U.S. Stock Futures Rise Amid Anticipation of Fed Rate Cuts
U.S. stock futures are on the upswing again Tuesday, fueled by optimism over expected Federal Reserve rate cuts, signaling continued economic confidence after a slight pause in gains during Monday’s session. Despite Monday’s minor setbacks, Wall Street is eyeing its fifth straight month of growth, bolstered by last week’s record-breaking performances across major indexes.
Wall Street Eyes More U.S. Economic Data
Investors are set to navigate through a slew of U.S. economic reports today, including consumer confidence for March, February’s durable goods orders, and the Richmond Fed’s manufacturing survey. Although significant market shifts are not anticipated ahead of the Good Friday closure, all eyes are on the upcoming release of the Fed’s preferred inflation measure, the core personal consumption expenditures price index.
Apple Faces Increasing Legal and Market Challenges
Apple finds itself under increased scrutiny with new consumer lawsuits alleging the tech giant has monopolized the smartphone market, echoing similar accusations by the Justice Department. These legal battles come as Apple reports a significant decline in iPhone sales in China, facing stiff competition from local manufacturers. Despite these hurdles, Apple’s strategic focus on the Chinese market is evident, with CEO Tim Cook’s recent visit aimed at reinforcing the company’s presence amidst its sales challenges.
Boeing Seeks New Leadership Amid Ongoing Crisis
In a major corporate reshuffle, Boeing is on the hunt for a new CEO as it aims to restore confidence among regulators, customers, and the public following a series of quality and safety concerns. The departure of current CEO Dave Calhoun and other top executives by year-end marks a critical juncture for the aircraft manufacturer, which has seen its stock price plummet due to ongoing aircraft issues.
Oil Prices Dip Slightly, Global Supply Concerns Linger
Oil prices have retreated modestly from Monday’s gains but remain near four-month highs amidst global supply worries. Production cuts by Russia, in line with OPEC+ targets, continue to bolster oil markets. Meanwhile, the geopolitical landscape, especially the situation in Gaza, holds potential implications for oil production and shipping activities, despite a new UN Security Council resolution calling for a ceasefire.
As the week progresses, investors and market watchers will be closely monitoring these developments, gauging their potential impact on economic performance and market stability
$BABA- Alibaba Group announced that its logistics subsidiary Cainiao Smart Logistics Network Limited has withdrawn its initial public offering and listing application on the Hong Kong Stock Exchange. At the same time, Alibaba Group plans to offer to minority shareholders of Cainiao an opportunity to sell all of the outstanding shares of Cainiao held by them to Alibaba Group for 62c per share, representing a total consideration of up to $3.75B. Cainiao shareholders may choose to accept the Offer and sell their shares to Alibaba Group for cash consideration or continue to own Cainiao shares. Alibaba Group owns approximately 63.7% of the fully-diluted equity interest in Cainiao. After completion of the Offer, Alibaba Group plans to align Cainiao’s business to better realize strategic synergies with Taobao and Tmall Group and Alibaba International Digital Commerce Group, as well as support Cainiao to execute a long-term strategic expansion of its global logistics network.
$TSLA- Bernstein lowered the firm’s price target on Tesla to $120 from $150 and keeps an Underperform rating on the shares. Tesla has experienced “soft” China and Europe demand quarter-to-date as well as “constrained” U.S. Model 3 production, the analyst tells investors in a research note. The firm reduced its Q1 forecast to 426,000 units from 490,000 and fiscal 2024 estimate to 1.98M unit from 2.12M. It also introduced a fiscal 2025 earnings per share estimate of $2.22, below the consensus of $3.69. Tesla’s share price remains high on almost every valuation metric compared to both traditional and higher-growth auto makers, and also looks expensive relative to its reduced growth expectations when measured against tech comps, the analyst tells investors in a research note. Bernstein’s discounted cash flow analysis now points to fair value of $93 per share, down from $120, primarily due to lowered estimates for terminal margins, but also due to a push-out in electric vehicle adoption growth.
Cathie Wood’s ARK Investment bought 163K shares of Tesla yesterday
$DELL- Citi maintains Buy ratings on Dell Technologies (DELL) and HP Inc. (HPQ) after the Financial Times reported China has implemented new guidelines that the government will phase out the use of U.S. microprocessors, notably from Intel (INTC) and AMD (AMD). China has been backing government and state-owned enterprises to replace foreign branded PCs with local PCs since 2022, the analyst tells investors in a research note. Given Dell’s and HP’s China PC revenue contribution is 5%-7% in total including government and enterprises, the risk is “fairly limited,” Citi says.
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