big picture today
Asia-Pacific stock markets ended the day rising across the board. South Korea’s KOSPI rose 0.16%, Australia’s ASX All Ordinaries rose 0.24%, China’s Shanghai Composite and Japan’s Nikkei Stock Average rose 0.35% and 0.37% respectively, India’s SENSEX closed 1.02% higher . Taiwan’s TAIEX closed today up 1.31%, pushed by tech stocks. Hong Kong markets are closed today to mark Vesak Day, also known as Buddha’s Birthday or Buddha’s Day. European markets were mixed in intraday trading, with US futures suggesting a positive opening.
At 8:30 a.m. ET, the Personal Income and Expenditure Report for April was released with the latest readings of the Personal Consumption Expenditure (PCE) Price Index and the Core PCE Price Index. Inflation rose 4.7% a year, 0.1 percentage points higher than expected. On a monthly basis, the price index rose 0.4%, beating expectations of a 0.3% gain.
Before the report was released, the market had given a 51.7% chance that the Fed would raise the Fed funds rate by another 25 basis points to between 525 and 550 basis points. A month ago, that probability was just over 8%. Some more inflation data is due to be released before the Fed closes its June policy meeting on June 14, but investors should check the CME FedWatch tool later today to see inflation this morning. You will want to assess the market’s view of the data.
As the U.S. prepares for the holiday weekend, it is reported that Republican and White House negotiators are nearing a deal to raise the debt ceiling and limit federal spending for two years. These same reports suggest that the details are tentative and that a final agreement has yet to be finalized. The market will see this as a positive move forward, but given the tight timeline for a deal, it will wait for the details of a firm deal before breathing a sigh of relief.
The next issue of the Daily Market will be published on Tuesday, May 30, as the US stock market is closed for Memorial Day.
data download
international economy
Tokyo’s core consumer price index rose 3.2% year-on-year in May, slowing from a 3.5% rise in April and below consensus expectations of 3.3%. Still, Tokyo’s core inflation rate, a leading indicator of price trends across the country, has beaten the Bank of Japan’s 2% target for the 12th straight month.
UK retail sales fell 3.0% year-on-year in April, slowing from a 3.9% decline in March but short of consensus expectations of a 2.8% decline.
domestic economy
Above, we touched on our forecast for the April Core PCE Price Index, which is the data that will appear in the April Personal Income Expenditure Report. The consensus forecast is for personal income to rise by 0.4% month-on-month in April, with a similar figure for personal spending in the same month. Also at 8:30 a.m. ET, durable goods orders for April were released, and consensus is that headline numbers are expected to fall 1% month-over-month after rising 3.2% in March.
At 10 a.m. ET, the final University of Michigan Consumer Confidence Index for May will be released, but the market expects it to drop to 57.7 from April’s 63.5.
market
NVIDIA (NVDA) The tech sector rose 3.84% yesterday, with explosive earnings and subsequent gains of more than 25% boosting market sentiment slightly. The euphoria didn’t seem to be contagious, as the only other positive sectors included industrials (0.33%) and real estate (0.24%). Energy (-1.78%) recorded the largest drawdown. The major indices traded along the technology exposure line, with the Russell 2000 Index down 0.70% and the Dow Jones Industrial Average down 0.11%, while the S&P 500 Index rose 0.88% and the Nasdaq Composite Index closed 1.71% higher.shares of Ralph Lauren (RL) The stock rose 5.34% yesterday after several research firms raised their price targets after the company outperformed and improved outlook.
Year-to-date trends in key market indicators are as follows:
- Dow Jones Industrial Average: -1.15%
- S&P500: 8.12%
- Nasdaq Composite: 21.32%
- Russell 2000: -0.38%
- Bitcoin (BTC-USD): 59.50%
- Ether (ETH-USD): 50.69%
Featured stock
Before today’s US stock market trading opens, Big Lot (BIG), Buckle (BKE)and Hibbet (HIBB) plans to report quarterly results.
Marvel (MRVL) Slightly better-than-expected April quarter results, current EPS of $0.27 to $0.37, revenue above expectations of $1.264 billion to $1.397 billion, but bookend consensus forecast EPS of 0.31 $, sales were between $1.264 billion and $1.397 billion. The company said in its earnings call that the performance scale of current AI implementations is still limited by network capacity, saying, “Considering the speed of advancement of AI infrastructure, the refresh rate of the technology takes four years or more, compared to 18-18 years.” It’s happening in 24 months from May.” Standard infrastructure. ”
Costco (COST) EPS for the May quarter was reported at $3.43 per share, $0.12 above consensus expectations. Sales increased 2.0% year-on-year to $53.65 billion, net sales increased 1.9% year-on-year to $52.6 billion, and membership fees increased 6.1% year-on-year to $1.0 billion, accounting for approximately 2% of company revenue. , fell short of the consensus of $54.58 billion. Comparable sales, excluding the impact of gas price and foreign currency movements, increased +3.5% in the quarter, US adjusted earnings +1.8%, Canada +7.4% and Rest of the World +8.4 % and e-commerce was -9.0%. . At the end of the quarter, Costco has 853 warehouses in operation and aims to expand its footprint even further this quarter.
Ulta Beauty (ULTA) reported a stronger-than-expected April quarter, aided by 9.3% comparative sales for the quarter. Profit margins declined in the quarter primarily due to increased inventory drawdowns, lower product margins, higher supply chain costs and de-leveraging of salon costs. The company cuts its 2024 revenue guidance to $11.0 billion to $11.1 billion from $10.95 billion to $11.05 billion, while revamping its EPS outlook to $24.70 to $25.40, against consensus of $25.35. bottom. As part of that guidance, Ulta’s annual comp sales continue to be +4% to 5%.
Gap (GPS) reported a much higher-than-expected net profit for the April quarter, which was still surprising. Revenue for the quarter fell 5.8% year-on-year to $3.28 billion, in line with consensus expectations. Comp sales fell 3% in the quarter, and the company exited in April after operating 3,453 stores in more than 40 countries, 2,601 of which were self-operated. Comparable sales at Old Navy he fell 1%. Gap comparative sales he increased by 1%. Banana Republic comparable sales decreased 8%. Comparable Athleta sales were down 13%. Management expects sales in the mid- to high-single digits for the current quarter compared to last year’s net sales of $3.86 billion. The company continues to expect net sales to decline in the low to mid-single digit range in fiscal 2023, compared to net sales of $15.6 billion in the prior year.
Ford Motor (F) made a contract with Tesla (TSLA) To give customers access to over 12,000 Tesla Superchargers across the United States and Canada. The deal, which doubles the number of fast chargers available to Ford’s electric vehicle customers, will begin in spring 2024.
IPO
In the short term, the timeline for such activities seems rather slim. Readers interested in learning more about the upcoming IPO calendar can visit her Latest and Upcoming IPOs page on the Nasdaq.
After today’s market close
Not only have we arrived at the end of the week, meaning no companies to report after today’s market close, but we also have a long weekend. Enjoy! For more information on which companies report when, visit the Nasdaq earnings calendar.
on the horizon
Tuesday, May 30th
- Japan: Unemployment Rate – April
- Eurozone: Business and Consumer Survey – May
- United States: FHFA Home Price Index – March
- United States: S&P Case-Shiller Home Price Index – March
- US: Consumer Confidence – May
Wednesday, May 31st
- Japan: Retail Sales, Construction Orders – April
- Japan: Industrial Production, Household Confidence – May
- China: Manufacturing and Non-Manufacturing PMI – May
- Germany: Consumer Price Index (Provisional) – May
- USA: Weekly MBA Mortgage Applications
- United States: JOLTS Jobs Report – April
- United States: Weekly EIA Crude Stocks
- United States: Fed Beige Book
Thursday, June 1
- Japan: Manufacturing PMI – May
- China: Caixin Manufacturing PMI – May
- Taiwan: Manufacturing PMI – May
- Eurozone: Manufacturing PMI – May
- Eurozone: Consumer Price Index – May
- UK: Manufacturing PMI – May
- United States: ADP National Employment – May
- United States: Weekly Initial and Continuing Unemployment Claims
- United States: Unit Labor Costs and Productivity in Q1 2023
- US: S&P Global Manufacturing PMI – May
- United States: ISM Manufacturing Index – May
- United States: Construction Spending – April
- United States: Weekly EIA Natural Gas Inventories
Friday, June 2nd
- United States: Jobs Report – May
thoughts of the day
“Oh, long weekend we were just talking about how much we admire you.” ~Anonymous
