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Thursday, April 23

Noteworthy US mega-cap moves today: Tesla Inc (TSLA) -3.4%. Microsoft Corp (MSFT) -2.5%. Meta Platforms Inc (META) -1.5%.

Global equity markets are trading lower following a decline in U.S. stock futures amid ongoing geopolitical tensions related to the Iran conflict and disappointing economic data releases. The U.S. Initial Jobless Claims report released this morning indicated a rise to 214,000 claims for the week ending April 18th, exceeding expectations of a smaller increase to 212,000 and reflecting slight instability in the labor market.

Additionally, the Chicago Fed National Activity Index fell to -0.2 for March from a revised +0.03 in February, signaling a slowdown in overall economic activity and raising concerns about growth prospects amidst rising inflation pressures linked to geopolitical tensions. In Europe, the S&P Global Composite PMI for France dropped sharply to 47.6 from March's figure of 48.8, indicating continued contraction in private sector activity as service sector performance deteriorated significantly.

Market sentiment remains cautious as investors react to these mixed signals alongside heightened uncertainty surrounding the ongoing conflict in Iran and its implications for global supply chains and inflationary pressures on commodities like oil and gas.

Ethereum (ETH/USD) [-2.1%]
Tensions in the Strait of Hormuz have escalated, with Iran seizing two commercial vessels and firing on ships, resulting in a spike in Brent crude prices. This geopolitical instability is contributing to increased market volatility and inflation concerns globally, adversely impacting investor sentiment towards cryptocurrencies like Ethereum. Consequently, Ethereum has dropped significantly since Wednesday's close, with its daily return reflecting a decline. Additionally, Bitcoin has also seen a decrease, mirroring broader market sentiment that may further influence Ethereum's performance. Today's trading is notably contrasting with the previous three sessions, which each finished higher, indicating a break from that recent upward trend.

Vanguard Information Technology ETF (VGT) [-0.7%]
Geopolitical tensions in the Strait of Hormuz have escalated, with Iran seizing commercial vessels, contributing to a surge in oil prices. This instability is creating increased market volatility, which is negatively impacting technology stocks, including those within the Vanguard Information Technology ETF. The ETF is currently trading lower, reflecting broader market dynamics as major indices, such as the Nasdaq 100 and S&P 500, also decline. Among the ETF's holdings, notable contributors to its performance include Microsoft, ServiceNow, Salesforce, IBM, and Adobe, all of which posted significant declines. This confluence of geopolitical instability and negative performance among key holdings is likely influencing the ETF's current downward movement.

TSLA | -3.3% | -38.8B
Tesla Inc | Automobile Manufacturers
Tesla Inc's stock is experiencing downward pressure, primarily influenced by its recent Q1 earnings call. CEO Elon Musk confirmed that vehicles with the Hardware 3 chip will not achieve unsupervised Full Self-Driving capabilities, raising concerns over the company's autonomous driving ambitions. Additionally, Tesla announced a significant increase in capital expenditures, projecting over $25 billion for 2026, which is expected to lead to negative free cash flow throughout the year. While the company reported a revenue increase to $22.39 billion and adjusted earnings per share of $0.41, these results fell short of expectations, contributing to a cautious market reaction. Shares declined in after-hours trading, and this morning, Tesla's stock shifted from an initial gain to a notable loss, reflecting investor apprehension regarding its financial outlook and operational strategies. The broader Automobile Manufacturers sub-sector is also moving significantly lower, adding to the stock's challenges.

URI | +15.6% | +9.6B
United Rentals Inc | Trading Companies & Distributors
United Rentals Inc reported robust first-quarter results, with revenues of $3.99 billion, marking a 7.2% year-over-year increase and surpassing analyst expectations. The company achieved a net income of $531 million and an adjusted EPS of $9.71, exceeding the consensus estimate of $8.97. Additionally, United Rentals raised its full-year revenue guidance for 2026 to a range of $16.9 billion to $17.4 billion, up from the previous estimate of $16.8 billion to $17.3 billion. This strong performance has fueled a significant rise in the stock price, which surged approximately 15% in after-hours trading following the earnings release. In pre-market hours, shares are trading higher since Wednesday's close, reflecting the positive reception of the earnings report and updated guidance.

NOW | -12.5% | -2.3B
ServiceNow Inc | Systems Software
ServiceNow Inc is facing significant downward pressure following its recent earnings report, which revealed a revenue of $3.77 billion, slightly exceeding analyst expectations, and an adjusted EPS of $0.97, in line with forecasts. However, the company's guidance for full-year subscription revenue fell short of consensus estimates, projected between $15.735 billion and $15.775 billion. This disappointment was compounded by a 75 basis-point headwind in subscription revenue attributed to delayed contract closures in the Middle East. Analysts have responded by lowering their price targets amid concerns regarding potential AI disruption within the software sector. Consequently, the stock is trading sharply lower in pre-market hours, reflecting these developments. Additionally, it has been noted that ServiceNow's performance is negatively impacting related software companies such as Salesforce and Workday, with heightened concerns about AI's influence on gross margins also contributing to the stock's decline.

CMCSA | +6.9% | +8.5B
Comcast Corp | Cable & Satellite
Comcast Corp reported its first-quarter 2026 results, achieving significant revenue of $31.46 billion, exceeding the consensus estimate of $30.35 billion. Adjusted earnings per share (EPS) reached $0.79, surpassing expectations by $0.06. The company noted improved broadband subscriber losses, with a net loss of 65,000 against an estimated 175,500, and recorded wireless line additions of 435,000, exceeding the forecast of 361,600. Free cash flow was reported at $3.9 billion, with $2.5 billion returned to shareholders through dividends and share repurchases. Following this strong performance, shares increased notably, reflecting positive market sentiment around the earnings announcement.

TMO | -6.6% | -12.2B
Thermo Fisher Scientific Inc | Life Sciences Tools & Services
Thermo Fisher Scientific reported its first-quarter 2026 results, with adjusted earnings per share at $5.44, exceeding the consensus estimate of $5.25. Revenue reached $11.01 billion, surpassing the forecast of $10.87 billion. Net income rose to $1.651 billion from $1.507 billion year-on-year, while operating income increased to $1.863 billion from $1.716 billion. Despite these positive figures, shares are trading sharply lower in premarket hours, attributed to broader market conditions rather than the results themselves. Additionally, the company plans to revise its financial targets for 2026 during an earnings conference call following the announcement. Social media discussions indicated a drop in shares attributed to a perceived revenue miss, although the reported revenue exceeded expectations. Overall, the stock is down significantly since Wednesday's close, marking a notable shift in premarket trading.

TXN | +10.4% | +24.6B
Texas Instruments Inc | Semiconductors
Texas Instruments reported strong first-quarter 2026 financial results, with earnings per share of $1.68, exceeding the consensus estimate of $1.36. The company achieved a net income of $1.545 billion and revenue of $4.825 billion, surpassing expectations of $4.525 billion. For the second quarter, Texas Instruments anticipates earnings per share between $1.77 and $2.05 and revenue in the range of $5 billion to $5.4 billion, both above analyst expectations. Cash flow from operations over the trailing twelve months was reported at $7.8 billion, indicating robust operational performance. Following these announcements, several analysts raised their price targets significantly, reflecting positive market sentiment toward Texas Instruments' growth potential amid strong demand for semiconductors, particularly in industrial and data center applications. In pre-market trading, shares are notably higher since Wednesday's close.

IBM | -7.5% | -16.1B
International Business Machines Corp | IT Consulting & Other Services
International Business Machines Corp (IBM) shares have experienced significant downward pressure following its recent earnings report, which revealed an operating EPS of $1.91 and revenue of $15.92 billion, both exceeding analyst expectations. Despite this, concerns about slower revenue growth, particularly within the software segment, have emerged, raising apprehension among investors. IBM's guidance for constant currency revenue growth of over 5% for the year remains unchanged, leading to skepticism regarding future performance. This negative sentiment was exacerbated by a broader selloff in the enterprise software sector following the earnings results. Consequently, IBM's stock has dropped significantly since Wednesday's close, reflecting these ongoing concerns and market dynamics.

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