North American News
US indices close mixed. NASDAQ saved by Nvidia and Microsoft
- Dow industrial average leads the declines
The major US stock indices are ending the session with mixed results. The NASDAQ index is closing higher thanks to the likes of Microsoft and Nvidia. Microsoft shares rose 7.24% while Nvidia gained 2.72%. Shares of micron rows of 4.95% and snowflake up 8.54% also contributed to gains.
The Dow industrial average and S&P index. For the Dow, Home Depot fell -2.75%, Merck fell -2.7% and Honeywell felt -2.58%.
The final numbers are showing:
- Dow industrial average fell -228.98 points or -0.68% at 33301.86
- S&P index fell -15.62 points or -0.38% at 4056.00
- NASDAQ index rose 55.18 points or 0.47% at 11854.34
Meta earnings come in at $2.20 versus $2.01 estimate. Revenues beat as well.
- Meta-announces 1st quarter earnings results
- Earnings-per-share $2.20 versus $2.01 estimate
- Revenues $28.65 billion versus $27.65 billion estimate
- Advertising revenues $28.1 billion versus $26.76 billion estimate
- Family of apps revenue $28.3 billion versus 26.88 billion expected
- Reality labs revenues 339 million versus expected $613.1 million
- Monthly Active users 2.99 billion vs 3 billion
- Daily active users 2.04 billion versus expected 2.01 billion
- $29.50B to $32 billion revenue guidance higher than expectations of $29.4 billion
- Expenses $86-$90 billion from $86 billion-$92 billion
Meta-shares are trading up 9.46% at $229.06
Atlanta Fed GDPNow forecast for 1Q GDP growth falls to 1.1%
- Last estimate before GDP release on Thursday
In their own words:
The GDPNow model estimate for real GDP growth (seasonally adjusted annual rate) in the first quarter of 2023 is 1.1 percent on April 26, down from 2.5 percent on April 18. After recent releases the US Census Bureau and the US National Association of Realtors, the nowcasts of first-quarter real personal consumption expenditures growth and first-quarter real gross private domestic investment growth decreased from 4.2 percent and -5.8 percent, respectively, to 2.7 percent and -8.0 percent, while the nowcast of the contribution of the change in real net exports to first-quarter real GDP growth increased from 0.26 percentage points to 0.30 percentage points.
US treasury auctions off $43 billion of five-year notes at 3.50%
- WI level at the time of the auction 3.506%
The U.S. Treasury has auctioned off $43 billion of five-year notes:
- high yield 3.50%
- WI level at the time of the option 3.506%
- Tail -0.6 basis points versus the 6 month average of -0.6 basis points
- Bid to cover 2.54X vs 6 month average of 2.49X
- Directs (a measure of domestic demand) 17.3% versus 6 month average of 17.6%
- Indirects (a measure of international demand) 69.1% versus 6 month average of 68.8%
Commodities
Gold dipped back below is 100 hour moving average
- Earlier test of the moving average support
The price of gold is down around $10 or -0.50% at $1986.40. That comes after reaching a high of $2009.24 earlier in the day.
The move to a new session lows has also seen the price fall back below its 100 hour moving average currently at $1991.39. Admittedly the price has been above and below that moving average of late as the price fluctuates up and down. However earlier today, the price held support against that level before breaking .
US weekly EIA oil inventories -5054K vs -1486K expected
- Weekly US petroleum inventories
The consensus numbers for the EIA data:
- Crude -1486K
- Gasoline -2408K vs -933K exp
- Distillates -576K vs -839K exp
- Refinery utilization +0.3% vs +0.3% exp
API data released late yesterday:
- Oil -6083K
- Gasoline -1919K
- Distillates +1693K
WTI crude oil futures to settle at $74.30
- Down -$2.77 or -3.59%
The price of WTI crude futures are settling at $74.30. That’s down $2.77 or -3.59%. The low for the day has reached $74.26, just below the settlement level. The high reached $77.93.
Technically, the gap from the the OPEC+ production cut decision from March 31 between $75.70 and $79 was filled today. The initial low for the day reached earlier today extended to $75.64 – just below the low gap level – before bouncing up to $77.22. The last 3 hours have seen a run to the downside with a price falling -$2.96 or -3.83%.
EU News
European indices close mostly lower
- Spain Ibex closes near unchanged
The major European indices are closing mostly lower, but all of the intraday lows.
- German DAX closed down -76.40 points or -0.48%. The low price traded down -177.78 points
- Frances CAC closed down -64.95 points or -0.86%. The low price traded down -104.09 point
- UK’s FTSE 100 closed down -38.51 or -0.49%. The low price traded down -68.21 points
- Spain Ibex closed up 3.40 points or 0.40%. The low price traded down -96.1 points
- Italy’s FTSE closed down minus 166.89 or -0.61%.
Other News
Biden: I am happy to meet with McCarthy, but….
- The Republican debt ceiling bill advance in US House toward debate and possible vote on the passage
Pres. Biden says that he is happy to meet with US House Speaker McCarthy, but not on whether the debt limit gets extended. That is not negotiable.
Meanwhile the Republican debt ceiling bill is advancing in the U.S. House toward possibly a vote.
The House Republicans have introduced a debt ceiling bill called the Republicans’ Limit, Save, Grow Act of 2023.
Here are the major provisions:
- Debt Ceiling Increase: The bill would raise the nation’s borrowing limit until March 31, 2024, or until the national debt increases by $1.5 trillion, whichever comes first.
- Spending Cuts: In exchange for raising the debt ceiling, the bill includes deep cuts in government spending. The nonpartisan Congressional Budget Office estimates that the proposal would cut government deficits by $4.8 trillion over 10 years.
- Changes and Adjustments: Republicans made overnight changes to address concerns from holdout lawmakers. They canceled additional provisions related to climate and energy from President Biden’s Inflation Reduction Act. They also made adjustments to tax credits on clean fuels and rules around the Supplemental Nutrition Assistance Program.
- Republican Majority: House Republicans hold a narrow majority, and the final passage of the bill could be a close vote. Some lawmakers have not committed to supporting the bill, and one Republican has previously indicated that he would vote against it.
- Democratic Opposition: Democrats oppose the bill’s spending cuts, arguing that they would harm low-income families, jeopardize food assistance for older Americans, and create administrative hurdles for Medicaid recipients.
Cryptocurrency News
Bitcoin takes a tumble in the last few minutes of trading
- Falls from $29,730 to $28,200 – now $27,723
The price of bitcoin is taking a tumble in the current hourly bar. The price has moved from a high of $29,730 to a low of $28,200.
Looking at the hourly chart, the fall has taken the price down to test the 200 hour moving average at $28,256. The current price trades at $28,290 as buyers try to stall the fall nearly moving average level. The 100 hour moving average is down at $27,835.
The price has now moved to a new low of $27,723 which has taken the price below the 100 hour moving average.The fall from the high is now 7.58% or $-2273
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