5 Things You Need to Know to Start Your Day: Americas

Good morning. Markets wait for Powell comments, jobs data gives a payrolls preview and Citigroup strategists say US stocks have room to resu [View in browser]( [Bloomberg]( Good morning. Markets wait for Powell comments, jobs data gives a payrolls preview and Citigroup strategists say US stocks have room to resume their gains. Here’s what traders are talking about. — [David Goodman]( Want to receive this newsletter in Spanish? [Sign up to get the Five Things: Spanish Edition newsletter](. Waiting for Powell US stock futures are [falling this morning]( and Treasuries are resuming a decline as traders wait for remarks by Fed Chair Jerome Powell. While it’s only been a few days since Powell last spoke, the stakes are high — the comments are his first since a suite of stronger data this week prompted traders to trim bets on the number of rate cuts this year and sparked a rout in global bonds. Some may be hoping for some dovish balm from Powell, but [Pimco has seen enough already](, and is positioning for the Fed to deliver fewer cuts than other major central banks this year. That case may have been strengthened by data Wednesday showing [euro-area inflation slowed more than expected last month,]( cementing prospects for an interest-rate cut by the European Central Bank in June. Payrolls preview Powell is talking amid a rush of Fed speeches. Five other officials are talking today, while two others said yesterday[they still expect the US central bank to cut rates three times in 2024](. The other big event today is the ADP’s employment report, which may give traders a preview of Friday’s ever-crucial payrolls data. Economists predict the figures will show employers added 150,000 workers last month, the highest this year, amid a pattern of labor markets in developed countries [consistently beating expectations](. Further to go? Stronger data so far this week has taken some of the steam about the rally in US stocks, with the S&P 500 stumbling after its biggest first-quarter gain in five years. But Citigroup strategists suggest [there’s scope for gains to resume]( as investors appear to be showing “persistent” demand for US stocks. Overall positioning isn’t stretched compared to history, strategists led by Chris Montagu wrote in a note, saying this leaves room for further gains. Musk on Disney Tesla shares had a [bruising day yesterday](, falling almost 5% after the carmaker delivered just 386,810 vehicles in the first three months of the year, missing Bloomberg’s average estimate by the biggest margin ever. However, founder Elon Musk also has other firms on his mind. [In a post on his X platform today](, Musk said that while he doesn’t own any Disney shares right now, he would “definitely” buy them if Nelson Peltz was elected to the company’s board. Taiwan quake Taiwan’s [strongest earthquake in a quarter century]( leveled dozens of buildings on the eastern side of the island, killing at least seven people. The tragedy has potential repercussions for global markets and the economy, because of the[critical role Taiwan plays in the manufacture of advanced chips](, the foundation of technologies from artificial intelligence and smartphones to electric vehicles. Shares in TSMC — the main contract chipmaker to Apple and Nvidia — declined as [the company evacuated factory areas,]( while Nvidia shares have fallen 1% in premarket trading. What we’ve been reading This is what’s caught our eye over the past 24 hours. - [Fed blocks tough global climate-risk rules]( for Wall Street Banks. - China’s defense of its currency is [heading toward a milestone moment](. - [FTSE 100 falls]( as record continues to prove elusive. - Tottenham Hotspur is [in talks with potential investors](. - [John Authers says]( markets see a cyclical recovery. And finally, here's what Joe’s interested in this morning Earlier this week we got the latest [ISM Manufacturing report](, and it was good. It showed production moving back into positive territory after contracting for 16 straight months. It's more evidence that economic activity is either stable or picking up despite constant expectations that a slowdown must be right around the corner. Maybe we'll learn more on Friday when we get the jobs report about what kind of "landing" (if any) we're getting. One nice thing in the ISM is that it always includes information on what commodities or parts are in short supply. Thankfully, the list of things in short supply has dwindled dramatically over the last two years. I highlighted the one thing that stands out. Electrical components aren't just in short supply, but have been deemed by survey respondents in short supply for three and half straight years. On some level, this isn't a big surprise. There is a lot of building going on, and the big macro theme is just the attempt to electrify everything. Everyone's talking about electricity demand growing for the first time in decades thanks to this push. But it's clear that there's a major bottleneck. Yesterday commercial real estate developer [Chris Hatch posted this on X](: So for the sake of removing this bottleneck and keeping the construction boom going, someone should go out and do this! Joe Weisenthal is the co-host of Bloomberg’s Odd Lots podcast. Follow him on X [@TheStalwart]( Like Bloomberg's Five Things? [Subscribe for unlimited access]( to trusted, data-based journalism in 120 countries around the world and gain expert analysis from exclusive daily newsletters, The Bloomberg Open and The Bloomberg Close. [Bloomberg Markets Wrap: The latest on what's moving global markets. Tap to read.]( Follow Us Like getting this newsletter? 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