Gold surging, ADP data, Bitcoin – Key points for market today (April 5th)

Today’s main global market news –

1. US ADP Employment Change Actual 145k (Forecast 210k, Previous 242k)
2. Using 150 years of market history as a foundation, Bank of America presents its recession investment strategy.
3. MICROSTRATEGY BUYS 1,045 MORE #BITCOIN
4. Treasury rates increase as investors anticipate more labour relevant data
5. According to a poll, the Canadian dollar would depreciate by 0.5% to $1.35 in three months, down from the March forecast of $1.34.
6. Donald Trump will speak tonight at 8:15 p.m. about the controversy surrounding his indictment.
7. Although reaching a 10-month high, the Eurozone composite PMI misses forecasts.
8. Bob Lee, the founding CTO of Jack Dorsey’s Square and a senior executive of the cryptocurrency start-up MobileCoin, has passed away.
9. The merger of Credit Suisse will take three to four years, according to UBS Chairman Colm Kelleher.
10. Meta staff layoffs prompt Jefferies to raise the price estimate for the social media behemoth.
11. Twitter is once more charged with breaking the law during a layoff
12. Wall Street declines as worries of a recession are fueled by dismal economic data.
13. Agreement on $27 billion energy project between Iraq and Total Energies is confirmed.
14. Demand is at a one-year high for gold as poor US data support it.
15. BHP’s exploration accelerator will launch to look for lithium and uranium
16. Kiwi soars on RBNZ surprise; Dollar suffers on bad data
17. Japan’s service sector grew in March at its strongest rate in almost nine years, according to PMI

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U.S. market today

Market Technicals -by GURMEET SINGH SOHI

Red day after many days move, closed above all 20 EMA 50 EMA and 200 EMA

Short term trend change to uptrend

Long term trend is switched to uptrend  

Midterm trend remains sideways

Swing lows are around 32611 and this may act as a support now.

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STOCKS IN NEWS 

Ford (F) reported Q1 total vehicle sales of 456,972, an increase of 10.7%, and Q1 EV sales of 10,866 units, an increase of 41%. Production of the F-150 Lightning and Mustang Mach-E is continuing to scale towards their respective targeted annual run rates of 150,000 units and 210,000 units by year’s end.

The California Energy Commission granted Evgo Inc. EVGO $6.6 million to install more than 100 additional dc rapid charging stalls at 17 locations.

According to figures released by the China Passenger Car Association (CPCA), TESLA TSLA sold 88,869 units of electric cars (EV) built in China in March for both domestic sales and exports, an increase of 35.0% year over year.

Lindsay Corp LNN Q2 Earnings $1.63 vs. estim. $1.53; Q2 sales $166.2M vs. estimate. $188.27M

estimate, MSC Industrial Direct Co Inc MSM Q2 adjusted EPS was $1.45. $1.34; Q2 sales $961.6M vs. estimate. $934.07M; confirms outlook for FY23’s adjusted operating margin.

NIKE NKE continues to be the top brand for all adolescents in both clothes (33% share) and footwear (61% share), according to the Piper Teen Survey, which found that 57% of teens choose Amazon as their preferred e-commerce site. Other top brands for teens include $NKE, SHEIN, $LULU, and PacSun.

offering of $1.5 billion in Duke Energy Corp DUK 4.125% Senior Convertible Notes due in 2026

Virgin Orbit Holdings Inc.VORB dropped once the satellite launch business associated with British businessman Richard Branson declared bankruptcy. 

Vista Outdoor Inc VSTO reports a cost-cutting and earnings-improvement initiative worth over $50 million, which involves office closures, spending reductions, EBIT enhancements, and staff reductions across brands and corporate teams.

Stock Gains

• Cardlytics Inc CDLX +83%; as it increases its Q1 revenue outlook from $54 million to $63 million (estimated at $57.9 million), stating that the transition to a product-led operational structure is already showing promising results

•  Encompass Health Corp EHC +10%; following yesterday’s late positive CMS judgement.

•  Etsy Inc ETSY (+2%) was raised to overweight at Piper, which stated that the firm could have a reacceleration of active buyer growth over the course of the next few months, which should support further share price improvements.

• AeroVironment, Inc. gained 10% and Johnson & Johnson raised @3%

Stocks under pressure 

• Boeing Co, BA -1%; Northcoast lowered it to Sell with a $180 target price

•  C3.ai Inc AI -26% following circumspect remarks made by short seller Kerrisdale Capital, who claimed that they had written to C3.ai’s auditor Deloitte, the audit committee, and the SEC to disclose major accounting concerns.

•  Acuity Brands Inc AYI -11%:- As Q2 sales fell short of expectations, the company’s intelligent-spaces segment reported sales of $58.2M, up 16.4% year over year. Q2 adjusted EPS was $3.06 vs. est. $2.72. Q2 revenue was $943.6M vs. est. $958.47M.

• Industrial metals (NUE) were among the worst performances in the S&P, with Steel Dynamics Inc STLD down 9%. 

•  First Republic Bank FRC -5%; after JPM Dimon’s remarks, regional banks (ZION, CMA, KEY) are struggling.

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Economic Calendar for Today

EARNING CALENDAR

EARNING BEFORE THE  OPENING : ConAgra Foods (CAG), Sodexo PK (SDXAY), Simply Good Foods (SMPL), Tilray (TLRY), Schnitzer (SCHN), Check Cap Ltd (CHEK) 

EARNING AFTER THE CLOSE: Simulations Plus (SLP), Richardson Electronics (RELL), Electra Battery Materials (ELBM) Natuzzi (NTZ), SeaChange (SEAC),

Economic data

• JOLTS Job Openings for February were 9.931M, which was lower than expected (10.5M) and much lower than the previous month’s figure of 10.824M.          
• February’s factory orders decreased (-0.7%) compared to expectations for a decline (-0.5%), but they did better than January’s (-2.1%) decline. Feb.’s factory orders excluding transportation decreased (-0.3%) compared to January’s (+0.8%) increase and orders excluding defence decreased (-0.5%) compared to January’s (-2.3%). The U.S. February durables orders remained unchanged at -1.0%; the U.S. February inventories/shipments ratio increased to 1.49 months from 1.48 months.

Other Key Events:

• BMO Capital Healthcare Property Tour, 4/4-4/5, in Boston, MA
• Cantor Future of Oncology Virtual Symposium (virtual), 4/3-4/5
• TD Cowen Annual Fiber-to-the-Home Virtual Symposium, 4/4

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Indian Market Today 

FII AND DII 

On April 3, according to preliminary data from the National Stock Exchange, foreign institutional investors (FII) purchased shares worth Rs 321.93 crores while domestic institutional investors (DII) sold shares worth Rs 328.24 crores.

NEWS

1. The Consumer Price Index (CPI) is stubbornly remaining over the central bank’s 6% tolerance barrier for January (6.52%) and February 2023 (6.44%), therefore the RBI may decide to consider tomorrow’s MPC to slightly raise rates by another 25 basis points.
2. In February, the RBI contributed 3 tonnes of gold, bringing India’s total reserves to 790.2 tonnes: International Council for Gol
3. PNB Housing shares have been adjusted by 18% for the 29:54 rights offering
4. Carysil arm to purchase 70% of UK business The Tap Factory.
5. Mitsubishi Electric India and Mahindra Lifespace Development JV sign a land lease agreement.
6. On April 5, shares of Varun Beverages rose 4% intraday to reach a record high of Rs 1,474 after more than Rs 60 crore worth of shares were exchanged in a block deal.
7. March saw a slowdown in India’s services growth and lower inflation of input costs.
8. Today’s gold prices: Strong safe-haven demand pushes yellow metals on COMEX closer to record highs
9. F&O Manual: When the Nifty climbs for a second day, traders claim that the market is in recovery mode.
10. Ex-Amul CEO Sodhi is hired by Reliance Retail to expand its grocery division

BULK DEALS

Manaksia: At an average price of Rs. 112.41 per share, Dream Achiever Consulting Services purchased 5 lakh equity shares in the firm through open market transactions. The average price at which Bajaj Finance sold its 3.6 lakh shares was Rs 112.40.

Udayshivakumar Infra: At an average price of Rs 30 per share, Neomile Corporate Advisory purchased 4.87 lakh shares in the firm.

STOCKS IN NEWS

HDFC BANK: In the March quarter, advances increased 17 percent year over year while deposits increased by 21 percent. As of March 31, 2023, the bank’s deposits were Rs 18.83 lakh crore, while its advances came to about Rs 16 lakh crore.

IndusInd Bank: During the three months ending in March FY23, the private sector lender recorded net advances of Rs 2.89 lakh crore, up 21% YoY and 6% QoQ, while deposits increased by 12% YoY and 3% QoQ to Rs 3.36 lakh crore.

Bajaj finance:- With a 40% year-over-year increase, Bajaj Finance announced its highest-ever consolidated quarterly profit after tax of Rs 2,973 crore.

South Indian Bank: The bank stated that total deposits increased by 2.82 percent year over year to Rs 91,652 crore, while gross advances increased by 16.65 percent to Rs 72,107 crore.

M&M Financial Services: The business forecasts a total distribution of Rs 5,600 crore in March 2023, representing a gain of 42% YoY. The disbursements for Q4 FY2023 increased by 50% year over year to Rs 13,750 crore.

Federal Bank: The private sector lender reported gross deposits of Rs. 2.13 lakh crore for the quarter ending in March FY23, an increase of 17.4% from Q4 FY22.

Cyient.   With the announcement of significant leadership changes, including the hiring of Karthikeyan Natarajan as Executive Director and CEO and Krishna Bodanapu as Executive Vice-Chairman and MD, Cyient’s stock price increased by 5%.

Bharat Dynamics:- The firm reported provisional sales of Rs 2,458 crore for FY23, a reduction of 12.8 percent from Rs 2,817.2 crore in FY22.

 NBCC (India): The company has a work order of Rs 448.02 crore. 

L&T: On winning a “mega order” for the hydrocarbon industry, L&T shares increased by 2.5%.

Today’s India market at close

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