03/05/24
YESTERDAY IN THE U.S.A.
Wall Street closed higher as investors looked ahead to more corporate earnings and a key labor report set for later in the week.
The S&P 500 gained 0.91% to settle at 5,064.20, the Dow Jones added 0.85%, to close at 38,225.66, while the Nasdaq Composite surged 1.51% to end at 15,840.96.
Megacap technology stocks rose as Treasury yields dipped, with Nvidia and Amazon jumping more than 3% each. Apple rose 2.2% ahead of its quarterly print after the bell.
Chipmaker Qualcomm rose 9.7% on better-than-expected earnings and strong revenue guidance.
Restaurant delivery service DoorDash dropped 10.3% after reporting a wider loss per share.
Used car retailer Carvana soared 33.8% after reporting its best-ever earnings after the bell Wednesday.
Moderna surged 12.7% after reporting a narrower first-quarter loss than Wall Street had expected, as the biotech giant’s cost-cutting helped offset a steep decline in its Covid business.
Apollo Global Management?reported higher first-quarter profit as the firm raked in more management fees and originated a record $40 billion of private credit, a key area of growth.
Peloton Interactive said Chief Executive Officer Barry McCarthy is stepping down as the company undergoes a major restructuring that will reduce its global workforce by 15% in an effort to slash costs.
MGM Resorts International reported first-quarter sales and earnings that beat analysts’ projections, benefiting from the post-pandemic recovery in Macau and a new partnership with Marriott International that helped fill hotel rooms.
Earnings season presses on after the bell Thursday with quarterly reports dominated by Apple and Amgen after the close.Apple rose 6.9% after posting stronger-than-expected sales last quarter and predicting a return to growth in the current period, sparking optimism that a slowdown is easing. Apple also announced largest-ever $110 billion share buyback.
Amgen jumped 12% after the drugmaker reported better-than-expected earnings and expressed encouragement on the call about interim results from an obesity drug candidate.Coinbase posted higher-than-forecast first-quarter revenue and profit, the stock tank 4% in after-hour trading.
Block gained 7.6% after Jack Dorsey’s payments technology company forecast adjusted Ebitda for the full year above the analyst estimate and said it would reinvest some of its profits from Bitcoin into the cryptoassets.
Cloudflare fell 12% after the cloud security firm provided a 2Q revenue forecast range with a midpoint that fell slightly short of estimates.
Expedia fell 7.6% after 1Q gross bookings missed the average analyst estimate and the online travel company cut its sales forecast for the year.
Sprout Social plunged 24% after the provider of online social media management tools cut its full-year revenue forecast.
Hedge funds are turning increasingly defensive as uncertainty around geopolitics and the path of interest rates, as well as the stock market’s April swoon, has investing pros spooked. Positioning data shows that hedge fund added defensive equity positions to their portfolio in April at the fastest pace in eight months, while still being net sellers of global stocks, according to figures compiled by Goldman Sachs Group Inc.’s prime brokerage desk. That snaps a four- month streak of buying. Health care saw the biggest inflows, while consumer discretionary stocks had the largest net selling in seven months, according Goldman’s data.
All eyes will turn to April nonfarm payrolls report, with economists polled by Dow Jones expecting 240,000 job gains and a slowdown from 303,000 additions in March. Wall Street will be on the lookout for signs of easing wage and price pressures amid concerns in recent weeks that the Fed may need to postpone its rate cut plans due to hot economic and labor market data.
EARLIER TODAY IN APAC
Asia Pacific Markets were mixed this morning as Japan and mainland China remained closed.
Stock markets in Japan and mainland China were shut for public holidays. South Korea’s Kospi gave up earlier gains to trade 0.08% down, while the smaller-cap Kosdaq plunged even deeper, trading down by 0.15%. In Australia, the ASX 200 gained 0.59%, while Hong Kong’s Hang Seng added 2%.
Shares of Apple suppliers were in focus after the company reported higher-than-expected earnings. Taiwan Semiconductor Manufacturing Company rose 1.8%, while Hon Hai Technology Group, also known as Foxconn, jumped 2.6%. Apple, whose second-quarter earnings beat market estimates, announced a record stock buyback program of $110 billion. Shares of the iPhone maker jumped 7% in extended trading, with investors now focusing on shares of Apple suppliers in Taiwan and South Korea.
In FX this moring, the Japanese yen was still in focus as it strengthened to 152.75 against the U.S. dollar amid suspected government intervention to support the currency on Monday.
Oil prices edged up in early trade on Friday on the prospect of OPEC+ continuing output cuts, but the crude benchmarks were headed for weekly losses on U.S. economic uncertainty and limited crude supply disruptions caused by the Israel-Hamas war.
Investors will be closely watching the U.S. monthly Job report this afternoon after the U.S. Federal Reserve held interest rates steady at the end of its two-day meeting on Wednesday. Economists are expecting to see 240,000 job gains in the U.S. April nonfarm payrolls report, compared with 303,000 additions in March.
LATEST NEWS HEADLINES
TOP STORIES THIS MORNING
Sony and Apollo made a $26 billion proposal to buy Paramount.
Citadel is leading a suit seeking to have the SEC’s Consolidated Audit Trail declared illegal.
Anglo American ADRs rose after Reuters reported that Glencore is reviewing an approach for the miner.
Jack Dorsey said Block will invest 10% of its profits from Bitcoin back into the token.
Macquarie dropped after profit missed estimates, dragged by its commodities and global markets business.
Amgen soared after CEO Robert Bradway said he’s “very encouraged” by early study results of its experimental obesity drug, MariTide.
SocGen’s earnings exceeded expectations with equities trading, and Credit Agricole also beat, helping it pull forward its profit target a year ahead of schedule.
Apple rose 6% postmarket after saying sales will return to growth this quarter. Revenues and profit beat as China demand surprised on the upside. The iPhone maker announced an additional $110 billion buyback, the largest in US history, and increased its dividend.
领英推荐
Deutsche Bank plans to double the assets it manages for rich families in Southeast Asia and the Middle East over the next five years, its global private banking head said. Separately, Deutsche Bank launched a $1.8 billion leveraged loan deal to support New Mountain Capital’s buyout of Grant Thornton.
Point72 said intervention by Japanese authorities achieved a key objective by holding back the market from piling into lopsided bets against the yen.
The NBA is targeting $76 billion in TV rights deals, people familiar said. Disney and Amazon have agreed to the framework of the deal, while Warner Bros. Discovery is duking it out with Comcast for a third package.
Since WTI Midland was added to the grades that determine the price of dated Brent, the UK benchmark has seen record trading volumes in both physical and derivative markets. The change has eliminated decades-long concerns over Brent’s viability amid shrinking North Sea oil production.
Traders pulled forward Fed rate cut bets by a month to November ahead of today’s US jobs report. The options market is betting stocks will swing widely after the data, which is expected to show a healthy 240,000 increase in payrolls. The release is also keeping yen traders on tenterhooks, as a positive surprise may boost the dollar and trigger more intervention.
TODAY'S AGENDA
MACROS
08:45 : France Industrial Production
10:00 : Italy Unemployment Rate
10:30 : S&P Global UK Services PMI
11:00 : Eurozone Unemployment Rate
14:30 : U.S. Nonfarm Payrolls
14:30 : U.S. Unemployment Rate
15:45 : S&P Global US Services PMI
16:00 : U.S. ISM Services Index
16:30 : Fed's Goolsbee to speak on Bloomberg
Markets closed in China, Japan
CORPORATE EVENTS
Earnings include Intesa Sanpaolo
AUCTIONS
12:00 : Belgium to Sell Bonds through Ori Auction
12:00 : Belgium to Sell 0.65% 2071 Bonds
12:00 : Belgium to Sell 2.25% 2057 Bonds
12:00 : U.K. to Sell GBP500 Million of 27-day Bills
12:00 : U.K. to Sell GBP2 Billion of 90-day Bills
12:00 : U.K. to Sell GBP3.5 Billion of 181-day Bills
TECHNICAL SNAPSHOTS