- Asian Stocks Track US Rebound on Profit Optimism: Markets Wrap
(Bloomberg) — Asian stocks rose after US shares rebounded from a $2 trillion selloff on optimism big tech leaders will announce hefty profits this week. Benchmark indexes advanced in Japan and South Korea, while futures in Hong Kong also pointed to gains. - Oil Edges Higher as Traders Weigh Easing Middle East Risks
(Bloomberg) — Oil edged higher as traders weighed the next steps between Israel and Iran amid signs of easing hostilities following a tit-for-tat exchange of attacks last week. Brent traded near $87 a barrel after losing 0.3% on Monday, and West Texas Intermediate was above $82. - Gold prices slip to 2-1/2-week low as Middle East tensions ease
Gold prices fell on Tuesday to their lowest levels in more than two weeks on easing concerns of an escalation in the Middle East crisis, and as investors booked profits while awaiting key U.S. data for fresh clues on the Federal Reserve’s rate trajectory. Spot gold was down nearly 1% at $2,304.99 per ounce, as of 0336 GMT. U.S. gold futures fell 1.2% to $2,318.80. - Hedge Funds Snap Up Japan Rates Traders in Bet on Comeback
(Bloomberg) — The upending of Japan’s government bond markets after almost a decade of predictability has sparked a flow of rates traders from banks to hedge funds offering the prospect of much higher pay. - BOJ to Hold Rates With Focus on Hawkish Signals to Buoy Yen
(Bloomberg) — The Bank of Japan is widely expected to leave its benchmark interest rate unchanged Friday, with investors focusing on any hints of a less dovish tilt as the yen trades around a 34-year low. Governor Kazuo Ueda and his fellow board members are set to keep the short-term rate around 0% to 0.1% at the end of their two-day policy meeting. - TikTok Ramps Up Lobbying as Congress Moves to Crack Down on App
(Bloomberg Government) — social media giant TikTok’s Chinese-based parent company boosted its federal lobbying this year as it faced unprecedented congressional efforts to banish it from the US. TikTok’s parent Byte Dance spent $2.7 million in the first quarter of this year compared to $1.6 million for the same period in 2023 and $1.4 million in the fourth quarter of last year. - Stocks Climb as US Earnings Kick Into High Gear: Markets Wrap
(Bloomberg) — Stocks climbed after a $2 trillion selloff, with investors hanging their hopes on whether big tech will meet the lofty expectations for artificial intelligence during the busiest week of the earnings season. About 180 companies in the S&P 500 representing over 40% of its market capitalization are due to report this week. - Goldman Ditches Robo-Investing for Masses in Sale to Betterment
(Bloomberg) — Goldman Sachs Group Inc. is closing down its automated-investing business for the masses after clinching a deal with Betterment. The bank has struck an agreement to transfer clients and their assets from the unit known as Marcus Invest to Betterment, a $45 billion digital investment-advisory firm. - Biden Tells Zelenskiy Aid Will Flow Quickly Once Senate Votes
(Bloomberg) — US President Joe Biden told his Ukrainian counterpart Volodymyr Zelenskiy that his administration would move quickly to distribute security assistance if the Senate votes this week to approve an aid package including $61 billion for Kyiv. During a call Monday, Biden said the US aims to swiftly ship the battlefield and air defense assistance. - Electric-vehicle shares were weak Monday, after Tesla decided to again slash prices across its vehicle lineup in China over the weekend. Meanwhile, legacy automakers rose.
Tesla’s price cuts in China could cost the carmaker the entirety of its operating profit in the world’s biggest electric-vehicle market, Evercore ISI warned in a new report. The automaker had the most margin to give in North America, where it also marked down vehicles over the weekend, Evercore’s Chris McNally wrote Monday. Its business in China “may now be breakeven or even negative” on the basis of earnings before interest and taxes, he said. Tesla also dropped prices in both the US and Germany after disappointing first-quarter sales contributed to swelling inventory. In China, the revamped Model 3 fell to 231,900 yuan ($32,000) from 245,900 previously – back to its special launch price. The Model Y was discounted to 249,900 yuan, the cheapest it’s been in at least five years. - Verizon Communications shares fell 4.7% on Monday, reversing an initial gain that came after the retail wireless provider reported adjusted first-quarter earnings that beat expectations. It also affirmed its outlook for the full year. Analysts see the results are mixed but note positive trends in the company’s wireless business.
FIRST QUARTER RESULTS: Adjusted EPS $1.15 vs. $1.20 y/y, estimate $1.12. Operating revenue $33 billion, estimate $33.21 billion. Wireless Service revenue $19.5 billion, estimate $19.47 billion. FIOS Internet subscribers +53,000, estimate +60,065. Adjusted Ebitda $12.1 billion, +1.7% y/y, estimate $12.06 billion. YEAR FORECAST: Sees wireless service revenue growth +2% to +3.5%. Still sees adjusted EPS $4.50 to $4.70, estimate $4.57. Still sees capital expenditure $17 billion to $17.5 billion, estimate $17.26 billion. - Steelmakers Nucor and Cleveland-Cliffs reported cooler demand for steel from some key customers that pushed down first-quarter sales and profit.
Cleveland-Cliffs said Monday evening that steel distributors were on a “buyers strike” for the first two months of the year, contributing to lower first-quarter sales. The company said it sold more steel to the automotive industry during the quarter to offset distributors’ tepid demand, though Cliffs reported that purchasing by distributors improved in March. Steel demand started slowing down late last year and that continued into 2024. Nucor on Monday reported profit from its steel products business, which mostly manufactures structural items for the construction industry, fell by 47% from the same period a year earlier. Nucor’s overall sales for the quarter were slightly below expectations. - CNH Industrial shares slid 6.6% after the tractor and construction machinery maker named Gerrit Marx to replace Scott Wine as chief executive officer. Analysts call Wine’s departure surprising, and the shakeup prompted BofA to downgrade its rating on the shares.
CNH is also postponing its investor day presentation — originally scheduled for May 21 — to a later date. BofA, Michael Feniger: Cuts rating to neutral from buy, saying the CEO change adds uncertainty amid an agricultural cycle downturn. “Mr. Wine ‘s vision was just starting to bear fruit and the postponement of May ‘s investor day pushes out a key catalyst at a critical time”. PT to $13.20 from $15.50. - Cadence Design Systems Inc’s shares are down 6.1% in extended trading after reporting 2Q24 revenue and adjusted earnings per share guidance falling short of analyst estimates.
For 1Q24, Company reported an adjusted EPS $1.17 vs $1.29 YoY, beating estimates of $1.13. Revenue of $1.01 billion though -1.2% YoY, was in line with consensus estimates. For 2Q24, Cadence Design forecasts revenue ranging $4.56-4.62 billion, adjusted operating margin of 42-43% and adjusted EPS of $5.88-5.98.
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