Stock market futures are looking up this morning, with the S&P 500, Nasdaq 100, and Dow Jones all trading higher than their fair values. This positive trend is fueled by strong performances in big tech stocks and a continuation of the good vibes from the start of the year.
Even though the stock market was closed for Good Friday, we still got some important financial news. The February report on Personal Income and Spending was released, showing personal income went up by 0.3% and spending increased by 0.8%. The report also highlighted inflation rates with the PCE Price Index rising by 0.3%.
A key point from this report is that prices are staying high, but also that people are spending more than they're earning, dipping into their savings to do so. The personal savings rate has dropped, showing that this spending boost is coming from savings.
As for the bond market, there hasn't been much change since Thursday, with a slight decrease in the 2-year note yield and a small increase in the 10-year note yield.
In company news:
- UnitedHealth (UNH, Financial) shares are slightly up as the company announces its CFO John Rex will also take on the role of President.
- Semtech (SMTC, Financial) shares have risen after their earnings report, with slight misses and in-line guidance.
- Oxford Industries (OXM, Financial) shares took a hit after missing earnings expectations and providing weaker guidance.
- AT&T (T, Financial) is dealing with the aftermath of a data leak on the dark web.
- U.S. Steel (X, Financial) is seeing a small increase in share price following support for its deal with Nippon Steel, despite political opposition.
- Microsoft (MSFT, Financial) and OpenAI are rumored to be working on a massive AI project.
- Tesla (TSLA, Financial) plans to raise the price of its Model Y in the U.S.
- 3M (MMM, Financial) celebrates the launch of Solventum Corporation as a separate entity and settles a significant legal case.
- UPS (UPS, Financial) announces an expansion of its partnership with the USPS, while FedEx reveals its current agreement with USPS will end in 2024.
Looking at overnight developments, Asian markets had a mixed start to the week, with China and India seeing gains, while Japan's Nikkei index dropped. Several regions were closed for Easter Monday. Economic data from China showed manufacturing growth, and Japan reported various financial statistics indicating modest economic activity. European markets were also closed for Easter Monday, but there's buzz about potential interest rate cuts from the ECB.
Today's News
Despite falling short of Citi's expectations, semiconductor sales in February showed resilience, with the Semiconductor Industry Association reporting a 0.8% month-over-month increase to $43.6 billion. Citi analyst Christopher Danely highlighted the role of dynamic random access memory sales in this performance. Although the volume of semiconductor units excluding discretes dipped below expectations, a significant 11.6% increase in the average selling price, driven by microcontroller and memory pricing, suggests a potential inventory replenishment in 2024. Citi remains optimistic about the semiconductor industry's outlook.
Legislation aimed at banning lab-grown meat is being considered in several U.S. states, including Alabama, Arizona, Florida, and Tennessee. The proposed laws have sparked a debate between safety and innovation, with companies like Tyson (TSN) investing heavily in cell-cultured meat technology. This evolving battle in the food industry underscores the tension between traditional agriculture and emerging food technologies.
Stock futures indicated a positive start to April's trading, buoyed by expectations set by the latest core PCE price index and comments from Fed Chief Jay Powell. The financial markets reacted positively to the alignment of inflation data with the Federal Reserve's targets, setting a cautiously optimistic tone for the month ahead.
Li Auto (LI, Financial) and CANOO (GOEV, Financial) stood out in early trading, with Li Auto surpassing Q1 delivery expectations and reaching a significant milestone of 700,000 cumulative deliveries. Meanwhile, CANOO's stock rose in anticipation of its Q4 earnings report, reflecting investor optimism about the company's performance.
The financial community withdrew $7.5 billion from fund assets, marking the second consecutive week of net outflows. Despite this, the iShares Core S&P 500 ETF (IVV, Financial) and iShares Russell 2000 ETF (IWM, Financial) experienced significant inflows, highlighting a mixed sentiment among investors.
China has voiced its opposition to the U.S.'s tightened semiconductor export rules, arguing that these measures introduce greater uncertainty into the global chip industry. This development reflects ongoing tensions between the two economic powerhouses over technology and trade.
Tesla (TSLA, Financial) announced price increases for certain models in China and the U.S., a move that had been hinted at by the electric vehicle giant. This adjustment is seen as a strategic step to manage demand and navigate the competitive landscape in the EV market.
AdTheorent Holding (ADTH, Financial) saw its stock price increase premarket following the announcement of its acquisition by Cadent for $3.21 per share. This merger is expected to create a significant player in the advertising technology space.
CleanSpark (CLSK, Financial) reported an increase in Bitcoin mining output for March, signaling robust growth in its cryptocurrency mining operations. The company's strategic expansions and operational efficiencies have contributed to this positive performance.
Microsoft (MSFT, Financial) has decided to sell its Teams app separately from its Office suite globally, a move that follows its earlier decision to unbundle these products in the EU. This strategic adjustment aims to comply with antitrust regulations and cater to diverse customer needs.
Ardagh Metal Packaging (AMBP, Financial) received a downgrade from Bank of America, citing concerns over the company's cash-flow prospects. This assessment reflects the challenges facing the metal beverage cans supplier in the near term.
NIO Inc. (NIO, Financial) reported a 14.3% year-over-year increase in vehicle deliveries for March, despite a quarterly decline. The company’s ability to maintain growth amidst competitive pressures highlights its resilience in the electric vehicle sector.
Spot gold prices reached a new record high, driven by expectations of a potential Federal Reserve interest rate cut. This surge in gold prices reflects investors' search for safe-haven assets amidst economic uncertainties.
UPS (UPS, Financial) has secured a major air cargo contract with the USPS, becoming its primary air cargo provider in the U.S. This significant partnership underscores UPS's strong position in the logistics and delivery sector.
Baidu (BIDU, Financial) announced its upcoming AI developer conference, signaling the tech giant's continued focus on artificial intelligence innovations. This event is expected to showcase Baidu's advancements in AI technology and its applications.
Cowen analysts believe the recent sell-off in Celsius Holdings (CELH, Financial) was an overreaction, noting the alignment of PepsiCo's (PEP) interests with CELH's growth trajectory. This reassessment suggests a positive outlook for Celsius Holdings amidst its partnership with PepsiCo.
Bank of America Securities upgraded Healthpeak Properties (DOC, Financial) to Buy, citing underappreciation of its net operating income prospects. This upgrade reflects a more optimistic view of the real estate investment trust's future performance.
Li Auto (LI, Financial) celebrated surpassing 700,000 cumulative deliveries, a testament to the company's growing influence in the electric vehicle market. This milestone highlights Li Auto's competitive edge and its potential for continued growth.
Rhythm Pharmaceuticals (RYTM, Financial) announced a $150 million investment agreement, bolstering its financial position and supporting its strategic initiatives. This investment reflects confidence in Rhythm Pharmaceuticals' growth prospects.
Inspira Technologies OXY (IINN, Financial) disclosed a strategic investment, aiming to strengthen its financial foundation and support its corporate objectives. This move demonstrates the company's commitment to advancing its innovative respiratory technology.
XPeng (XPEV, Financial) reported a significant increase in smart EV deliveries for March, underscoring the company's strong performance and expanding user base. This growth reflects XPeng's successful market strategies and product offerings.
Townsquare Media (TSQ, Financial) announced a share repurchase agreement, signaling confidence in its business model and future prospects. This strategic buyback underscores the company's commitment to delivering shareholder value.
