Goldman Sachs’ strategists have highlighted the potential of the Dollar and Swiss Franc as hedges against inflation and geopolitical uncertainties. They have adjusted their Euro forecast, signaling a bearish outlook, and revised their EUR/USD target to 1.05. The analysis suggests that these currencies have shown resilience to rate sell-offs and are likely to maintain their strength given ongoing concerns about inflation and global tensions.
Alexandria Real Estate Equities, Inc. ARE announced financial and operating results for the first quarter ended March 31, 2024. Key Highlights:
* Total revenues: $769.1 million, a 9.7% increase from $700.8 million in 1Q23.
* Net income attributable to Alexandria’s common stockholders – diluted: $166.9 million, a significant increase from $75.3 million in 1Q23.
* Funds from operations attributable to Alexandria’s common stockholders – diluted, as adjusted: $403.9 million, an increase from $373.7 million in 1Q23.
* Occupancy of operating properties in North America: 94.6%.
* Strong leasing volume aggregating 1.1 million RSF during 1Q24, with 77% of leasing activity generated from existing tenants.
* Net operating income (cash basis) of $1.9 billion for 1Q24 annualized, up $132.7 million, or 7.6%, compared to 1Q23 annualized.
* Strong balance sheet with significant liquidity and top 10% credit rating among publicly traded U.S. REITs.
* Consistent dividend strategy with a focus on retaining significant net cash flows from operating activities after dividends for reinvestment.
Franklin Street Properties (FSP), a REIT focused on U.S. office properties, has recently experienced a decline in stock price, making it an attractive investment opportunity. Despite this decline, the company continues to execute on its plan of debt reduction and property disposals, resulting in a healthier financial position with reduced debt service obligations. The recent debt amendment provides the company with a two-year maturity extension, freeing up cash flow for operations and debt reduction.
Palantir Technologies (NYSE: PLTR) rallied on Monday, snapping a six-day losing streak. The data analytics company has outperformed the S&P 500 significantly over the past year, gaining 141%. Despite a string of red sessions in April, the stock remains a Buy according to Seeking Alpha analysts. Five out of 19 Wall Street analysts rate PLTR as a Buy.
The stock market rebounded after last week’s decline, helped by easing geopolitical tensions and upcoming earnings reports from major companies. The Dow Jones Industrial Average rose 0.7%, the S&P 500 added 0.9%, and the Nasdaq Composite gained 1.1%. Investors had been concerned about higher interest rates and mixed quarterly results, but this week’s news seems to have eased those concerns. However, Tesla shares continued to decline after the company cut prices in China and Germany, and Verizon disappointed with its quarterly revenue growth. Several major events could cause choppy trading in the days ahead, including earnings reports from Big Tech companies and the release of inflation data.
Cadence Design reported first-quarter earnings per share of $1.17, outperforming analysts’ expectations by $0.04. Revenue came in at $1.01 billion, exceeding the consensus estimate of $1 billion. For fiscal 2024, Cadence Design projects EPS of $5.88-$5.98, slightly above the analyst consensus of $5.94. Revenue is expected to be $4.56B-$4.62B, surpassing the consensus estimate of $4.59B. Cadence Design’s stock closed slightly lower on the day.
The S&P 500 rallied on Monday, regaining momentum from its biggest weekly loss since March 2023. Investors anticipate upcoming earnings reports from major tech firms like Tesla, Facebook-owner Meta Platforms, Microsoft, and Google-owner Alphabet. Tesla shares decreased, despite the EV manufacturer announcing fresh price reductions in China and Germany, after similar decreases in the United States. Verizon Communications fell despite reporting better-than-expected performance in the first quarter, clouded by weaker cash flow. Zions Bancorporation’s stock rose after exceeding quarterly estimates, driven by reduced credit provisions. The 2-Year Treasury yield momentarily reached 5%, influenced by expectations for upcoming economic data and the Fed’s PCE price index. Salesforce withdrew from acquisition talks with Informatica, while Matterport’s stock soared due to a takeover offer from CoStar Group. Cryptocurrency-related stocks witnessed gains as Bitcoin surged following its halving event.
Gold and silver prices experienced a significant decline on Monday due to easing geopolitical tensions and anticipation of key economic data releases this week. Gold dropped by 2.7%, while silver fell by 5.1% on Monday afternoon EST. The declines mark the steepest drops for both precious metals since last year.
Geopolitical instability, particularly in the Middle East, has become the primary concern for U.S. corporate credit investors, a BofA Global Research survey reveals. Despite escalating tensions, investors remain bullish on investment-grade corporate credit, driving issuance to $33.6 billion last week. However, concerns about inflation remain, with only 18% of investors holding above-normal cash levels. The survey also highlights strong sell-offs in high-yield corporate bonds last week.
Billionaire hedge fund titan Ken Griffin is investing in a towering 62-story skyscraper at 350 Park Ave., aiming to revitalize Midtown Manhattan and lure workers back to the office after the COVID-19 pandemic. The skyscraper, designed by Foster + Partners, will feature a vibrant public concourse and incorporate air rights from St. Patrick’s Cathedral and Saint Bartholomew’s Church to support their maintenance. Mayor Eric Adams hailed the project as a symbol of Midtown Manhattan’s resurgence, while Griffin emphasized the tower’s allure for in-person work. The skyscraper is slated for completion by 2032 and is expected to boost New York City’s status as a global business hub.
