Welcome back,

A big week of earnings ahead of us, GOOGL faces a major threat to their search engine business and Apple is ready to launch its retail footprint in India.

Let’s keep it concise.

Market Headlines 👀

• Alphabet's (GOOGL) faces a real threat to its search engine monopoly as Samsung considers Microsoft Bing as their default search engine.

• Musk forms a new AI company X.Ai

• Yellen says a pullback in lending could help with some of the Fed’s work.

• Apple (AAPL) has major plans to unveil more than a new headset in their upcoming WWDC conference.

• Apple (AAPL) sales through the year hit close to $6b in India as they launch their first two stores in the country.

• SpaceX starship launch of their biggest rocket was delayed earlier today.

• NY Fed manufacturing rises to +10.8; est: -18.0

• US NAHB (National Association of Home Builders) index gauge came in at 45 (a seven month high).

• Best Buy (BBY) lays off hundreds at retail stores.

• 10 EVs (F, TSLA) quality for the entire $7500 tax credit, list here.

• Lululemon (LULU) is set to explore a sale of Mirror which it purchased in 2020.

• Madison Square Garden Sports group (MSGS) nears sale of its stake in Tao restaurant group for ~$550m.

• Ernst & Young cuts 3,000 jobs in the US.

Earnings 💸

• Charles Schwab (SCHW)

  • EPS: $.93 beats (exp. $0.90)

  • Revenue: $5.12b misses (exp. $5.14b)

• State Street Corp (STT)

  • EPS: $1.52 misses (exp. $1.64)

  • Revenue: $3.1b misses (exp. $3.13b)

S&P 500 Heap Map

Recap Around the Street 🧠

The global sales outlook has historically been driven by the outlook for Global Domestic Product (GDP) growth, which is currently running at 3.6% annualized according to Bloomberg Global GDP growth tracker. For 2023, Bloomberg economic consensus is projecting 2.4% gdp growth, largely driven by China which is expected to grow GDP by 5.3%. Rarely, will you see a negative global sales outlook as it would imply a drawn-out contraction in GDP (recession) which you will typically not find with consensus estimates (ie: few economists are willing to stick their neck out for a deep recession call). The declining outlook on profit margins is largely driven by mix shift with developing countries typically less profitable and more susceptible to input costs like commodity prices, driving overall growth, albeit less profitable. US profit margins are expected to remain elevated near current peak levels with upward revisions seen across technology, communication services, and healthcare according to Bloomberg earnings outlook. - (contributed by Benjamin Lavine, CIO at 3D/L Capital)

Earnings season continues as the S&P 500 remains in this range through the first few months of the year…

Market Preview 🎞️

• Tuesday, Tuesday, April 18: Empire Manufacturing, NAHB housing market index

• Tuesday earnings: Bank of America (BAC), Johnson and Johnson (JNJ), Goldman Sachs (GS), Lockheed Martin (LMT), Netflix (NFLX), United Airlines (UAL) and Intuitive Surgical (ISRG)

• Wednesday, April 19: MBA mortgage applications; Federal Reserve beige book

• Wednesday earnings: Tesla (TSLA), Asml (ASML), Morgan Stanley (MS), and IBM (IBM)

• Thursday, April 20: Weekly jobless claims; Philadelphia Fed business outlook, and Existing home sales

• Thursday earnings: American Express (AXP), Blackstone (BX), and AT&T (T)

• Friday, April 21: Bloomberg April US economic survey, S&P Global Manufacturing, services and composite PMIs, OPEX

That’s all for today, folks! We’ll be back around the same time tomorrow with a curated list of important news, economic data and market highlights. 

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