On Monday, April 25, 2023, Wall Street closed mixed with the benchmark S&P 500 and the Dow ending slightly higher, while the Nasdaq dipped due to losses from mega-cap tech companies, including Microsoft and Tesla. This week is expected to be active in terms of earnings, with several high-profile tech companies reporting, including Alphabet, Microsoft, and Amazon, as well as General Motors, Boeing, Northrop Grumman, and Caterpillar. Additionally, economic data, including housing data, industrial output, and the Commerce Department’s first-quarter GDP report, will be released. The week will culminate with the widely anticipated Personal Consumption Expenditures (PCE) report, which tracks income, spending, and inflation.

Key Takeaways:
✅ The S&P 500 and Dow rose modestly, while the Nasdaq fell due to losses in tech stocks.
✅ This week, several tech giants and high-profile industrials are set to release earnings reports.
✅ The Personal Consumption Expenditures report and Q1 GDP estimate will be closely watched by investors.
✅ U.S. Treasury yields fell as investors grew increasingly concerned about the approaching debt ceiling deadline.
✅ The crypto industry continues to face regulatory uncertainty and tensions with the SEC.

Stock Market Recap:
The Dow Jones Industrial Average increased 66.44 points, or 0.2%, to 33,875.4, the S&P 500 gained 3.52 points, or 0.09%, to 4,137.04, and the Nasdaq Composite dropped 35.25 points, or 0.29%, to 12,037.20. U.S. Treasury yields fell as market participants grew increasingly jittery about the approaching debt ceiling deadline. The benchmark 10-year notes rose 18/32 in price to yield 3.5034%, from 3.572% late last Friday, while the 30-year bond rose 34/32 in price to yield 3.718%, from 3.778% late last Friday.

Earnings Reports in Focus:
This week’s earnings reports include a spate of potential market movers, including tech giants Alphabet, Microsoft, Meta Platforms, and Amazon. High-profile industrials General Motor Co, Boeing Co, Northrop Grumman, and Caterpillar are also on deck. Market participants are looking for signs that companies are continuing to show growth amid concerns about rising inflation, supply chain disruptions, and labor shortages.

Economic Data in Focus:
On the economics front, a spate of housing data, industrial output, and the Commerce Department’s first stab at Q1 GDP will be capped on Friday by the closely watched and wide-ranging Personal Consumption Expenditures (PCE) report, which tracks income, spending, and inflation. The PCE report is considered a key gauge of inflation by the Federal Reserve, which uses it to set monetary policy.

Cryptocurrency Industry Update:
In other news, digital assets continue to slide with Bitcoin (BTC) losing 0.27% to $27,434.44 in New York trading overnight. Ethereum (ETH) doubled BTC’s loss trading at $1,837.70 or 0.57% overnight. Meanwhile, Coinbase Global has filed a petition on Monday to compel the U.S. Securities and Exchange Commission (SEC) to create new rules for digital assets in the latest escalation of the cryptocurrency exchange’s tensions with the U.S. regulator.

Coinbase’s Legal Challenge:
Coinbase filed a petition for rulemaking with the SEC last year, urging the regulator to provide clarity on the circumstances under which a digital asset is a security and create a new market structure framework that is compatible with cryptocurrencies. The SEC has not responded publicly to that petition, which led to Coinbase filing the legal challenge. The crypto industry largely believes it operates in a regulatory grey area not governed by existing U.S. securities laws, and that new legislation is needed to regulate the sector.