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Strong first quarter earnings from technology majors fuelled the best rally for US equity markets since January - Dow gained +524-points or +1.57%, The broader S&P500 rallied +1.96% to log its best single session gain since 6 January, with Communications Services (up +5.53%) the clear outperformer and underpinned by Meta Platforms Inc soaring +13.93% after Facebook’s parent company reported better-than-expected earnings per share (EPS) of US$2.20 for the first quarter after the close of the previous session and provided a revenue forecast that suggested reinvigorated sales growth. Consumer Discretionary (+2.77%), Real Estate (+2.43%) and Information Technology (+2.17%) all gained over >2% amid a broad-based rally that saw all eleven primary sectors advance. The Nasdaq jumped +2.43%, with Microsoft Corp up +3.20% and Alphabet Inc +3.75%. The small capitalisation Russell 2000 gained +1.20%.

US equity markets mixed as strong earnings from some technology heavyweights competed with persistent concerns around the banking sector - Dow fell -229-points or -0.68%, unwinding an earlier gain of over >100-points. Home Depot Inc (down -2.79%), Honeywell International (-2.58%) and Merck & Co Inc (-2.66%) all declined over >2.5%. The broader S&P500 eased -0.38%, with Utilities (down -2.37%) leading ten of the eleven primary sectors lower. Information Technology was the sole standout performer with a +1.78% gain. The Nasdaq rose +0.47%, paring an earlier rally of ~1.4%. Microsoft Corp rallied +7.24% after the software giant released first quarter earnings per share (EPS) and revenue after the close of the previous session that topped Wall Street’s estimates, underpinned by strong Cloud demand. The company ell narrowly short of topping its daily record for market-capitalisation gains, adding +US$148.34B in market cap overnight – just shy of the company’s record one-day market-cap haul of US$150.37B achieved 13 March, 2020. It also marked the seventh-largest daily increase in market value for a U.S. company, according to Dow Jones Market Data. Microsoft also shrugged off news that the U.K.’s Competition and Markets Authority would prohibit the company from merging with Activision Blizzard Inc (down -11.45%), a decision Microsoft plans to appeal. Google parent Alphabet Inc slipped -0.15% after trading in positive territory for most of the session despite the Google parent posting better-than-expected first quarter EPS after the close of the previous session. The small capitalisation Russell 2000 lost -0.89%.

The International Energy Agency in its April Oil Report tells us why the oil price must rise in the second half of 2023. Check out more from Morgans: Visit the Morgans website: www.morgans.com.au Check out our blog: www.morgans.com.au/Blog On Facebook: www.facebook.com/MorgansAU On Instagram: www.instagram.com/Morgans.Australia On Twitter: twitter.com/MorgansAU

Morgans AM: Wednesday, 26 April 2023 by Morgans Financial

US equity markets edged higher in what was another muted session to conclude the week as investors assessed mixed earnings from corporate America and political negotiations over the country’s debt ceiling - Dow added +22-points or +0.07%, The broader S&P500 edged +0.09% higher, with the Consumer Discretionary (up +1.20%) leading six of the eleven primary sectors higher. The Materials (down -0.90%) and Energy (-0.59%) sectors sat at the foot of the primary sector leaderboard on Friday (21 April). The Nasdaq +0.11%. Meta Platforms Inc dipped -0.08% after Chief Executive Officer (CEO) Mark Zuckerberg reportedly said the company may not be through laying off workers, as its latest round of 4,000 landed this week and another batch looms for Ma. The small capitalisation Russell 2000 +0.10%.

US equity markets retreated following some mixed corporate earnings releases - Dow fell -110-points or -0.33%. The broader S&P500 -0.60%, with Consumer Discretionary (down -1.48%), Real Estate (-1.19%) and Energy (-0.89%) lead ten of the eleven primary sectors lower. Consumer Staples (up +0.06%) was the only primary sector to eke out a gain. Tesla Inc dropped -9.75% as Chief Executive Officer (CEO) Elon Musk made clear he was willing to sacrifice margins in a push for market share in statements made following the release of the electric vehicle manufacturer’s first quarter result released after the close of the previous session. The Nasdaq lost -0.80%. Meta Platforms Inc fell -1.22% but still overtook Tesla Inc in market capitalisation terms for the first time since 20 December 2021. Meta is now the seventh largest public US company by market capitalisation at US$552.4B, pushing Tesla back to eighth spot (US$515.7B). The small capitalisation Russell 2000 lost -0.54%.

US equity markets little changed for a second consecutive session as investors assessed the latest round of quarterly earnings releases, including from a couple of Dow components - Dow fell -80-points or -0.23%. Walt Disney Co fell -2.16% after Bloomberg reported that the media and entertainment giant was planning to lay off thousands of employees next week, including ~15% of the entertainment division’s workforce. The broader S&P500 dipped -0.01%, with Communication Services (down -0.72%) leading six of the eleven primary sectors lower. The more defensive sectors outperformed overnight, with Utilities (up +0.78%) and Real Estate (+0.55%) sitting at the top of the primary sector leaderboard. United Airlines Holdings Inc rallied +7.50% after the carrier projected stronger-than-expected second quarter and full year earnings after the close of the previous session. The Nasdaq eked out a +0.03% rise. Netflix Inc fell -3.17% after the streaming giant provided a disappointing second quarter outlook after the close of the previous session. The small capitalisation Russell 2000 added +0.22%.

A consensus of the best US forecasters is that after a fall in output in Q2 2023, US GDP will likely rebound to slow but consistent growth. Check out more from Morgans: Visit the Morgans website: www.morgans.com.au Check out our blog: www.morgans.com.au/Blog On Facebook: www.facebook.com/MorgansAU On Instagram: www.instagram.com/Morgans.Australia On Twitter: twitter.com/MorgansAU

US equity markets settled little changed overnight, struggling for direction as the first quarter corporate earnings season ramps up - Dow dipped -11-points or -0.03%, The broader S&P500 inched +0.09% higher, with Industrials (up +0.46%), Energy (+0.45%), Information Technology (+0.41%) and Materials (+0.40%) all up 0.4%+ and leading seven of the eleven primary sectors higher. The Nasdaq -0.04%. Meta Platforms Inc fell -0.44%, with Vox reporting that the company is expected to cut a further 4K jobs on Wednesday (19 April) in the latest round of layoffs. Meta Chief Executive Mark Zuckerberg has announced Meta’s intention to eliminate 10,000 jobs this northern hemisphere spring The small capitalisation Russell 2000 lost -0.40%.

US equity markets shook off a mixed opening to the first session of the week to push higher in the final hour of trading and settle with modest gains ahead of the first quarter earnings season shifting fully into gear this week - Dow rose +101-points or +0.30%, The broader S&P500 added +0.33%, with Real Estate (up +2.23%) and Financials (+1.04%) leading eight of the eleven primary sectors higher. Communication Services and Energy were the worst performing primary sectors overnight, both declining -1.27%. The Nasdaq +0.28%. Google parent Alphabet Inc fell -2.66% after The New York Times reported that Samsung is weighing making Bing its default search engine. The small capitalisation Russell 2000 rallied +1.22%.