Tesla, Inflation Data, US dollar rise – Whats happing in the market today (March 31st)

Today’s main global market news –

1. Musk, the CEO of Tesla, intends to travel to China to meet with the prime
2. For green hydrogen projects in the US, South America, and Africa, Acciona and Nordex collaborate.
3. UK home prices are declining at their fastest yearly rate since 2009 as a result of rising interest rates.
4. According to updated figures, the UK economy expanded by 0.1% in the fourth quarter, preventing a recession last year.
5. French Inflation Declines on Energy for the First Time in Three Months.In March, consumer prices increased 6.6% from a year earlier; this was below the expected 6.5%.
6. China march manufacturing PMI declines to 51.9; EST. 51.5:  PREV. 52.6
7. The government of Canada will accept Rogers’ C$20 billion acquisition of Shaw, making it the largest telecom company in the country..
8. Virgin Orbit, a rocket company founded by Richard Branson, has ceased operations and laid off 90% of its staff.
9. Binance, SBF’s $40 million bribe claims is being quashed by the US and China: Asia Express
10. Tech-related companies boost Wall Street, as regional banks decline
11. Jeremy Siegel: Fed’s 2023 GDP predictions indicate a soon-to-be-starting recession.
12. Weekly unemployment claims in the US increase to 198,000
13. $50 billion will be added to the World Bank’s IBRD lending arm’s funding capability.
14. Roku stock surges amid reorganisation and 6% job reduction plans
15. Bed Bath & Beyond to sell shares after disappointing preliminary sales; submits a stock sale request for up to $300 million.
16. When the “wave of panic” subsides, the Canadian dollar rises to a one-month high.
17. Man United’s most recent figures show a $7.7 million net profit, ,but missing out on the Champions League hurts
18. Yellen claims that U.S. bank regulations may be too lax and should be reviewed.

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U.S. market today

Market Technicals –

Positive close yesterday, close above 20 EMA and close to 50 EMA

Dow is still below 50 and 200 EMA 

Short term trend change to uptrend

Long term trend is still down 

Midterm trend remains sideways

Swing high is crossed, 32720 may act as a support now.

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Stock In news

• TSLA has significantly fallen short of its solar roof installation goals owing to fierce competition from GAF Energy and other rivals, according to market research company Wood Mackenzie.
• Cleveland Research has lowered its predictions for Wayfair (W), citing data that implies US sales for the first quarter are going below consensus projections.
• According to Bank America’s Food Retail Dallas Price Survey, average food prices increased by 22%. Price increases ranged from +11% to 36% at WFM, while DG maintained its lowest overall pricing (apart from vs. Aldi) and maintained or improved standing.           
• Thomas Kingsbury, the CEO of KSS, announces his acquisition of 93K shares in a filing.
• During the current quarter, CZOO raised its forecast for retail gross profit per unit (GPU).
• SMA Solar (SMTGY) increased its sales and EBITDA projections for 2023.
• TREE said it will lay off around 13% of its personnel in order to reduce expenses. The company also predicted recording severance payments of around $5.6 million.

Stock Gains

CXM (+14%) exceeded expectations on both the top and bottom lines and provided an increase in operating profit and subscription revenue growth beyond Street expectations for FY24.

JD +5%; planned spin-off and independent listing of JD Property on the main board of the Stock Exchange of Hong Kong Limited.

 PAYC +4%:- Davidson raised PCTY and PAYC from Neutral to Buy, noting that the downside risk to estimates outside of a catastrophic recession is minimal.

 PM +3%:- IQOS ILUMA has increased Heated Tobacco share for PMI in its first launch areas.

SCYX +54%; GSK has agreed to pay $90 million up front and up to $503 million more in future milestone payments as part of an agreement to licence an antifungal medicine being investigated to treat treatment-resistant fungi.

Stocks under pressure 

ANGO -21%; after Q3 EPS and revs below forecasts

CNXC -5%; signed a merger agreement to join forces with Webhelp in a deal worth around $4.8 billion, net of debt.

RH; pares Loess; reported a top and bottom line miss for the fourth quarter ($2.88 vs. $3.34 on revenues of $772.5Mm vs. $779.8Mm).

RNA fell 19% after the firm said that the FDA has maintained a partial clinical hold on its investigational medication for people with myotonic dystrophy type 1.

SCHW -4%; reduced to equal-weight at Morgan Stanley due to consumers of Schwab withdrawing funds from the company’s low-interest bank accounts twice as quickly than MS anticipated.

SMTC -24%; recorded a tiny Jan Q beat but huge Apr Q miss, mostly due to China & Consumer downturn.

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Economic Calendar for Today

·     8:30 AM ET            Personal Spending M/M for March…est. +0.3%

·     8:30 AM ET            PCE Price Index M/M for Feb

·     8:30 AM ET            PCE Price Index Y/Y for Feb

·     8:30 AM ET            Core PCE Price Index M/M for Feb…est. +0.4%

·     8:30 AM ET            Core PCE Price Index Y/Y for Feb…est. +4.7%

·     9:45 AM ET            Chicago PMI for March…est. 43.4

·     10:00 AM ET          University of Michigan Sentiment, March-F…est. 63.2

·     10:00 AM ET          University of Michigan inflation expectations for 1 and 5-yr

·     1:00 PM ET             Baker Hughes Weekly rig count dat

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.

Today’s figures are interesting:

 1) SPY’s intraday range was less than 1% on Wednesday for the third straight day. Since the SPX reached its top on March 22, that is the longest stretch.

 2) In 2022, US household net worth decreased by $4.1 trillion, the second-largest loss ever recorded after 2008.

 3) The second quarter of the third year of a president’s term has generally been favorable for US equities. 3) As the economy continues to deteriorate, the manufacturing PMI has been in contraction zone. Just three times since 1997 have new   reached this level, and each time a recession followed.

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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.

Today’s figures are interesting:

 1) SPY’s intraday range was less than 1% on Wednesday for the third straight day. Since the SPX reached its top on March 22, that is the longest stretch.

 2) In 2022, US household net worth decreased by $4.1 trillion, the second-largest loss ever recorded after 2008.

 3) The second quarter of the third year of a president’s term has generally been favorable for US equities. 3) As the economy continues to deteriorate, the manufacturing PMI has been in contraction zone. Just three times since 1997 have new   reached this level, and each time a recession followed.

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Indian Market Today 

FII AND DII 

On March 29, according to preliminary statistics from the National Stock Exchange, foreign institutional investors (FII) purchased shares worth Rs 1,245.39 crore, while domestic institutional investors (DII) purchased shares worth Rs 822.99 crore.

NEWS

1. Financial stability is now a factor in monetary policy, in addition to price stability: Prasanna B
2. Reliance Industries purchases 70% of Sintex Industries’ equity share capital.
3. GR Infraprojects receives LoA for 4 projects totaling Rs 3,713 crore and is selected as the L-1 bidder for a project for Rs 848 crore.
4. Contracts for Bharat Electronics bags totaling Rs 5,498 billion
5. As the US FDA gives ten observations for the Pithampur branch, Lupin shares decline.
6. Shares of Tata Power rise as arm luggage Solar scheme worth Rs. 1,755 billion
7. Bharat Dynamics (+5.5%)  and the Ministry of Defense enter into a deal worth Rs. 8161 crore.
8. Shares of VA Tech Wabag increase by over 6% on the approval of a project worth Rs 4,400 crore.
9. After USFDA approval of a glaucoma medication, Alembic Pharma shares increased by 5%.
10. Gains for Shriram Properties following massive block transaction; anticipated share selection by strategic investor.
11. $30 million is invested by Nuveen in Aviom India Home Finance.
12. Nxtra Data, a Bharti Airtel subsidiary, purchases an additional 5.5% of Avaada MHAmravati.

Today’s india market

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