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Wednesday, April 29

Noteworthy macro moves today: Oil (WTI) +4.1%. Hang Seng 50 Index (China) +1.5%. US 2Y Treasury Bond Index -0.1%. Noteworthy US mega-cap moves today: Visa Inc (V) +5.6%. Mastercard Inc (MA) +2.4%. Exxon Mobil Corp (XOM) +1.2%.

Global equity markets are trading mixed following a series of economic data releases and geopolitical tensions surrounding the ongoing conflict in the Middle East. In the U.S., wholesale inventories surged by 1.4%, significantly exceeding expectations of a modest rise, indicating potential resilience in business operations despite concerns over consumer demand dynamics.

Additionally, the U.S. goods trade deficit widened to $87.9 billion in March, slightly above forecasts, as imports outpaced exports amid ongoing tariff impacts and global economic conditions affecting demand dynamics. Meanwhile, housing starts rose impressively by 10.8% to an annualized rate of 1.502 million units, surpassing expectations and suggesting strong momentum in residential construction despite a notable decline in building permits.

As investors await the Federal Reserve's interest rate decision later today, market sentiment remains cautious due to rising oil prices linked to geopolitical uncertainties and inflationary pressures stemming from these developments, which could influence future monetary policy decisions.

United States Oil Fund LP (USO) [+4.0%]
Russia has reaffirmed its commitment to the OPEC+ alliance despite the recent exit of the United Arab Emirates, a move that underscores the ongoing geopolitical tensions affecting oil markets. This announcement, made by Kremlin spokesman Dmitry Peskov, comes as crude oil prices have surged, reflecting heightened supply risks and market volatility. The United States Oil Fund LP, which tracks WTI crude, has responded with notable upward movement. Social media discussions have highlighted a short-term price increase linked to crude futures positions, while some users expressed concerns about potential instability within OPEC following the UAE's departure. Despite these mixed sentiments, the fund is trading higher in pre-market hours, continuing a trend of upward momentum observed in recent sessions.

VanEck Semiconductor ETF (SMH) [+1.0%]
NXP Semiconductors has experienced a notable stock surge following the release of strong Q2 revenue guidance, exceeding Wall Street expectations by 5%. This positive momentum within the semiconductor sector is relevant to the VanEck Semiconductor ETF (SMH), which includes NXP among its holdings. Additionally, the ETF is trading higher, reflecting broader market trends as the Nasdaq 100 Index has also moved up slightly, indicating supportive conditions for technology stocks. Meanwhile, crude oil prices have surged above $100 per barrel due to ongoing geopolitical tensions, which may impact market dynamics. Social media discussions highlight a mix of factors influencing SMH, including profit-taking in the semiconductor sector and developments in Samsung Electronics that could further affect stock performance. Overall, SMH is positioned near the upper end of its recent trading range, suggesting a solid pre-market performance.

NXPI | +20.3% | +14.4B
NXP Semiconductors NV | Semiconductors
NXP Semiconductors NV's stock is sharply higher in pre-market trading following a series of positive financial announcements. The company reported first-quarter revenue of $3.18 billion, exceeding estimates by 12%, and an adjusted profit per share of $3.05, surpassing expectations. Additionally, NXP provided strong second-quarter guidance, anticipating revenue between $3.35 billion and $3.55 billion, above consensus estimates. Analysts have responded favorably, with KeyBanc raising its price target to $345 and Morgan Stanley setting a target of $335. This positive outlook and the earnings report have significantly boosted investor sentiment, contributing to a notable surge in the stock price since Tuesday's close.

SIMO | +27.6% | +7.1B
Silicon Motion Technology Corp | Semiconductors
Silicon Motion Technology Corp reported impressive first-quarter results, with adjusted earnings per share (EPS) of $1.58, exceeding estimates by $0.30, and revenue of $342.1 million, significantly above the consensus of $299.6 million. This represents a remarkable year-over-year revenue increase from $166.5 million, with net income rising to $66.8 million from $19.5 million last year. CEO Wallace Kou highlighted strong growth in embedded eMMC and UFS controllers, alongside a positive outlook for the second quarter, projecting revenue between $393 million and $411 million. This aligns with expectations for sustained growth driven by new product launches and market share gains in sectors such as automotive and AI infrastructure. In pre-market trading, shares are significantly higher since Tuesday's close, reflecting strong momentum following these robust earnings results.

V | +5.7% | +37.2B
Visa Inc | Transaction & Payment Processing Services
Visa Inc. reported strong second-quarter earnings, exceeding analyst expectations with an adjusted EPS of $3.31, surpassing the consensus of $3.10. Revenue rose 17% year-over-year to $11.23 billion, marking the highest growth rate since 2022. Payment volume and processed transactions increased by 9%, while net income reached $6 billion. The board authorized a $20 billion share repurchase program and declared a quarterly dividend of $0.670 per share, payable on June 1, 2026. This robust performance is attributed to resilient consumer spending and strategic innovations in payment solutions. Additionally, Visa announced the global expansion of its Agentic Ready program to Asia Pacific and Latin America, enhancing its position in the payments ecosystem. Following this positive news, Visa's stock is trading higher in pre-market hours, reflecting strong market reception to its earnings and operational metrics.

GD | +5.4% | +4.9B
General Dynamics Corp | Aerospace & Defense
General Dynamics Corp reported robust first-quarter results, with earnings per share of $4.10, surpassing consensus estimates of $3.69. Revenue reached $13.5 billion, exceeding expectations of $12.71 billion, marking a year-over-year increase of 10.3%. The company achieved a book-to-bill ratio of 2-to-1 for the quarter, with total orders amounting to $26.6 billion and a backlog valued at approximately $188.4 billion. This strong performance reflects solid order activity across all segments, bolstered by excellent cash conversion totaling $2.2 billion, which represents 192% of net earnings. Additionally, the announcement of a new $3 billion share repurchase program may positively influence investor sentiment. Following these results, shares are trading significantly higher in pre-market hours, reflecting strong upward momentum since Tuesday's close.
—𝑆𝑜𝑢𝑟𝑐𝑒: 𝑀𝑎𝑟𝑘𝑒𝑡𝑅𝑒𝑎𝑑𝑒𝑟 𝐼𝑛𝑐 @ 𝐴𝑝𝑟. 29𝑡ℎ 8:50 𝐴𝑀

STX | +15.6% | +22.0B
Seagate Technology Holdings PLC | Technology Hardware, Storage & Peripherals
Seagate Technology Holdings PLC reported strong Q3 results, with adjusted earnings per share of $4.10, exceeding the consensus estimate of $3.51, and revenue of $3.11 billion, surpassing the forecast of $2.96 billion. The company achieved a gross margin of 46.5% and net income of $748 million, a significant increase from $340 million a year prior. The CEO emphasized a transition into structural growth, driven by rising demand for data storage related to AI applications. Looking ahead, Seagate anticipates Q4 adjusted EPS between $4.80 and $5.20, with revenue projected at $3.35 billion to $3.55 billion, both above analyst expectations. Additionally, data center revenue reached $2.5 billion, marking a 55% year-over-year increase. Following these results, the stock has experienced notable price movement, reflecting positive market reception.

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