Traders Market Weekly: Good Friday Jobs Risk

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    Alibaba $BABA 94.26, +8.14, +9.5% to split into six additional units:

    cloud, Chinese e-commerce, global e-commerce, digital mapping and food delivery, logistics, media and entertainment.
    Day after co-founder Jack Ma returned to mainland Chin

    Alibaba Group will become a holding company overseen by current Chairman and Chief Executive Daniel Zhang, the company said Tuesday.

    Alibaba’s wide-ranging businesses will be split up into six major areas: cloud, Chinese e-commerce, global e-commerce, digital mapping and food delivery, logistics, as well as media and entertainment.

    The six business groups will have their own CEOs reporting to each of their boards of directors and be fully responsible for their performance, Alibaba said in its statement. Its domestic commerce business will remain a wholly owned unit of Alibaba, it added.

    Each of the newly created entities can raise funds and pursue initial public offerings when ready, Mr. Zhang said in a letter to employees.

    “The market is the best litmus test,” he said.

    The move echoes previous sweeping reorganizations by Western tech giants such as Google, which created Alphabet Inc. as a holding company while separating its growing cast of businesses.

    Alibaba’s announcement came a day after Mr. Ma reappeared in China at a time when Beijing is seeking to revive entrepreneurs’ confidence following years of regulatory clampdowns and Covid-19 restrictions.

    The listing status of Alibaba’s shares in New York and Hong Kong won’t be affected, people familiar with the matter said. Alibaba’s Nasdaq-listed American depositary receipts climbed more than 6% in premarket trading on Tuesday in New York.

    In 2021, The Wall Street Journal first reported that Mr. Zhang had been delegating more power to the heads of Alibaba’s business units, which had the potential to open the way for spinoffs and independent fundraisings.

    The restructuring was part of a yearslong effort to build a nimbler corporate structure, Alibaba said in its statement. It reverses a centralization drive begun around 2018 when Mr. Ma sought to bring the company’s subsidiaries and affiliates into closer alignment, part of the so-called Alibaba Economy.

    “This transformation will empower all our businesses to become more agile, enhance decision-making and enable faster responses to market changes,” said Mr. Zhang in its letter to employees.

    Monday’s announcement wasn’t related to Mr. Ma’s return to China, people inside the company said.


    Equity indices in the Asia-Pacific region ended Tuesday on a mostly higher note.

    Japan’s Nikkei: +0.2%,
    Hong Kong’s Hang Seng: +1.1%,
    China’s Shanghai Composite: -0.2%,
    India’s Sensex: -0.1%,
    South Korea’s Kospi: +1.1%,
    Australia’s ASX All Ordinaries: +1.1%.


    Australia’s February Retail Sales 0.2% m/m (expected 0.1%; last 1.8%)

    Australia’s assistant treasurer said that the domestic funding markets continue functioning well.


    Japan’s February BoJ Core CPI 2.7% yr/yr (expected 3.5%; last 3.1%)

    Japan will spend JPY2.2 trln to stimulate its economy.

    Outgoing Bank of Japan Governor Kuroda said that sustainable inflation has not been reached yet and that the central bank must be ready to issue digital currency that can coexist with other forms of money.

    Japan and the U.S. reached a deal that will make electric vehicles with metals processed in Japan eligible for tax incentives in the U.S.


    Major European indices trade near their flat lines.
    STOXX Europe 600: -0.1%,
    Germany’s DAX: +0.2%,
    U.K.’s FTSE 100: +0.1%,
    France’s CAC 40: +0.2%,
    Italy’s FTSE MIB: +0.5%,
    Spain’s IBEX 35: +0.6%.


    France’s March Business Survey 104 (expected 103; last 105)
    French Finance Minister Le Maire said that his country’s government aims to lower the budget deficit to 3.0% of GDP by 2027 from 4.7% in 2022.

    Italy’s March Consumer Confidence 105.1 (expected 104.0; last 104.0) and Business Confidence 104.2 (expected 102.5; last 103.0)
    The EU froze EUR19 bln worth of post-pandemic funds for Italy, seeking clarification on how the funds will be spent.

    European Central Bank policymaker Rehn said that a decision on a digital euro is expected in the fall.

    Greek Prime Minister Mitsotakis announced that a general election will be held on May 21.


    Carnival (CCL 8.97, +0.18, +2.0%): upgraded to Equal Weight from Underweight at Wells Fargo

    Occidental Petro (OXY 61.00, +1.35, +2.3%): upgraded to Outperform from Market Perform at TD Cowen

    Paramount Global (PARA 21.83, +1.07, +5.2%): upgraded to Buy from Neutral at BofA Securities
    Reviewing overnight developments:


    Walgreens Boots Alliance (WBA 33.50, +0.56, +1.7%): beats by $0.05, beats on revs; reaffirms FY23 EPS guidance


    The advanced report for international trade in goods showed a $91.6 billion deficit in February versus the prior revised $91.1 billion deficit in January (-$91.5billion).

    The advanced report for retail inventories reflected a 0.8% build in February following a 0.1% increase in January.

    The advanced report for wholesale inventories showed a 0.2% build in February after a revised 0.5% decline in January (from -0.4%).


    S&P futures vs fair value: -6.00.
    Nasdaq futures vs fair value: -25.00.

    Equity futures deteriorated, but moves are still modest in scope.

    A few stocks are making decent upside moves this morning after analyst upgrades. Carnival (CCL 8.96, +0.17, +1.9%) was upgraded to Equal Weight from Underweight at Wells Fargo; Occidental Petro (OXY 60.61, +0.96, +1.6%) was upgraded to Outperform from Market Perform at TD Cowen; Paramount Global (PARA 22.16, +1.40, +6.7%) was upgraded to Buy from Neutral at BofA Securities.


    The U.S. Dollar Index continues to fall, down 0.3% to 102.53.

    Treasury yields continue to climb this morning, reflecting the sentiment shift around bank stocks.

    The 2-yr note yield is back above 4.00%, up three basis points to 4.02%.
    The 10-yr note yield is up four basis points to 3.56%. The U.S. Dollar Index is down 0.3% to 102.56.

    Energy complex futures trade in mixed fashion.

    WTI crude oil futures are up 0.1% to $72.86/bbl and natural gas futures are down 0.9% to $2.19/mmbtu.


    BEARISH conditions seem to continue – as WALL ST is caught between the MOON & NYC – lol 🙂


    Dow 32,394.25 -37.83 -0.12%
    S&P 500 3,971.27 -6.26 -0.16%
    Nasdaq 11,716.08 -52.76 -0.45%
    VIX 19.97 -0.63 -3.06%
    Gold 1,973.60 19.80 1.01%
    Oil 73.38 0.57 0.78%


    World Wrestling (WWE): Multiple parities are interested in WWE; Comcast (CMCSA) is not part of the discussion — CNBC’s David Faber


    Boeing (BA):
    Canada requests Boeing P-8 surveillance aircraft the the U.S., according to Pembroke Observer
    Issues statement on Canada’s Multi Mission Aircraft Project
    China Southern Airlines expected to purchase 200 more BA and Airbus (EADSY) jets, according to Bloomberg

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