Key Takeaways

• US ADP Employment Change for March is 184,000, Exceeding Expectations
• Private Payrolls, Fed Officials Speeches Awaited
• Fed Rate Cut Expectations Adjusted, Presidents Advocate Cuts
• TSMC's Stock Falls in Pre-Market, Halts Construction on New Factory
• Intel Plummets Over 4% Pre-Market, Loss for Wafer Manufacturing Business Reaches $7 Billion for 2023

I. Market Report

S&P 500 futures edged lower Wednesday, as Wall Street’s struggles to start the second quarter of 2024 continued.

As of 08:10 am, EST (or 20:10 in Malaysia), futures tied to the broad index slipped, while the Nasdaq 100 futures dipped 0.07%. Dow Jones Industrial Average futures rose by 16 points, trading slightly below flat.

II. Market Movers

As of 08:10 am, EST (or 20:10 in Malaysia), top pre-market movements are as follows:

Note: We are pleased to inform you that our app now supports pre/after-market trading for US stocks. The trading hours for these sessions are as follows:

• Pre-market: 16:00 to 21:30 in Malaysia
• After-hours market: 04:00 to 08:00 the next day in Malaysia

Please note that regular trading hours are from 21:30 to 04:00 UTC.

III. Flash Headlines

US ADP Employment Change for March is 184,000, Exceeding Expectations

March U.S. Private Sector Employment: +184K vs. +150K expected and +155K prior (revised from 140K), according to the ADP National Employment Report. Annual pay rose 5.1% Y/Y, unchanged from February's pace.

Fed Officials Speeches Awaited

The tech-heavy Nasdaq and the Dow hit two-week lows due to rising Treasury yields, triggered by robust manufacturing and factory orders data, casting doubts on the anticipated three Fed rate cuts in 2024. Today's services sector data, along with speeches from US central bank officials, including Powell (12:10 pm ET), are awaited for further economic insights.

Fed Rate Cut Expectations Adjusted, Presidents Advocate Cuts

Market expects a 62% chance of a 25-basis-point cut in June, down from 64% last week. According to LSEG's rate probability app, investors now anticipate approximately two rate cuts in 2024, a decrease from the previously expected three. Despite recent strong economic data, Cleveland and San Francisco Fed Presidents deem three rate cuts this year "reasonable."

China Eases Car Loan Rules to Revive Consumer Sentiment

China has relaxed car loan requirements to bolster its automotive industry and lift faltering consumer confidence. Financial authorities now allow banks to set their own loan-to-value ratios for new passenger cars, deviating from the previous fixed rates. This move, aimed at promoting vehicle purchases, comes amidst efforts to counteract the impacts of a real estate downturn and job market challenges on consumer spending.

Brent Rises Post-OPEC+ JMMC Meeting Amid Supply Concerns

Following OPEC+'s decision to keep oil output policy unchanged, Brent crude prices rose over 1% to $89.8 at 08:04 am ET, amid concerns about supply disruptions due to Ukrainian attacks on Russian refineries and escalating Middle East tensions. OPEC also emphasized the need for better compliance with production cuts to stabilize the market.

IV. Stocks to Watch

TSMC's Stock Falls in Pre-Market, Halts Construction on New Factory in Taiwan Province

TSMC ($Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR TSM$ )'s stock fell in pre-market trading. Today, a 7.3-magnitude earthquake struck off the coast of Hualien, Taiwan province, followed by ongoing aftershocks. A spokesperson for TSMC stated that the company has temporarily suspended the construction of its new factory in Taiwan and halted some chip production equipment as a precautionary measure. Analysts have pointed out that there may be more aftershocks in the near term, but in the long run, it should not have a significant impact on the industry chain.

Intel Plummets Over 5% Pre-Market, Projected Loss for Wafer Manufacturing Business Reaches $7 Billion for 2023

Intel ($Intel Corporation INTC$ ) fell over 5% in pre-market trading. On April 2nd, Intel announced that the company's total revenue declined from $57 billion in 2022 to $47.7 billion in 2023. Its foundry business generated revenue of $18.9 billion in 2023 with an operating loss of $7 billion, compared to revenue and losses of $27.5 billion and $5.2 billion, respectively, in 2022.

Microsoft is Testing an AI-Powered Chatbot for Xbox: Report

Microsoft ($Microsoft Corporation MSFT$ ) has started testing an artificial intelligence-powered chatbot for the Xbox, the software giant's popular gaming console, according to a report by The Verge. The chatbot is an animated AI character that will provide basic customer support functions, such as respond to user questions or process game refunds, the report said, citing sources familiar with the project.

Rivian Reaffirms 2024 Production Targets, Q1 Deliveries Up 70%

Electric vehicle company Rivian ($Rivian Automotive, Inc. RIVN$ ) announced on Tuesday that it delivered 13,588 vehicles in the first quarter, exceeding market expectations of 13,000 units, while its production reached 13,980 vehicles. Rivian reaffirmed its goal to produce 57,000 vehicles in 2024.

Report: Disney Has Secured Enough Votes to Win Proxy Fight Against Trian

Insiders said on Tuesday that Disney ($Walt Disney Company DIS$ ) has received enough shareholder votes to defeat a challenge to its board by Trian Fund Management, a hedge fund led by Nelson Peltz.

V. Calendar

Earnings:

$Acuity Brands, Inc. AYI$
$Levi Strauss & Co. LEVI$
$BlackBerry Limited BB$

Expected IPO:

$Mobile-health Network Solutions MNDR$

Please note that the timing of IPOs is subject to change at any time (including being advanced or delayed). Investors should therefore keep up-to-date with relevant news.

Events:

20:15 GMT+8 USD ADP Nonfarm Employment Change (Mar)
20:30 GMT+8 USD FOMC Member Bostic Speaks
21:45 GMT+8 USD S&P Global Services PMI (Mar)
22:00 GMT+8 USD ISM Non-Manufacturing Employment (Mar)
22:00 GMT+8 USD ISM Non-Manufacturing PMI (Mar)
22:00 GMT+8 USD ISM Non-Manufacturing Prices (Mar)
22:30 GMT+8 USD Crude Oil Inventories
22:30 GMT+8 USD Cushing Crude Oil Inventories

00:10+1 GMT+8 USD Fed Chair Powell Speaks

Read more on the full week's calendar:
Weekly Watch | US Jobs Report To Be Released; Tesla Set to Announce Delivery Numbers; HK Stock Market Closed on Monday and Thursday

Finally, just a little reminder:

The regular trading hours for US stocks in the Daylight Saving Time (DST) are from 21:30 to 04:00+1 GMT+8, with pre-market trading available from 16:00 to 21:30.

Have a nice trading day!