U.S. Stocks Looking Ahead | The Three Major Stock Index Futures Rose and Fell Differently Tesla (TSLA.US) released its earnings report after hours

Pre-market movements

Zhitong Finance APP learned that before the US stock market on April 20 (Wednesday), the futures of the three major US stock indexes rose and fell. As of press time, Dow futures are up 0.25 percent, S&P 500 futures are up 0.09 percent, and NASDAQ futures are down 0.14 percent.

As of press time, the UK FTSE 100 was up 0.23%, the German DAX was up 1.09%, the French CAC40 was up 1.24%, and the European Stoke 50 was up 1.58%.

As of press time, WTI crude oil rose 0.93% at $103/b. Brent crude rose 0.9 percent at $108.22 a barrel.

Market news

Fed Evans: There is no need to support a 225 basis point rate hike this year, and there is no need to raise rates by more than 50 basis points. Chicago Federal Reserve Bank President Charles Evans said Tuesday he was satisfied with the path of this year's rate hike, including two 50 basis point hikes, which are expected to rise to 2.25 percent to 2.5 percent by the end of the year. Given the inflation outlook, the Fed is likely to raise interest rates above "neutral" levels next year. Evans said the U.S. will still face inflation of 3 to 3.5 percent by the end of 2022. The Chicago Fed chairman's comments highlighted the need for the Fed to keep a close eye on inflation data as it sets interest rate movements after inflation data spiked to 8.5 percent in March.

Biden: Trillions of infrastructure projects have helped improve shipping, and the U.S. Army Corps of Engineers has now invested $18.2 million. On Tuesday, U.S. President Joe Biden traveled to Portsmouth, New Hampshire, to visit ports in portsport and speak on the infrastructure bill. In his speech, Biden highlighted how last year's funding for infrastructure could improve shipping and help address the supply chain issues that led U.S. inflation to a 40-year high. Overall, the bill includes $17 billion to upgrade port facilities in the context of the severe disruption to international supply chains caused by the pandemic. Biden also cited other infrastructure investments brought about by the bill, including replacing lead pipes, expanding broadband Internet, projects to combat climate change, and repairs to roads and bridges.

For the first time in more than 2 years! 10-year TIPS yield "turned positive"! U.S. stocks may continue to be under pressure. The U.S. Treasury exchange market has taken another crucial step towards normalized pre-COVID-19 trading, with the inflation-adjusted 10-year benchmark U.S. Treasury yield, the U.S. 10-year Inflation-Protected Bond (TIPS), rising above zero for the first time since March 2020. Rising real yields have eroded market preferences for risky assets, particularly threatening the overall valuation level of the stock market and its attractiveness relative to bond prices.

Global smartphone Q1 shipments plunged 11 percent, the biggest drop since the pandemic. According to the latest data from analytics firm Canalys, global smartphone shipments fell 11 percent in the first quarter of this year, the biggest drop since the outbreak, as inflation concerns, the Russian-Ukrainian conflict and the Opickron virus variant disrupted the industry's recovery process. Canalys' data shows that Samsung has a 24 percent market share from Apple (AAPL. US) regained the championship throne, and Apple came in second. Chinese mobile phone makers Xiaomi, OPPO and Vivo are in the top five, and their market share is about the same as a year ago.

If Le Pen wins the French election, the impact on the market is comparable to Brexit? French President Emmanuel Macron is likely to win re-election on Sunday. But from Citi to asset management giant Amundi SA, a growing number of people are warning that the market is underestimating the risk of unexpected outcomes. Investors and strategists say European stocks could plummet next Monday if far-right contender Marine Le Pen unexpectedly beat Macron, while French bonds will outperform German bonds and the euro could even fall to trade at dollar parity in the coming months.

NYMEX New York Crude Oil May Futures is affected by the transfer of positions for the month, April 21 at 2:30 to complete the last transaction in the market, 5:00 a.m. to complete the last transaction of the electronic disk, please pay attention to the trading venue expiration monthly announcement to control the risk. In addition, the expiration time of the US oil contract on some trading platforms is usually one day earlier than the NYMEX official, so please pay more attention.

Individual stock messages

Is the epidemic dividend finally exhausted? Netflix (NFLX. US) single-handedly led the streaming sector. Netflix (NFLX. US) disclosed in its latest earnings report that its number of users fell for the first time in more than 10 years, which also intensified market concerns about companies with similar types of business, and the streaming concept stocks suffered a sharp blow across the board. The market is currently worried that the reopened economy will put these companies in trouble. Specific data shows that Netflix's Q1 net subscriber loss of 200,000 is far below its guideline of adding 2.5 million subscribers, which is the company's first user loss since 2011, and also caused the company's global user number to drop from 22,184 at the end of 2021 to 22,164 million. In addition, Netflix also expects net subscribers to fall by another 2 million in the second quarter of this year.

Asma (ASML. US) Q1 net sales and earnings per share both exceeded expectations, with new orders decreasing by 1% sequentially. On Wednesday, April 20, before the US stock market, Asma announced its financial results for the first quarter of 2022. According to the financial report, under GAAP accounting standards, the company's Q1 net sales were 3.534 billion euros, which was better than the market expectation of 3.51 billion euros, compared with 4.364 billion euros in the same period last year, down 19% year-on-year; Net profit was EUR 695 million, compared to EUR 1,331 million in the same period last year. Basic earnings and diluted earnings per share of common stock were both €1.73, better than market expectations of €1.68.

Procter & Gamble (PG. US) net sales for the fiscal third quarter were $19.4 billion, or an estimated $18.73 billion. P&G's organic revenue grew 10% in the fiscal third quarter and expects core earnings per share to grow by 3-6% for the full year.

TSMC(TSM. US) issued $3.5 billion worth of bonds to raise funds for the construction of a factory in the United States. According to an investment letter of intent, chipmaker TSMC has issued bonds for its new plant in Arizona, USA, which will raise a total of about $3.5 billion. According to media reports, TSMC has completed pricing and issued four types of bonds, which will raise about $3.5 billion. This is TSMC's first U.S. dollar bond issuance since October last year. It is reported that the bond ranges from 5 to 30 years, of which the 5-year bond is priced at the same-year US Treasury plus 100 basis points. 7, 10 and 30-year U.S. dollar bonds are priced at 120, 135 and 150 basis points of the same-year US Treasury plus, respectively.

Musk exploded? Rumored to have paid $15 billion to bid for Twitter (TWTR. US), does not exclude the mortgage of stocks to raise money. According to the New York Post, citing two people familiar with the matter, Tesla (TSLA. US) CEO Musk is willing to put $10 billion to $15 billion in cash for the Twitter bid. Musk, who currently owns 9.1 percent of Twitter, plans to launch a tender offer in about 10 days and has commissioned Morgan Stanley to refinance $10 billion. Musk may also be willing to borrow his current tesla stake as collateral if necessary, a move that could raise billions more, according to people familiar with the matter. In addition, Musk tweeted a mysterious message today: _______is The Night. Some have speculated that the missing English word is "Tender."

Important economic data and event previews

22:00 Beijing time: The total annualized number of completed home sales in the United States in March (10,000 households).

22:30 Beijing time: U.S. EIA crude oil, refined oil, gasoline inventory changes (10,000 barrels), 2023 FOMC voting committee, Chicago Fed President Evans spoke on the U.S. economy and monetary policy.

23:25 Beijing time: 2024 FOMC voting committee, San Francisco Fed President Daley delivered a speech on the economic outlook.

At 01:00 a.m. Beijing time the next day: Atlanta Fed President Bostico made a speech.

At 02:00 a.m. Beijing time the next day: The Federal Reserve released the Beige Book of Economic Conditions.

Investment calendar

Thursday morning: Tesla (TSLA. US), Alcoa (AA. US), UAL. US)

Pre-market U.S. stocks on Thursday: AT&T (T.US), Union Pacific (UNP. US), Blackstone (BX. US), American Airlines (AAL. US), Philip Morris (PM. US), Daqo New Energy (DQ. US)