END OF DAY REPORT APRIL 10th

HIGHLIGHTS

Israeli Prime Minister says he will retain Defence Minister in place as security tensions rise
Manchester United bidders reportedly becoming frustrated over lack of updates on potential takeovers more than two weeks after filing second bids, according to the Daily Mail; fear they might not be in charge in time for the summer player window

SUMMARY

- Stocks traded on a soft footing as traders digest the March jobs report, released on Friday, which dispelled any concerns about a hard landing, and keeps the FOMC on track to continue tightening policy to manage surging inflation. : Q1 reporting season will get underway this week, and the consensus is for S&P 500 earnings growth to contract 5.2%, while revenues are seen rising 1.6%. Consumer Discretionary names are expected to outperform in Q1, with the street modelling a 37% rise in earnings growth; Industrials, Energy and Financials are also expected to post earnings growth in Q1. On the other side, Materials names are expected to be the worst performer, with the consensus anticipating earnings growth of -33%, while Health Care and Tech stocks are also expected to be among the worst performers. Of the handful of S&P 500 companies (around 20) that had reported Q1 figures by the end of last week, all posted earnings above estimates. Meanwhile, this week, there will be focus on the Big Banks reporting; in addition to the top- and bottom-line performance, loan provisions, economic projections, traders will be paying particular attention to any commentary on how the recent stresses in the banking system have impacted operations; Goldman Sachs said it expects investor focus to centre on deposit inflows and pricing dynamics, but also what will the offset be from tighter lending standards, a weaker economic backdrop and the impacts on provisions and charge-offs, as well as the longer-term ramifications from regulatory reform.