1. Goldman continues bank earnings season: Goldman Sachs (NYSE: GS) is stepping into the spotlight as it prepares to release its quarterly earnings report, following the underwhelming performances of other major U.S. banks such as JPMorgan Chase (NYSE: JPM), Citigroup (NYSE: C), and Wells Fargo (NYSE: WFC). The focus will be on several key areas, including net interest income—a metric crucial for banks amid fluctuating interest rates. Additionally, there’s growing attention on potential corporate governance changes at Goldman, particularly calls to separate the roles of CEO and chairman currently held by David Solomon. This follows recommendations from influential proxy adviser Glass Lewis, advocating for an independent chair to lead the board, a sentiment echoed from last year.
2. Futures rebound after last week’s selloff: U.S. stock futures are showing signs of recovery after a tumultuous week that saw major indices experience significant declines. Despite concerns about escalating tensions in the Middle East, Dow Jones, S&P 500, and Nasdaq 100 futures are trending upwards. Last week’s sell-off, triggered by geopolitical uncertainties and global economic concerns, resulted in the worst weekly performance for major indices since March and October 2023. The rebound in futures suggests investors are cautiously optimistic, seeking to regain lost ground.
3. Apple no longer world’s No.1 phone maker: Data from research firm IDC indicates a shift in the hierarchy of smartphone manufacturers, with Samsung (KS: 005930) reclaiming the top spot from Apple (NASDAQ: AAPL). Apple experienced a decline in smartphone shipments by approximately 10% during the first quarter of 2024, allowing Samsung to regain dominance with a market share of 20.8%. Xiaomi (OTC: XIACF) secured the third position with a market share of 14.1%. This change underscores the competitive landscape in the smartphone industry and highlights the challenges faced by Apple in maintaining its leadership position.
4. Job cuts at Tesla?: Tesla (NASDAQ: TSLA) is reportedly considering significant layoffs amid mounting challenges, including weakening sales and production targets. Reports suggest that the electric vehicle giant is grappling with declining demand and increased competition, particularly in China—the world’s largest auto market. The possibility of layoffs, rumored to be as high as 20%, comes after Tesla reported a sharp drop in first-quarter deliveries and revised down its production targets for 2024. Analysts warn of headwinds ahead for Tesla, citing plateauing electric vehicle demand and heightened competition in China as potential obstacles to the company’s growth trajectory.
5. Crude retreats despite Iran’s attack on Israel: Crude oil prices are on the decline despite heightened geopolitical tensions following Iran’s attack on Israel over the weekend. The limited damage caused by the attack has tempered fears of a wider regional conflict, easing concerns about potential disruptions in oil supply from the oil-rich Middle East region. Both U.S. crude futures and Brent crude contracts are trading lower as a result. The announcement that the U.S. will not participate in a counter-offensive against Iran has further reduced market apprehensions, signaling a more measured response to the situation. However, uncertainties remain as investors closely monitor developments in the region and their potential impact on global oil markets.