Welcome back,

More bleak jobs data is helping the Fed's job, meanwhile AI is helping Big Tech cut more.

Let’s keep it concise.

Market Headlines 👀

• US private employment increased by 145,000 jobs in March (exp. 200,000; prev. 261,000), per ADP’s jobs report.

• US ISM Services comes in at 51.2 (exp. 54.4; prev. 55.1).

• FedEx (FDX) targets $4B cost cuts by merging delivery networks.

• Amazon (AMZN) looks to grow diamonds in bid to boost computer networks.

• Johnson & Johnson (JNJ) to pay $8.9B to settle talc-cancer lawsuits.

• Samsung (SSNLF) quarterly profit set to hit 14-year low amid chip glut.

• Walmart (WMT) aims for 65% of stores to be automation serviced by 2026.

• Google (GOOGL) says its AI supercomputer is faster, greener than Nvidia (NVDA) A100 chip.

• Toronto-Dominion (TD) becomes the biggest bank short with $3.7B on the line.

• Western Alliance (WAL) pares decline after updating deposit data.

• Credit Suisse’s (CS) top executives to have their bonuses cut or canceled by Switzerland.

• Meta (META) wants to use generative AI to create ads.

• Bond ETFs saw inflows of $53Bin Q1 – 114% above their 10-year average.

• Stock ETFs logged $29B in inflows in Q1 – 47% below their typical Q1 figure.

• Gold holds surge past $2,000 with record high suddenly in sight.

• Fed’s Mester says rates should rise above 5% and stay for “some time”.

• Cash App Founder Bob Lee died in San Francisco.

• UK businesses more upbeat about sales despite weak growth.

• Binance founder's adopted home (Dubai) tightens crypto scrutiny.

Earnings 💸

• Simply Good Foods (SMPL)

  • EPS: $0.32 beats (exp. $0.29)

  • Revenue: $296.58M beats (exp. $293.55M)

S&P 500 Heap Map

Recap Around the Street 🧠

US private employers hired far fewer workers than expected in March, adding to signs that the labor market is cooling. ADP’s latest jobs report revealed US companies are not only adding fewer jobs, but also slowing wage growth. March’s release underscores that labor demand is showing some signs of cooling.

Private payrolls rose 145,000 last month after an upwardly revised 261,000 increase in February, according to figures out Wednesday from ADP Research Institute. The data came in below all economist estimates. It was revealed further that wage measures advanced at their slowest pace in over a year.

Despite the bleak news, slowing job growth will be welcomed by Fed officials as they consider whether to pause their fastest interest rate hiking cycle since the 1980s.

The tech-heavy Nasdaq-100 index has far outperformed its peers this year, soaring 20%. As of Monday, the enterprise value-to-sales ratio for the Nasdaq-100 index stands at 4.08 – the highest level seen since last August. Valuations related to the index have also increased.

Last summer, a rally in tech stocks brought temporary relief to investors who had experienced a year of sell-offs. But the Nasdaq and its broader market resumed their downward trend as bond yields rose. As a result, some investors began to fear tech stocks were overvalued, predicting an even steeper decline this year.

But in Q1 year, investors once again flocked to tech stocks. The rationale: that the Fed will reduce rate hikes. Now, time will tell how the direction of rate cuts and bond yields shape, among other factors, the index’s rally.

Market Preview 🎞️

• Thursday, April 6: Weekly jobless claims; Challenger job cuts; St. Louis Fed’s Bullard speaks

• Thursday earnings: Constellation Brands (STZ)

• Friday, April 7: US monthly jobs report

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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