END OF DAY REPORT APRIL 28th

HIGHLIGHTS

US arms warplanes with "bunker busting bombs" in a message to Iran, according to WSJ
First Republic (FRC) and advisors have been working on a private-sector solution that avoids FDIC receivership but have failed to craft a proposal so far that wins supports of big US banks and government officials, according to FT sources
FDIC report on Signature Bank: Root cause of Signature's failure was poor management
WSJ article, co-authored by Nick Timiraos, says "after the next meeting, officials could consider a pause", some concerned about tightening lending standards and hiking too far and then facing pressure to cut later this year
"But officials have also signaled their desire to cool the economy so that wage growth doesn’t spur higher inflation. Some of those officials could argue against prematurely ending rate increases out of the fear that inflation might not slow as expected in the second half of the year.”

SUMMARY

Rally, rally, rally...A lively run into month-end for the stocks, but with the spectre of FRC's asset sales, an over-optimistic view of the rate cycle, it may be a rally worth selling into. At least according to BofA.
According to them, if the S&P 500 if it gets above 4,200 as stocks are only pricing in an earnings per share decline of just 4%, while the market is also expecting “210 basis points or rate cuts peak-to-trough”, it shoould be considered a sale.