Morning Bites - May 16, 2023

🔮 Welcome back to Finsights, fellow financial wizard. Let’s get you up to speed on the market with a flick of your finger! 🪄

• 🕺Equities dance was a good ratio of green and red

• 🤝 More confirmation that the pesky debt ceiling deal is coming

• 🔥 Chinese tech (Baidu and Tencent) smashing it!

📈 Mixed Bag for US Equity Futures: US equity futures are looking like a group of indecisive friends deciding where to eat: S&P is slightly down, Dow is dipping a bit, while Nasdaq is feeling a bit pecky and heading up. Meanwhile, over in Europe, it's a bit brighter with most sectors seeing green, particularly industrials, tech, and aerospace. In Asia, we've got a bit of everything: some indices up, some down. It's like a financial version of "It's a Small World." 🌍🎢

💰 Gold and Bitcoin Slip: Treasuries are attracting a bit of attention, pushing yields down a touch. The Dollar Index (DXY) is off by 15bp. Over in commodities, Brent oil is nudging up while gold and bitcoin are slipping a bit. It's like Bitcoin said, "I'll have what Gold's having," and both decided to take a step back. 🥂📉

🇨🇳 China's Numbers Miss the Mark: China's economic figures for April didn't quite hit the bullseye. The markets, though, are taking it like a parent at a school play: they're a bit disappointed, but there's always hope for next time. Plus, China's tech companies are helping to keep the mood up, with JD, Baidu, and Tencent Music all beating expectations. 🎭📊

🔔 Debt Ceiling Deal Not Expected Today: While we're not expecting a debt ceiling deal today, there's hope that negotiations will keep moving forward. It's a bit like waiting for a bus in the rain - it's not great, but at least you know it's on its way. Treasury Secretary Yellen, meanwhile, has been turning up the pressure, warning of a potential breach as early as June 1. ⏰💵

🤔 How We're Thinking About Stocks: The recent growth data has us scratching our heads a bit. It's a little concerning, but we're relying on Corporate America to have a handle on the underlying economy. We're sticking to our guns with our optimism being built on strong earnings. Despite some concerns, we believe that resilient EPS, the end of Fed rate hikes, and positive sentiment and positioning are powerful tailwinds. As for the debt ceiling, it's like a cloudy day - it might dampen the mood, but it's not likely to spoil the picnic. 🌤️📈

🧠 BIDU (Baidu), China's answer to Google, crushed it in Q1! Revenue came in at CNY31.1B, beating Street expectations of CNY30B. Even more impressive, EPS rocketed 43% Y/Y to CNY16.10, leaving the Street's CNY12.93 prediction in the dust. Thanks to solid margins, they're turning into a money-making machine. 🚀

🎶 TME (Tencent Music), the Spotify of China, reported a strong Q1. EPS hit CNY0.89, outpacing the Street's CNY0.76, while their user base grooved to the beat of 94.4 million, a few million more than expected. That's what we call hitting the high notes! 🎵

🔨 HD (Home Depot), the go-to spot for your DIY projects, reported modest EPS upside at $3.82, just beating the Street's $3.80 estimate. However, customer transactions fell 4.8%, and weather issues caused a slowdown. But let's remember, even the best builders have off days! 🌧️

👟 ONON (On Holding), the Swiss sneaker company that's making waves in the footwear industry, reported a strong Q1, with revenue up 78.3% to CHF420.2M. They even managed to boost their full-year revenue guidance. Running towards success, one stride at a time! 🏃‍♀️

🌯 Wrap for earnings. Have a fantastic day! 🌯

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