- Wall Street opens slightly lower
- Regional activity in US is shrinking
- Goldman Sachs express its favorable outlook to energy companies
- Bed Bath & Beyond (BBBY.US) filed for Chapter 11 bankruptcy over the weekend
On the first day of the week, Wall Street opens slightly lower as investors await corporate earnings reports from major tech companies like Alphabet, Microsoft, Amazon and Meta Patforms. Important macroeconomic data are also released this week, such as US GDP, PCE and continuation of regional activity indicators in the US.
Today there are not many publications in the macro calendar, but it is worth paying attention to two regional indices from the US. This morning Chicago index was published - index remains unchanged at -0.19 points. This is a worsening outlook compared to the beginning of the year, but still stable compared to the previous reading. At 15:30 BST Dallas index will be published which may further confirm trends in the US regional economy. This could be another argument that the Fed may end interest rate hikes in May.
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Create account Try a demo Download mobile app Download mobile appWorsening macro situation and the highest recession expectations in this cycle did not prevent the experts from Goldman Sachs from recommending energy and mining stocks for cyclical exposure. Strategist David Kostin said miners are levered to China's growth through rising metals prices. And the green transition and higher domestic infrastructure spending will be tailwinds. Energy remains Goldman's preferred cyclical overweight as it trades at a discounted valuation, while oil should rise to $100 in the next 12 months.
US500 has opened 0.14% higher at 4160 points near a resistance zone between 4172 and 4200 points. However, the bullish momentum is weakening, as indicated by the MACD indicator.
Company news:
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C3.ai Inc. (AI.US) shares are down 6% after Wolfe Research downgraded the software company to underperform from peer perform.
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Tesla (TSLA.US) raised its full-year capex forecast again. It expects to spend between $7 billion and $9 billion, up $1 billion at both ends of the range forecast in January.
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Shares of the global Coca-Cola Company (KO.US) are gaining nearly 1.5% ahead of the opening of today's cash session following the release of better-than-expected results for Q1 2023.
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Spot volume on Coinbase (COIN.US), the most popular exchange in the U.S., surprisingly fell 0.5% in Q1 2023. This raises uncertainty about the remaining metrics and Q1 2023 financial results, which the exchange will show on May 4
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Bed Bath & Beyond (BBBY.US) tanked premarket after it filed for Chapter 11 yesterday. The big-box chain, which still hopes for a buyer, plans to shut all stores and liquidate inventory by June 30. It had $4.4 billion in assets and $5.2 billion in debt as of late November, it estimates.
