Two More Magnificent Earnings | Wall Street Today
Indexes fell Thursday and were dragged down by big tech. $Meta Platforms (META.US)$ fell 10% after its updated revenue outlook for the year did not match expectations.
With preliminary closing numbers, the $S&P 500 Index fell about 0.46%. The $Dow Jones Industrial Average fell about 0.98%, and the $Nasdaq Composite Index fell about 0.64%.
MACRO
In macro, GDP numbers for the first quarter came out low, at 1.6% growth compared to expectations of 2.5%. In the world of inflation fighting, a lower growth rate means prices may have slowed their endless climb, and the Federal Reserve may lower target rates sooner. It also means that compared to the hot 3.4% rate in Q4, and nearly 5% rate in Q3, the economy is slowing, and U.S. stocks may also shrink.
$U.S. 2-Year Treasury Notes Yield (US2Y.BD)$ climbed to past 5% this morning, and dropped to 4.99 in the afternoon after a major sell off. The $U.S. 10-Year Treasury Notes Yield (US10Y.BD)$ climbed to 4.71.
The S&P Manufacturing PMI came out Tuesday morning at 49.9 compared to estimates of 52, a reading below 50 points tends to indicate a contraction in the activity level of purchasing managers in the manufacturing sector. Investors can expect the PCE, the Fed's favorite inflation indicator, to be released on Friday.
SECTORS
The tech sector fell after Meta's earnings did not impress enough. The Internet Content and Info Sector, usually held up by the largest companies in the world, fell 3% overall.
Oil futures fell with prices Thursday after macro data painted a picture of slowdown in the first quarter. The U.S. crude stocks from last week were reported lower by 6.4 million barrels Wednesday.
$Bitcoin fell about 1% Thursday, as the price continued jostling down a volatile path surrounding the most recent mining reward halving. Bitcoin stocks fell, $MicroStrategy was lower by 2%, $Coinbase fell 1%,$Marathon Digital fell 3%.
MOOVERS
$Alphabet-C (GOOG.US)$ climbed 12% after the firm reported revenue for the first quarter that beating the average analyst estimate. The firm reported an EPS of $1.89/share on revenue of $80.54 billion, compared with the average estimate $79.04 billion, according to Bloomberg Consensus.
$Microsoft (MSFT.US)$ reported its Q3 20204 earnings that rose to $2.94 a share on a climb in profit last quarter as excitement about artificial intelligence bolstered demand for its software and cloud services.
$Meta Platforms fell 10% after the firms earnings beat expectations, climbing 27% year over year, but it's full year revenue outlook came in about $1B lower than expected, at $37B. It ripped down the S&P 500.
$IBM Corp ripped the Dow Jones down as the largest decliner, down 8% after the firm announced it would acquire $HashiCorp during its earnings call that just narrowly missed revenue expectations.
$Hertz Global (HTZ.US)$ fell 19% after the car rental firm swung into a Q1 loss reporting this morning, losing $1.28/share. The firm said in its report it has been selling its fleet of 100,000 Teslas at a loss, with about 30,000 up for sale this year.
WORD FROM THE HEARD: Mooers, what are you watching?
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Disclaimer: This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Indexes are unmanaged and cannot be directly invested in. Past performance is no indication of future results. Investing involves risk and the potential to lose principal. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information regarding your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. Moomoo makes no representation or warranty regarding its adequacy, completeness, accuracy, or timeliness for any purpose of the above content. See thislinkfor more information.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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affable Blobfish_403 : The economic data fluctuates between high and low. The gap is huge and unbelievable. What happened?