To The Moon

Yesterday's Recap

Stocks showed a mixed performance as investors awaited Big Tech earnings and awaited the release of first-quarter GDP growth data.

The $NASDAQ(.IXIC)$ closed slightly higher, the $S&P 500(.SPX)$ remained flat, and the Dow Jones Industrial Average closed slightly lower.

Key Events Today

1. GDP Data Release: Investors are eagerly anticipating the release of first-quarter gross domestic product (GDP) growth data, expected to show robust economic expansion.

2. Big Tech Earnings: $Alphabet(GOOG)$ and $Microsoft(MSFT)$ are set to report quarterly results, with market sentiment influenced by $Meta Platforms, Inc.(META)$ ' disappointing outlook.

Meta

• Meta reported Q1 earnings of $4.71 per share, $0.39 better than the consensus of $4.32. Revenues rose 27.3% year-over-year to $36.45B - about in-line with consensus. The company raised its low end of FY24 total expense guidance to $96-99B from $94-99B due to higher infrastructure and legal costs, and also raised FY24 capex guidance to $35-40B from $30-37B as the company continues to accelerate its infrastructure investments to support the AI roadmap. 

Market Sentiment

Investors displayed caution as they navigated between gains and losses ahead of key economic and earnings data. The GDP report, expected to show strong growth, could impact market expectations for Federal Reserve rate cuts.

Analysts anticipate varied reactions to a robust GDP print, with implications for both revenue growth prospects and Fed rate cut timing.

TikTok Legislation

TikTok

Congress passed legislation to potentially ban TikTok in the U.S. unless Chinese owner ByteDance sells it within a year. While President Biden is expected to sign the bill, legal battles and potential hurdles loom for ByteDance. Market observers speculate on potential buyers, with Microsoft and Oracle among the contenders.

Market Outlook

Technology stocks faced declines in U.S. equity futures following Meta's disappointing outlook, emphasizing the challenges of the AI-driven rally.

As investors await Alphabet and Microsoft's earnings reports, market sentiment remains cautious amid concerns over tech sector performance.

• Upcoming Events

1. A slew of companies, including Alphabet, Microsoft, Intel, and Comcast, are set to report quarterly results.

Tech

2. The Bureau of Economic Analysis will release the advance estimate of first-quarter GDP growth, with expectations for robust economic expansion.

3. The National Association of Realtors will release the Pending Home Sales index for March, offering insights into housing market activity.

Conclusion

Market sentiment remains cautious as investors await key economic data and earnings reports. The mixed performance reflects uncertainty surrounding future Fed rate cuts and the impact of tech sector challenges.

This synthesis provides an overview based on available information and is subject to change as new developments emerge. Consultation with financial professionals is recommended before making investment decisions.

Thanks for reading and support. You’re welcome.

@TigerStars @CaptainTiger @Tiger_SG