GDP, jobless claims, meta, visa – market today (April 27th)

Today’s main global market news –

1. U.S. GDP 1.1% economic growth slowed by more than expected 2.0 in the first quarter, it was 2.6% last year.
2. Initial jobless claims dipped to 230,000, a decrease of 16,000 from the previous week’s revised level of 246,000.
3. European markets are neutral; Barclays and Deutsche Bank reports are in the spotlight.
4. Dollar declines before the announcement of the US GDP
5. After a successful first quarter, Deutsche Bank will eliminate 800 employees.
6. Avolon and Boeing reach a $4 billion agreement for 40 737 MAX aircraft.
7. Food costs are declining on global markets, but not on home tables.
8. Apple and Oppo Compete for the Top Position in the Chinese Phone Market
9. While the PC market stagnates, Intel is anticipated to report another weak quarter.
10. Warner and India’s Reliance JV have a content streaming agreement for JioCinema.
11. AstraZeneca outperforms forecasts thanks to robust emerging market sales while COVID declines.
12. House Republicans raised the debt ceiling in an effort to persuade Biden to hold discussions.
13. Barclays surpasses earnings projections due to the credit card surge.
14. Tesla’s slide lowers its valuation to $500 billion.
15. Investors celebrate Microsoft and Alphabet earnings as the Nasdaq rises.
16. Profit at Universal Music declines as a result of compensation costs
17. Owners of the Millennium Trust are reportedly exploring a $8 billion sale.
18. Disney sues Governor DeSantis for ‘weaponizing government authority’
19. Shares of First Republic Bank plunged to fresh lows on news of the government’s reluctance to step in
20. As medical expenses decline for government programs, Humana raises its profit forecast.
21. US board guidelines Tesla silenced workers in violation of labor regulations.
22. A US senator implores CEOs of AI companies to confront concerns
23. Oil falls as concerns about the recession outweigh a significant US inventory reduction.
24. After taking action against Fortum and Uniper, the Kremlin issues a warning about more asset seizures.
25. The Canadian Stock:- Teck Resources climbs as mixed earnings come in, the TSX is down.

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U.S. market today

Market Technical -by Gurmeet Sohi

Market closed in deep red again yesterday

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 

Alphabet GOOGLE  While advertising revenue disappoints at $54.54B vs. $54.6B y/y, cloud revenue grew 28% y/y, in line with street estimates, and GOOGL Q1 EPS and revs exceeded estimates ($1.17/$69.79B vs. $1.07/$68.9B). Additionally, GOOGL announced a $70B stock buyback. 

MICROSOFT MSFT Q3 profit and sales surpassed projections with 4Q guidance ahead of consensus; Q3 More Personal Computing provides most of the upside while 4Q revenue guidance implies 6-8% Y/Y vs. 5% consensus; 

Boeing Co BA reports a larger-than-expected Q1 EPS loss (-$1.27) compared to the est. loss (-$0.98) In defence, Q1 FCF was negative -$786M, vs. est. -$1.9B and claimed to ramp up 737 production

Juniper Networks, Inc. JNPR shares slide Q1 results beat but warned that ongoing parts shortages and supply-chain “challenges” continued to hit its business; guided Q2 EPS $0.49-$0.59 vs. est. $0.53

General Dynamics Corporation GD Q1 EPS $2.64 above the $2.59 forecast as revenues increase 5.2% year over year to $9.88B vs. the $9.34B projection as backlog increases 3% y/y; FCF declined -29% y/y to $1.3B but was above the $780.1M estimate; 

Humana Inc HUM Q1 EPS above estimates due to a much improved benefit ratio of 85.5% versus 86.7% est., which increased FY23 adj EPS to at least $28.25 from at least $28.00 earlier. $9.38 EPS in Q1 compared to an estimate of $9.27. Q1

CoStar Group Inc CSGP reported non-GAAP EPS of $0.29 in the first quarter vs the consensus estimate of $0.25, adj. EBITDA of $122.9 million versus the forecast of $115.1 million, total revenue of $584.4 million, up 13% year over year

Automatic Data Processing Inc ADP Q1 EPS of $2.52 beats by 7c on consistent $4.9B in revenue and anticipates FY Adjusted EPS of +16%. +17%, with FY revenue growth of +8% to +9%.

Boston Scientific Corporation  BSX Q1 EPS and sales above forecasts, and organic growth was 14% vs. 7% estimate, demonstrating strength across all categories; Q2 and FY23 results are expected to be in line with analyst projections;

Hess Corp. HES announced Q1 EPS of $1.30, above expectations of $1.06, and increased production guidance to 365K-375K.

Group 1 Automotive, Inc GPI Q1 top and bottom line beat as EPS $10.93/$4.13B vs es.t $9.88/$3.92B on in-line margins 17.6% as NV units sold 39,649, +7.9% y/y and NV GP per retail unit $4,710, (14.0%) y/y – same store $4,659, (15.2%) y/y;

Penske Automotive Group, Inc :- PAG Q1 EPS $4.31 vs. estim. $4.09 and revenues $7.34B vs. expectations $7.02B;

Hilton Hotels Corporation Common Stock HLT’s Q1 performance exceeded expectations, increasing its full-year net profit outlook from $5.42 to $5.68 to $5.68 to $5.88

Chipotle Mexican Grill (CMG):- operating margin was 15.5%, up from 9.4%; restaurant level operating margin was 25.6%, up 490 basis points; hipotle Mexican Grill (CMG) Q1 EPS $10.50 vs. est. $8.92

Shares of Enphase (ENPH) fell 15% on outlook; 1Q adj EPS was $1.37 vs. expectations. $1.21 on $726M in revenues vs expectations. 

Matador Resources (MTDR) Q1 EPS $1.50 vs. est. $1.29; Q1 revenues $560.3M vs. est. $530.5M

NexTier Oilfield (NEX) Q1 adj EPS $0.66 vs. est. $0.61; Q1 revenues $935.7M vs. est. $926.69M

Weatherford (WFRD) reported first-quarter earnings per share of $0.97, above estimates of $0.85 and sales of $1.19 billion.

Visa Inc. (V) 2Q adj EPS $2.09 vs. $1.99 on revs $8.0B vs. $7.798B; total processed transactions $50.1B vs. $49.78B

PacWest Bancorp (PACW) reported Q1 earnings per share of $0.66 versus the expected $0.61

Chubb Inc. (CB) reported core EPS of $4.41 in the first quarter versus an estimate of $4.45      

ECONOMIC CALANDER  

Tuesday, April 25, 2023

•  TIME                           EVENT

  07:00                   MBA Purchase Index

  07:00                   Mortgage Market Index

  08:30                  Core Durable Goods Orders (MoM) (Mar)

  08:30                  Retail Inventories Ex Auto (Mar) 

  10:30                  Crude Oil Inventories

  13:00                  5-Year Note Auction

   

  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

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 :

AMARICAN AIRLINES, CATERPILLAR, LILLY, VALERO, SOUTHWEST, MASTERCARD, CROCS, ALTRIA, ABBVIE, MERCK. AstraZeneca ADR (AZN), Linde PLC (LIN), TotalEnergies SE ADR (TTE), Comcast (CMCSA) Bristol-Myers Squibb (BMY) Sanofi ADR (SNY) Unilever ADR (UL) Honeywell (HON),  S&P Global (SPGI) Northrop Grumman (NOC) Pernod Ricard (PRNDY) Atlas Copco AB (ATLKY) Atlas Copco ADR (ATLCY) Hershey Co (HSY) Keurig Dr Pepper (KDP) BASF ADR (BASFY) DNB Bank ASA (DNBBY) Tractor Supply (TSCO) 

EARNING AFTER THE CLOSE:   

AMAZON, INTEL, SNAP INC. CLOUDFARE, FIRST SOLAR, UNITED STATES STEEL, PINTEREST, PRINCIPAL, GILEAD, AMGEN. T-Mobile US (TMUS) Mondelez (MDLZ) Activision Blizzard (ATVI) Seagen (SGEN) L3Harris Technologies (LHX) Resmed DRC (RSMDF) ResMed (RMD), VeriSign (VRSN) Weyerhaeuser (WY)  Hartford (HIG) Fair Isaac (FICO) Principal Financial (PFG) Cincinnati Financial (CINF) 

Economic data

March’s orders for durable goods increased by +3.2% over expectations of +0.7% and by +0.3% over February’s orders (-1.2%). March’s orders for durables other than transportation increased by +3.5% over February’s orders (-0.8%). Orders for machinery increased by 0.1%, those for electrical equipment by 0.8%, those for defence aircraft and components by 10.4%, and those for shipping of durable goods by 1.1% as opposed to 0.8% in February.

Lots of key economic data tomorrow :-Tomorrow at 8:30 AM ET, a plethora of important economic data will be released, including the 1Q real GDP estimate of +2%, personal consumption est. +4.1% (up from +1%), and inflation data points including the GDP Price Deflator est. +3.7% (up from 3.95) and Core PCE prices to climb +4.7% (up from +4.4%). Weekly Jobless Claims are expected to total 248K.

Other Key Events:

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

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Indian Market 

FII AND DII 

FII SOLD             227.88 CR

DII BOUGHT       1257.48 CR

According to preliminary statistics from the National Stock Exchange, on April 26, foreign institutional investors (FII) purchased shares worth Rs 1,257.48 crore while domestic institutional investors (DII) sold shares worth Rs 227.88 crore.

Indian markets NEWS

1. 1. Raymond shares jump 9% amid talks with Godrej on business deal
   2. Bajaj Finserv Q4 result: Net profit jumps 31% to Rs 1,769 crore
   3. L&T Tech shares climb 6% post Q4 results
   4. Voltas misses Q4 estimates with net profit down 21% on shrinking market share
   5. Coforge Q4 result: Net profit sinks 48% on one-off expense, revenue jumps 24% to cross $1 billion
   6. Maruti Suzuki reports a 43% increase in Q4 earnings at Rs 2,623 cr and a 10 lakh capacity increase.
   7. Wipro’s top line might increase by 13%, while the bottom line is only anticipated to slightly improve in Q4.
   8. KPIT Technologies increases by 6% on strong Q4 results and 11% sales growth.
   9. Net profit for HDFC Life Insurance’s fourth quarter fell by 28% to Rs. 362 crore.
   10. L&T Tech Services’ fourth-quarter profit increased by 2% to Rs 310 crore, and a dividend of Rs 30 per share was declared.
   11. HUL is anticipated to announce a 13% increase in Q4 net profit with 5% volume growth.
   12. Hinduja is the only bidder for Reliance Capital, with an offer of $9,650 million.
   13.  

Indian market Today  

INDIAN MARKET MOVERS  

STOCK IN NEWS

Bajaj finance: Despite a 22.4 percent increase in loan losses and provisions during the same time, the non-banking financing business achieved a 30 percent year-over-year gain in profit for the quarter ended March FY23 at Rs 3,158 crore. 

HDFC Life Insurance company: For the March FY23 quarter, the life insurance firm recorded a 0.3 percent year-over-year increase in standalone profit at Rs 358.66 crore. 

L&T Technology Services: For the March FY23 quarter, the L&T Group firm reported a 2 percent sequential increase in earnings at Rs 309.6 crore. Revenue for Q4FY23 QoQ climbed by 2.2 percent in constant currency terms and 2.3 percent in dollar terms, reaching Rs 2,096.2 crore.

Voltas: Due to subpar operational results, the home appliance firm reported a 21.2 percent year-over-year fall in consolidated profit at Rs 143.92 crore for the quarter ended March FY23.

HCL Technologies: The Heubach Group, a major maker of pigments, has chosen HCL Tech to spearhead its digital transformation strategy. 

Rail Vikas Nigam: The finance minister has given his approval for the company to be upgraded to Navratna CPSE status. 

Supreme Petrochem: Strong operating results contributed to the polystyrene polymer producer’s whopping 78.4% quarter-on-quarter profit increase of Rs 159.8 crore for Q4FY23.

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