Author: BlackMask Financial

United States Federal Reserve’s asset purchases should “continue at least at the current pace” until notable progress towards Fed’s goals of maximum employment and price stability goals is reached, participants of the April meeting of the Federal Open Market Committee (FOMC) and the Board of Governors had said, according to meeting minutes released on Wednesday. On the other hand, if the progress proves to be quick, the FOMC may “begin discussing a plan for adjusting the pace of asset purchases” in some of its upcoming meetings, according to several participants. The economists expect the inflation rate to surpass 2% “temporarily” mostly due to an “expected surge in demand as the economy reopens further, along with some transitory supply chain bottlenecks.” However, “after the transitory effects of these factors fade, participants generally expected measured inflation to ease,” it was stated in the meeting’s minutes.

Fed to keep policy stance until jobs gap closed – Bostic

Atlanta Federal Reserve President Raphael Bostic said in an interview with CNBC on Monday that the Bank intends to keep strong pandemic-related policies until there is substantial progress in closing the unemployment gap, adding that “now is not the time” for that. The Fed official also noted that a healthy level of inflation is a sign of a growing economy, but it will likely take a couple of months to get a better read on the current inflation in the United States. Pent up demand will put upward pressure on prices, “that is known,” Bostic said. According to Bostic, the economy will see a lot of price pressures and market changes over the summer. He also pointed out that he isn’t worried about the surging activity in the US housing market, but is hopeful it will become more rational in the coming months.

Federal Reserve’s asset purchases will remain “at least at the current pace” until the economy sees more rapid growth.

JD.com Inc. revealed on Wednesday that its revenue in the first fiscal quarter jumped 39% year-over-year to come in at $31 billion. The e-commerce firm’s income from operations dropped 26.1% during the same period to $0.3 billion, while its net income surged over 227% to $0.6 billion, or $0.34 per share. The number of active customer accounts soared 29% to 499.8 million in the twelve months ending March 31. “As our strong growth momentum from last year continued into the first quarter of 2021, we are also encouraged by the diversification of our revenue streams with an increasing contribution from service revenues,” JD.com CFO Sandy Xu commented.

Target Q1 revenue at $24 billion, up 23.4%

Wall Street extended losses on Wednesday ahead of the Federal Reserve’s FOMC Minutes which should reveal whether board members discussed the possibility of tapering. As the earnings season continued, companies JD.com and Target released their reports for the first calendar quarter of 2021 prior to the opening bell. The Dow Jones sank 0.95% or 323 points at 7:43 am ET, while the Nasdaq 100 tumbled 1.58% or 209 points. The S&P 500 lost 1.10% a minute later. Meanwhile, the euro fell 0.20% against the dollar to trade for 1.21976.

Major stock markets on Wall Street traded lower in the premarket session on Wednesday, as investors look towards what the day’s batch of earnings reports will bring. Retailer Target and e-commerce company JD.com are set to unveil their quarterly earnings before the bell rings, while Cisco Systems will report its earnings as trade finishes. The Dow Jones was down 0.69% at 4:27 am ET, while the S&P 500 also dipped 0.84% concurrently. The Nasdaq 100 plummeted 1.24% at 4:28 am ET.  Nick Note: I see this as a retest of the most recent bottom. I believe the recent buyers are major players and will not be easily shaken.

Japan is set to increase investment in the domestic production of semiconductors amid the global chip shortage which has significantly impacted the country’s vital industries, the Nikkei Asian Review reported. According to the report, Prime Minister Yoshihide Suga’s cabinet is expected to approve the new strategy as early as June. The plan foresees expanding support programs for semiconductor manufacturing technologies, expanding existing facilities and inviting leading American chip manufacturers to set up additional operations in Japan. Current estimates see the global automotive industry losing $110 billion in revenue this year due to the chip shortage.

Samsung to announce US chip plant investment this week

Walmart Inc. announced on Tuesday its revenue in the first fiscal quarter reached $138.1 billion, a 3% increase compared to the same three-month period last year. Costs and expenses rose 2% to $131.4 billion. Operating income was up 32% at $6.9 billion, while net income dropped 32% to $2.7 billion. Earnings per diluted share were $0.97. Per segment, the United States business net sales advanced 5% to $93.2 billion, while operating income climbed 27% to $5.5 billion. The international unit reported an 8% decline in sales at $27.3 billion, while income jumped 48% to $1.2 billion. For Sam’s Club, the figures were $16.7 billion and $0.6 billion, up 10% and 16% respectively. “Stimulus in the US had an impact, and the second half has more uncertainty than a typical year. We anticipate continued pent-up demand throughout 2021,” President and CEO Doug McMillon said.

Macy’s Q1 net sales up to $4.7B