Recession Concern, Yields Dropping – Key points for market today (April 6th)

Today’s main global market news –

1. While demand remains weak, European natural gas prices decrease for a third session.
2. AMC’s request for a quicker stock conversion is denied by a U.S. court.
3. Gold Maintains Over $2,000 Despite Slowing US Growth
4. US Yields Continue Dropping on Economic Concerns: Markets Wrap
5. Before important US employment data, the FOREX-Dollar dips to a 2-month low.
6. Global markets: Concerns about a recession cause world equities to sputter and bond rates to drop.
7. Bond prices rise as India’s RBI unexpectedly holds interest rates.
8. American Dream Fails for UK Companies Listing on Wall Street
9. OpenAI will provide alternatives for the ChatGPT ban in Italy
10. Musk estimates that continuing to use fossil fuels will cost $4 trillion.
11. Former Finnish Prime Minister Sanna Marin files her government’s proposal for resignation.
12. Kremlin is planning to station nuclear arms in Balgium. NATO is the one expanding towards Russia, therefore we have to defend our security.
13. The World’s Wealthiest Man Bernard Arnault’s fortune has surpassed the $200 billion mark.
14. North Korea blames’reckless’ military drills by the US and South Korea for the threat of nuclear war.
15. Finland became a member of NATO, signalling a significant change in Europe’s post-World War II alliance and further isolating Russia.
16. China and India are competing in the $447 billion space industry.
17. A special meeting will be held by Bed Bath & Beyond on May 9 to authorise a reverse stock split.
18. According to an insider, Amazon may reduce stock-based compensation for employees in 2025.
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U.S. market today

Market Technicals -by GURMEET SINGH SOHI

Market closed on lower level but still 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 

MARKET MOVERS

Stock IN NEWS

• Kura Sushi (KRUS) adj EBITDA $2.3Mm vs. estimate. $0.39 million in revenue $43.9M vs. $43.9M vs. $41.8 million; sales forecast for FY23 $185-188Mm versus. $185.4Mm.

• Resources Connection (RGP) adj EBITDA $16.6Mm in 3Q vs. $13.4M, gross margin 38.3%, revenue $186.78M vs. estimate. $183.9Mm.

• Smart Global’s (SGH) 2Q adj EPS of $0.76 was $0.76 more than the consensus. $0.60 in revenue $429.2Mm vs est. $434.9Mm, gross margin 25.7%; 3Q sales guidance $355-395Mm vs. estimate. $408.2Mm, gr mgn 27-29%, adj EPS $0.300-0.50 vs. forecast. $0.42.

• Rambus (RMBS) announced a ten-year extension of its patent licence arrangement with South Korean semiconductor giant SK Hynix.

• Preliminary Q3 revenue for Lumentum Holdings below expectations; share repurchase programme increases

•  Conagra Brands Inc. CAG  Q2 EPS $0.76/$3.09B above projections $0.64/$3.08B; year EPS outlook raised to $2.70-$2.75 from earlier $2.60-$2.70; and FY23 organic sales view narrowed.

• FedEx Corp. FDX +2% ; increased quarterly dividend to $1.15; 
• Johnson & Johnson. JNJ +3% 163.67$; revealed that its LTL subsidiary has refiled for Chapter 11 bankruptcy protection
• Dlocal Ltd DLO; shares fall following Q4 earnings fail with EPS $0.06/$118M revs vs. expected $0.11/$119.5M.
• Schnitzer Steel Industries IncSCHN; mixed Q2 as EPS $0.14 missed $0,.21 expectation on higher revenues of $755M but finished steel net selling prices and volumes were lower than in Q1.
• SMART Global Holdings Inc. SGH ; mixed results as 2Q adj EPS $0.76 exceeds expectations but revs $429.2Mm fall short of expectations,

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Economic Calendar for Today

EARNING CALENDAR

EARNING BEFORE THE  OPENING : Constellation Brands A (STZ), RPM (RPM), Tilray (TLRY)  

EARNING AFTER THE CLOSE: Levi Strauss A (LEVI), WD-40 (WDFC), GreenTree Hospitality (GHG), ClearSign (CLIR)

Economic data

• ADP for March Private payrolls are becoming weaker.The number of private payrolls reported by ADP in March was lower than expected (145K vs. 200K), while the preceding month’s figure was revised upward (to 261K from 242K). Yearly pay increased 6.9% from a year earlier, which was a slower rate than the 7.2% rate in the previous month.
• The U.S. trade deficit in goods and services increased to (-$70.5 billion) in February from (-$68.7 billion) in January and (-$68.7 billion) according to consensus. The deficit in products decreased to (-$92.98 billion) while the surplus in services increased to (+$22.44 billion).

• ISM Non-Manufacturing data for March was low, coming in at 51.2 vs. an expected 54.5 and a rating of 55.1 in February; prices paid down to 59.5 vs. 65.6 last month, employment decreased to 51.3 from 54.0, and new orders decreased to 52.2 from 62.6 in February.

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/
• China Caixin Services PMI

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Indian Market Today 

FII AND DII 

On April 5, foreign institutional investors (FII) purchased shares worth Rs 806.82 crore, while domestic institutional investors (DII) sold shares worth Rs 947.21 crore, according to preliminary data from the National Stock Exchange.

NEWS

1. Ashoka Buildcon receives LoAs for projects worth Rs. 2,285 billion.
2. Bond prices rise as India’s RBI unexpectedly holds interest rates.
3. Five days of winning streak in sunsex; joy following unexpected RBI pause
4. Reliance and Jio raise $2 billion in foreign loans after raising $3 billion.
5. Live Updates on the RBI MPC Meeting in 2023: Shaktikanta Das is expected to raise interest rates by 25 basis points.
6. Apple CEO Tim Cook is expected to go into India to open the company’s first shop.
7. Yes Bank’s fourth-quarter business update: Credit at the bank increased by 11% in the March quarter.
8. The outlook for bank equities is deteriorating as the market awaits the RBI’s policy announcement.
9. The Sensex and Nifty are off to a cautious morning ahead of the RBA policy decision.
10. Vedanta shares will trade ex-dividend today.
11. With the merger of HDFC and Adani Enterprises, Adani Enterprises may enter the Sensex and LTI Mindtree Nifty.
12. Vedanta Resources’ dollar bonds rise on S&P assurance.

STOCKS IN NEWS

• • Hero MotoCorp, the world’s largest two-wheeler manufacturer, has introduced a voluntary retirement programme (VRS) for its employees. It anticipates that this step will increase corporate efficiency.
  • Equitas Small Finance Bank: According to preliminary statistics, the small finance bank increased gross advances by 36% year on year to Rs 28,061 crore in the fiscal quarter ending March FY23, and sequential growth was 13%. Disbursements during the quarter was Rs 5,917 crore, an increase of 80% year on year and 23% quarter on quarter.
  • .Ujjivan Small Finance Bank increased its advances by 33% year on year in Q4FY23 to Rs 24,114 crore, with disbursements exceeding Rs 6,000 crore for the quarter and Rs 20,000 crore for the fiscal year FY23.
  • Tata Steel: India’s production volume climbed by 5.1 percent to 5.15 million tonnes in Q4FY23, while delivery volume increased by 0.6 percent to 5.15 million tonnes. The volume of manufacturing in Europe remained constant.
  • Avenue Supermarts, which owns the DMart retail brand, reported Rs 10,337 crore in standalone sales for the fourth quarter ended March 31.
  • Nykaa, FSN E-Commerce, which owns the famous beauty goods brand Nykaa, saw excellent company growth in the March quarter despite a sluggish market trend. In the fiscal year 2022-23, the corporation anticipates a 30% increase in sales.
  • Cholamandalam Finance and Investment: The company’s fourth-quarter payments were Rs 21,020 crore, up from Rs 12,718 crore in the same time previous year, representing a 65% increase
  • According to ET Today, LIC expects to spend more than 3 lakh crore in FY24, with equity accounting for 30% of the total.
  • Karnataka State Bank As of March 2023, the bank’s total aggregate deposits was at Rs 87,362 crore, a rise of approximately 9%. Over the same period, advances increased by 6% to Rs 61,326 crore.

Today’s India market at close

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