QQQs flat staging a nice rally to finish the day after being down 1%+. Bessen will be at the WH presser tomorrow at 8:30am. 2 year fell 7bps ahead of eco data later this week (GDP, PCE, and jobs). 10year dn 2bps. BTC +50bps. Fed expects shifted in a dovish direction with the market pricing in 4 cuts this year with first coming in June.
Fairly quiet day on the micro and macro front as we wind down one of the least quiet months in history…
Let’s get to it…
Internet
Ad names outperformed today as we have SNAP +3.5% META + 40bps RDDT +2.6% and ROKU +4% all reporting this week. Hopes that expectations are too low and we’ll get some beats similar to last week. My sense is investors won’t be as lenient in giving advertising names a pass on go-forward commentary given: more cyclical aspect of advertising, Temu/Shein/China e-comm risk (de minimus ban on May 2), less robust product cycles than sw names like SAP/NOW, auto exposure (unlikely coming back any time soon), and SMB/drop shipping exposure. GOOGl’s px action last week and today supports this. Not high conviction, just my suspicion of what we see this week…
Keep reading with a 7-day free trial
Subscribe to TMT Breakout to keep reading this post and get 7 days of free access to the full post archives.