Markets climb after new earnings reports

Dow rose 201, advancers over decliners more than 5-1 & NAZ was up 197.  The MLP index added 1 to the 283s & the REIT index went up 4+ to 361.  Junk bond funds inched higher & Treasuries had some buying which reduced yields (more below).  Oil was up fractionally to the 82s & gold retreated 12 to 2334 after yesterday's dramatic selloff.

AMJ (Alerian MLP Index tracking fund)

Apple (AAPL), a Dow stock, iPhone sales dropped sharply in China in the first qtr of this year as the company saw strong competition from domestic brand Huawei, according to a new report from market research firm Counterpoint Research.  Sales of its iPhones fell 19.1% in the first 3 months of the year, Counterpoint’s data showed, as Chinese telecommunications & consumer electronics giant Huawei saw a resurgence in its smartphone business.  The China-based firm saw sales of its smartphones surge a whopping 69.7% in the first qtr, Counterpoint added.  This was thanks in no small part to the launch of Huawei's Mate 60 smartphone, which comes with a high-end chip that supports next-generation 5G mobile connectivity.  Huawei is staging a comeback.  The company is the 4th-largest smartphone maker in China, according to Counterpoint's research note, piling the pressure on AAPL, which ranks as 3rd-biggest.  Overall, smartphone sales in China grew 1.5% year-on-year in the first 3 months of the year, marking the 2nd qtr of positive growth for the industry.  Counterpoint said it anticipates low single-digit year-on-year growth for China's smartphone market in 2024.  AAPL stock was up 65¢.

Apple iPhone sales fall 19% in China as demand for Huawei devices soars: Research

General Motors (GM) raised its 2024 guidance after beating top- & bottom-line expectations for the first qtr.  The automaker said it was boosting its forecast after strong North American operations offset losses elsewhere during the first qtr.  The company expects adjusted EPS of $9-10, up from a previous range of $8.50 - $9.50.  GM also raised expectations for adjusted automotive free cash flow to $8.5-10.5B, up from an earlier forecast of $8-10B.  Revenue during the first 3 months of this year was up 7.6% from roughly $40B a year earlier & net income rose 26% to $2.95B.  Net income attributable to stockholders, which excludes some div payouts, was up 24.4% to $2.98B ($2.56 per share) from the first qtr of 2023 when the company reported net income attributable to stockholders of about $2.4B ($1.69 a share).  Adjusted earnings before interest & taxes were $2.62 per share, during the first qtr.  The company still plans to produce between 200-300K EVs during 2024.  The stock rose 2.01.

General Motors raises 2024 guidance after big first-quarter earnings beat

Treasury yields fell as investors parsed fresh manufacturing data & awaited further insight into the state of the economy from reports due out later in the week.  The yield on the 10-year Treasury was down by less than 3.9 basis points to 4.584% & the yield on the 2-year Treasury was last at 4.937% after rising by 3.4 basis points.  Yields & prices have an inverted relationship basis & 1 point is equivalent to 0.01%.  The S&P Global Flash US manufacturing PMI came in at 49.9, hitting a 4-month low 4 down from 51.9 in Mar.  A reading below 50 indicates an economic contraction within the sector.  “All told, then, S&P’s survey reinforces the case for thinking markets will be caught out by how quickly the economic data swing to supporting the case for reducing interest rates soon,” said Ian Shepherdson, chair & chief economist at Pantheon Macroeconomics.  Fed policymakers have in recent weeks suggested that there is no rush to cut interest rates & have repeatedly said that rate cuts would begin only when they are confident that the economy is easing.

Treasury yields slip after the release of fresh manufacturing data

Earnings reports should dominate the news (especially from the big tech companies) in the next couple of days.  Some easing in tensions in the Mid-East has brought back stock buyers this week.  Next week brings the important FOMC meeting.

Dow Jones Industrials