Rates Look to Go Up & SpaceX Goes Down

Author

Faro Capital
April 21, 2023

Good Morning,

U.S. stocks fell yesterday  as the FED signals for one more rate hike and mixed corporate earnings. Tesla sank 9.7% after the EV maker reported its lowest quarterly gross margin in two years. SpaceX launched a rocket into space and it when down in flames. AT&T stock tanked close to 10% due to it missed estimates of free cash flow. Yesterday the FED bank of Cleveland President Loretta Mester supported one more rate hike for this year to fight off inflation. 

The Canadian S&P/TSX index closed negative due to lower oil prices and pressure from U.S. corporate earnings. 

Brazil’s Ibovespa closed slightly higher yesterday. The government is slated to issue a package of 13 measures to simplify consumer access to credit and drop borrowing costs. Investors also looked at the new fiscal framework congress is passing.

Argentina’s reported a trade deficit of $1.05B in March 2023 vs a deficit of $271M surplus the same time last year. Soaring inflation, political dysfunction, and little growth continues to grow the countries woes. 

This week the price of lithium dropped to the lowest level in 18 months from a record high in November 2022. The drop is due to abundant supply, weak demand, and the expectations of a surplus this year. 

Markets: Before the open

Top News Stories

Canada

  • Grocer Metro Inc reported Q2 profits up 10% vs last year (BNN)

  • RBC announces a new round of U.S. banker layoffs (BNN)

  • Union representing WestJet pilots vote to strike (BNN)

  • Ryan Reynolds announced he’s investing in Nuvei (BNN)

  • Close to 155K federal workers striked on Wednesday over wages (RT)

  • Canada will offer C$13B in subsidies & a C$700M grant to attract Volkswagen (RT)

U.S.

  • Meta has started a new round of layoffs (CNBC)

  • Mortgage demand dropped 10% as rates rise (CNBC)

  • Report on Europe’s response to America’s Chips act (CNBC)

  • Elon Musk plans an AI company called “TruthGPT” (CNBC)

Argentina

  • Argentina’s “Blue Dollar” hit 420 (BAT)

  • A $1M gold heist puts a pause on Patagonia Gold corp operations (BAT)

Brazil

  • Toyota to invest $338M to produce a new hybrid car in Brazil (RT)

  • Industrial output dropped for the third time in a row (RT)

  • Brazil oil & gas production dropped 11.95% in March vs. February (RIO)

Colombia

  • Banana growers are on alert for the fungus Foc R4T killing crops, Colombia exported $892M in 2022 (PORT)

  • 20 companies lead a exploratory mission to Venezuela to look for opportunities a relations warm (PORT)

  • Economic activity grew 2.98% in February (PORT)

  • Chevron to invest $5.5B in San Andres (ELT)

Dominican Republic

  • Arajet transported 80K passengers in Q1 2023 (ELD)

  • From 2017 to 2021 gold production dropped 23% (ELD)

El Salvador

  • El Salvador approves a bill to eliminate tax on tech & AI companies for 15 years (RT)

Peru

  • Exports have dropped 5 consecutive months, putting worries on Q1 numbers (ELC)

Venezuela

  • The U.S. extended protection of Citgo assets from creditors for 3 months (RT)

Insights

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