Morning report

Morning News Summary

Easter Break Leaves Markets Quiet

The US and Asia were the only regions trading on Monday as most of Europe and some other markets remained closed for Easter Monday. In the US, equities were subdued as investors looked ahead to one of the biggest reporting weeks of the season, with companies such as Amazon, Starbucks and Ford due to report quarterly earnings this week.

US stocks lack direction as corporate earnings await

The US struggled to make any significant moves into the green as investors looked ahead to a big week of corporate quarterly results following an extended weekend thanks to Easter Friday. The Dow Jones Industrial Average dipped -0.2% lower, while the S&P 500 remained relatively flat, and the Nasdaq Composite Index added +0.1%. Shares of Netflix rose +4.0% to make up some of the ground it lost following Walt Disney’s (-0.9%) announcement of details of its streaming platform Disney+ twelve days ago. Fox Corp dropped -2.0% after the company announced it plans to cut shows and renew others in the wake of the sale of much of its business to Walt Disney. Qualcomm shares climbed +2.9% higher after news that Apple (+0.3%) plans to release a 5G phone in 2020 using chips made from Qualcomm, as well as from Samsung (+0.1%), as Apple looks to update its phones to help rebuild stalled iPhone sales growth. Boeing fell -0.9% after its management flatly rejected detailed reports of a bad workplace culture and shoddy workmanship due to management pressure on staff at its South Carolina plant, which has demonstrably affected the quality and safety of some its 787 Dreamliner planes. Shares of Tesla slipped -3.5% as the company hosts its investor day, amid reports of car fires in Shanghai and as more Wall Street analysts react to mounting demand concerns. Kleenex parent Kimberly-Clark Corp got the week’s earnings started with the company reporting a less-than-expected drop in sales in its first-quarter results, lifting its shares +5.8% higher. Over the rest of the week a number of major corporates are set to report quarterly earnings, including Facebook (+1.5%), Amazon (+1.4%), Microsoft (+0.2%), Coca Cola (-0.2%), Twitter (-0.3%), Starbucks (-0.6%), and Ford Motor (-0.7%).

European markets closed

Most major European markets, including the UK, Germany and France remained closed on Monday as the region celebrated Easter Monday.

Asian markets mixed

Asian markets were mixed on Monday following the Easter holiday weekend. The Singapore Strait Times, Taiwan SE and Nikkei 225 added +0.3%, +0.2% and +0.1% respectively, while the Kospi remained flat, and the Shanghai Composite and Hang Seng fell -1.7% and -0.5% respectively.

ASX 200 closed

The ASX 200 was closed for Easter Monday.

Crude, gold and iron ore up

WTI crude rose +2.8% to US$65.82, gold rose +0.1% to US$1,275.87, and iron ore added +US$2.00 to US$95.00.

Today’s events

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This morning summary has been provided by Forsyth Barr Ltd and is for general information purposes only - your financial situation or goals have not been taken into account. If you would like more information or advice that is specific to you, talk to your Authorised Financial Adviser.