Ivan Boesky, the financier who coined the infamous phrase ‘greed is good,’ passed away at the age of 87. Once known as a brilliant risk-taker on Wall Street, Boesky became embroiled in one of the most significant insider trading scandals of the 1980s, leading to his indictment and imprisonment. Boesky’s legacy remains intertwined with the rise and fall of the era’s financial excess.
The sudden passing of 35-year-old Bank of America associate Leo Lukenas III, a former Green Beret and a member of the bank’s Financial Institutions Group, has sent shockwaves through Wall Street. According to the New York Post, Lukenas passed away on May 2 from “acute coronary artery thrombus” after reportedly working approximately 100 hours weekly over several consecutive weeks. His death occurred just days after the completion of a $2 billion merger he had been working on.
U.S. stocks finished with a mixed performance on Wednesday as the momentum eased after sharp movements. The S&P 500 remained nearly unchanged, while the Dow Jones Industrial Average slightly declined. On the other hand, the Nasdaq composite managed to edge higher. Tesla’s jump of 12.1%, driven by plans for affordable vehicle production, overshadowed its 55% profit drop. Focus remains on the “Magnificent Seven” stocks’ earnings reports, with the hope of broader profit growth. A strong economy may support corporate profits, but rising Treasury yields continue to exert pressure on stock prices.
U.S. stock markets opened with mixed results on Wednesday as concerns about prolonged high interest rates overshadowed positive earnings reports. The Dow Jones Industrial Average and the S&P 500 remained largely flat, while the technology-heavy Nasdaq Composite gained slightly. Despite strong earnings releases from companies such as Tesla, Hasbro, and Visa, investors remained cautious due to rising treasury yields and the potential for a pullback if upcoming economic data leads to reduced interest rate cut expectations.
Former GOP representative and current CEO of Trump Media & Technology Group, Devin Nunes, expressed concerns about unlawful and potentially illegal trading activity involving the company’s stock. According to Nunes, certain traders may be engaging in ‘naked short selling,’ a risky and potentially illegal practice involving the sale of stock before borrowing it. Nunes called on lawmakers to investigate and hold accountable those responsible for any illegal activities.
Tesla and Airbnb were the subject of analyst calls on Wednesday, with mixed reactions from Wall Street. While Tesla’s shares rallied following its earnings report, analysts remained skeptical about its long-term prospects. Citi upgraded Amazon, citing increased profitability, while Mizuho upgraded Airbnb, expecting further gains.
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.
Wall Street’s mood turned cautious on Tuesday as investors braced for earnings reports from seven major companies that have driven much of the market’s gains this year. The so-called ‘Magnificent 7’ includes Tesla, which reported after the bell. Positive earnings and optimistic commentary from these companies could buoy the market, while weak results or a negative outlook could spark further declines. Despite a positive start to the trading week Monday, stocks ended off their highs as focus shifted to the upcoming earnings reports.
Asian equity markets predominantly climbed on Tuesday, continuing the momentum from the previous session. This rally was influenced by a positive lead from Wall Street and eased concerns over a broader Middle East crisis. However, the Japanese yen faced a setback, weakening against the US dollar and reaching its lowest level in 34 years. Meanwhile, China announced the creation of over 3 million new urban jobs in the first quarter, while Hong Kong and India’s stock markets experienced gains. In Australia, private sector growth surpassed expectations, while U.S. stock futures showed a slight dip after a strong rebound in the previous session.
CNBC’s Jim Cramer emphasizes the significance of upcoming Big Tech earnings in shaping the stock market’s future. The reports from Tesla, Meta, Microsoft, and Alphabet will reveal whether the recent tech sell-off will continue or abate. Despite NVIDIA’s 4% recovery on Monday, Cramer remains cautious about its offsetting the previous 10% drop. He advises investors to exercise prudence in their buying and selling decisions and acknowledges the potential for further market decline.
