Welcome back,

Tech titans continue to lay off, but the media sector is bringing Harry Potter back to TV screens.

Let’s keep it concise.

Market Headlines 👀

•  Apple (AAPL) to cut jobs in some corporate retail teams in its first known layoffs.

• McKinsey is shutting down its restructuring business.

• Apple's (AAPL) Tim Cook, Disney's (DIS) Bob Iger to discuss China with lawmakers.

• Walmart’s (WMT) job-cut tally tops 2,000 in e-commerce warehouses.

• L’Oreal (OR) to buy cult skincare brand Aesop in $2.5B deal.

• Warner Bros (WBD) nears deal for a new Harry Potter television series.

• GM (GM), Hyundai (HYMTF) and other automakers report a robust start to the year.

• GM (GM) buyouts cut 5,000 jobs. 

• Apollo (APO) makes a final $2B takeover offer for John Wood Group.

• Virgin Orbit (VORB) files for bankruptcy after a failed launch and lack of funding.

• Amazon (AMZN) lays off ~100 employees in its gaming divisions.

• Lockheed (LMT) awarded $4.5B missiles contract with US Army.

• TIDAL (SQ) launched Live, which allows subscribers to share music without being together.

• JOLTS job openings come in at 9.931M (exp. 10.5M; prev. 10.824M).

• US IRS to unveil $80B 10-year spending plan this week.

• Jamie Dimon (JPM) jabs Fed over US bank crisis “hiding in plain sight”.

• US Treasury Secretary Yellen says US banks are “stabilizing” after a tumultuous March.

• RBA to take foot off rate hike pedal.

• KKR (KKR.N) closes its largest ever European buyout fund at $8B.

Earnings 💸

Nothing to see here today — tune in tomorrow for Simply Good Foods (SMPL).

S&P 500 Heap Map

Recap Around the Street 🧠

After a rocky 2022, the US stock market gained during the first quarter of 2023 despite a banking crisis, cryptocurrency meltdowns and uncertainty about what’s ahead for the economy. To recap the market’s Q1 2023 performance:

• The S&P 500 seesawed throughout the quarter, ending January on a high note before tumbling in February, rising again in March and ultimately ending the quarter up about 7%.

• The tech-heavy Nasdaq made a resurgence, soaring nearly 17% in its best quarterly gain since the fourth quarter of 2020. That comes after a tough 2022 for tech stocks, as investors sought out less risky avenues to ride out turbulence from the Fed’s interest rate hike campaign.

• The Dow Jones rose about 0.4%.

• Bond prices rose as investors wagered that the Fed won’t raise rates as high as previously expected due to the banking crisis.

• US Treasuries saw their worst year in 2022 due to the Fed’s fast and furious rate hikes.

Job openings in the US declined in February to their lowest level since May 2021. That was this morning’s headline in the Labor Department's latest Job Openings and Labor Turnover Survey (JOLTS). This drop indicates a cooling off in labor demand in some sectors, but it still suggests a job market that remains tight for the Fed.

According to the JOLTS report, the number of available job openings fell to 9.9 million from a revised 10.6 million in the previous month. The data was far below all economist estimates. Though the decline in job openings could signal a moderation in labor demand, it still doesn’t change the overall picture of a job market characterized by a shortage of workers. In short, employers will still be challenged to fill open positions.

The decrease in job vacancies in February could imply a slowdown in labor demand in certain industries, but the overall job market remains tight. With the job openings still hovering near record highs, employers are struggling to find workers, indicating that the labor shortage is unlikely to end anytime soon. This tension is likely to continue to put upward pressure on wages and inflation, making it challenging for the Fed to manage its monetary policy.

Market Preview 🎞️

• Wednesday, April 5: MBA mortgage applications; ADP employment change; trade balance; S&P Global US services PMI; ISM services index

• Wednesday earnings: Simply Good Foods (SMPL)

• 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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