Fed decision awaited US market news May 3rd

Today’s main global market news –

1. The publicly traded fund of billionaire Carl Icahn lost nearly a fifth of its value in a single day on Tuesday after becoming the newest target of short-seller Hindenburg Research.
2. A larger index of local lenders declined, closing at its lowest level since 2020
3. Interest rates are expected to increase by another 25 basis points by the U.S. central bank.
4. Due to the drop in US Treasuries and the decline in petroleum, the benchmark bond yield has fallen to an almost one-year low.
5. Tesla begins taking orders in the US for the more affordable long-range Model 3.
6. Fed may raise rates and signal a break in the tightening cycle
7. Selloff Shakes Wall Street, Trading Halts at Two Small Banks
8. By developing its own ChatGPT technology, Amazon intends to revive Alexa – Business Insider
9. Oil Holds After Falling 5% as Demand Fears Rise
10. Today’s stock market concludes lower for the Dow as investors become alarmed by the bank selloff; the Fed is keeping an eye on
11. Indexes down 1% as regional banks decline and investors worry ahead of the Fed
12. Fears about the US economy and debt default cause oil to fall 5%.
13. Prior to a “potential 1Q beat/raise,” Roth MKM raises its rating on Penn Entertainment.
14. U.S. markets decline as investors focus on the Fed decision and the debt ceiling
15. After the ride, Uber shares increase-reports from hailing apps beating Q1 profit
16. Up to $15 billion in short-term financing is promised by PNC to boost liquidity.
17. Hindenburg, a short-term investor, devalues the Icahn enterprise by 5%
18. Starbucks profits outperformed on a recovering China, but shares fell on forecasts
19. U.S. government is being sued by Vanda Pharmaceuticals for pharmaceutical trade secrets.
20. Strong truck demand drives up Ford’s profit, but the EV forecast clouds things.
21. In preparation for the summer grilling season, 
22. Morgan Stanley is in discussions to address inquiries about block trading practices, according to a filing.
23. Clorox increases its expectations after reporting a strong third quarter.
24. Chesapeake Energy’s increased natural gas production led to better profits.

GLOBAL NEWS

April services activity in India reaches a nearly 13-year high, while inflation picks up speed

1. Asian equities fall as the bank crisis spreads, and a Fed rate increase is expected.
2. As the U.S. financial crisis spreads to Asia, all bank stocks there decline.
3. After a great quarter, UniCredit increases its 2023 outlook.
4. Strong summer travel boosts Lufthansa’s profitability.
5. The headline inflation rate in Thailand fell in April to its lowest level in 16 months.
6. Asian equities fall as the bank crisis spreads, and a Fed rate increase is expected.
7. CEO: Go First’s owner has no plans to leave the airline.
8. Taiwan requests assistance from the US to create next-generation fighters
9. Stellantis revenues increased 14% in the first quarter as improved chip supply helped exports.
10. Investors expect a significant increase in Novo Nordisk shares if a medication for obesity has cardiac benefits.
11. Aston Martin maintains its projection for 2023 despite a reduced Q1 pretax loss.
12. This year, South Korea’s fin min wants to include domestic bonds in WGBI.
13. Due to the demand for home loans, Metro Bank reported second-quarter profits.
14. Sales of completely electric vehicles doubled in April, driving increasing demand for Volvo Cars.
15. Prior to a busy May, the global rate rise campaign slows to a trickle in April.

ECONOMIC CALENDAR

Wednesday May 3rd

Time              Event

07:00            Mortgage Market Index

08:15           ADP Nonfarm Employment Change (Apr)

09:45          S&P Global Composite PMI (Apr)

09:45          Services PMI (Apr)

10:00          ISM Non-Manufacturing PMI (Apr)

10:30         Crude Oil Inventories

 2:00          FOMC Interest Rates Policy Meeting     

(25-bps hike expected to 5%-5.25% range)

ECONOMIC DATA

The ISM Manufacturing index for April rebounded from 3-year lows at 47.1 following 46.3 in the previous month, still weak/contracting but above expectations of 46.8 (still marking the 6-month below the 50 barrier). The forward-looking new orders sub-index of the ISM survey increased from 44.3 in March to 45.7 last month, while the gauge of manufacturers’ prices paid recovered to 53.2, the highest level since last July.

Construction spending for March increased by 0.3% over estimates to $1.835 trillion, up from 0.3% in February (previously 0.1%). Private construction spending increased by 0.3% while public spending increased by 0.2%.

The S&P Global Manufacturing PMI for April came in at 50.2 (vs. flash 50.4).

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