Welcome back,

A big day for earnings, markets continue to remain range bound and read below to see what asset class the White House is concerned about next following the banking turmoil.

Let’s keep it concise.

Market Headlines 👀

• Microsoft (MSFT) is developing its own AI chip named Athena to help power ChatGPT.

• Housing starts comes in at -0.8% MoM; est: 0.4%.

• March US building permits comes in at -8.8% MoM; est: -6%.

• White house reports it is closely watching commercial real estate after the recent banking duress.

• Apple (AAPL) is preparing to develop several apps for their new headset.

• China first quarter GDP is 4.5%; est 4%.

• Bank of America, Wells Fargo, Citigroup and JP Morgan wrote off $3.4b in bad consumer loans.

• Amazon (AMZN) UK regulators probe Amazon’s purchase of iRobot.

• Boeing (BA) will continue its 737 max production ramp albeit recent delivery pause.

• Bank of America (BAC) plans to cut 4,000 jobs before the end of June.

• Opendoor (OPEN) cuts 22% of its workforce.

Earnings 💸

• Bank of America (BAC)

  • EPS: $.94 beats (exp. $0.83)

  • Revenue: $26.3b beats (exp. $25.28b)

• Johnson and Johnson (JNJ)

  • EPS: $2.68 beats (exp. $2.50)

  • Revenue: $24.75b beats (exp. $23.6b)

• Goldman Sachs (GS)

  • EPS: $8.79 beats (exp. $8.06)

  • Revenue: $12.22b misses (exp. $12.66b)

• Lockheed Martin (LMT)

  • EPS: $6.61 beats (exp. $6.06)

  • Revenue: $15.13b beats (exp. $15.01b)

• Netflix (NFLX)

  • EPS: $2.88 beats (exp. $2.87)

  • Revenue: $8.16b misses (exp. $8.18b)

• United Airlines (UAL)

  • EPS: $-0.63 beats (exp. $-0.73)

  • Revenue: $11.43b meets (exp. $11.43b)

• Intuitive Surgical (ISRG)

  • EPS: $1.23 beats (exp. $1.20)

  • Revenue: $1.7b beats (exp. $1.6b)

S&P 500 Heap Map

Recap Around the Street 🧠

Market breadth is about as poor as it has been since the onset of the pandemic. Fewer (re: megacap technology) stocks are driving the broader indices suggesting a narrower advance and a less healthy market overall (a rising tide is only lifting a few boats). This harkens back to similar race-for-the-sure-thing moments such as the Nifty-50 in the early 70’s and the dotcom bubble in the late 90’s. - (contributed by Benjamin Lavine, CIO at 3D/L Capital)

Institutional investors refuse to chase equities higher in favor of bonds and cash to buffer expected near-term economic weakness and earnings downturn. (contributed by Benjamin Lavine, CIO at 3D/L Capital) 

Market Preview 🎞️

• 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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