Ten Stories Moving the Market

Ten Stories Moving the Market:

Apple higher-than-expected revenue growth of up to 16% for the March quarter, powered by strong demand for its ​iPhones and a sharp rebound in China and accelerating demand in India – Reuters. (Why you should care – Apple’s better-than-expected sales guidance for the next quarter includes component supply constraints, stoking cost concerns)

Amazon is in talks to invest as much as $50 billion in OpenAI and expand an agreement that involves selling computer power to the AI startup – Bloomberg. (Why you should care – this would be a new investor in the ChatGPT maker; Amazon is also in discussions to use OpenAI’s model on its platforms)

KLA Corp beat Wall Street expectations for second-quarter revenue and profit, as enterprises ramped up orders for its chip fabrication tools used to manufacture advanced artificial intelligence semiconductors – Reuters. (Why you should care – the stock fell in after hours trading on mixed guidance and concern that revenue growth is slowing)

Data-storage company Western Digital reported fiscal second-quarter results that beat Wall Street's estimates; adjusted earnings per share of $2.13 beat the $1.93 expectation while sales of $3.02 billion exceeded the consensus estimate of $2.93 billion – Investor’s Business Daily. (Why you should care – the reiterated guidance for next quarter came as a disappointment following Seagate’s raise yesterday)

Sandisk predicted profits and sales well above Wall Street estimates and extended a major supply agreement, riding a surge in artificial-intelligence-driven demand for data storage; the firm forecast fiscal third-quarter revenue with a midpoint of $4.6 billion and adjusted profit with a midpoint of $14 per share, compared to the consensus expectations of $2.77 billion and $4.37 – Reuters. (Why you should care – the guidance points to ongoing strength in demand for AI data center picks and shovels plays)

U.S. President Donald Trump said he would announce his nominee for Federal Reserve chair today; Trump said it will be somebody that is very respected and well known to everyone in the world of finance – WSJ. (Why you should care – the new chair is expected to lower interest rates when assuming control in June)

President Donald Trump and Senate Democrats have reached a tentative deal to avert a U.S. government shutdown as the White House continues to negotiate with Democrats on placing new limits on immigration raids – Bloomberg. (Why you should care – the two sides will avoid a repeat of the shutdown that played out late last year)

The White House eased some sanctions on Venezuela's oil industry to encourage U.S. investment; the authorization, known as a general license, did not include language lifting sanctions on production of Venezuelan oil – Reuters. (Why you should care – increased investment would boost the long-term production and export of Venezuelan oil to global markets, weighing on prices)

The U.S. will seek to reach consensus with allies on a pricing mechanism to help insulate rare earth mineral refiners and extractors during meetings with dozens of foreign ministers in Washington next week – Bloomberg. (Why you should care – such an agreement would enable technology companies to reduce supply-chain reliance on China)

Regulators are ready to lay out rules that would help foster the crypto industry’s growth after legislation on the matter ran into an unexpected setback; Securities and Exchange Commission Paul Atkins and Commodity Futures Trading Commission Chair Michael Selig said they’re hopeful legislation can pass later this year – WSJ. (Why you should care – legal guardrails will help to broaden the adoption of cryptocurrency and blockchain in financial transactions)

Economic Calendar:

Earnings: AXP, CL, CNI, CVX, XOM, VZ

France - GDP for Q4 (1:30 a.m.)

Spain - CPI (Preliminary) for January (3 a.m.)

Germany - Unemployment Rate for January (3:55 a.m.)

U.K. – BoE Consumer Credit for December (4:30 a.m.)

Eurozone – GDP for Q4 (5 a.m.)

Eurozone – Unemployment Rate for December (5 a.m.)

Germany CPI (Preliminary) for January (8 a.m.)

U.S. – PPI for December (8:30 a.m.)

Canada – GDP for Q4 (8:30 a.m.)

U.S. – Chicago PMI for January (9:45 a.m.)

U.S. - Baker Hughes Rig Count (1 p.m.)

U.S. - CFTC’s Commitment of Traders Report (3:30 p.m.)

Fed Releases Balance Sheet Updates on Commercial Banks (4:15 p.m.)

Fed’s Bowman (Board Member) Speaks (5 p.m.)