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Wall Street muted ahead of big tech earnings, Netflix posts mixed Q1 results


US stocks were flat ahead of major tech earnings as investors awaited more economic clues from companies’ performance. The US bond yields were little changed after more Fed officials indicated supporting more rate hikes. Banking stocks remained momentum following earnings results from Bank of America and Goldman Sachs. Netflix’s shares were flat after a 10% slump in the after-hours trading amid mixed earnings results.

The US dollar retreated after a two-day rally, sending gold prices higher, but crude oil stayed flat. Most major currencies strengthened against the greenback after China reported better-than-expected first-quarter GDP data.  

Asian markets are set to open mixed. The ASX 200 futures were slightly up 0.05%, the Hang Seng Index futures were down 0.33%, and Nikkei 225 futures slipped 0.03%.

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Price movers:

  • 7 out of the 11 sectors in the S&P 500 finished higher, with industrial stocks leading gains, up 0.5%. Energy, financials, and technology were all in the green, while communication services, healthcare, and utilities ended in the red.  
  • Netflix’s shares fell 3% after plunging 10% amid mixed first-quarter earnings results. The streamer giant reported earnings per share at $2.88, beating an estimated $2.86. However, the revenue was $8.16 billion, shy of the $8.18 billion estimated. The net subscriber was 1.75 million, more than an expectation of 1.38 million. Netflix said it delayed the password-sharing crackdown.
  • Bank of America’s shares were slightly higher amid a beat on earnings expectations. The bank’s net interest income jumped 25% to $14.4 billion in the first quarter thanks to rising rates, and depositors fled funds to the big banks following the regional bank turmoil in March.
  • Canadian March CPI rose 4.3% year on year, a sharp decline from 5.2% increase in February. It is also the smallest increase since August 2021. The Bank of Canada held the interest rate at 4.50% for two consecutive times.
  • Gold futures rebounded as the US dollar weakened. The precious metal, however, could continue to retreat as it may have been overbought from a technical perspective.
  • Crude oil bounced a session low and finished flat despite positive Chinese economic data. China’s first-quarter GDP printed at 4.5%, better than an estimated 4%. Retail sales jumped 10.6% annually in March, suggesting the country is on a steady pace for economic recovery, potentially boosting commodity prices.
  • Bitcoin climbed above 30,000 as optimism amid the Fed’s policy pivot continued to support the cryptocurrency rebounding trend.

ASX and NZX announcements/news:

  • No major announcements (continue to update).

Today’s agenda:

  • Australian Melbourne Institute Index of Consumer Sentiment survey for April.
  • UK CPI for March. 

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