Stocks & Markets

The News

• US ECONOMY: Stocks tumble
  • US stocks and bonds fell sharply on Thursday due to strong economic data reducing hopes for a Federal Reserve rate cut this year
  • Real estate and utilities taking the biggest hit, the 10-year Treasury yield rising significantly
  • Nvidia soaring 9.3% after positive earnings despite the general market downturn.

• US ECONOMY: CHINA TARIFFS
  • The US government is doubling tariffs on $18 billion worth of Chinese goods, including semiconductor tariffs to 50% and electric car tariffs to 102.5%.
  • Tariffs on lithium-ion batteries will rise to 25% and solar panels to 50%, aiming to safeguard US jobs and industries but risking retaliation from China, potentially harming US exports and adding economic strain.
  • These higher tariffs could contribute to inflation, impacting consumer prices and potentially delaying Federal Reserve interest rate cuts.
• MIRCOCHIPS: Chip stocks dip after Nvidia earnings
  • Semiconductor stocks mostly declined on Thursday.
  • Nvidia forecasted a $28 billion Q2 revenue, surpassing estimates, with an adjusted gross margin around 75.5%.
  • AMD and Intel shares fell by 4% and 4.5%, respectively.
  • Taiwan Semiconductor saw a slight increase.
  • GlobalFoundries dropped 9% after announcing a $950 million secondary offering.
  • Micron fell 1% following South Korea’s $19 billion investment in its chip sector.

• MICROCHIPS: NVIDIA
  • Nvidia’s shares surged after impressive fiscal first-quarter results, better-than-expected future guidance, and a 10-for-1 stock split announcement.
  • The positive performance of Nvidia also lifted other AI and semiconductor stocks, including Super Micro Computer, which rose by 1.2%.
• MICROCHIPS: TSMC stock
  • TSMC’s April sales surged by nearly 60% to $7.3 billion, driven by strong demand for AI chips.
  • Its ADRs rose by approximately 5%, propelled by significant orders from companies such as Apple and Nvidia.

• AIRLINES – BOEING in free fall
  • Boeing’s shares declined after CFO Brian West forecasted negative free cash flow and no recovery in aircraft deliveries for the second quarter.
  • The outlook was influenced by ongoing production challenges with Boeing’s leading aircraft models.

• MINING – Anglo American not selling
  • Anglo American has rejected a third takeover proposal from BHP Group, valued at about £38.6 billion, and extended negotiation talks by one week.
  • The proposal includes demands for Anglo to unbundle key South African assets, a move deemed risky by Anglo American.

• HEALTH INDUSTRY: The Health-Care Company stock dropping
  • The health-care company’s stock dropped 8% after market close subsequent to its announcement of a private offering of $525 million in convertible senior notes, due in 2029, targeted at qualified institutional buyers.
• HEALTH INDUSTRY: Hims & Hers Health Inc
  • Shares of HIMS, the telehealth company, surged over 30% after it started offering compounded GLP-1 injections, expanding on its weight loss program launched last December.
• HEALTH INDUSTRY: Novovax on the move
  • Novavax’s stock surged following the announcement of a $1.4 billion agreement with Sanofi to market its COVID-19 vaccine and develop a flu-covid combination vaccine.
  • Pfizer and AstraZeneca revealed nearly $1 billion investments in France, aimed at bolstering research and development efforts ahead of the ‘Choose France’ summit.

• SOLAR ENERGIES: SOLAREDGE SHARES
  • SolarEdge’s shares declined following a Q1 loss of $1.90 per share, surpassing the expected loss of $1.55 per share.
  • Although its revenue of $204 million exceeded forecasts, it notably decreased from last year’s nearly $1 billion.
• COMMODITIES – Geopolitical Tensions
  • Renewed geopolitical tensions in the Middle East are fueling concerns in the commodity market.
  • Gold and copper have reached new record highs amid expectations of supply shortages.
  • Silver prices have also seen an increase.
  • Explore the PanicMode portfolio for potential investment opportunities amidst market volatility.

• AGRICULTURE – LiveCattle
  • Due to the lowest beef cattle supply since 1961, dairy farmers are diversifying by breeding calves for meat rather than milk production.
  • These hybrid calves, sired by beef bulls, are sold at a premium, offering a lucrative alternative to the oversaturated milk market.

• INVESTMENT FIRMS MOVES:
  • Scion Asset Management, under the leadership of Michael Burry, acquired stakes in BP and Cigna
    • while divesting from Oracle and CVS in the first quarter of 2024, as per its recent SEC filings.
  • Berkshire Hathaway underwent notable portfolio changes in Q1, including acquiring a $6.7 billion stake in Chubb, closing its position in HP Inc.
    • reducing stakes in Apple, Paramount Global, and Sirius XM Holdings.

Shorts:

• Dow Jones tops historic 40,000 mark
• GSK to offload entire Haleon shareholding
• Gold, silver, platinum prices soar on Fed rate cut prospects
• Copper futures hit a record high of $5.02 per pound
• Ether’s surge fuels crypto market optimism
• Microsoft unveils AI-powered PCs
• April CPI Eases to 3.4%, Inflation Dips
• Alibaba dips despite revenue beat
• Siemens Energy outlook boosts shares
• Cocoa market faces extreme volatility
• AstraZeneca halts Covid vaccine on low demand