The NZD is the strongest of the major currencies and the CHF is the weakest. The USD is mixed to lower with little changes vs the EUR, GBP, CAD and JPY (moves of less than 0.13%).
US GDP will be released at 8:30 AM ET and is expected to have slow to 2.0% annually in Q1, down from 2.6% in the previous quarter. The core PCE prices are expected to come in at 4.7% vs 4.4% last quarter. The final Atlanta GDPNow estimate came in lower at 1.1% after falling from 2.6% in the final reading released yesterday. US initial jobless claims will also be released with expectations of 248K versus 245K last week. Pending home sales will release that 10 AM (0.6% expected versus 0.8% last month). The U.S. Treasury will auction off 7 your notes at 1 PM ET
U.S. stocks are expected to open higher as investors await Q1 economic GDP growth data and watch the health of the banking sector . In earnings last night, Meta Platforms, Facebook's parent company, reported a 4.1% increase in advertising sales in Q1, reaching $28.10B, thanks to the success of Reels. Shares are up over 24%. Later after the close, Amazon is set to report its Q1 results, with investors eager to see the impact of a downturn in sales growth at its cloud-computing division, AWS. Intel will also release earnings after the close.
Late yesterday, the U.S. House of Representatives passed a bill to raise the country's debt ceiling by $1.5 trillion, but political wrangling over the issue is expected to continue. The bill passed along party lines with no democrats voting for the bill and four GOP lawmakers opposing the measure including Reps. Tim Burchett (Tenn.), Matt Gaetz (Fla.), Ken Buck (Colo.) and Andy Biggs (Ariz.).
Oil prices rose slightly due to a larger-than-expected drop in U.S. crude inventories, but concerns over future oil demand persist. The price yesterday filled the gap from the OPEC+ production cuts.
A look at the earnings released this morning:
- Honeywell EPS $2.07 versus $1.93 estimate. Revenues 8.9 billion versus 8.52 billion estimate. Beat. Shares are up at 2.15%
- Merck EPS $1.40 versus $1.32 expected. Revenues $14.49 billion versus $13.78 billion expected. Beat. Shares are up 2.27%
- Caterpillar $4.91 versus $3.78 expected. Revenues $15.9 billion versus expected $15.25 billion. Beat. Shares are down to -0.55%
- Northrop Grumman EPS $5.50 versus $5.09 expected. Revenues $9.3 billion versus $9.17 billion expected.Beat. Stock is u.p 1.54%
- Southwest air $-0.27 versus $-0.23 expected. Revenues $5.71 billion versus $5.73 billion expected. They said that they are planning on flight reductions in 2nd half of 2023 most notably in Q4. Miss on both top and bottom line. Stock is down -4.37%
- Qwest diagnostic EPS $2.04 versus $1.97 expected. Revenues $2.33 billion versus $2.2 billion expected. Beat. Stock is up 0.79%
- Bristol-Myers Squibb EPS $2.05 versus $1.97 expected. Revenues $11.34 billion versus $11.49 billion expected. Beat on earnings. Miss on the top line revenues. The stock is down -0.76%
- American Airlines EPS $0.05 versus $0.05 expected. Revenues $12.2 billion versus $12.2 expected. Comes in as expected. Shares are about 0.47%. Stock is up 0.0shares are down -0.48%6%
- Altria EPS $1.16 versus expected $1.18. Revenues $5.72 billion versus $4.9 billion expected. Beat on the topline revenues, but miss on the bottom line EPS. Stock is down -0.45%
- Eli Lilly EPS $1.62 versus $1.73 expected. Revenues $6.96 billion versus $6.86 billion. Raised EPS guide by $0.30 on the year. The stock is up 3.38%
- Mastercard EPS $2.80 versus $2.72 expected. Revenues came in at $5.7 billion versus $5.64 billion expected
A look around the market is showing:
- spot gold is trading up $7.30 or 0.36% $1997.10
- spot silver is up $0.13 or 0.53% $25.01
- crude oil is trading up $0.25 at $74.55
- Bitcoin after trading down to $27,242 late yesterday, has risen back up to $29,010
In the premarket for US stocks, the major indices are higher:
- Dow Industrial Average is up 179 points after yesterday's -228.96 point decline
- S&P index is up 26 points after yesterday's -15.62 point decline
- NASDAQ Inc. next is up 145 points after yesterday's 55.19 point gain
The European equity markets, the major indices are mostly higher:
- German DAX +0.17%
- Frances CAC +0.42%
- UK's FTSE 100 -0.04%
- Spain's Ibex +0.28%
- Italy's FTSE MIB +0.08%
In the US debt market:
- 2 year yield 3.955% +3.1 basis points
- 5 year yield 3.482% +1.8 basis points
- 10 year yield 3.448% +1.8 basis points
- 30 year yield 3.711% +2.2 basis point
In the European debt markets, the benchmark 10 year yields are mostly higher:
