Oil Price big jump, Tesla, MCD – Key points for market today (April 3rd)

Today’s main global market news –

1. The Nasdaq recently saw its greatest quarter since 2020 thanks to gains made by Nvidia and Meta.
2. By unexpectedly cutting oil output by almost 1 million barrels per day, OPEC+ shocked the markets and raised crude prices.
3. The US will invest up to $300 million over six years on an Alzheimer’s data platform, according to Reuters.
4. Extra Space Storage and Life Storage Reach $12.7 billion Agreement – WSJ
5. Oil Up on Unexpected OPEC Cut, as Treasuries Fall: Markets Wrap
6. FOREX-Dollar rises as the inflation problem is exacerbated by an unexpected OPEC+ reduction.
7. Tesla’s Q1 EV delivery total of 422,875 fell short of analyst predictions.
8. The CEO of Sumitomo Mitsui Banking Corp Japan is looking for opportunities to increase American assets.
9. Elon Musk requested on Friday that a U.S. judge dismiss a $258 billion racketeering case against him that claimed he had operated a pyramid scheme to promote the cryptocurrency Dogecoin
10. McDonald’s (MCD) has reportedly closed its U.S. offices early this week in order to announce a layoff plan.
11. After failing to locate a buyer, Cineworld disowns the sale of its US and UK companies.
12. Due to the Wirecard incident, a German regulator has given EY a two-year audit ban – Handelsblatt
13. The improvement in inventories is expected to boost US first-quarter vehicle sales.
14. McDonald’s Is Preparing Layoffs. It’s a Big Week for the U.S. Jobs Market.
15. Seasonally adjusted national prices rose 0.16% in February, according to Black Knight’s House Price Index. It follows 7 consecutive month-over-month reductions.
16. Caixin PMI reports that China’s March industrial activity growth slowed(@51.6)  due to decreased demand.
17. After price reductions, Tesla reports record quarterly deliveries, up 4% from Q4
18. Cineworld has filed for bankruptcy and hopes to raise $2.26 billion.

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U.S. market today

Market Technicals –

Positive close on Friday close 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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Stock Gains

• Advance Auto Parts, Inc. (AAP +2%); following the stock’s large year-to-date decline, Barclay’s upgraded it from Underweight to Equal Weight; the reward now skews more evenly.
• Braze (BRZE +11%) posted strong F4Q performance with ambiguous forecast for FY2024. Positively, the firm is benefiting from vendor consolidation, and total revenue, subscription revenue, and operating margins all exceeded expectations.
• Groupon Inc (GRPN +11%); following the announcement of a CEO transition as a result of Kedar Deshpande’s resignation as CEO and director, Dusan Senkypl is named interim CEO with immediate effect.
• Metropolitan Bank Holding Corp (MCB +24%); following the company’s Thursday after-market financial statement to investors, which said that “liquidity remained solid” (shares plummeted -28% on Thursday).
• Rambus Inc (RUM +5%); MAU/ARPU +142%/180% y/y & +13%/61% q/q, generating revenue +579% y/y & +82% q/q, 46% after profits

Stocks under pressure 

• Chicken Soup (CSSE -40%), with a secondary price of $2.30 for 4.69 shares (vs. $3.20 for the closing price).
• Generac Holdings Inc. (GNRC -5%); downgraded to Underperform from Neutral at Bank America and lowered tgt to $91 from $141 citing the company’s aggressive FY23 outlook as increasingly out of reach.
• Micron Technology Inc (MU -4%); shares fell after the Chinese Cyberspace regulator (CAC) said that it will conduct a cybersecurity examination of Micron’s products in China.
• Nikola Corp (NKLA -12%) ; Spot Secondary of 89.3 million shares priced at $1.12 (29.9 million shares in public offering, 59.4 million shares to hedge fund Antara Capital L.P. in concurrent registered direct offering for $100 million raise).

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Economic Calendar for Today

ECONOMIC CALENDAR

TIME EVENT FORECAST   PREV

06:00   OPEC Meeting 

09:45   Manufacturing PMI (Mar)       49.3 47.3

10:00   Construction Spending (MoM) (Feb) 0.1% -0.1%

10:00   ISM Manufacturing Employment (Mar) 49.1

10:00   ISM Manufacturing PMI (Mar) 47.5 47.7

11:30   3- Month Bill Auction 4.675%

11:30 6- Month Bill Auction 4.650%

12:05   Dallas Fed PCE (Feb) 6.50%

16:15   Fed Governor Cook Speaks  

 EARNING CALENDAR

EARNING BEFORE THE  OPENING : Targa Resources (TRGP), Science Applications (SAIC), Gulf Resources (GURE), Stryve 

EARNING AFTER THE CLOSE: BioLargo (BLGTAAT), Global Alternatives (TOBAF)O), Stryve Foods (SNAX), Precipio (PRPO), TSS Inc (TSSI), Sharplink Gaming (SBET), Spanish Broadcasting System (SBSAA), Greenlane (GNLN)

Economic data

Personal Income M/M Personal Expenditure M/M for March increases +0.2% vs. est. +0.2%; Personal Income M/M for March increases +0.3% vs. est. +0.2% (previous +2%). +0.3% (previous +1.8%). Personal saving rate increased by 4.6% in February compared to January (+4.4%).

The PCE Price Index M/M for February increases by 0.3% from January’s 0.6%, while the PCE Price Index Y/Y for February increases by 5.0% from January’s +5.3%.

U.S. Core PCE Price Index for February increased by 0.3% vs expectations of 0.4% (previously +0.5%) and by 4.6% versus expectations of 4.7% (previously +4.7%) on an annual basis.

Chicago PMI for March The manufacturing sector in Chicago contracted for the seventh consecutive month in March, according to the Chicago PMI, which was published at 43.8 vs. 43.4 consensus and 43.6 in February

Michigan State University Current Conditions Index final March 66.3 vs. prelim March 66.4; Sentiment final March 62.0 vs. consensus 63.2 (prelim March 63.4); and Expectations final March 59.2 vs. prelim March 61.5.

The UoM 1-year inflation forecasts were recorded at 3.6% versus estimates of 3.8% and 3.8%, while the 5- to 10-year inflation rate was predicted at 2.9% versus predictions of 2.8%.

Other Key Events:

    Enterprise Connect Conference & Expo, 3/27-3/30, in Orlando, FL

    Shop Talk Conference, 3/26-3/30, in Las Vegas

    Barclays Crypto Summit, 3/29-3/30, in Miami, FL.

    China NBS Manufacturing and Non-Manufacturing PMI for March

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Economic data

The U.S. 4Q Final GDP increased by 2.6% compared to the prelim GDP’s 2.7% and to the Q3’s +3.2%; inflation measurements revealed: 4Q Consumer Spending +1.0% vs. prelim +1.4% (and prior +2.1%); 4Q Final PCE Price Index +3.7% vs. Prelim +3.7%; Q4 Core PCE Prices +4.4% vs. est. +4.3% and previous +4.7%.

Weekly jobless claims increased to 198,000 last week from 196,000 expected and 191,000 the week before; the 4-week moving average increased to 198,250 from 196,250; and continuing claims increased to 1.689 million from 1.685 million the week before.

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Indian Market Today 

FII AND DII 

On March 31, according to preliminary statistics from the National Stock Exchange, domestic institutional investors (DII) purchased shares worth Rs 2479.96 crore, while foreign institutional investors (FII) purchased shares worth Rs 357.86 crore.

GST Data

According to information released by the finance ministry on April 1, the monthly GST collection increased 13% year over year to Rs 1.60 lakh crore. Since the implementation of the indirect tax regime in July 2017, this has been the second-highest monthly mop-up, trailing only the Rs 1.68 lakh crore collection from April of last year.

NEWS

1. According to TRAI data, #RelianceJio currently owns 38.5% of India’s 1,024.81 million active users, followed by #Airtel and #Vodafone at 35.5% and 20%, respectively.
2. RBA Rates to remain at 3.60% on April 4 according to a Reuters poll
3. India’s March Manufacturing PMI increased from 55.3 to 56.4.
4. Shares of Coal India increase by about 3% as output in FY23 reaches a 17-year high.
5. With the separation of SpiceJet’s cargo and logistics wing, its shares rise by 3%.
6. Rajiv Jain, the founder of GQG, invested $1.9 billion in the businesses of Indian billionaire( Adani) after a short seller attack caused the stock to crash.
7. OMCs suffer as crude prices jump over 5%; ONGC and Oil India benefit.
8. Sales of passenger vehicles at Mahindra And Mahindra increased 30% to 35,997 units over the previous year.
9. Since another rate rise is anticipated, the RBI’s MPC meeting will begin.
10. Block-dealing Adani shares enables FPI equity investment to turn positive in March.
11. Singapore’s government sells its share in Phoenix Mills for Rs 670 billion.
12. On March 31, international investor WSI WSQI left Shriram Properties
13. Maruti Suzuki estimates that in March 2023, total output declined by 5.7%.
14. In FY23, Maruti Suzuki’s overall sales increased by 19% to 19.66 lakh automobiles.

Today’s India market at close

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