big picture today
India’s SENSEX fell by 0.26%, Taiwan’s TAIEX by 0.53%, South Korea’s KOSPI by 0.91%, Australia’s ASX All Ordinaries by 0.95% and Hong Kong’s Hang Seng by 1.18%, led by Energy Minerals. Consumer Services, and Technology Services.
Japanese markets will be closed today to celebrate Constitution Day, which commemorates the enactment of Japan’s constitution in 1947. Chinese markets will be closed for the third and final day as the country wraps up its International Labor Day celebrations. European markets have been mixed in intraday trading, with US futures opening higher, but interestingly, at least at the time of writing, the Cboe Volatility (VIX) Index is similarly high.
Today is a big day for markets and an understatement for investors. Because what we learn before and after the market opens will shape expectations for the economy, and later today he could influence the Fed’s outlook for monetary policy. At 8:15 a.m. ET, the ADP will report his April Job Change Report. This is expected to show her 148,000 jobs created in the month compared to her 145,000 in March. At 9:45 a.m. ET, S&P Global (SPG) released his final PMI report for April on the U.S. service economy, followed by a similar report from the Institute for Supply Management (ISM) at 10 a.m. ET. Publish the report. Data from S&P Global is expected to show the services economy expanded to 53.7 in April from 52.6 the previous month. The ISM report is believed to show a similar increase from 51.2 to 51.8. However, it is the content of these reports on inflation that will grab investors’ attention.
At 2pm ET, the Fed released its latest policy statement, with the market overwhelmingly expecting a 25 basis point rise in rates, but what the Fed is saying about the direction of interest rates going forward is: It will be of much greater interest to the market. Inflation has been stronger than expected, raising questions about the Fed’s ability to respond effectively, but the prospect of recent bank failures and credit tightening could weigh on the Fed’s positive comments. .
data download
international economy
The euro area’s seasonally adjusted unemployment rate fell slightly to 6.5% in March, a record low, reflecting a tight labor market.
domestic economy
In addition to the economic data discussed above, there is also the usual Wednesday weekly data including the latest MBA mortgage application index and oil stocks from the Energy Information Administration.
Amid fresh concerns over the debt ceiling this week, White House officials said they are leaving the door open to compromise with House Republicans on government spending that would also resolve the impasse over the federal debt ceiling. These reports suggest that President Biden is open to negotiating levels of government spending, but not whether the United States will pay for programs and bills that it is already legally obliged to spend. will not negotiate.
market
The Dow and Nasdaq Composites fell 1.08%, the S&P 500 dropped 1.16% and the Russell 2000 closed down 2.10%. Energy (-4.35%) and financials (-2.27%) were the hardest hit, with all sectors down except consumer discretionary, which rose 0.10%.There weren’t many bucks to yesterday’s trend, but they did include names that traded up Broadridge Financial Solutions (BR) [6.30%] Strong reporting quarter and unchanged guidance Marriott International (MAR) [4.98%] Strong Reporting Quarter, Increased Guidance, and Etsy (ETSY) [3.03%] What looks like a technical rally as traders bought shares after seeing the name drop just over 17% YTD.
Here’s how the key market indicators stack up year-to-date:
- Dow Jones Industrial Average: 1.62%
- S&P 500: 7.29%
- Nasdaq Composite: 15.42%
- Russell 2000: -1.65%
- Bitcoin (BTC-USD): 72.65%
- Ether (ETH-USD): 56.02%
Featured stock
Bungie (BG), CVS Health (CVS), Estée Lauder (EL), Haynes Brands (HBI), Kraft Heinz (KHC), Radware (RDWR), and Yum! Brands (YUM) are expected to report quarterly results
Advanced Micro Devices (AMD) reported earnings and EPS for the March quarter above consensus expectations. Data Center revenues were essentially flat YoY at $1.295 billion; Client revenues plummeted 65% YoY to $739 million; Gaming revenues fell 6% to $1.757 billion; Embedded revenue was $1,562 million, up 163% year-over-year. This quarter, AMD expects revenue in the range of $5.0 billion to $5.6 billion against consensus of $5.51 billion.
Ford Motor (F) announced results for the March quarter, with sales up 21.4% year-over-year to $39.09 billion (excluding Ford Credit), beating consensus top- and bottom-line expectations of $37.42 billion. surpassed The company’s earnings before interest (EBIT) increased 45% year-over-year and its adjusted margin was 8.1%. Ford Blue had $25.1 billion in sales, up 21% year-over-year, with an EBIT margin of 10.4%, while Ford Model e had $700 million, down 27% year-over-year due to production issues during the quarter. . Ford Pro sales increased 28% year over year to $13.2 billion. Ford reaffirmed his 2023 guidance of $9 billion to $11 billion in adjusted EBIT and about $6 billion in adjusted free cash flow.
Starbucks (SBUX) reported an EPS of $0.74 for the March quarter. This is well ahead of his $0.65 consensus driven by earnings, which rose 14.2% year-over-year to $8.72 billion against the consensus of $8.43 billion. Global same-store sales he increased 11%. This was primarily driven by a 6% increase in same-store sales and a 4% increase in average tickets. North American same-store sales increased 12% behind 6% same-store sales growth and 5% average ticket growth. International same-store sales increased 7% behind a 7% increase in like-for-like transactions. Comparable store sales in China increased 3 percent comparably. This was driven by a 4% increase in same-store sales and a 1% decrease in average tickets. The company reaffirmed its 2023 earnings guidance of 10% to 12% year-over-year growth.
Earnings and EPS for the March quarter reported by Yum China (YUMC) Easily exceeded Wall Street expectations. Existing store sales increased 8% at KFC and 7% at Pizza Hut, up 8% year-on-year excluding exchange rates. After opening 233 all-new stores in the March quarter, Yum expects to open approximately 1,100 to 1,300 all-new stores this year.
Match Group (MTCH) EPS for the March quarter was $0.42, missing the consensus of $0.56, while earnings for the period fell 1.4% year-on-year to $787.12 million, also missing the consensus of $794.06 million. Earnings for the quarter fell below the consensus of $822.55 million from his $805 million to his $815 million.
IPO
Johnson & Johnson (JNJ) will spin off Kenvue, its consumer health division, in a new IPO that is expected to start trading on May 5.
Readers interested in learning more about the upcoming IPO calendar should visit Nasdaq’s Latest & Upcoming IPOs page.
After today’s trading
Cross Country (CCRN), Equinix (EQIX), Fastly (FSLY), Ingersoll Rand (IR), Kulicke & Soffa (KLIC), Mosaic (MOS), Nu Skin (NUS), Qorvo (QRVO), Qualcomm (QCOM), Synaptics (SYNA), Trip Advisor (TRIP), Tudor Perini (TPC) and Universal Display (OLED) will report quarterly results after the stock halt. For more information on which companies report when, see the Nasdaq earnings calendar.
on the horizon
Thursday, May 4th
- Eurozone: S&P Global Services PMI – April
- UK: Bank of England Consumer Credit – March
- UK: Service PMI – April
- Eurozone: Producer Price Index – March
- Eurozone: European Central Bank interest rate decision
- US: Weekly Initial and Continued Unemployment Claims
- United States: Challenger Downsizing – April
- United States: Productivity and Unit Labor Costs – Q1 2023
- United States: Weekly EIA Natural Gas Inventory
Friday, May 5th
- China: Caixin Service PMI – April
- Eurozone: Retail Sales – March
- United States: Employment Report – March
- United States: Consumer Finance – March
today’s thoughts
“Happiness is not the ideal of reason, but of the imagination.” – Immanuel Kant
