🌍 Breakfast Macros

🤔 What’s happening: This morning's news is a mixed bag. On the bullish side, there were some decent earnings from the US, and FWRD implied that the market was at/near a trough. However, the bears are growling about the RBA's shockingly hawkish decision, the Eurozone CPI overshooting, and underwhelming earnings from AMS-Osram, ANET, BP PLC, CHGG, CYH, and FANG. Today, we'll be keeping an eye on the US JOLTs report for Mar and earnings from companies like DD, MTCH, and SBUX.

🌍 Around the world: Europe's CPI for April ran hotter than a fire-breathing dragon, coming in at +7%, higher than expected and hotter than last month. The ECB bank lending survey revealed that loans to firms and house purchases are tightening faster than pants on Thanksgiving Day. Meanwhile, the RBA in Australia shocked the market by hiking rates 25bp to 3.85%, leaving everyone wondering if they'll be serving up more rate hikes in the future like it's a never-ending all-you-can-eat buffet. Finally, the US is lifting its COVID vaccine requirements for international travelers and foreign workers on May 11, because who needs safety when you've got flights to catch?

🍴 Earnings Continued!

AMS-Osram shares took a hit in Eurozone trading after poor cash flow and Q2 sales below Wall Street analyst expectations; things ain't looking bright💡.

ANET (Arista Networks) had a Q1 upside that was just "fine," but people hoped for more with Microsoft and Meta's bullish capex remarks; slightly underwhelming 😐.

AXON (Axon Enterprise) is joining the S&P 500 on 5/4, replacing FRC, which is a positive move 🎉.

BP shares dipped in London after Q1 results showed underwhelming cash flow and a slower buyback pace; it's a bit of an oil slick 🛢️

CAR (Avis Budget Group) reported strong Q1 results, including EBITDA at $535M (vs. Street $510M) and EPS of $7.72 (vs. Street $3.00); they're cruising to success 💪.

CHGG (Chegg) experienced modest Q1 upside, but soft guidance since ChatGPT's impact on their business is a mixed bag 😅.

CYH (Community Health) missed on EPS and EBITDA, and the full-year guidance remains unchanged; not so hot 🤷‍♂️.

FANG (Diamondback Energy) reported misses on EPS and EBITDA, but production and free cash flow were inline, and '23 guidance unchanged; lukewarm results 😐.

FLS (Flowserve) showed strong EPS upside and raised guidance for the year; things are looking up! 🚀.

FWRD (Forward Air) beat EPS ($1.37 vs. Street $1.30), but it was all due to a 24c one-time tailwind; industry conditions are at/near a trough, making it a mixed situation 😶.

Hollywood writers strike for the first time in 15 years, so brace for drama 🍿 (Variety).

HOLX (Hologic) reported solid FQ2/Mar upside and raised guidance for the year; looking healthy 💊.

HSBC shares rose in London as strong Q1 earnings were driven by higher revenue, lower costs, and ramped-up capital return; banking on success 💸.

IBM plans to replace 30% of its 26K back-office workers with AI over the next 5 years, and puts hiring on hold for some jobs; AI takeover is coming 😮.

KMT (Kennametal) reported solid EPS upside and raised guidance; they're doing well 💪.

Logitech shares soared in Europe after reporting better-than-feared earnings; it's all about clicking the right buttons 🖱️.

MGM (MGM Resorts) hit the jackpot with Q1 upside, including EPS of $0.44 (vs. Street $0.10), revenue of $3.87B (vs. Street $3.59B), and EBITDA of $1.1B (vs. Street $1.02B) 🎉.

MS (Morgan Stanley) is preparing to cut 3K jobs by the end of June, with banking and trading expected to bear the brunt; tough times ahead 😔.

NXPI (NXP Semiconductor) followed ON with a solid report/guide, refuting worries about auto chip demand; smooth sailing 🚗.

SFM (Sprouts Farmers Market) reported strong EPS upside and a solid guide; fresh performance 🥕.

SON (Sonoco) showed strong results and raised guidance, contrasting PKG's disappointment; packing a punch! 🥊.

SYK (Stryker) beat and raised guidance with strong earnings, but expectations were high; a powerful run, but be cautious of overconfidence 😏.

Tesla raises prices in Canada, China, Japan, and the US, making their electric dreams a bit more costly⚡.

UK homebuilders rallied in London as the government may help first-time buyers with new policies; building a brighter future 🏠.

Vice Media is preparing to file for bankruptcy; not a great situation 🎈.

WWD (Woodward) posted very strong FQ2/Mar results and raised guidance for the year, which is positive news 📈.

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