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US equity markets retreated on Friday (14 April) as investors assessed a weak retail sales report and some hawkish comments from Federal Reserve Governor Christopher Waller that dented enthusiasm around a stronger-than-expected start to the first quarter corporate earnings season - Dow fell -143-points or -0.42%, Boeing Co dropped -5.56% after the company warned after the close of the previous session that a manufacturing hang-up could cause problems for production and delivery of “a significant number” of 737 Max planes. The broader S&P500 eased -0.21%, with the more defensive sectors leading the declines. Real Estate (down -1.68%), Utilities (-1.11%) and Health Care (-0.79%) were the worst performing sectors on Friday (14 April), leading seven of the eleven primary sectors lower. Financials (up +1.05%) sat atop the primary sector leaderboard. The Nasdaq fell -0.35%. The small capitalisation Russell 2000 lost -0.86%.

Morgans AM: Friday, 14 April 2023 by Morgans Financial

US equity markets erased earlier gains in the final hour of trading following the release of the Federal Reserve’s March monetary policy meeting minutes, and as investors digested the latest inflation figures.- Dow slipped -38-points or -0.11%, snapping a four session winning streak after unwinding an earlier rally of over >200-points. International Business Machines (IBM) Corp (down -1.44%) is considering selling its weather operation, the Wall Street Journal (WSJ) reported after the market close. Any sale would come as IBM tries to become a leaner company trained on artificial intelligence (AI) and cloud infrastructure, the WSJ noted. The broader S&P500 eased -0.41% albeit recording its biggest intraday move in approximately three weeks, with the index swinging nearly 50 points from its intraday high to low. Consumer Discretionary (down -1.54%) led seven of the eleven primary sectors lower. Industrials (up +0.3%) sat atop the primary sector leaderboard overnight. American Airlines Group Inc dropped -9.22% after the carrier released weaker-than-expected updated guidance for the first quarter. The company now projects adjusted earnings per share (EPS) of US$0.01c to US$0.05c for the quarter, above prior guidance of breakeven, but below the average analyst projection for US$0.05c. United Airlines Holdings Inc shed -6.50%. The technology-centric Nasdaq lost -0.85%. The small capitalisation Russell 2000 fell -0.72%.

US equity markets mixed ahead of the release of the latest monthly inflation figures tonight AEST - Dow rose +98-points or +0.29%, extending the 30-stock index’s gain into a fourth straight session. The broader S&P500 settled flat, with every sector in positive territory except Information Technology (down -1.03%) and Communication Services (-0.43%). Energy (+0.89%) sat atop the primary sector leaderboard overnight. Moderna Inc shed 3.06% after the biotech firm hosted a virtual investor conference and said it’s delaying its ‘flu vaccine. The Nasdaq eased -0.43%, with Microsoft Corp (down -2.27%) and Amazon.com Inc (-2.20%) both declining over >2%. The small capitalisation Russell 2000 climbed +0.80%.

US equity markets resumed trading after the Good Friday long weekend with modest gains, climbing in the final hour of the session as investors digested last Friday’s (7 April) non-farm payrolls report and eyed the latest inflation figures and the start of the first quarter earnings season later this week – Dow rose +101-points or +0.30%. The Wall Street Journal (WSJ) reported Friday (7 April) that Exxon Mobil Corp (down -0.44%) has held informal talks with Pioneer Natural Resources Co (up +5.79%) about a possible acquisition. If a deal happens, it likely won’t come until later this year or next year, the WSJ report said. The broader S&P500 edged +0.10% higher, with Industrials (up +0.90%) and Energy (+0.65%) leading six of the eleven primary sectors higher overnight. Tesla Inc lost -0.30% after the company announced another round of price cuts on some vehicles in an attempt to spur demand. The electric vehicle maker also confirmed plans to build a megapack battery factory in Shanghai capable of assembling 10,000 giant batteries annually. The Nasdaq dipped -0.04% after dropping as much as -1.40% earlier in the session, with Apple Inc down -1.60% after market intelligence provider International Data Corp reported that global personal-computer shipments sank 29% from a year ago on weak demand, excess inventory and a worsening economic environment. Google parent Alphabet Inc lost -1.83%. Micron Technology Inc rallied +8.04% after its rival Samsung Electronics announced that it plans to cut memory chip production in the near term. A number of Wall Street analysts said the move could accelerate a return to supply-demand balance and potential rebound in the chipmaking sector. The small capitalisation Russell 2000 edged 0.13% higher. Tupperware Brands Corp sank -48.76% after the food-storage products maker issued a going-concern warning late Friday (7 April), saying it had hired financial advisers to help steer it through near-term challenges.

US equity markets weaker following a pair of soft economic reports - Dow added +80-points or +0.24%. The broader S&P500 slipped -0.25%, with Consumer Discretionary (down -2.04%) leading seven of the eleven primary sectors lower. The more defensive Utilities (up +2.57%) and Health Care (+1.73%) sectors sat at top of the primary sector leaderboard, while the Energy sector rose +1.42%. FedEx Corp rose +1.52% after the logistics giant announced plans to consolidate its operating companies into one organisation as part of an initiative called ‘Drive’, with the transition expected to be fully implemented in June 2024. The company expects the overall initiative to drive US$4B in permanent cost reductions in fiscal 2025. FedEx also plans to boost its annual dividend by +10% to US$0.44c per share. Costco Wholesale Corp fell over >2% in extended trading (after slipping -0.12% in the regular session) after the membership warehouse retailer reported its first monthly same-store sales (SSS) drop (down -1.1%) in nearly three years in March. The Nasdaq lost -1.07%, extending the technology centric indice’s decline into a third straight session. The small capitalisation Russell 2000 lost -0.99%.

Morgans Chief Economist Michael Knox believes that after a pause, RBA rates should still climb toward 4.85%. 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 retreated as investors weighed fresh declines in factory orders, and data hinting at a softening labour market ahead of Friday’s (7 April) March jobs report - Dow fell -199-points or -0.59%. Walmart Inc slipped -~0.9% in extended trading (after falling -0.98% in regular trading) after the world’s largest retailer reiterated its guidance for the first three months of the 2023 and the full year at its investor day. In February, the Walmart forecast consolidated net sales in the first quarter to be 4.5% to 5% higher than a year ago, and adjusted earnings per share (EPS) of US$1.25-US$1.30. Johnson and Johnson rose over >2.5% in extended trading (extending a +1.05% rise in the regular session) after said it will pay US$8.9B over the next 25 years to settle allegations that the company’s baby powder and other talc products caused cancer. The company proposed the settlement in a securities filing. J&J’s subsidiary LTL Management also refiled for Chapter 11 bankruptcy protection after its first attempt was thwarted, the filing said. The broader S&P500 -0.58%, with Industrials (down -2.25%) and Energy (-1.72%) leading seven of the eleven primary sector lower. Ford Motor Co (up +0.32%) reported a +10.1% bump in U.S. vehicle sales during the first quarter as it sold 475,906 units. The Nasdaq -0.52%. The small capitalisation Russell 2000 lost -1.81%.

Both the Dow and S&P500 extended their rally into a fourth consecutive session as investors digested news of surprise crude production cuts by the Organisation of the Petroleum Exporting Countries (OPEC) and their key producing allies (a group known as OPEC+) that saw oil prices soar and potentially muddy the inflation picture - Dow gained +327-points or +0.98%. Health insurance giant UnitedHealth Group Inc was the leading index performer, rallying +4.57% after the Center for Medicare & Medicaid Services on Friday (31 March) announced updated payment rates. The agency said that Medicare Advantage plans would see an increase in revenue of more than 3% from 2023 to 2024. The advance notice of the payment scale had pegged the increase at just over 1%. Separately, Chevron Corp gained +416%, tracking strong crude prices. Walmart Inc (+0.84%) convenes a two-day investor meeting beginning tonight AEST . The broader S&P500 added +0.37%, with Energy (up +4.91%) the clear outperformer and leading seven of the eleven primary sectors higher. Marathon Oil Corp jumped +9.93% and Conocophillips +9.26%. Tesla Inc fell -6.12% after reporting on Sunday (2 April) that it delivered 422,875 vehicles in the first quarter, just shy of the 432K units projected by analysts. The technology centric Nasdaq eased -0.27%. The small capitalisation Russell 2000 dipped -0.01%.

US equity markets staged a broad-based rally on Friday (31 March) to close out a volatile March with monthly and quarterly gains - Dow gained +415-points or +1.26%. McDonald’s Corp (+up 0.66%) is temporarily closing its U.S. offices this week as it prepares to inform corporate employees about its layoffs as part of a broader company restructuring, The Wall Street Journal reported on Sunday (2 April).The broader S&P500 rose +1.44%, with Consumer Discretionary (up +2.62%), Real Estate (+2.18%) and Communications Services (+2.08%) all gaining over >2% to lead all eleven primary sectors higher. Tesla Inc (up +6.24%) reported on Sunday (2 April) that it delivered 422,875 vehicles in the first quarter, just shy of the 432K units projected by economists. The electric vehicle manufacturer also reported production of 440,808 units for the quarter. Tesla is due to report first-quarter earnings after the close of trading on 19 April. The technology-centric Nasdaq rallied +1.74%. The small capitalisation Russell 2000 climbed +1.93%. US equity and bond markets are CLOSED on Friday night AEST (7 April) for Good Friday.