Tuesdays Market Prepper
- Greek Debt-Relief Talks
- Five Things For Today
- Ultra Long Bonds
- Fed Set to Leave Interest Rates Unchanged
- Will Trump ‘Do a Big Number’ on the Banks?
- Devil In The Details
- This is Cheap?
- The Death of Snapchat
- Earnings Trade
- Earnings Breakdowns
- Merck higher after boosting guidance
- Charter dips after soft results
- Mixed results from Pfizer
- Gentle gains across global markets
- BP hauls in profit of $1.4B
- There's no oil 'supply gap' in sight - Citi
- Apple earnings on tap
- JD.com eyes taking stake in Tokopedia
- Fed expected to leave interest rates level
- Microsoft event scheduled in NYC
— Earnings Whispers (@eWhispers) April 29, 2017
— Option Millionaires (@OMillionaires) April 30, 2017
— Option Millionaires (@OMillionaires) April 29, 2017
— Option Millionaires (@OMillionaires) April 29, 2017
The world's largest company by market capitalization reports earnings after the bell. Apple (NASDAQ:AAPL) is expected to post revenue of $53B and EPS of $2.02. Sales of iPhones are forecast to increase 1% year over year to 52M, a relatively low mark by Apple standards as many consumers are seen waiting for the iPhone 8. Keep an eye on the growth reported by Apple for its services business after it increased at a solid 18% pace in Q4 to $7.2B, as well as the amount of dividends and buybacks doled out of Cupertino to shareholders. Apple hit a new all-time high of $147.20 yesterday.
European bourses are largely higher after a long weekend, with the Stoxx Europe 600 Index up 0.13%. U.K.'s FTSE +0.5%, Germany's DAX +0.1% and France's CAC +0.3% are all in positive territory for the day as banking stocks show some bounce. In Asia, Japan's Nikkei was solid with a 0.7% gain, while South Korean stocks closed at a six-year high as the nation's presidential election nears. U.S. stock futures are mixed in early trading.
Manufacturing business activity in eurozone jumped in April, according to IHS Markit's Manufacturing Purchasing Managers' Index, which increased to a six-year high of 56.7 from 56.2. Seven out of the eight nations covered showed an improvement in operating conditions, while Greece fell back. "The latest survey readings indicate that manufacturing is growing at an annual rate of approximately 4-5%, which should make a significant contribution to overall economic growth," said Chris Williamson, chief economist at IHS Markit.
Bank of Japan Governor Haruhiko Kuroda gave a strong endorsement for the expansion of the Asian Infrastructure Investment Bank at a seminar today in Yokohama. "Infrastructure needs are huge and it's simply not possible for the Asian Development Bank and the World Bank to fill the gap completely," said Kuroda. China created the AIIB in 2015 in a development some caution will increase its global leadership position to an uncomfortable level.
President Trump plans to replace Comptroller of the Currency Thomas Curry as early as this week, according to The Wall Street Journal. Joseph Otting, a former banker at OneWest Bank who worked with Treasury Secretary Steven Mnuchin, is said to be under consideration for the position. The White House hasn't commented on the report.
The Federal Reserve's policy-making committee holds a meeting today and tomorrow. While trading on Fed funds futures contracts implies less than 5% probability of a rate hike, the language in the FOMC statement could be crucial for investors in assessing the June meeting. The tweaking of words by the Fed will hold even more weight since Fed Chair Janet Yellen is not scheduled to hold a press conference following the two-day meeting.
Crude oil prices are scratching back from one-month lows, with the American Petroleum Institute due to release its supply data later today. Concerns on higher U.S. crude production are being weighed by traders against the output cuts from major OPEC exporters. WTI crude oil futures +0.49% to $49.08/bbl at last check. Brent crude +0.56% to $51.81/bbl.
Chinese e-commerce giant JD.com Inc. (NASDAQ:JD) is in talks to take a major stake in Indonesian firm Tokopedia. Sources indicate that a JD investment of hundreds of millions of dollars could increase the valuation of Tokopedia to over $1B. Tokopedia is a major rival of Alibaba (NYSE:BABA).
Kelley Blue Book forecasts new car sales in the U.S. will fall 3.1% Y/Y in April to 1.445M units. Sales for mid-size SUVs/crossovers are expected to be 8%, while compact and small car sales are seen falling. General Motors (NYSE:GM) is expected to pick up market share during the month from Detroit peers Ford (NYSE:F) and Fiat Chrysler Automobiles (NYSE:FCAU). Kelley Blue Book's forecast for 2017 calls for U.S. auto sales in the range of 16.8-17.3M units, which represents a 1% to 4% decline from last year. Barclay thinks it's important for sentiment that the April seasonally adjusted selling rate comes in at 17M or over.
An intriguing press conference will take place in New York City today when Microsoft (NASDAQ:MSFT) hosts the "Learn What's Next" event. Based off of the #MicrosoftEDU hashtag being used for the event, it appears the company could be planning to make a major announcement related to the education sector. Microsoft is focusing on the education business after Chromebooks have seen a massive market share increase in U.S. schools over the last several years.
It's earnings time for Coach (NYSE:COH), which is expected to post revenue of $1.018B and EPS of $0.44. Analysts see the retailer posting a 1.4% improvement in comparable sales during the quarter. Recent channel checks from Wolfe Research indicated Coach is seeing solid sell-through in the +$400 price category. Beyond the numbers, Coach management could be pressed on the earnings call about the company's M&A track. Recent speculation has Coach in the mix to acquire Jimmy Choo (OTCPK:JYMHF) and Kate Spade (NYSE:KATE).
M&A buzz lit a torch under Angie's List (NASDAQ:ANGI) in AH trading. The Wall Street Journal reported that IAC/InterActiveCorp (NASDAQ:IAC) wants to buy the home-service review site for $8.50 per share. The bid values Angie's List at more than $500M. Shares of Angie's skyrocketed 41% in AH trading.
Fresh off a Sunday deal with Bloomberg to launch 24-hour video, Twitter (NYSE:TWTR) is rolling out even more video deals to fill in its vision for streaming content. At a NewFront sales presentation, the company said it was partnering with BuzzFeed, Vox Media, MLB Advanced Media and Live Nation, as well as the NFL, PGA and WNBA. Shares of Twitter are up 17% over the last month.
Another day, another high: Tesla (NASDAQ:TSLA) continued to accelerate right into its Q1 earnings release, as investors have now bid up the stock +50% YTD. The strong buying action comes ahead of a management update that will include more details on Model 3 production. "The Model 3 is on track to start limited vehicle production in July and to steadily ramp production to exceed 5,000 vehicles per week at some point in the fourth quarter and 10,000 vehicles per week at some point in 2018," CEO Elon Musk said recently. Will tomorrow's presser include any changes to that forecast?
Investors sent AMD (NASDAQ:AMD) 12% lower in AH trading after the company merely matched consensus estimates. Revenue for the quarter was up 18% year over year to $984M, and a net loss of $0.04 was reported. For Q2, AMD sees revenue rising 12% in Q2 at the midpoint of its range to top the estimate from analysts for a 9% increase.
In Asia, Japan +0.7%. Hong Kong +0.3%. China -0.4%. India flat.
In Europe, at midday, London +0.5%. Paris +0.3%. Frankfurt +0.1%.
Futures at 6:20, Dow +0.0%. S&P -0.1%. Nasdaq +0.1%. Crude +0.5% to $49.08. Gold +0.1% to $1256.20.
Ten-year Treasury Yield Flat 2.34%.Today's Economic Calendar
FOMC meeting begins
8:30 Gallup US ECI
8:55 Redbook Chain Store Sales
Sometimes a “breadth divergence” prior to a correction (blue arrow); many times not (red). Current divergence started in Dec; SPX +10% since pic.twitter.com/H9W6gV777g
— Urban Carmel (@ukarlewitz) May 1, 2017
— Charlie Bilello (@charliebilello) May 1, 2017