp (CHX), PotlatchDeltic (PCH), Cadence Bancorp (CADE), First Republic Bank (FRC), WSFS (WSFS), WesBanco (WSBC), Independent Bank Group (IBTX), Enterprise Financial (EFSC), Heartland Financial (HTLF),  NBT Bancorp (NBTB), Bank of N.T. Butterfield Son (NTB), Helix (HLX), Hope Bancorp (HOPE), Nabors Industries (NBR), HealthStream (HSTM), KKR Real Estate (KREF) , TrustCo Bank NY (TRST), TrueBlue (TBI), Heidrick&Struggles (HSII), Northeast Bancorp (NBN), RBB Bancorp (RBB), drick&Struggles (HSII)

Economic data

• S&P Global April flash services PMI at 53.7 vs. est. 52.0 (vs. 52.6 in March) and S&P Global April flash composite PMI reported better at 53.5 (vs. 52.3 in March) and vs. 49.0 forecasts.

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Indian Market 

FII AND DII 

FII SOLD         1169.32 CR

DII BOUGHT    832.72 CR

Foreign Institutional Investors (FII) sold Rs 211.676 crore worth of shares and Domestic Institutional Investors (DII) bought Rs 163.266 crore worth of shares on 21 April, according to preliminary data from the National Stock Exchange.

Indian market news 

1. Reliance recalls intent to integrate new energy activities with company
2. Shares of Ami Organics rose 4% on news that they will be buying 55% of Baba Fine Chemicals.
3. Wipro’s stock rises 2% as a result of intentions to consider a share repurchase proposal.
4. Due to the weak Q4 results, Yes Bank shares are down 4%.
5. Maharashtra Seamless increases 4% after winning a Rs 262 crore order
6. Almost 3% of Hindustan Zinc’s shares are down as the company’s March quarter net earnings fell.
7. Shares of IndusInd Bank increase as brokerages anticipate a 43.3% increase in Q4 net profit.
8. Sun Pharma loses 3% due to the Mohali unit’s production stoppage for remedial measures.
9. At Rs 2040.5 crore, IndusInd Bank reports a 49.8% increase in Q4 net profit.
10. In the March quarter, Bank of Maharashtra’s net profit increased 136%.
11. Due to the merger of HDFC and HDFC Bank, SEBI approves a change in the company’s control for HDFC AMC.
12.  

Indian market Today  

INDIAN MARKET MOVERS  

STOCK IN NEWS

Reliance industries:-  Reliance Industries reported net profit attributable to owners for 2022-23 at Rs. 19,299 crore in the third quarter of 2018, up 19% year-on-year. The result exceeded expectations, driven by strong performance across all businesses.

Yes bank:- The bank posted a net profit of 2.02 billion rupees, down nearly 45% from 3.67 billion rupees a year earlier, thanks to higher provisions for bad debts. The lender reported net interest income (NII) of Rs 2,105 crore for the quarter ended March 2023, up 15.7% year-on-year.

ICICI BANK :- According to the average of three brokerages’ forecasts collected by Moneycontrol, the bank was anticipated to make a Rs 8,540 crore profit for the quarter that ended in March 2023. Net interest income (NII) for ICICI Bank increased 40.2 percent to Rs 17,667 crore from Rs 12,605 crore in the same quarter the previous year.

NESTLE INDIA: Sales would increase by 12.8 percent annually and 5.5 percent sequentially to Rs 4,491 crore. In Q1, net profit is anticipated to increase by 13.4% from a year ago to Rs 674 crore.

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