Tesla results, IBM up, Bitcoin & Futures down – Key Factors for market today(April 20th)

Today’s main global market news –

1. Irish data regulator issues a caution against hastily banning chatbots.
2. Starship rocket system’s initial test flight is scheduled by Elon Musk’s SpaceX.
3. AT&T’s quarterly wireless subscriber growth exceeded expectations.
4. HSBC seeks to quell break-up rumours
5. Huge legal victory in $787.5 million Fox defamation lawsuit
6. US provides an old-growth inventory and prepares additional forest safeguards.
7. Eurozone trade surplus in February is driven by Germany and Italy.
8. Biden is going to propose cash to combat climate change when he meets with major economies.
9. Tesla anticipates further price reductions despite a loss in profit margin.
10. Nokia anticipates the impact of the economy on consumer spending as earnings decline
11. Bond rates in the euro zone decline after reaching a month high.
12. Macro leverage in China increased in Q1 to 289.6%: c. a bank employee
13. According to TSMC, Japan will cover half of the $8 billion local fab cost.
14. Google will employ generative AI in its advertising operations – FT
15. As rate rise worries grow, Asian equities decline, with China leading losses.
16. Dollar fairly flat; attention on central bank meetings
17. Volkswagen: Full tax credit available for US-made ID.4 vehicles
18. Despite the threat from Tesla, France’s Renault has no major price reductions planned.
19. Deutsche Bank intends to reduce staff and board size – source
20. Over the collapse of the fund, Woodford investors contributed up to $292 million.
21. China’s central bank promises to increase financial backing for the country’s actual economy.
22. Kiwi falls as New Zealand CPI inflation falls short of Q1 predictions.
23. Experts are optimistic about ServiceNow before the Q1 earnings
24. IBM soars as Q1 profits surpass projections; experts are cautiously optimistic

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U.S. market today

Market Technical -by Gurmeet Sohi

Market closed in slightly red yesterday

Trend is still up in short term

Resistance is near 34320 

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MARKET MOVERS

STOCKS IN NEWS 

• Tesla (NASDAQ:TSLA) reported its first-quarter earnings after the close Wednesday, and the electric vehicle manufacturer missed Wall Street estimates, posting its lowest quarterly gross margin in two years, hurt by price cuts.

• Citizens Financial Group Inc CFG shares decline; news As of the end of the first quarter, deposits were down approximately 5% q/q to $172.19B, down from $180.72B in the fourth quarter but up around 9% y/y; net charge-offs increased to $133M, up 125% from the same period last year and up 51% from the previous quarter.

• Fulton Financial Corp FULT Q1 Earnings $0.39 vs. expected $0.48; Q1 revenue $267.3M vs. expected $228.0M; Q1 provision for losses $24.5M vs. expected ($7.0M) y/y; and Q1 net interest margin of 3.53% vs. expected 2.78% y/y.

• Hancock Whitney Corp HWC 1Q EPS $1.45 vs. estim. $1.43 on NII $287.6M vs estimate. $283.25Mm, up 2% year over year in total deposits.

• Metropolitan Bank Holding MCB shares increase 1Q Earnings $2.25 above expectations. $58.5M in NII at $1.79 vs. estimate. $60.6M; 17.2% ROAE.

• Ally Financial Inc ALLY’s earnings decreased more than anticipated because it offered fewer vehicle loans and set aside more money to address growing consumer defaults; Q1 EPS of $0.82 fell short of the $0.87 projection and revenues of $2.05 billion fell short of the $2.07 billion estimate;

• Synchrony Financial SYF Q1 EPS $1.35 vs. $1.46 expected; total deposits $74.4 billion, up 3.7% from the previous quarter; deposit growth of +17.1% vs. +15.2% v/q; net interest income $4.05 billion, down 1.3% from the previous quarter; quarterly net interest margin down 58 basis points to 15.22%.

• Morgan Stanley adj. MS Q1 Earnings $1.70 vs. estim. $1.67 and $14.50B in revenues against expectations. $14.07B; estimated Q1 total deposits were $347.52B. $352.17B; higher FICC Sales & Trading Revenues ($2.58B vs. est. $2.42B); and Q1 net interest income ($2.35B vs. est. $2.46B.

• United Community Banks, Inc. UCBI 1Q operating Earnings $0.58 vs. estim. $0.69 on NII $211.47M vs estimate. Operating ROA, ROCE, and operational ROTCE total $217.63M; respectively.

• US Bancorp The Q1 net interest margin for USB was 3.10% compared to 2.44% year over year. Total average deposits were $510.32 billion, compared to an estimate of $521.54 billion, while total average loans were $386.75 billion.

• Western Alliance Bancorporation WAL stock rises; Q1 adj EPS $2.30 vs. expected $2.09; quarterly net revenue $551.9M, down 0.7%; total deposits of $47.6B at end of March; reported immediately available liquidity surpasses uninsured deposits, with coverage ratio of 158% as of April 14; Q1 NII $609.9M and NIM 3.79% vs. expected 3.7%.

• Intuitive Surgical, Inc ISRG reports Q1 procedure growth beat (+26% vs 14% street), helped by a significant turnaround in OUS back to +28% Y/Y growth (+25% last year). Procedure guidance is lifted by more than Q1 street/internal beat, and there is also a $100mn/$0.02 headline beat.

• Elevance Health Inc  ELV Q1 adj EPS $9.46 vs. est. $9.26; Q1 revenues $41.9B vs. est. $40.83B; Medical membership was about 48.1M as of March 31, an increase of 1.3M or 2.9% y/y; this increases the FY23 adjusted EPS forecast to more than $32.70 per share.

• NETFLIX NFLX increased its full-year free cash flow forecast, now expecting at least $3.5B of FCF for the full year 2023. Despite adding fewer subscribers than had been anticipated in Q1 (streaming paid net change: +1.75m (exp +2.41m)) and lower Q2 guidance (Q2 revs $8.24B vs. est. $8.47B), shares have recovered overnight losses. 

• Omnicom Group Inc. OMC Q1 EPS $1.56 vs. est. $1.39; Q1 revenues $3.44B vs. est. $3.38B; for DIS, Bloomberg reports Disney will begin previously announced layoffs next week as it begins to cut its headcount by thousands.

• ASML Holding NV ASML Q1 earnings were better than expected, although bookings fell short of expectations at E3.5B vs. the average estimate of E5.5B and a book-to-bill ratio of 0.6x.

• United Airlines Holdings Inc UAL announced a Q1 EPS loss that was less than anticipated (-$0.63), beating the average mean loss per share of (-$0.73), and reaffirmed its full year EPS projection of $10 to $12 with a June Q EPS guide of $3.50 to $4.00 (midpoint ahead of consensus of $3.59).

• Marten Transport Ltd MRTN With revenues of $298.02M below the expected $309.89M, MRTN announced 1Q23 EPS of $0.28, above expectations by a cent because to ongoing solid growth in Dedicated.

• Central Garden & Pet Co CENT expects Q2 EPS to be about $0.90, behind predictions $1.18, and anticipates FY23 EPS to be $2.35 or better, driven mostly by the delayed start of the garden season (est. $2.65); stated firm advances cost and simplification initiative. WMT was upgraded to Buy at Gordon Haskett.

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Economic Calendar for Today

         TIME                    EVENT

• • 08:30         USD Initial Jobless Claims

  • 08:30         Philadelphia Fed Manufacturing Index (Apr)

  • 10:00         Existing Home Sales (Mar)

  • 11:30         4 & 8-Week Bill Auction

  • 12:00         Fed Waller Speaks  

  • 14:00         Beige Book

  • 15:00         FOMC Member Bowman Speaks 

Major Events for This week

• Earnings season

Major American corporations, including Pinnacle Financial, Sify Technologies, and Amcon, will release their quarterly reports on April 17; Johnson & Johnson, Bank of America, Goldman Sachs, Netflix, Ericsson, Omnicom, Lockheed Martin, United Airlines; Tesla, Abbott, and Morgan Stanley; Philip Morris, AT&T, American Express, Blackstone, Nokia, Xerox; and Procter & Gamble; on April 18; and on April 19, respectively.

• Fed watch

Investors will have one last opportunity to hear from Fed officials in the coming days, including New York Fed President John Williams, Governor Michelle Bowman, Governor Christopher Waller, and Governor Lisa Cook, before they enter their customary blackout period before to the meeting.

• TODAY  (Thursday)
  Japan National CPI, Core CPI (March)
  April 21 (Friday)
  UK Services PMI, Manufacturing PMI, Composite PMI
  US Services PMI, Manufacturing PMI, Composite PMI (April) Preliminary
  Eurozone Services PMI, Manufacturing PMI, Composite PMI (April) Preliminary

EARNING CALENDAR

EARNING BEFORE THE  OPENING :

Philip Morris (PM) ,AT&T (T), Union Pacific (UNP), American Express (AXP), Blackstone Group (BX), Marsh McLennan (MMC), Truist Financial Corp (TFC), Volvo ADR (VLVLY), Nucor (NUE), DR Horton (DHI), Essilor International SA (ESLO), Nokia ADR (NOK), Genuine Parts (GPC), Publicis Groupe SA (PUBGY), Fifth Third (FITB), Huntington Bancshares (HBAN), Snap-On (SNA, Watsco B Inc (WSOb) Watsco (WSO), KeyCorp (KEY), East West Bancorp (EWBC), Iridium (IRDM), Webster Financial (WBS), Comerica (CMA), Bankinter ADR (BKNIY), Alaska Air (ALK), Home BancShares (HOMB), Badger Meter (BMI), Virtu Financial Inc (VIRT), Herc Holdings (HRI), ordic Semiconductor (NDCVF), OFG Bancorp (OFG), S&T Bancorp (STBA), Texas Capital (TCBI), Banc of California (BANC), Heritage Financial Co (HFWA)

EARNING AFTER THE CLOSE:   

BHP Group Ltd ADR (BHP), CSX (CSX), PPG Industries (PPG), WR Berkley (WRB), Knight Transportation (KNX), SEI (SEIC), Kimberly-Clark de Mexico (KCDMY), Valmont Industries (VMI), Bank Ozk (OZK), Glacier (GBCI), Independent Bank (INDB), Associated Banc-Corp (ASB) Cathay (CATY), First Financial Bancorp (FFBC), Hilltop (HTH), OceanFirst (OCFC) Amerant Bancorp A (AMTB), Five Point (FPH), Capstar Financial (CSTR), Alpine Income (PINE),SB Financial (SBFG), SVB (SIVBQ), Plus Therapeutics (PSTV)

Economic data

• Other Key Events:

  •     American Association for Cancer Research (AACR), 4/14-4/19, in Orlando, FL
  •     Needham 22nd Annual Healthcare Conference (virtual), 4/17-4/20
  •     Fed’s Goolsbee Interviewed on Marketplace 5:30 PM ET
  •     Fed’s Williams Speaks in New York at 7:00 PM ET

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Indian Market 

FII AND DII 

FII Sold          13.17 CR

DII BOUGHT  110.42 CR

On April 19, according to preliminary data from the National Stock Exchange, domestic institutional investors (DII) sold shares worth Rs 110.42 crore while foreign institutional investors (FII) sold shares worth Rs 13.17 crore.

Indian market news 

1. India expects Apple’s investment and exports to roughly triple in the next years.
2. In FY24, economists predict that the Indian economy would rise by 6%.
3. PSBs intend to launch an app for electronic bidding on 500,000 homes.
4. The Ion Exchange board adopts a 1:10 stock split.
5. The non-executive director of Vodafone Idea, KK Maheshwari, resigns.
6. On April 24, Bank of Maharashtra would explore raising up to Rs 7,500 crore for FY24.
7. By FY28, Sunteck Realty anticipates a three-fold increase in pre-sales to Rs 5,000 crore.
8. The whole 224-unit Gurugram project by Ashiana Housing was sold for Rs 290.25 crore.
9. TTK Healthcare drops 4% as the board decides to delist the company’s shares voluntarily.
10. At Rs. 225 crore, Fortis Healthcare would purchase Medeor Hospital Manesar.
11. In Q4FY23, Oriental Hotels reported a net profit of Rs 18 crore.
12. On April 22, Adani Ports will think about buying back some debt.
13.  

Indian market Today  

INDIAN MARKET MOVERS  

STOCK IN NEWS

UTRATECH CEMENT With the successful commissioning of its 2.2 mtpa brownfield expansion, UltraTech Cement, the world’s largest cement manufacturer, has announced an increase in the capacity of its grinding plant in Patliputra, Bihar, to 4.7 mtpa. T

ICICI Securities: Due to disappointing topline and operating performance, the company’s consolidated profit for the quarter ended in March FY23 fell by 22.8% year over year to Rs. 262.7 crore. Due to decreased fees and commission income, overall revenue for the quarter fell 0.77% to Rs 885 crore from the same period last year.

NBCC (India): The Public Works Department, Puducherry, has awarded the state-owned construction firm a project for Rs 207.92 crore.

Tata Communications: Due to decreased other income and subpar operating results, the company’s consolidated profit for Q4FY23 fell by 10.7% year over year to Rs 326 crore.

Shakti Pumps: On behalf of the Government of Uganda, EXIM Bank delivered the $1 million needed for the project to the producer of water pumps and motors.

Mastek: The IT services provider’s consolidated profit increased by 13.07% sequentially to Rs 72.6 crore for the March FY23 quarter, led by increases in topline and operating income. Revenue for the quarter increased across all activities by 7.7% QoQ to Rs 709.2 crore.

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