Microsoft might not be able to complete its takeover of Activision Blizzard so easily, Zuck will report earnings, BlackRock’s fixed income CIO gives a quick update starting their dry powder is being put to work and Disney vs DeSantis heats up.

Let’s keep it concise.

Market Headlines 👀

• Walt Disney (DIS) is suing governor DeSanitis as it believes some of his comments affected their business.

• Microsoft (MSFT) deal for acquiring Activision Blizzard (ATVI) is being blocked by the UK.

• US home purchase applications see their 2nd tick up this month.

• Amazon(AMZN) continues its layoffs in the AWS cloud division and the company could see 27,000 jobs being cut this year.

• US Federal Reserve will be posting their report of findings from the SVB downfall on Friday April 28th.

• Silicon Valley Bank hits a stalemate with the FDIC over their bankruptcy.

• Tencent Holdings (TCEHY) is increasing its investment in their overseas gaming studio.

• Blackrock(BLK) Fixed income CIO Rick Rieder provides an update on how the firm is allocating cash.

• SpaceX strikes a deal with Rogers communication to provide satellite phone service in Canada.

• PricewaterhouseCoopers PWC is investing $1b over the next three years into generative AI and collaborating with Microsoft to automate more of its business practices.

Earnings 💸

• Boeing (BA)

  • EPS: $-1.27 misses (exp. $-1.05)

  • Revenue: $17.9b beats (exp. $17.6b)

• Facebook (META)

  • EPS: $2.20 beats (exp. $2.01)

  • Revenue: $28.10b beats (exp. $27.66b)

• ServiceNow (NOW)

  • EPS: $2.37 beats (exp. $2.04)

  • Revenue: $2.14b beats (exp. $2.08b)

• Roku (ROKU)

  • EPS: $-1.38 beats (exp. $-1.48)

  • Revenue: $741m beats (exp. $707.49m)

S&P 500 Heap Map

Recap Around the Street 🧠

About 79% chance of a 25bps rate hike in May. Much of that will depend on the progress with the debt ceiling talks. - (contributed by Benjamin Lavine, CIO at 3D/L Capital)

Even with its year to date rally of almost a ~70% gain, Facebook (META) is still cheaper compared to its big tech peers…

Market Preview 🎞️

• Thursday, April 27: Weekly jobless claims; Gross domestic product (GDP) first release; Pending home sales

• Thursday earnings: American Airlines (AAL), Amazon (AMZN), Snapchat (SNAP), Cloudfare (NET), Pinterest (PINS), Mastercard (MA), and Southwest Airlines (LUV)

• Friday, April 28: Employment cost index; PCE

• Friday earnings: Exxon Mobil (XOM)

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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