Fed’s Stance on Interest Rates:
Federal Reserve Chairman Jerome Powell, in a recent address to the Stanford Graduate School of Business, signaled a cautious approach toward future rate reductions. Powell emphasized the need for further data analysis before commencing a rate-cutting cycle, despite acknowledging the possibility of rate decreases later this year. This stance comes in response to recent data showcasing stronger-than-anticipated job gains and inflation, challenging the immediate prospects for rate cuts.
Inflation and Economic Outlook Adjustments:
The anticipation of U.S. rate cuts has diminished, with markets adjusting their expectations for both the timing and scale of potential Fed easing. Contributing to this shift are comments from Atlanta Fed President Raphael Bostic, who suggests a likely single rate cut in the fourth quarter of 2024, underscoring the persistence of inflationary pressures. The robust private payroll figures for March, showing an addition of 184,000 workers, further complicate the narrative, reducing the likelihood of a June rate cut to around 62%.
Disney Shareholders Back Current Board Amid Activist Challenge:
In a pivotal shareholder vote, Walt Disney has secured support for its existing board members, marking the end of a contentious battle with activist investors. This endorsement enables CEO Bob Iger to forge ahead with Disney’s ambitious restructuring plans, aiming to rejuvenate its core franchises and achieve profitability in its streaming ventures. Disney’s stock has seen a significant upswing since January, reflecting investor confidence in the company’s strategic direction.
Tesla Eyes Expansion in India Amid Market Challenges:
Tesla is reportedly exploring locations in India for a new electric vehicle plant, a strategic move to tap into the burgeoning EV market in the world’s most populous country. This exploration occurs against the backdrop of slowing demand in Tesla’s key markets, the U.S. and China, and recent delivery declines that have sparked debate about the company’s long-term prospects. Critics and supporters alike are closely watching Tesla’s next steps, with some viewing the delivery downturn as a temporary setback, while others, like hedge fund manager Per Lekander, predict more dire outcomes for the EV giant.
Oil Prices and Global Supply Dynamics:
Oil prices have experienced slight declines but remain close to five-month highs, following OPEC+’s decision to maintain its production cuts. Geopolitical tensions and supply disruptions continue to influence the market, with ongoing conflicts in the Middle East and Ukrainian attacks on Russian refineries adding to supply concerns. However, mixed U.S. inventory data and robust domestic fuel demand suggest a complex balance between supply constraints and consumption patterns in the world’s largest oil consumer.
$AAPL- UBS tells investors in a research note that the firm’s analysis of Apple’s App Store suggests March revenue was up 13% year over year, a 200 basis point increase from the 11% growth in February. March App Store results bring the quarter to 11.6%, in line with the firm’s estimate. While the March quarter data is encouraging, UBS notes that the June 2023 comp is almost 500 bps more difficult on a y/y basis relative to March.Apple has teams investigating personal robotics with an eye on its “next big thing” following the failure in electric cars, Mark Gurman of Bloomberg reports, citing people familiar with the situation. Apple engineers have been exploring a mobile robot that can follow users around their homes and have also developed an advanced table-top home device that uses robotics to move a display around, sources told Bloomberg. The effort is still in the beginning stages and it’s unclear if the products will ultimately be released, Gurman says, while adding that Apple is under growing pressure to find new sources of revenue.
$TSLA- Tesla is bringing 0% interest loans to China for a limited time as a new incentive for both the Model 3 and Model 3, Electrek’s Fred Lambert reports. According to data from China’s Passenger Car Association, Tesla’s market share dropped from 10.5% to around 6.7% throughout 2023, the report notes.
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