Yazar: Geoffrey Smith
Investing.com – Tesla (NASDAQ 🙂 shared record profits, but this was entirely due to speculative gains in the sale of emission credits. The Fed begins its two-day meeting amid signs of global recovery. The earnings season is at its peak, with earnings from industrial premium shares, Microsoft (NASDAQ 🙂 and Alphabet (NASDAQ :). The rally in commodities is continuing and even taking crude oil with it ahead of US stock data.
What you need to know in financial markets on Tuesday, April 27:
1. Tesla’s record wins are disappointing
Tesla reported record earnings for the first quarter, but its shares fell 2% on concerns about its core profitability. The net profit of $ 438 million was below the expectations of $ 509 million.
The operating loss was also hidden by $ 518 million in legal loan sales and $ 101 million from the sale of part of the $ 1.5 billion Bitcoin investment. As deliveries more than doubled, the low-margin Model 3 had more and more shares in the sales mix, with revenue ‘only’ rising by 74%.
However, Goldman Sachs (NYSE 🙂 raised its share price target to $ 860 upon the results.
With the results of Microsoft and Alphabet, the mega-capacity earning season continues.
2. Consumer confidence, Parliament price indices, Fed, Dallas and Richmond Fed
The Fed’s two-day meeting begins with the expectation that there will be no change in policy, but the emphasis on the Fed’s guide may change as signs of recovery become more visible.
Two of the world’s most pessimistic central banks in recent years will set the tone tonight: the Bank of Japan (BoJ) and the Swedish Riksbank have raised their looks (without taking their foot off the incentive pedal). Also, South Korea reported stronger-than-expected growth of 1.6%, and Italian business confidence hit a three-year high.
On the domestic data front for the Fed meeting, there are housing price data, the Conference Board consumer confidence index, and the monthly job surveys of the Dallas and Richmond Fed.
3.The earnings period reaches its peak
Before the reports of mega-capacity names, Tuesday is the peak for the earning season. We will receive updates from all areas of the economy. UPS launched its earnings streak and its revenue was well above expectations, but did not provide guidance for the full year as it predicted a drop in forward shipping volumes due to the pandemic.
Other names to report include Amgen (NASDAQ :), Texas Instruments (NASDAQ :), Eli Lilly (NYSE :), General Electric There are (NYSE :), 3M and Starbucks (NASDAQ :), Visa (NYSE 🙂 and Advanced Micro Devices (NASDAQ :). In Europe, HSBC shared stronger-than-expected gains, while UBS reported a $ 774 million loss due to the Archegos Capital fiasco.
The US stock market will open largely quiet on Tuesday. and rose 0.1%, while actually unchanged.
4. Palladium reaches a new record as the commodities run continues
The rally in commodities continues. Palladium rose to a new record level at $ 2,951 in response to demand from a booming automotive industry that needs more work to reduce emissions, as seen with Tesla’s legal loan sale.
Futures also saw a 10-year high – another indirect reflection of the boom in electric vehicles. Soybean and corn futures increased more than 3.5%.
Corn and wheat futures, in particular, were supported by persistent dry weather in Brazil, a major producer of both.
5.OPEC raises demand forecasts, eyes on API stocks
Unlike Monday, crude oil prices today joined the overall commodities rally as technical experts at OPEC raised their oil demand forecast. A ministerial meeting with Russia and others will be held on Wednesday.
futures increased 0.8% to $ 62.39, while crude oil rose 0.8% to $ 65.55. The BP statement, showing that it will continue with the share buybacks in the third quarter, also supported the sector’s share. The company believes it can generate free cash flow with crude oil prices above $ 45.
The American Petroleum Institute (API) will share its latest data on US crude oil and product stocks.