Market Highlights 💡- 25 April 2024

* Global markets gain modestly as investors digest quarterly results

🇺🇸 S&P 500: 0.02% 📈

🇺🇸 Nasdaq: 0.10% 📈

🇪🇺 STOXX 600: -0.40% 📉

🇯🇵 Nikkei 225 Index: 2.42% 📈

🇭🇰 Hang Seng Index: 2.21% 📈

🇨🇳 CSI 300 Index: 0.44% 📈

* U.S. markets were broadly higher on Wednesday, with the S&P 500 and Nasdaq Composite inching up 0.02% and 0.1%, respectively, as investors weighed the rise in U.S. Treasury yields amid positive corporate earnings, especially for technology giants rise.

* Asia-Pacific stocks broadly closed higher, with the CSI 300 and Hang Seng Composite rising 0.4% and 2.2%, respectively, as investors bet a recovery in corporate earnings will boost valuations ahead of a slew of company results this month.

💡 Future events: 💡

* On Thursday we will release US unemployment claims and the merchandise trade balance.

* At the end of the week, Japan's Tokyo core consumer price index annual rate, Bank of Japan policy rate and U.S. core personal consumption expenditures price index monthly rate, University of Michigan consumer confidence index revised version will be released

💡 Things you need to know today: 💡

1. The U.S. Senate overwhelmingly passed a bill that would ban TikTok's parent company, Chinese tech company ByteDance, from spinning off the popular short-video app within the next nine months to a year to ban TikTok from operating in the United States.

Tik Tok Ban?

2. Texas Instruments $Texas Instruments(TXN)$  soared on Wednesday, pushing chip stocks higher on optimism that chip demand will rebound after a long decline and the company forecast a strong second-quarter earnings.

Texas Instruments

3. Boeing $Boeing(BA)$  announced its first quarterly revenue decline in seven quarters, but the company beat Wall Street's downward forecasts after a mid-air accident in January slowed production of its best-selling jet.

Boeing

4. Meta $Meta Platforms, Inc.(META)$  disappointed investors on Wednesday with forecasts of higher spending and lower-than-expected revenue, raising concerns that rising costs associated with developing artificial intelligence could outweigh its benefits. Meta said it expects increased spending on AI technology and lower revenues in the current quarter, sending its stock down as much as -10+% in extended trading. The company raised its forecast for expenses this year to support investments in new AI products and the computing infrastructure needed to support them, adding that it expected spending would continue to increase next year. It raised its 2024 total expense forecast to $96 billion-$99 billion, from $94 billion-$99 billion. It also expects 2024 capital expenditure to fall within a range of $30 billion-$40 billion, up from its earlier forecast of $35 billion-$37 billion. For such, I am short term bearish for Meta stock as investors will adjust their position following this new forecast and expectation. Therefore, some short term selling pressure is unavoidable.

Meta

5. Taiwan Semiconductor Manufacturing Co. $Taiwan Semiconductor Manufacturing(TSM)$   announced plans to begin production of a new chip manufacturing technology called "A16" in the second half of 2026, competing with long-time rival Intel $Intel(INTC)$   to produce the world's fastest chips.

✅ KEY TAKEAWAYS:

Investors are focused on company quarterly earnings, especially those of large-cap growth stocks, as well as first-quarter gross domestic product data on Thursday and March personal consumption expenditures (PCE) on Friday.

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