Positive fundamental news background pushes financial markets up

Fear is leaving the stock market and stock indices have returned to growth. A good reaction to the reports fuels the bulls. Stock futures are rising after a batch of good reports. There is also optimism in Asia.

The US economy showed an unexpected sign of cooling, which pleased investors
Composite PMI - decrease from 52.1 to 50.9
Manufacturing PMI - decrease from 51.9 to 49.9 (expected 52.0)
Services PMI - decrease from 51.7 to 50.9 (expected 52.0)
In the Eurozone in April, industry is weak, and services are strong
And since services occupy a large part of the economy, the overall economy has shown growth.
"The eurozone economy has returned to growth. The services PMI rose further in April... However, the picture is clouded by an unexpected decline in the manufacturing PMI," said Christoph Weil from Commerzbank.
Eurozone
Composite PMI - growth from 50.3 to 51.4 (expected 50.
Manufacturing PMI - decrease from 46.1 to 45.6 (expected 46.5)
Services PMI - increase from 51.5 to 52.9 (expected 51.
Germany
Composite PMI - increase from 47.7 to 50.5 (expected 48.6)
Manufacturing PMI - increase from 41.9 to 42.2 (expected 42.
Services PMI - increase from 50.1 to 53.3 (expected 50.6)
France
Composite PMI - increase from 48.3 to 49.9
Manufacturing PMI - drop from 46.2 to 44.9 (expected 46.9)
Services PMI - increase from 48.3 to 50.5 (48.9 expected)
UK
Composite PMI – rise from 52.8 to 54.0 (11-month high)
Manufacturing PMI – fall from 50.3 to 48.7
Services PMI – rise from 53.1 to 54.9 (53.0 expected)

Of the 100 largest US corporations, 83 have created their own subsidiaries. Which carry out payment transactions in offshore zones.

According to The Register, Huawei (TOP 3 in China) plans to distribute HarmonyOS internationally. And he will spend 2024 developing the platform and filling it with all the necessary and popular applications.

Bank of Japan on the rate: If inflation rises to our forecast of 2%, then we will most likely raise short-term interest rates
and expect to reach the inflation target by March 2026.

Investors are leaving Cathie Wood's ARK. Investors have pulled $2.2 billion from ARK's six actively managed ETFs this year, more than the outflows the funds saw in all of 2022 and 2023 combined. As a result, the funds were left with only $11 billion. At the peak in early 2021, they had $59 billion. Classic stellar management of one year (2020).

Company news:
• Gucci owner Kering reports a 10% drop in first-quarter sales amid sluggish demand in China.
• Tesla will lay off nearly 2,700 employees at its Texas plant.
• iPhone sales in China fell 19% in the first quarter and showed the worst result for a quarter since the Covid-19 2020 year - Bloomberg.
• Apple announced the event on May 7 amid reports of the launch of a new iPad model.
• General Motors (GM): Shares of the automaker rose 4% after the company reported earnings that beat profit and loss and raised its full-year forecast. GM also reported lower battery costs for its electric vehicles, adding that it still sees "positive variable earnings" in its electric vehicle business in the second half of 2024.
• United Parcel Service (UPS): UPS reported mixed results Tuesday as delivery volumes declined in the first quarter. The company showed a profit despite efforts to cut costs by $1 billion. The company's shares rose 2%.
• GE Aerospace (GE) rose 8%. The company beat estimates and gave a good outlook.
• JetBlue (JBLU): Shares fell 19% after the airline cut its full-year earnings forecast, citing increased capacity in the Latin American region that will weigh on revenue growth in the coming months.
• Spotify (SPOT): The audio giant on Tuesday reported fiscal first-quarter earnings that beat both top- and bottom-line expectations. The company also turned profitable as it continues to implement its recent "efficiency" strategy. Monthly active users (MAU) fell short of expectations, although the stock still soared 11%.
• Danaher (DHR) rose 7.2% after the life sciences company easily beat quarterly profit and sales estimates. Danaher expects revenue to fall by single digits for the full year.
• PepsiCo (PEP): PepsiCo beat Wall Street expectations in the first quarter, although product recalls from Quaker Foods' North American unit led to a drop in demand and the unit reported a 22% drop in volumes. Higher prices, meanwhile, weighed on other divisions such as beverages and Frito-Lay North America. Shares fell 3%.
• HashiCorp (HCP) rose 19% yesterday - WSJ published that IBM may buy the company. There are no official comments.
• Philip Morris International (PM) rose 4% after the cigarette maker beat quarterly profit estimates but gave a mixed outlook.
• Larry Ellison: Oracle plans to move its headquarters from Texas to Nashville to gain a foothold in the healthcare market. In 2020, the company moved their California headquarters to Texas.
• Instacart (CART) shares fell 7% yesterday as Amazon.com began offering a similar grocery delivery service that will increase competition in an already crowded market.
• MSCI fell 13% yesterday, its worst fall since 2012. After a mixed report.
• LKQ fell 15% yesterday. The auto distributor cut its full-year outlook "due to weaker-than-expected demand in the first quarter." “We experienced soft overall market conditions, primarily due to incredibly mild winter weather in North America, which reduced demand for parts and kept demand for our specialty products low.”
Stocks Pre-Market After Reports
• TSLA +13% to $164. Similar to taking shorts in an illiquid over-the-counter market. Musk has promised to release a cheaper car and is focusing on the robotaxi presentation on August 8 - sweet speeches for investors.
Tesla's FSD is years behind serious competitors like Cruise and Waymo, "which have been vigorously testing robust scientific methodologies with professional drivers for years, unlike Tesla," Vicki Bryan, founder and CEO of Bond Angle, said in a note. LLC.
• TXN +8%. The semiconductor company announced strong results and guidance.
• V +2%. The payment system showed growth in profits and showed an increase in consumer spending (speaks well about the economy): Payment volume for the quarter increased by 8%, and processed transactions by 11%. The company recorded a 16% increase in cross-border volume, which occurs when transactions are made between buyers and sellers located in different countries.
• ENPH -6%. Produce products for the solar and alternative energy markets fell short of expectations and gave a weak outlook.
• CSGP +3%. The company beat earnings expectations and raised forecasts. And the launch of Homes.com became the most successful in the company's almost 40-year history.
• STX +2%. The hard drive company reported and gave forecasts in line with analysts' expectations.
• MAT +1%. The toy maker reported a smaller-than-expected quarterly loss, while maintaining its full-year profit forecast and noting improved demand after two years of waning consumer enthusiasm.