Nvidia Overshadows Everything

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• 💃 It’s a traffic light kinda day…some green and some red

• 📝 Take notes tech giants, Nvidia’s the big dog in town

• 🎙️ Earnings announcements

⬇️🐻 Market Dance – 🎢 We're in for a bit of a mixed bag with the markets. In the green corner, we got the S&P500, leaping 36 points, and the Nasdaq, strutting its stuff up 214 points. But it ain't all sunshine and rainbows - the equal-weight S&P500 dipped slightly, the Dow stumbled 35 points, and the small-cap Russell 2000 took a tumble. 😅 Across the globe, China's HXC Index sank like a stone. And talking about sinking, US Treasury bonds were down, pushing yields (what you earn from these bonds) up. That's because we're seeing the economy grow, banks chillin' out, and a bit less worry about the debt ceiling. So much so that there are practically zero interest rate cuts expected for the second half of this year - just how the Fed likes it.🎯

The US Dollar flexed its muscles, with the DXY (basically the Hulk of the currency world) bulking up ~40bp. On the flip side, oil prices slipped a bit because Russia's not too keen on cutting production. Our old friend Bitcoin is sitting pretty at ~$26.489K, but gold didn't have such a good day, dropping 90bp. 💰💱

🎢 Thursday Thriller – Well, everyone's buzzing about Nvidia's blow-out report, which put a spring in tech's step. Plus, it seems like a deal on the debt ceiling could be just around the corner, which has the market breathing a sigh of relief. 🎉

However, while tech is partying, other areas are feeling a little hungover. Treasuries continued their slump, mainly because the economy's looking stronger, companies are making more money, banks aren't stressing as much, and it looks like we'll dodge a debt ceiling crisis. Great news, right? Well, yes, but it also makes it harder to justify the prices we're paying for stocks. 🤷‍♀️

🎤💔 How we’re thinking about stocks – We reckon strong earnings, the Fed stopping rate hikes, and a heap of negativity could actually boost stocks and push the S&P500 above 4200. For now, though, it looks like the index might hover below that level. Don't sweat the debt ceiling situation - it's likely we'll see a deal before the deadline, and even if we don't, it shouldn't cause a crisis. 🧩

Consumer

🛒 COST (Costco), the retail giant known for its warehouse shopping experience, once again flexed its financial muscles by reporting a modest beat on earnings per share (EPS) at $3.43 (vs. the Street's paltry $3.31 estimate). Not a single slip in performance—Costco is here to stay, folks! Its membership model continues to be a core advantage, ensuring a loyal customer base and solidifying its position in the retail kingdom. 💰

👟 DECK (Deckers), the footwear company behind popular brands like UGG, HOKA, and Teva, kicked off its financial dance with an impressive revenue figure of $792 million (vs. the Street's humble $722 million estimate). But wait, there's more! They also nailed EPS at $3.46 (vs. the Street's conservative $2.69 estimate). Deckers is strutting its stuff and leaving the competition in the dust! 💃

👖 GPS (Gap), the style maven that knows how to bridge the fashion gap, surprised everyone by flipping the script with earnings of $0.01 per share (vs. the Street's doomsday prediction of a $0.16 loss). Gap is defying gravity, folks! Comps were a tad off, but the Old Navy unit strutted its stuff, while Banana and Athleta did their thing too (let's not mention the underperforming stragglers). Prepare for some fashionable markdowns in the name of progress! 👕✨

🏰 RH (Restoration Hardware), the purveyor of luxury home furnishings and savior of chic abodes, delighted investors with a revenue triumph of $739 million (vs. the Street's humble $727 million expectation). Gross margins were on point at 47%, and operating margins danced their way to 14.9% (that's 130 basis points above the plan). RH is raising the bar and turning homes into palatial havens! 🛋️

💄 ULTA (Ulta Beauty), the beauty guru that turns heads and transforms faces, stole the spotlight with a dazzling EPS performance of $6.88 (vs. the Street's modest $6.80 estimate). And the sales growth? A stunning 9.3% (vs. the Street's mere 8.85% forecast). However, the operating margins fell a tad short of perfection at 16.8% (vs. the Street's demanding 17.3% expectation). Ulta Beauty is painting the town fabulous! 💅

Tech

🖥️ ADSK (Autodesk), the software powerhouse revolutionizing the world of design and engineering, reported its FQ1 results in a fashion that can only be described as "right inline." EPS and revenue danced harmoniously with expectations, while billings took a small step ahead of plan, reaching $1.172 billion (vs. the Street's more conservative $1.036 billion estimate). With the full-year EPS outlook range bumped higher to 7.07-7.41 (vs. the prior 6.98-7.32), Autodesk is fine-tuning its performance for a stellar year ahead. Watch out for those design masterpieces taking shape! 💻✨

🎥 LGF (Lions Gate), the entertainment lion roaring with captivating content, brought some serious Q4/Mar upside to the silver screen. Revenue lit up the box office at $1.1 billion (vs. the Street's less dazzling $990 million forecast), while EBITDA took a leap to $138 million (vs. the Street's modest $93 million projection). The grand finale? EPS shining at 21 cents (leaving the Street's 5-cent loss in the dust). Motion Picture revenue deserves an encore, surging an astonishing 85% to $532.1 million. Sit back, relax, and enjoy the show! 🍿🎬

🔍 META (Meta), formerly known as Facebook, has CEO Zuckerberg rallying the troops after a round of layoffs, declaring his vision for a "scrappier place" with more stability and less bureaucracy. A new chapter is unfolding, and Meta aims to rewrite the narrative with renewed focus and determination. Will this be the comeback story we've been waiting for? Stay tuned! 📖🏰

⚡ MRVL (Marvell), the technology innovator driving the future of connectivity and AI, delivered modest FQ1/April upside with EPS coming in at 31 cents (vs. the Street's 30 cents estimate). But the real buzz is all about MRVL's bullish comments on AI, fueling excitement among investors. While the FQ2/Jul guide is slightly ahead of plan at 32 cents per share and $1.33 billion in revenue, Marvell's visionary outlook for the future has ignited a spark. AI is taking center stage, and Marvell intends to be a leading player in this transformative field. Get ready for an electrifying performance! ⚡💡

🎬 PARA (Paramount), the cinematic powerhouse captivating audiences with its silver screen magic, is making financial moves. National Amusements (NAI), the majority voting shareholder in Paramount, is set to receive a $125 million preferred equity investment from BDT and MSD Partners. This injection of funds will allow National Amusements to settle its revolving loan and recent term loan borrowings, freeing Paramount shares previously pledged to support those loans. Obligations to make future pledges will be eliminated, paving the way for a smoother production ahead. Lights, camera, financial action! 🎥📈

💼 WDAY (Workday), the cloud-based software company reshaping the world of human resources and financial management, dazzled investors with solid EPS upside at $1.31 (vs. the Street's more conservative $1.13 estimate). What's more impressive? Workday's healthy operating margins, strutting at 23.5% (about 200 basis points ahead of plan). The top line played its part too, with revenue slightly exceeding expectations at $1.68 billion (vs. the Street's $1.66 billion prediction). Subscription backlog soared to new heights, reaching $16.65 billion—a staggering 31.6% increase year-over-year. Workday is raising the curtain on a promising future, backed by exceptional performance. Let the workforce revolution begin! 💪💼

🌯 That's a wrap for the day. 🌯

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