Stocks roll over as investors wonder if this earnings season is perhaps as good as it can get.
Summary: US indices opened lower as investors sifted through another cascade of corporate earnings reports that highlighted managements’ capabilities to largely offset supply-side cost pressures. The US dollar firmed along with continued upside pressure in most commodity markets. Bond prices firmed up as equity markets came under pressure. The VIX popped above 20 for the first time in more than a month.
- RBA left Cash Rate Target unchanged at 0.10% and maintained its 3-year Yield Target at 0.10% (both as expected); Keeps its dovish undertones and puts focus on its July meeting whether to retain the April 2024 bond or shift into the November 2024 maturity for its 3-Year Yield Target; to also consider a 3rd QE program at that time
- Australia Mar Trade Balance: A$5.6B v A$8.2Be
- Australia MP Ted O'Brien seeks to fight Communist China with boycotts and sanctions
- Analysts believe that if Australia terminated lease of Port Darwin to the Chinese early it could kill all future Chinese investment into Australia
- South Korea CPI moves back above target to its fastest pace since Aug 2017 (YoY: 2.3% v 2.1%e).
-(BR) Brazil Mar PPI Manufacturing M/M: 4.8% v 3.7% prior; Y/Y: 29.2% v 25.4% prior
-(US) MAR TRADE BALANCE: -$74.4B V -$74.3BE
-(US) MAR FACTORY ORDERS: 1.1% V 1.3%E
-(US) MAR FINAL DURABLE GOODS ORDERS: 0.8% V 0.5%E; DURABLES (EX-TRANSPORTATION): 1.7% V 1.6%e
-(CA) CANADA MAR INT'L MERCHANDISE TRADE (CAD): -1.1B V +0.6BE
-(US) May IBD/TIPP Economic Optimism: 54.4 v 56.4 prior.
Europe and Asia
-(UK) Govt spokesperson: PM has no plans to accelerate easing of lockdown measures
-(IT) Italy PM Draghi: Italy is ready to welcome tourists again; hopes tourism will open up in mid-May.
-PFE continue to expect a revenue CAGR of at least 6%, on a risk-adjusted basis, through the end of 2025, as well as double-digit growth on the bottom line
-DD raises FY21 $3.60-3.75 v $3.47e; Rev $15.7-15.9B v $16.6Be, adj EBITDA $3.98-4.08B (prior $3.30-3.45; Rev $15.4-15.6B)
-CVS beats and raises
-UFS Paper Excellence reportedly exploring deal to take Domtar private; UFS confirms talks - press
-UAA beats and raises
-ZBH beats and guides initial FY21 above consensus
-CMI beats and raises outlook
-JOBS confirms receipt of an updated Non-Binding Proposal to Acquire the Company for $79.05/shr -F reports Apr US Vehicle Sales 197.8K +64.8% y/y.
- Dow Jones -0.7%
- S&P 500 -1.1%
- Nasdaq -2.2%
- Russell 2000 -1.6%
- US 2-yr: flat at 0.16%
- 10-yr: -4.1bps at 1.564%
- 30-yr: -4.5bps at 2.243%
- 2-10 spread: -4.1bps at 1.41%
- May crude oil $65.30, +1.3%
- Jun Gold $1,793/oz, +0.1%
- May Silver $26.96/oz, flat
- May Copper $4.529/oz, flat
- Source TradeTheNews.com