What Moved The Markets This Week 📈

W14 - Tesla Slashes Prices Again, OPEC+ Surprise Output Cuts, Job Openings Plunge, ISM hits 46.3%, Google's AI Supercomputer, Finland Joins NATO, and DLocal + Constellation Earnings

Apr 09, 2023

Sunday Morning Markets

Trading Week 14, covering Monday, Apr 3 through Friday, Apr 7. Your weekly financial markets update, in less than 5 minutes.

The Week In Review ⏪

Jobs data: Nonfarm payrolls, weekly claims, and job openings.
ISM Manufacturing PMI drops to 46.3%
Google creates supercomputer, faster than Nvidia A100
US auto sales jump in the first quarter
OPEC+ surprises markets with major output cut
Finland becomes the 31st nation to join NATO
IMF projects lowest global growth in over 30 years
Three Canadian crypto exchanges to merge
Earnings reports from DLocal & Constellation - see breakdowns below

Share Sunday Morning Markets

US Markets 🇺🇸

Nonfarm payrolls grew 236,000 in March, nearly in line with estimates, but a deceleration from February. Average hourly earnings rose 0.3%, pushing the annual increase to 4.2%, the lowest level since June 2021.
Job openings plummet 632K in February, falling to the lowest level in over two years, and coming in under Wall Street expectations. Job openings outnumber available workers by a ratio of 1.7 to 1, down from 2 to 1 last month.
Weekly unemployment claims jumped to 228K, exceeding expectations. The BLS raised the original claimant counts for the previous three weeks. Layoffs in Q1 totaled 270K, almost quadruple the amount from the previous year.
Economic activity sinks for 5th straight month as the ISM Manufacturing PMI falls to 46.3%, well below estimates. The index of new orders dropped 2.7 points to 44.3% and “is very much in recessionary territory”
Google AI supercomputer faster than Nvidia’s A100 chip according to the company’s latest release. The custom chip called Tensor Processing Unit, or TPU, handles 90% of the company's artificial intelligence training.
US auto sales rebound higher as dealerships get more inventory. Tesla reported a 36% jump in deliveries for Q1, Polestar +26%, GM +18%, Nissan +17% Hyundai +16%, and Ford +10%. However, Stellantis and Toyota each reported a -9% drop.
Tesla cuts prices in the US for fifth time since January in a bid to ignite demand to meet the company’s delivery goals. Tesla reduced its Model 3 pricing by $1K, Model Y by $2K, and Model S + X by $5K.

Rest of World 🌏

OPEC+ announces surprise oil output cuts of 1.16M barrels per day (bpd), bringing the total volume of cuts this year to 3.66m bpd, equal to 3.7% of global demand. Oil prices rallied on the news, with Brent crude up 10% this week.
Finland officially becomes a member of NATO, doubling the alliance’s border with Russia. The Nordic nation is the 31st country to join the alliance, which vows in its treaty that an attack on one of its members is an attack on them all.
IMF warns global growth weakest since 1990 as they see the world economy expanding about 3% annually for five years. The IMF blames the lower growth projections on rising geopolitical tensions & tighter monetary policy.

Crypto ⚡

Three Canadian exchanges plan to merge in what would create one of the world's largest crypto trading platforms. WonderFi (WNDR), Coinsquare, and CoinSmart have 1.65M users and more than $600M in assets under custody.
MicroStrategy buys another 1,045 BTC for $23.9M, bringing their total holdings to 140,000 BTC, worth about $4B. The overall average purchase price on those holdings is $29,803. MSTR 0.00%↑ is down 40% in the last year.