Big Tech Gains, PBoC Rhetoric, Twitter Reactions – What’s Happening in the Markets? By Investing.com


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Author – Geoffrey Smith

Investing.com – Today could be the most important day for the upcoming first-quarter earnings season, which is approaching its peak, after Google parent company Alphabet (NASDAQ:) and Microsoft (NASDAQ:) shared their report on the results. We will receive updates from thousands of people like GE, GM and Pepsi beforehand. The Chinese central bank has supported the yuan and (sort of) prevented the deterioration of Chinese stock markets, at least for now. The American Petroleum Institute (API) will share its weekly crude oil and product inventories report. Elon Musk’s take on Twitter (NYSE:) continues to shock both the markets and Washington.

What you need to know in financial markets on Tuesday, April 26:

1. Alphabet and Microsoft Open Big Tech Q1 Reporting Season

Today (with the exception of Tesla (NASDAQ :)), earnings reports from major tech companies will be split. Microsoft and Alphabet will report after the close.

Microsoft is expected to share more stable earnings growth in a quarter, thanks in large part to its Azure cloud storage unit. But even more interesting will be the Alphabet report. The company’s advertising model will be reviewed for signs of inflationary effects. Alphabet’s stock is down nearly 20% from its peak at the end of last year despite extraordinarily strong revenue growth.

Investors also appear to be focused on the company’s statements about whether there are any implications for the YouTube service from Netflix’s market saturation issues.

2. Yuan stabilizes after FX reserve holding rate falls as PBoC pledges more support

China’s central bank (PBoC) supported the yuan – and to some extent the domestic market – saying it was looking for new ways to support the economy. The yuan, which fell at its fastest rate since the PBoC devaluation in 2015, appreciated against the dollar after this development. The dollar fell 0.1% from Monday after hitting an 18-month high.

Referring to the massive demand shock that rippled through Shanghai and other cities due to the extensive lockdowns, the central bank said it would “increase prudent monetary policy support to support the real economy. , especially in sectors and small businesses that have been hit hard by the pandemic.”

At the same time, on Monday, the bank increased the availability of the dollar in the domestic market by reducing the requirement for banks to hold foreign exchange reserves.

3. Earnings reports expected as stock market prepares to open lower

U.S. stock markets are preparing to open lower before they can continue the sharp rise they saw on Monday due to the perception that expectations for higher interest rates are priced enough.

He lost 109 points and suffered similar losses.

Today is a big day for quarterly earnings reports. Plain package Service (NYSE:) and Pepsico (NASDAQ:) has already released better than expected results. General Electric (NYSE:), Raytheon (NYSE:), Warner Bros. Discovery (NASDAQ:) and DR Horton (NYSE:) will signal without ringing, while Visa (NYSE:), Mondelez (NASDAQ:), General Motors (NYSE:), Texas Instruments (NASDAQ:) and Chipotle (NYSE:) will also join the caravan after the close.

In the data calendar, it will be the Conference Board survey, March, and house prices. will also spark interest in debt markets.

4. Twitter replies

Elon Musk’s deal to buy Twitter continues to resonate both in financial markets and in Washington. Conservative voices hailed the move, seeing it as a good balance against the liberal-dominated media landscape, while others, including the Washington Post (WaPo), opposed the acquisition of a major broadcast outlet. by the richest man in the world. WaPo owner Jeff Bezos wasn’t alone in wondering whether Musk would allow rampant criticism of China, given the danger Musk’s (NASDAQ:) company Tesla poses in China.

Twitter founder Jack Dorsey said that with this deal, “Twitter will leave Wall Street” and return to its original function.

However, Musk relied heavily on Wall Street to raise the necessary funds to finance this purchase. Morgan Stanley provided about $12.5 billion in financing for the deal, which was secured by Musk’s stake in Tesla. Meanwhile, Twitter shares continue to trade around 4% below the $54.20 deal.

Oil consolidates around $100 ahead of API report

Crude oil consolidated around $100 as the market continued to be on guard over coronavirus-related developments in China. Quarantine in Shanghai continues as the Beijing region begins a week of mass testing.

It was down 0.2% at $98.39 and up 0.1% at $102.25. The return of Libyan production has helped to lower prices.

The American Petroleum Institute (API) will release its weekly forecast at its usual time.

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