Results for: S&P 500

U.S. stocks traded higher towards the end of trading on Tuesday, with the S&P 500 gaining more than 1%, while the Dow and NASDAQ also rose. General Motors Company reported better-than-expected earnings for its fiscal first quarter, with quarterly sales growth of 7.6% year-on-year. Communication services and materials sectors were the leading and lagging sectors, respectively. In commodity news, oil traded up 1.8% while gold traded down 0.2%. European and Asian markets closed mostly higher, with the eurozone’s STOXX 600 rising 1.09% and Japan’s Nikkei 225 gaining 0.30%. Sales of new single-family houses jumped 8.8% in March, while the S&P Global services PMI and composite PMI fell to 50.9 and 50.9, respectively.

Healthcare stocks struggled in 2023, but a late-year rally helped the sector end the year in positive territory. Despite lagging behind tech and growth stocks, healthcare is expected to continue growing at a faster rate than the overall economy due to an aging population and rising healthcare spending. The integration of AI, defensive nature, and steady cash flow make healthcare stocks attractive for investors. Healthcare ETFs, such as S&P 500 Select Sector SPDR for Healthcare (XLV), have also shown strong performance. Astute investors are advised to consider healthcare mutual funds for portfolio diversification, with three recommended options being Janus Henderson Global Life Science (JNGLX), Vanguard Health Care (VGHCX), and Fidelity Select Pharmaceuticals Portfolio (FPHAX). These funds have strong Zacks Mutual Fund Ranks and positive annualized returns.

Super Micro Computer (SMCI) experienced a significant rebound on Tuesday, reversing a two-day sell-off that had reduced its valuation by over 20%. The AI server company’s shares surged by more than 7% during late morning trading, becoming the top gainer in the S&P 500. This rise came after Super Micro Computer’s announcement on Friday that it would release its fiscal third-quarter results on April 30. In previous quarters, the company has provided pre-announced results, including an 11-day advance notice of its earnings call in January. Analysts generally predict a quarterly revenue of $3.92 billion and an earnings per share of $5.72. Last week, Loop Capital set a $1,500 price target for the stock, emphasizing the company’s dominance in generative AI servers and its growing advantage over competitors. The rebound in AI stocks, including Super Micro Computer, comes after a challenging Friday trading session. Fears surrounding Super Micro Computer and AI drove down semiconductor stocks.

S&P 500 futures are edging closer to yesterday’s highs in pre-market trading, with a gain of 20 points or 0.4%. This upward momentum is fueled by positive earnings reports, particularly from GM, whose shares have surged 6% after exceeding expectations and raising guidance on the back of strong truck sales. Spotify’s shares have also witnessed an 8% increase due to impressive earnings. However, UPS, Pepsi, JetBlue, Nucor, and Cleveland-Cliffs have reported earnings misses or declines in demand, resulting in lower share prices.

Wall Street is preparing for a busy day in the markets with the release of numerous corporate earnings reports from key players. Futures for the Dow Jones Industrial Average and S&P 500 have opened with slight upticks. General Motors reported strong first-quarter results, boosting its stock price. PepsiCo shares remain flat despite exceeding revenue expectations, while JetBlue faces a drop after disappointing sales and a lowered revenue outlook. Tesla, which has experienced a significant stock decline this year, is set to release its financial results after the market closes. The Federal Reserve’s recent statements have reined in expectations of interest rate cuts, putting pressure on companies to deliver solid profits and revenue growth.

The S&P 500 has continued its ascent in 2024, but is the market overvalued? The answer depends on the level of interest rates and economic activity, as well as people’s expectations. The market yield is currently between 4.3% and 4.7%, which can be compared to the current 10-year interest rate of 4.3%. However, if we downplay the exaggerated weight of the “Magnificent Seven” in the S&P 500 index, the market yield is actually 5.8%. This suggests that the market is fairly priced.

U.S. stocks surged on Monday as the CNN Money Fear and Greed Index moved towards neutral territory. The S&P 500 ended its six-day losing stretch, while all sectors recorded gains. Zions Bancorporation performed exceptionally well, with shares rising by 4% post-earnings. In contrast, Verizon Communications witnessed a 5% decline after reporting its first-quarter results. Key economic indicators, including the Chicago Fed National Activity Index, exhibited positive movement. Investors now anticipate earnings announcements from Tesla, General Motors, Visa, and PepsiCo.

Investors have drastically reduced their optimistic bets on major U.S. stock indexes, particularly the S&P 500 and Nasdaq 100, as concerns mount over persistent inflation and heightened global tensions. Bullish positioning on the S&P 500 plummeted by $12.3 billion, leaving overall net positions only slightly positive, driven in part by a surge in new short positions.

U.S. stocks closed positive on Monday, with the Dow Jones Industrial Average gaining 0.7% to 38,239.98, the S&P 500 rising 0.9% to 5,010.60, and the Nasdaq climbing 1.1% to 15,451.31. Notable stock movements include a 2.42% dip for DJT despite its recent gains, a 23.11% surge for RIOT following Bitcoin’s rise, a 175.86% jump for MTTR due to a CoStar Group acquisition deal, a 4.67% decline for VZ despite positive revenue results, and a 3.40% drop for TSLA after a price cut for its FSD software.

U.S. equities closed higher on Monday, driven by robust performances in the technology, financial, and utilities sectors. The Dow Jones Industrial Average climbed 0.67%, while the S&P 500 index advanced 0.87%, and the NASDAQ Composite index gained 1.11%. Notable gainers included Goldman Sachs, JPMorgan Chase, Procter & Gamble, Ford Motor Company, and United Airlines Holdings Inc.