Another day filled with earnings, the US Federal Reserve will look into their San Francisco arm over the SVB debacle, GDP report came out today (advanced estimate) and we continue to see more companies deploy AI models.

Let’s keep it concise.

Market Headlines 👀

• US advanced Q1 2023 GDP comes in at 1.1%.

• US pending home sales MoM -5.2%; exp 0.8%.

• JP Morgan(JPM) creates an AI model to analyze the last 25 years of Fed speeches.

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

• US Federal Reserve of San Francisco will face an investigation from government on its role in the SVB banking collapse.

• First Republic Bank (FSR) struggles to find a help.

• Pioneer Natural Resources (PXD) CEO will be retiring and replaced by COO.

• Gap Inc (GPS) will be laying off about 1800 employees.

• Dropbox (DBX) will lay off about 16% of its workforce or 500 jobs.

• FC Barcelona pay $104m in debt yearly to renew its stadium - Camp Nou.

Earnings 💸

• Mastercard (BA)

  • EPS: $2.80 beats (exp. $2.72)

  • Revenue: $5.70b beats (exp. $5.64b)

• Amazon (AMZN)

  • EPS: $0.31 beats (exp. $0.22)

  • Revenue: $127.4b beats (exp. $124.55b)

• Snapchat (SNAP)

  • EPS: $0.01 beats (exp. $-0.01)

  • Revenue: $988.6m misses (exp. $1.01b)

• Cloudfare (NET)

  • EPS: $0.08 beats (exp. $0.03)

  • Revenue: $290m meets (exp. $290m)

• Pinterest (PINS)

  • EPS: $0.08 beats (exp. $0.03)

  • Revenue: $602.6m beats (exp. $592.8m)

• Caterpillar (CAT)

  • EPS: $4.91 beats (exp. $3.78

  • Revenue: $15.9b beats (exp. $15.26b)

• Southwest Airlines (LUV)

  • EPS: $0.27 beats (exp. $0.23)

  • Revenue: $5.71b misses (exp. $5.73b)

• Eli Lilly (LLY)

  • EPS: $1.62 misses (exp. $1.73)

  • Revenue: $6.96b beats (exp. $6.86b)

• Intel (INTC)

  • EPS: $-0.04 misses (exp. $-0.02)

  • Revenue: $11.72b beats (exp. $11.11b)

S&P 500 Heap Map

Recap Around the Street 🧠

Barring a return to pandemic shutdown conditions, betting against the US consumer has been a mug’s game for your P&L. Despite increased signs of economic slowdown, real US consumption expenditure rose 3.7% (annualized SA) versus 1.1% overall Q1 2023 advanced GDP release. The source of the slowdown: decline in fixed investment (both residential and non-residential). - (contributed by Benjamin Lavine, CIO at 3D/L Capital)

Some more data on consumer spending below…

Market Preview 🎞️

• 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 Monday with a curated list of important news, economic data and market highlights. 

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