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Breakfast Bites - Wed Apr 19, 2023

Rise and shine everyone

Markets are looking a little shaky this morning. We had earnings from Netflix last evening and JNJ, Goldman Sachs, and Lockheed Martin before market open yesterday. It’s a mixed bag of results but so far, more beats than misses.

Netflix added 1.75m subscribers (slightly below expected) but beat on EPS $2.88 vs $2.86 est. Revenues came in slightly lower at $8.16B vs. $8.18B est. The Q2 guidance is what the market did not like as they guided to lower EPS of $2.84 vs. $3.07 est. and revenues of $8.24B vs $8.47B est.

The major earnings on the cards today is Morgan Stanley & Abbott before market open; Tesla and Lam Research after market close.

US Equities are down this morning, along with Gold, Oil, and Bitcoin. Dollar and rates have a slight bid.

Asia and Australia

  • Asian markets ended with a negative bias Wednesday. Losses greatest in Hong Kong, which shrugged off last night's Ant Group news to end sharply lower.

  • Yellen will deliver a speech in Washington on Thursday to lay out the Biden administration's principal objectives for the US-China economic relationship

  • 14 out of 22 of BOJ watchers expect no change to policy at the April 27-28 MPM. Remaining eight expect amendments to forward guidance. - I don’t expect a change either but, it would be good to get more clarity on the forward guidance.

  • Iron ore futures on China's Dalian exchange down 7% from early April highs, recently falling to their lowest since late December.

Europe, Middle East, Africa

  • European markets lower on Wednesday.

  • UK Inflation comes in with a surprise re-acceleration. CPI at +10.1% y/y vs consensus of +9.8% but slightly off from February's print of +10.4%.

  • March Eurozone CPI eased to 6.9% from 8.5% in the prior month according to Eurostat data, largely on rapidly falling energy costs as natural gas prices keep declining after surging a year ago on the Ukraine war.

The Americas

  • US paychecks starting to outpace inflation, amplifying purchasing power and giving Fed more ammo to hike in May

  • St. Louis Fed President Bullard backs more rate hikes, pushes back against recession talk

  • Tesla cuts some Model Y and Model 3 US prices for sixth time this year ahead of Q1 results

  • Meta to begin another round of layoffs, potentially affecting around 4K jobs

  • ASML beats but notes some customers delaying timing of their demand for certain tools


(news taken from Reuters, FT, Bloomberg; Calendar from Trading Economics)


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