Investing.com – Investors are paying attention to the earnings season in Brazil and the United States, with repercussions from data from Meta (formerly Facebook) and the mining company Vale. Furthermore, expectations for preliminary data and prices for the first quarter of the year in the USA. Technology giants Microsoft (NASDAQ:), Alphabet (NASDAQ:) and Intel (NASDAQ:) release earnings after the market closes. Data from Cielo (BVMF:), Klabin (BVMF:) and Multiplan (BVMF:) also enter the radar today.
The expectation is for slower growth in the USA. The market projects an expansion of 2.5% in the American economy in the period, with an indicator adjusted annually, after a positive variation of 3.4% in the previous quarter. Core PCE prices tend to move from 2% to 3.4%, still in line with consensus expectations. At night, the market knows Japanese consumer inflation.
Considering the earnings season, in the assessment of the chief strategist of Investing.com, Thomas Monteiro, Meta’s data exceeded projections, but the guidance did not please investors. “It’s exactly the opposite of what Tesla (NASDAQ:) did yesterday and shows that investors are looking at the near future with great suspicion”, he compares.
According to Monteiro, even though the Target indicated an acceleration in investments in Artificial Intelligence (AI), heavier margins tend to make a difference in a second quarter that tends to be challenging “as the war for talent heats up amid rising higher capital.”
In Brazil, Vale showed a decrease in profit in the first quarter due to lower prices for commodity sales, including iron ore. The mining company had a net profit of US$1.7 billion in the quarter ended in March, compared to LSEG data projection of US$1.9 billion, a drop of 9% compared to the same period last year.
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At 9:08 am (Brasília time), it lost 1%, was down 0.61% and had a negative change of 0.48%. O gained 0.17% and fell 0.19%, to R$5.1356.
The , a reference in the United States, rose 0.40%, to US$83.14, and registered an increase of 0.34%, to US$88.32.
Vale’s (NYSE:) ADRs fell 1.78% in pre-opening, to US$12.15, and Petrobras’ (NYSE:) had gains of 0.12%, to US$16.84.
News of the day
Tax Reform — The Minister of Finance, Fernando Haddad, delivered one of the proposals to regulate Tax Reform to Congress this Wednesday.
Income Tax — Until this Wednesday, the Federal Revenue received 17,337,749 Personal Income Tax declarations, or 40% of the expected total.
Funds — Investment funds recorded net inflows totaling R$7.2 billion last week, data from the Brazilian Association of Financial and Capital Market Entities (Anbima) showed.
— The Consumer Price Index (IPC), which measures inflation in the city of São Paulo, increased by 0.28% in the third four weeks of April, according to the Economic Research Institute Foundation (Fipe).
Agenda of the day
Roberto Campos Neto — Participates in the opening of the G20 TechSprint 2024, promoted by the Bank for International Settlements (BIS) and the Central Bank of Brazil. Meeting with Márcio Appel, CEO of Adam Capital. Meeting with Federal Deputy Júlio Lopes (PP/RJ) and Isaac Sidney Menezes Ferreira, President of the Brazilian Federation of Banks (Febraban). Participates in the meeting of the National Monetary Council (CMN), electronically. Meeting with Cláudio Bomfim de Castro e Silva, governor of the State of Rio de Janeiro.
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Luiz Inácio Lula da Silva — Sanction to project on assistance to women victims of violence, ceremony celebrating the anniversary of Embrapa 50+, meeting with special secretary for legal affairs of the Civil House, Wellington César Lima, meeting with leaders and coordinators of organizations indigenous people and dinner to commemorate the 50th anniversary of the 25th of April, the Carnation Revolution.
Fernando Haddad — Meeting of the National Monetary Council (CMN), XXXVII Brazilian Congress of Tax Law.
Corporate News
Petróleo Brasileiro SA Petrobras (BVMF:) — State oil company Petrobras elects a new Board of Directors and should define the future of extraordinary dividends this Thursday, Poder 360 reported.
Vale SA (BVMF:)— The mining company aims to close a definitive agreement for Mariana in the first half of the year, according to Reuters, which also reported that Vale shareholders affected by the dam will question buybacks during the meeting.
Assaí — The company presented a post-IFRS 16 net profit of R$60 million in the first quarter, an annual drop of 16.7%. Furthermore, leverage fell to 3.75x in the period, compared to 4.69x in 1Q23 and 3.80x in 4Q23.
Log CP (BVMF:) — The company reported a net profit of R$55.3 million in the first quarter, an increase of 90.1% compared to the same period last year.
Petrorecôncavo and Eneva (BVMF:) — The companies informed that they are not engaged in merger negotiations, following media reports on the topic.
Klabin — The paper and cellulose producer presented a net profit of R$460 million in the first quarter, a decrease of 64% compared to the same period in 2023.
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Magazine Luiza (BVMF:) — The retailer approved a proposal for a reverse split of shares in the proportion of 10 to 1, without changing the share capital.
Méliuz (BVMF:) — Signed a contract to acquire 19.4% of Zoppy Tecnologia, which provides CRM (Customer Relationship Management) management services for R$2.9 million.
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