Today, the stock market looks to open slightly down from yesterday's close in this short holiday week. The S&P 500 futures are down by one point, Nasdaq 100 futures have dropped by five points, and Dow Jones Industrial Average futures are up by 12 points.
There's a bit of caution in the air as some market watchers suggest it might be time for the market to take a breather after the S&P 500 hit a new record high. Contributing to this cautious mood are higher Treasury yields, with the 10-year note yield up to 4.22% and the 2-year note yield rising to 4.62%.
Today's economic data releases include:
- Q4 GDP third estimate
- Q4 GDP Deflator third estimate
- Weekly Initial and Continuing Claims
- Final March University of Michigan Consumer Sentiment
- February Pending Home Sales
- Weekly natural gas inventories
In company news:
- Home Depot (HD, Financial) is buying SRS Distribution for about $18.25 billion.
- RH (RH, Financial) reported earnings and revenue below expectations but expects revenues to exceed consensus in FY25.
- TD Synnex (SNX, Financial) announced a secondary offering of 10.5 million shares.
- Chemours (CC, Financial) shared its Q4 results and noted issues with internal financial control effectiveness.
- MillerKnoll (MLKN, Financial) exceeded EPS estimates slightly but missed on revenue forecasts.
- Walgreens Boots Alliance (WBA, Financial) surpassed earnings and revenue expectations for Q4.
- Braze (BRZE, Financial) beat on earnings and revenue but provided a cautious outlook.
- Bank of America (BAC, Financial) was downgraded by HSBC.
- Discover Financial Services (DFS, Financial) announced a CEO change.
- Walt Disney (DIS, Financial) is rallying shareholders to vote for its director nominees.
Overnight, Asian markets mostly rose, with Japan's Nikkei dropping by 1.5% while others like Hong Kong's Hang Seng and China's Shanghai Composite saw gains. European markets are mostly up, despite the upcoming Easter weekend slowing things down a bit.
Today's News
Palantir Technologies (PLTR, Financial) experienced a drop of approximately 2% in premarket trading on Thursday, following a downgrade by Monness to Sell from Neutral due to concerns over its "rich valuation." Despite Palantir's advantageous position in the generative AI hype and potential gains from geopolitical volatility, Monness criticized its inconsistent government contract revenues, execution issues, and excessive valuation, forecasting challenging times ahead.
HSBC has made several adjustments in the banking sector, upgrading U.S. Bancorp (USB, Financial) to Buy from Hold and PNC Financial (PNC, Financial) to Hold from Reduce, while downgrading Bank of America (BAC, Financial) to Hold from Buy. These changes are primarily based on valuation considerations, with HSBC noting U.S. Bancorp's underperformance as an opportunity and PNC's relative valuation improvement. Conversely, Bank of America's recent price surge has limited its upside potential, despite the bank's attractive qualities.
Gilead Sciences (GILD, Financial) has entered into an exclusive agreement with Xilio Therapeutics (XLO, Financial) to develop and commercialize XTX301, a promising cancer treatment. Xilio will receive $43.5 million upfront and could earn up to $604 million in additional payments, highlighting the potential of XTX301 in treating a broad range of cancers.
Stock investors are concluding an exceptional first quarter, with the S&P 500 (SP500, Financial) marking a 10% increase, driven not only by AI advancements but also by gains across all sectors except Real Estate. This broad-based rally extends beyond stocks, with bitcoin and gold reaching new heights, reflecting a robust market momentum.
Gold prices have surged over 7% this month, hitting a new record last week. This rally, fueled by the Federal Reserve's dovish stance on interest rates, has puzzled analysts, given the mixed signals from recent U.S. inflation data and the Federal Open Market Committee's adjusted interest rate expectations.
Home Depot (HD, Financial) plans to acquire SRS Distribution for approximately $18.25 billion, aiming to enhance its presence in the residential professional market. This strategic move is expected to be accretive to Home Depot's cash EPS in the first year post-closing, signifying a significant expansion of its distribution capabilities.
D-Wave Quantum (QBTS, Financial) reported a narrower GAAP EPS loss than expected for Q4, despite missing revenue expectations. The company highlighted a year-over-year increase in bookings and a significant improvement in its cash balance, indicating progress towards operational efficiency and financial stability.
Estée Lauder (EL, Financial) shares rose after BofA Securities upgraded the stock, recognizing the company's resilience and profitability amid challenging conditions. With strategic product refreshes and marketing efforts, Estée Lauder is poised for growth, capitalizing on its strong brand portfolio.
UnitedHealth Group (UNH, Financial) has advanced over $3.3 billion to healthcare providers impacted by a cyberattack on its Change Healthcare unit, demonstrating its commitment to supporting the healthcare system's recovery and maintaining service continuity.
Akanda Corp (AKAN, Financial) is exploring opportunities to integrate Bitcoin, Blockchain, and AI technologies into the cannabis industry, aiming to address banking challenges and expand its global market presence through strategic technological advancements.
President Joe Biden's administration has announced measures to regulate short-term "junk insurance" health plans, ensuring they provide clear disclosures and adhere to stricter coverage duration limits, in an effort to protect consumers and uphold Affordable Care Act standards.
AST SpaceMobile (ASTS) has begun the tape-out phase for its Application-Specific Integrated Circuit with TSMC (TSM, Financial), marking a significant milestone in the development of its Block 2 satellites and reinforcing its commitment to global connectivity innovations.
Akebia Therapeutics (AKBA, Financial) saw its shares jump following the FDA's approval of Vafseo for treating anemia in chronic kidney disease patients on dialysis, a significant turnaround from previous regulatory setbacks and a testament to the drug's potential in a global market.
GuruFocus Stock Analysis
- Why Apple Is Missing From Berkshire Hathaway's Permanent Holdings List by Grahamites
- Dell Technologies' Dividend Hike, FCF Make the Stock Look Cheap by Mark Hake, CFA
- AbbVie: An Undervalued Giant by Yiannis Zourmpanos
- Adobe's Moat Is in Creative Solutions, but Its Enterprise Offerings Are Under Threat by Oliver Rodzianko
- United Therapeutics' Robust Portfolio Fuels Double-Digit Growth by Nathan Aisenstadt
