Equites rose on earnings optimism. As written yesterday, Bloomberg reported a record 63% of the 409 respondents to its poll expect earnings to give equities a boost. This is the highest vote of confidence for corporate profits since the poll began asking the question in October 2022 according to the newswire.
The markets may know in the next several days if this optimism is warranted as three more mega tech companies and members of the Magnificent Seven are poised to post earnings: META and GOOG at today’s close and MSFT after tomorrow’s close.
Last night Magnificent Member TSLA posted results that missed expectations however offered a positive forward-looking statement stating a more affordable car will be available by 2025. widely discussed, shares have already been crushed this year; down about 20% for the month and 43% for the year to date. Shares are higher by about 10% in premarket trading.
Changing topics, the bond market was flat ahead of two scheduled record-breaking Treasury auctions; yesterday’s $69 billion auction of the of two-year notes and today’s $70 billion auction of five-year notes.
Yesterday’s demand of the two-year note was described as “not huge but solid” even though yesterday’s economic data missed expectations.
A $44 billion seven year note auction is scheduled on Thursday, an amount that is very close to a record.
Has the market cheapened up enough for strong demand given that yields are around multidecade highs???
Bloomberg comments “this is the first of many record auctions that will occur this year and into the next.”
Last night the foreign markets were up. London was up 0.55%, Paris up 0.43% and Frankfurt up 0.29%. China was up 0.76%, Japan up 2.42% and Hang Seng up 2.21%.
Futures are bifurcated with Dow futures flat and NASDAQ up about 0.35% on TSLA’s gains. The 10-year is off 8/32 to yield 4.64%.
