(US) Market Trading Hours Summary: HD and WMT blow away expectations yet again via TradeTheNews

Summary: Both HD and WMT managements cited stimulus checks as a factor in the continued robust sales trends, but also indicated they remain confident that underlying business trends will remain strong. The Dow lagged in early trade while small caps and highly speculative sectors saw significant bounces. The US dollar slipped, testing one-month lows. Bitcoin continued to track lower below $45K.

Overnight: - Japan Q1 Preliminary GDP Q/Q: -1.3% v -1.2%e; GDP Annualized Q/Q: -5.1% v -4.5%e - Japan Econ Min Nishimura noted that Q1 GDP decline due largely to a dip in consumption, largely in services due to the Covid-19 emergency measures - Japan Chief Cabinet Sec Kato stated that would aim to restore GDP to pre-COVID levels before the end of this fiscal year - RBA May Minutes reiterated its forward guidance of no rate rise until actual inflation was sustainably within the 2-3% target band with conditions unlikely before 2024 - UK labor data improved despite the recent lockdown; driven by the extension of the government's furlough scheme.

US Session -(IS) Sec of State Blinken: Best path forward for Israel and Gaza is two states -(US) Treasury Sec Yellen: has confidence Biden investment and tax plans will improve net profitability of US corporations - Chamber of Commerce event comments -(US) APR HOUSING STARTS: 1.569M V 1.702ME; BUILDING PERMITS: 1.760M V 1.770ME -(BR) Brazil Economic Ministry Fiscal Report: raises 2021 growth and inflation outlook -(MX) Mexico Foreign Min Ebrard: In talks with DHS, CBP over border restriction, wants border restrictions lifted by summer -(US) Colonial shippers said to indicate pipeline communications system is down - press.

Europe and Asia -(PT) Portugal Apr PPI M/M: 1.5% v 1.7% prior; Y/Y: 4.9% v 0.5% prior -(UK) PM Johnson: No conclusive reason to delay easing of lockdown measures -(EU) EU Commission adopting plan for single corporate tax rulebook for the EU -(EU) ECB chief Lagarde: Will stand by our commitment to protect economy -(UK) BOE's Broadbent: a 1% rise in rates adds £20B to UK debt.

Corporate Headlines -AMZN said to have made an $9.0B offer to acquire MGM Studios - Variety -HD EPS and Rev top estimates; Q1 SSS +31% -BIDU beats; guides Q2 Rev $4.5-5.0B v $4.62Be -WMT beats and raises; US Q1 SSS +6% -M beats and raises -CORE confirms to be acquired by Performance Foods Group in cash and stock deal valued at $2.5B -ADS provides long-term financial targets; Targets FY23 Rev >$23B - investor day -VOD guides initial FY22 Adj EBITDA €15.0-15.4B, FCF (pre-spectrum) > €5.2B v €5.4Be -JPM COO Gordon Smith to retire at the end of 2021, naming Daniel Pinto President and COO, effective Dec -BAC Raising minimum wage to $25/hr to attract talent (from $20/hr) by 2025.

Indices: - Dow Jones -0.2% - S&P 500 +0.0% - Nasdaq +0.7% - Russell 2000 +0.6%.

Treasuries: - US 2-yr: flat at 0.153% - 10-yr: +0.5bps at 1.645% - 30-yr: +1.6bps at 2.37% - 2-10 spread: +0.5bps at 1.494%.

Commodities: - May crude oil $65.93, -0.5% - Jun Gold $1,867/oz, -0.0% - May Silver $28.29/oz, +0.1% - May Copper $4.731/oz, +0.4%.

- Source TradeTheNews.com


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