US Stock Markets

The US stock markets closed lower on Wednesday’s session after the Federal reserve unanimously decided to leave interest rates near zero.

The Federal Open Market Committee (FOMC), a committee within the Federal Reserve System, noted that progress in vaccinations against the virus and policy support has led to signs of economic strength and rising inflation. The FOMC added that “the ongoing public health crisis continues to weigh on the economy, and risks to the economic outlook remain.”

The Dow Jones closed 0.48% lower on Wednesday as the Nasdaq 100 was down 0.42% at close. The S&P 500 on the other hand closed 0.08% lower as major companies continue to release their quarterly financial results.

Major News

Euronext acquires Borsa Italiana

Euronext N.V. a stock exchange in Europe, operating markets in Amsterdam, Brussels, Dublin, Lisbon, London, Oslo and Paris on Thursday announced the acquisition of Borsa Italiana from the London Stock Exchange in a deal valued at $5.3 billion.

“With the completion of the acquisition of the Borsa Italiana Group, Euronext delivers on its ambition to build the leading pan-European market infrastructure, connecting local economies to global capital markets, for the benefits of all market participants across Euronext’s markets.” Euronext CEO Stephanie Boujnah said in a press release.

Apple Earnings

American tech giant Apple Inc. on Wednesday released its quarterly earnings with revenues for the second quarter of fiscal 2021 surging by 54% to $89.6 billion.

International sales rose by 67% as net income rose by 110% to $23.6 billion. Operating income surged by 114% to $27.5 billion.

iPhone sales rose by 65.5% in the quarter ended on March 27 to reach $47.9 billion.

The company’s Chief Financial Officer (CFO) Luca Maestri also predicted Apple’s revenue in the second quarter of the year would grow by “strong double digits.”

He noted that possible supply constraints, such as those emerging from the ongoing global shortage of semiconductors and the COVID-19 pandemic, could have a $3–4 billion worth of impact.

Alphabet Q1

Google’s parent firm Alphabet Inc. published on Tuesday its first-quarter earnings report, posting a 34% growth in revenue of $55.31 billion in the quarter ending March 31.

Operating income grew 30% to reach $16.44 billion as net income jumped to $17.93 billion.

Microsoft Earnings

American tech company Microsoft Corporation announced on Tuesday its earnings for the third quarter with revenue rising 19% to $41.7 billion.

Microsoft posted a 31% growth in operating income to $17 billion as net income grew 44% to $15.5 billion.

Facebook Q1

Facebook first-quarter revenue for the period ending March 31 increased by 48% to $26.17 billion. Net income was up 94% to $9.5 billion as monthly active users went up 10% to 2.85 billion.

“We had a strong quarter as we helped people stay connected and businesses grow. We will continue to invest aggressively to deliver new and meaningful experiences for years to come, including in newer areas like augmented and virtual reality, commerce, and the creator economy,” CEO Mark Zuckerberg said in a press release.

StanChart’s Q1

Standard Chartered PLC underlying operating profit before taxation and impairment fell by 27% to $1.43 billion during the first quarter of 2021.

The lender’s operating income fell 9% to $3.93 billion as earnings per share rose by 32% to 33.5 cents.

Visa Q2

Financial services company Visa Inc on Tuesday released its financial results of the second quarter of 2021, with a 2% growth in revenue to $5.7 billion. Net income rose by 2% to $3 billion.

It said payments volume for the period grew by 11% as total cross-border volume declined by 11%. Visa’s total processed transactions were up 8% year-on-year to $37.6 billion.

Samsung Q1

Samsung Electronics Co. released its first quarter earnings with revenue for the period increasing by 18.1% to a record $59 billion.

The company’s net profit rose 46.2% to $6.4 billion while operating income surged 45.5% to $8.4 billion.

General Electric

General Electric Co. on Tuesday released its earnings for the first quarter of 2021 with total revenues dropping by 12% on an annual basis, to stand at $17.1 billion.

The company’s net loss came in at $2.8 billion during the three-month period ending March 31, 2021, compared to $6.2 billion net earnings in the same quarter in 2020.

Total Q1 Earnings

French oil and gas company Total SE said on Thursday its net income for the first quarter of 2021 skyrocketed 69% to $3 billion amid a recovery in oil prices.

However, the company warned that oil markets remain “volatile” and hinge on a recovery in global demand for crude.

Shell Q1

Royal Dutch Shell plc said on Thursday that income attributable to shareholders landed at $5.66 billion in the first quarter of 2021, up from a loss of $24 million from a similar period in 2020.

Total revenue and other income declined 3% on to $59.1 billion in the three-month period ending March 31, 2021.

eBay Q1

eBay Inc. posted its first-quarter earnings results on Wednesday with its increasing 42% to reach $3.02 billion. Net income rose 45% to $758 million as annual active buyers rose by 7% to 187 million, while sellers grew 8% to 20 million.

Pinterest Q1

Pinterest revenue for the first quarter rose 78% to $485 million, with monthly active users increasing by 30% to 478 million. Pinterest also saw a reduction of 85% in net loss, which stood at $21.67 million in the same quarter.

Ford Q1

Ford Motor Company released its earnings report for the first quarter of fiscal 2021, posting a total revenue of $33.6 billion, a 2.24% decline compared to the same period in 2020.

The company sold a total of 1,062,000 units, a 5.68% decline compared to the same period in 2020.

Huawei’s Q1

Huawei Technologies Co., Ltd.’s revenue in the first quarter of 2021 declined by 17% on an annual level to come in at $23.13 billion, or 150 billion yuan, and miss expectations, the country’s media reported on Wednesday.

On the other hand, the company’s net profit is said to have grown 26% year on year to stand at $2.6 billion, or 16.9 billion yuan, exceeding projections.

READ; US Markets; Tesla Earnings, Amazon Stock Split, Apple’s $430B investment