UK PMI, Tesla coming crash, Bitcoin & Gold Drop – What is moving the market today (April 21st)

Today’s main global market news –

1. Data Alert | Eurozone April Manufacturing PMI at 45.5 vs expectation of 48; Eurozone April Services PMI increases to 56.6 vs est of 54.5
2. Procter & Gamble (NYSE:PG) stock rose 2.2% after the consumer goods giant raised its full-year sales forecast
3. Mark Zuckerberg Doesn’t Dismiss Cutting Meta Jobs in the Future – WSJ
4. The case involving Tesla Autopilot crash to be decided by a US jury.
5. U.S. Fed is attempting to close the gap that concealed losses on SVB’s securities, according to the Wall Street Journal.
6. Explosion of a SpaceX rocket serves as an example of Elon Musk’s “successful failure” technique.
7. Due to allegations of bullying, Dominic Raab leaves his position as deputy prime minister of the UK.
8. The quarterly dividend for CapStar Financial Holdings increased by 10% to $0.11 with a 3% yield.
9. A surge in services in April fuels the euro zone’s rebound, according to the PMI.
10. VW raises first-quarter sales despite a weaker Chinese economy.
11. The wealth fund of Norway reports a $84 billion quarterly profit.
12. Mixed European stock futures; declining UK retail sales, upcoming PMIs
13. Rehn: The ECB must be cautious not to abandon its restrictive stance too soon.
14. For the first time in eight weeks, investors reduced their cash holdings—BofA
15. US food banks warn of stress as Republicans call for cutbacks to food aid
16. Carlyle Sees $8-$10 Billion Value In New McDonald’s China Backers – Bloomberg
17. European markets decline as slowdown concerns are fueled by economic data.
18. U.S. markets are declining due to disappointing earnings results.
19. Yellen urges “constructive” US-China economic relations and issues a warning about penalty evasion
20. When hospital personnel shortages subside, Abbott predicts a comeback in gadget sales (April 19)
21. With positive Q1 earnings, Las Vegas Sands’ stock increases.
22. Lordstown proposes a reverse stock split after receiving a delisting notice
23. Russian exports’ value decreased by 35% in the first quarter as the oil price cap hit.
24. Luxury market under investigation as EU looks into Gucci and others
25. Biden announces cash to combat climate change while meeting with major economies
26. Stocks suffer from Tesla’s decline, as US yields decline following data
27. SpaceX successfully launches the Starship, but the voyage is cut short by an explosion.
28. AT&T’s poor cash flow causes the telecoms sector to decline.
29. The yearly revenue prediction for American homebuilder D.R. Horton surpasses expectations.
30. The World Health Organization said on Friday that 413 people had been killed and 3,551 injured in Sudan since intense fighting broke out there six days ago.

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U.S. market today

Market Technical -by Gurmeet Sohi

Market closed in red again yesterday

Trend is still up in short term

Resistance is near 34320 

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MARKET MOVERS

STOCKS IN NEWS 

•  D.R. Horton (DHI) Homes closed in the quarter declined 1% to 19,664 homes compared to 19,828 homes closed in the same quarter of FY22; quarterly net sales orders of 23,142 homes, with an estimate of $7.97 billion; D.R. Horton (DHI) Q2 EPS $2.73 vs. $1.93; Q2 revenues $7.97B vs. est. $6.47B

  Renault (RNLSY) released its Q1’23 earnings, with deliveries (reported a day earlier) coming in 10% above of expectations and revenues of €11.5 billion topping expectations by 3.8% due to pricing and mix, with ASPs exceeding expectations by 2.6% and outlook remaining unchanged.

  Gap Inc GPC increases its EPS forecast, expecting FY EPS to be between $8.95 and $9.10, up from its previous forecast of $8.80 to $8.9 (and an estimate of $8.92)

  Las Vegas Sands Corp. LVS shares increase following earnings as 1Q EPS of $0.28 above expectations. $20 on revenues $2.12 billion versus expectations. $1.85B, up from $943M year over year; $1.54B in reported casino income

  Comerica Incorporated  CMA:– Deposits plummeted by $3.7 billion, while uninsured deposits fell by $10.5 billion to $35 billion, or 54% of total deposits in the quarter. As a result, CMA Q1 Earnings of $2.39 was 10c more than expected.

  Eagle Bancorp Inc EGBN :- Q1 EPS was $0.78 vs. expectations of $1.13; Q1 provision for credit losses on loans was $6.2M vs. a reversal of $0.5 Mln in the preceding quarter.

  Fifth Third Bancorp FITB Q1 EPS $0.78 is a cent below expectations, NIM 3.29% is below expectations, and deposits decreased by nearly $8 billion year over year to $160.65 billion. Higher fees and credit were largely offset by lower NIM and NII.

  Huntington Bancshares Incorporated HBAN Q1 Earnings $0.38 surpasses estimate by a cent on revenue of $1.93 billion and reports a $472 million growth in deposits over the prior year.

  KeyCorp KEY Q1 Earnings $0.30 fails by 14 cents on worse revenues of $1.71 billion as deposits decrease by $6.8 billion year over year to $143.4 billion.

  Synovus Financial Corp SNV Q1 EPS $1.32 surpasses estimates by 10c on revenue of $613.9 million vs $594.2 million, while the quarter’s provision for credit loss was $32.2 million as opposed to $11.4 million last year.

  Texas Capital Bancshares Inc TCBI Q1 EPS of $0.70 falls short of the $0.87 consensus estimate; Q1 credit loss provision was $28.0 million vs $34.0 million in 4Q22; and Q1 net charge-offs were $19.9 million versus $15.0 million in 4Q22.

  Truist Financial Corp TFC Q1 Profit of $1.05 fell short of expectations of $1.14; quarterly provision for credit losses was $502 million compared to $467 million in Q4; and FY adj revs are expected to increase by 5% to 7% while Q2 revs are expected to remain steady.

  Zions Bancorporation NA ZION Q1 EPS of $1.33 is 20c behind expectations, with a credit loss provision of -$45M. Q1 net interest income was $679M, with a net interest margin of 3.33% below the expected 3.37%.

  AutoNation Inc AN:-  Q1 EPS of $6.07/$6.40 billion in revenues, against expectations of $5.74/$6.63 billion, was achieved due to increases in new vehicle sales of $286.9 million and used vehicle sales of $154.4 million.

  IBM Corp. (IBM) Q1 adj EPS $1.36 vs. est. $1.26; Q1 revs $14.25 vs. est. $14.35 Billion; expects constant currency revenue growth of 3%-5%; at current foreign exchange rates, currency is expected to be neutral to revenue growth

  F5 Networks (FFIV) Q2 adj EPS $2.53 vs. est. $2.42; Q2 revs rose 11% y/y to $703.2M vs. est. $699.1M; guides Q3 revs $690M-$710M vs. est. $747M and EPS $2.78-$2.90 below est. $3.05;

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Economic Calendar for Today

         TIME                    EVENT

• 09:45                  S&P Global Composite PMI (Apr) 
• 13:00                 U.S. Baker Hughes Total Rig Count
• 16:30                 CFTC Gold speculative net positions
• 16:30                 CFTC Nasdaq 100 speculative net positions
• 16:30                 CFTC S&P 500 speculative net positions
• 16:35                 Fed Governor Cook 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 (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 :

Procter&Gamble (PG), SAP ADR (SAP), HCA (HCA), Schlumberger (SLB), Freeport-McMoran (FCX), Sandvik AB ADR (SDVKY), Regions Financial (RF), Autoliv (ALV), FFD Financial Corp (FFDF), Acme United (ACU),

EARNING AFTER THE CLOSE:   

NO EARNINGS AFTER MARKET FOR TODAY 

Economic data

• Weekly Unemployed The 4-week moving average decreased to 239,750 from 240,250 the prior week as claims increased to 245K in the most recent week compared to the expected 240K (prior week upped to 240K from 239K); continued claims increased to 1.865M from 1.804M the prior week; and U.S. insured unemployment increased to 1.3% from 1.2%.

• The Philly Fed Business Index decreased by 31.3, worse than the forecast of -19.3 and the previous reading of -23.2; this is the eighth consecutive month of negative results and the lowest level since May 2020; the employment index was -0.2 vs. -10.3; the future capital expenditures index was -5.40 vs. the prior reading of -3.80; and the new orders index was down by 22.7 vs. the previous reading of -28.2.

• Existing home sales decreased (-2.4%) in March compared to February (+13.8%), with a 4.44 million unit rate vs the consensus of 4.50 million and lower.

• Other Key Events:

  •     Needham 22nd Annual Healthcare Conference (virtual), 4/17-4/20

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Indian Market 

FII AND DII 

FII SOLD         1169.32 CR

DII BOUGHT    832.72 CR

On April 20, according to preliminary data from the National Stock Exchange, foreign institutional investors (FII) sold shares worth Rs 1,169.32 crore while domestic institutional investors (DII) purchased shares worth Rs 832.72 crore.

Indian market news 

1. Data Alert | Eurozone April Manufacturing PMI at 45.5 vs expectation of 48; Eurozone April Services PMI increases to 56.6 vs est of 54.5
2. RBA to sustain protracted pause; retail inflation expected to be 5.3% in FY24: the Acuite Ratings
3. ITC continues to rise and momentarily surpasses HDFC in market value.
4. PNC Infratech receives an acceptance letter for 819 crore rupees
5. With the Fed’s rate trajectory in focus, gold prices decline.
6. First weekly increase for the dollar since February is expected.
7. PNB Home Finance shares rises 3% as Nippon India Mutual Fund purchases a 0.3% stake in it.
8. 10% increase in Vodafone Idea shares on KM Birla’s re-entry
9. HCL Tech surpasses Q4 profit projections by over 10%.
10. ICICI Bank’s net profit might increase by 30% in Q4 thanks to increasing interest income.
11. RIL may see a 7% increase in Q4 operating profit and a 1% increase in topline and bottomline
12. HCL Tech reduces recruiting, down from over 40,000 to 17,067 new employees.

Indian market Today  

INDIAN MARKET MOVERS  

STOCK IN NEWS

HCL Technologies: The IT services provider posted Q4FY23 profits that were below expectations, with profit decreasing 2.8% QoQ to Rs 3,983 crore and sales falling 0.4% to Rs 26,606 crore. Operating-wise, EBIT down 7.5% sequentially to Rs 4,836 crore, while the quarter’s margin decreased by 140 bps to 18.2%.

HDFC Life Insurance Company:- Exide Life Insurance is a subsidiary of HDFC Life Insurance Company, which had a premium increase of 16% during the previous fiscal year and an increase of 83% in March YoY. According to CNBC-TV18, the retail APE grew by 118% year over year in March.

Cyient: On the strength of its topline and operating results, the engineering and technology solutions provider reported a 4.6% sequential increase in consolidated profit at Rs 163.2 crore for the quarter ended March FY23. Constant currency revenue growth was 6.6% QoQ, while the quarter’s total revenue of Rs 1,751.4 crore climbed by 8.2% and the quarter’s USD revenue of $213 million by 8.1%.

Suven Pharmaceuticals: Berhyanda has been granted permission by the Competition Commission of India (CCI) to purchase up to 76.10% of the voting share capital of Suven Pharmaceuticals.

 Siemens:– Gujarat Metro Rail Corporation has given Siemens two different orders as part of a collaboration with Rail Vikas Nigam (GMRCL). The order’s portion for Siemens is Rs 678 crore

Sterling & Wilson Renewable Energy: The company reported a net loss of Rs. 417.45 crore for the quarter that ended in March FY23, up from a loss of Rs. 126.3 crore in the same quarter the previous year. Consolidated revenue fell by 91.7% YoY to Rs. 88.4 crore, and EBITDA loss increased to Rs. 352.12 crore from Rs. 124.24 crore in the same period.

Laxmi Organic Industries: The chemical production firm said that the board has given the go-ahead to borrow up to Rs 2,000 crore.

International Finance Corporation (IFC) has subscribed to an IndiGrid listed NCD issue totaling Rs. 1,140 crore.

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