Beige Book Looks Pessimistic, Market Falls | Wall Street Today

Moomoo Recap US joined discussion · May 30, 2024 04:41

Beige Book Looks Pessimistic, Market Falls | Wall Street Today

As a general recap, the market fell Wednesday. Just after 4 PM EST, the $S&P 500 Index traded -0.74%, the $Dow Jones Industrial Average fell about 1.06%, and the $Nasdaq Composite Index fell 0.58%.

MACRO

U.S. economy expanded in the late spring, a Federal Reserve survey found, according to the 2 PM EST release of the Fed's 'Biege Book.' The report found that persistent inflation, high interest rates, and political uncertainty caused businesses countrywide to turn "somewhat more pessimistic."

The Beige Book suggests the economy is unlikely to speed up until inflation slows further and the Fed can cut high U.S. interest rates. Also in Macro this week, investors will watch for the Personal Consumption Index inflation gauge release Friday.

Last week, the FOMC meeting minutes from the April 30-May 1 meeting showed that members felt uncertain about the possibility that "high interest rates may have smaller effects than in the past." Participants said interest rates would stay put unless inflation numbers were clearly at 2% or the labor market clearly weakened. Some members said they would be willing to raise rates.

The $U.S. 2-Year Treasury Notes Yield (US2Y.BD)$ fell to 4.98, and the $U.S. 10-Year Treasury Notes Yield (US10Y.BD)$ climbed to 4.562.

SECTORS

Within 'industries' tracked by moomoo, Airlines were lower by 3%, following the AAL news that also tore down $Southwest Airlines (LUV.US)$ -6% and $JetBlue Airways (JBLU.US)$ -4%.

On the flip side, Former President Donald Trump-related stocks were climbing before the announcement of a verdict for a jury trial that was finishing up this week.

$Crude Oil Futures(APR5) (CLmain.US)$ fell 0.34%, with an OPEC meeting scheduled for next week. Gold fell 0.73, while Silver prices fell 0.37%. Bitcoin climbed fell 1%.

MOOVERS

$C3.ai (AI.US)$ reported quarterly losses of $(0.11) per share after the market closed Wednesday, beating the analyst consensus estimate of $(0.30) by 63.33 percent. The stock climbed 9% after hours.

$American Airlines (AAL.US)$'s stock fell 13% Wednesday after the company cut its performance forecast, causing at least one analyst to lower his rating, while others said they were disappointed in the update. It was the lowest decliner on the S&P.

ConocoPhillips has agreed to acquire Marathon Oil in an all-stock deal valued at $17.1 billion that would combine two of America's most recognizable energy companies. The deal news sent $Marathon Oil(Delisted) (MRO.US)$ to the top of the S&P 500, up 8%.

$Chewy (CHWY.US)$ shares climbed 27% after the firm posted Q1 Revenue that beat estimates, and a stock buyback plan.

$Salesforce (CRM.US)$ stock tumbled Wednesday after the company reduced its outlook for subscription and support revenue and issued a downbeat forecast for the current quarter. The shares fell 13% in after-hours trading after a modest rise during the regular session. Salesforce had been up about 3.2% since the start of the year.

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