Today on Wall Street
ADP Private Sector Employment in the US increased by 184 thousand in March compared to market expectations of 150 thousand. Private sector employment increased at the fastest pace since July 2023, indicating that the buoyancy in the US labor market continues. The entertainment and accommodation (service) sector continues to support employment growth. Following the data, the horizontally negative outlook in US futures is maintained. While global markets decline with the rise in bond yields in the United States, the earthquake in Taiwan raises concerns about possible production cuts in the semiconductor chip industry. ADB 10-year bond yields are at the highest level in the last five months. Chairman Powell's speech after the opening of the session (19:10) will be followed closely, along with the signals that the manufacturing sector is expanding beyond expectations and employment markets remain vibrant. At the same time, March services PMI (16:45) and service ISM (17:00) indices can be monitored. Recent strong data in the USA has pushed bond interest rates up. We will follow this data again through the interest - stock market relationship.
The strengthening of data sets affects index pricing in S&P 500 ahead of the 1Q24 financials, which will start on April 12. We can state that the index, which saw a dissolution below 5200 at the opening in the previous session, continues to hold on to this level with the purchases made at the closing. The 10-day average is at 5211. For a possible correction, we may need to see persistence under 5222 - 5210. 5230 - 5245 can be viewed as resistance.
Tesla Inc (NASDAQ:TSLA) - Tesla stock price fell nearly 1% after Guggenheim and Deutsche Bank lowered their price targets for the stock. In its update report, Guggenheim shared, “We estimate that the majority of the negativity in deliveries this quarter is a function of demand, not supply. "We are modeling negative volume growth at Tesla for fiscal year 2024," he said. Guggenheim also lowered Tesla's price target from $132 to $122 per share. This indicates a decrease of approximately 27% based on the last closing.
Intel Corporation (NASDAQ:INTC) - Intel announced deepening operating losses in its foundry business. Intel reported that its manufacturing unit recorded an operating loss of $7.00 billion in 2023. That's up from a $5.2 billion operating loss the previous year. The unit's revenue was $18.9 billion in 2023, a 31% decrease from $27.49 billion in the previous year. CEO Pat Gelsinger announced that 2024 will be a difficult year for the company's chip manufacturing segment and that they expect to reach breakeven on a business basis by approximately 2027. Intel plans to invest $100 billion to establish and expand chip factories in four US states after receiving a grant from the government. As part of this plan, Intel announced that it will begin reporting the results of its manufacturing operations as an independent unit. INTC stock is down 4.00% before the session open.
CNH Industrial NV (NYSE:CNHI) - With a market capitalization of $15.99 billion, CNH Industrial is an Italy-based manufacturer of industrial vehicles. The company continues its activities as an organization that develops and produces services and equipment in the fields of agriculture and construction in 64 factories and 49 R&D centers. The company is trading with 7.4x FK, 2.04x PD/DD multiples. The company will pay a dividend of $0.47 per share on May 29, with a 12-month dividend yield of 3.09%. When we examine it technically, if the stock closes above its short-term averages and continues to close above the 200-day average (12.48), a level of $ 13.30 can be targeted. A long position can be taken on the stock between the range of $12.54 - $13.08, provided that a stop is placed below $12.48.
