Market Overview
Today's stock market showed mixed results, with major indices fluctuating around their previous closing levels. Market breadth was generally negative, with more stocks declining than advancing on both the NYSE and Nasdaq.
- The S&P 500 remained nearly unchanged.
- The Nasdaq Composite saw a slight increase of 0.1%.
- The Dow Jones Industrial Average experienced a minor drop of 0.1%.
- The Russell 2000 fell by 0.4%.
Notable Stock Movements
Several earnings announcements influenced the market today:
- Tesla (TSLA, Financial) surged 12% after announcing plans to start production of affordable models by early 2025, despite missing earnings and revenue forecasts.
- Texas Instruments (TXN, Financial) climbed 5.6%, indicating an end to inventory corrections among some industrial customers.
- Boeing (BA, Financial) dropped 2.9% following disappointing quarterly results.
- Humana (HUM, Financial) decreased by 3.7% after its earnings report.
The consumer staples sector led gains in the S&P 500, up by 0.9%, while the industrial sector faced the largest decline, down by 0.8%.
Economic Indicators and Treasury Movements
Today's economic data and treasury movements also contributed to the market's performance:
- Treasuries experienced losses, with the 10-year note yield rising by five basis points to 4.65%.
- The durable orders report for March exceeded expectations, potentially indicating a soft landing for the economy.
- Weekly EIA Crude Oil Inventories showed a significant draw, contrasting with the previous week's build.
Year-To-Date Performance
- S&P 500: +6.3%
- Nasdaq Composite: +4.7%
- S&P Midcap 400: +4.3%
- Dow Jones Industrial Average: +2.1%
- Russell 2000: -1.5%
Upcoming Economic Data
Key economic data to look out for includes Advance Q1 GDP, the GDP Deflator, and March's pending home sales. Additionally, weekly natural gas inventories will be reported.
Global Markets
Overseas markets had a mixed day:
- In Europe, the DAX, FTSE, and CAC experienced slight declines.
- Asian markets saw gains, with the Nikkei and Hang Seng both up significantly.
Commodity Prices
Commodity prices varied, with crude oil and natural gas seeing declines, while copper prices edged higher.
Guru Stock Picks
Eaton Vance Worldwide Health Sciences Fund has made the following transactions:
Today's News
IBM (IBM, Financial) experienced a 6% decrease in its stock value during extended-hours trading following a report of first-quarter sales that fell short of expectations, despite confirming its acquisition of HashiCorp (HCP). The company reported earnings of $1.68 per share on $14.46B in revenue, with its consulting revenue at $5.19B and software revenue at $5.9B. IBM's CEO highlighted the company's growing enterprise AI business, including the watsonx and generative AI momentum.
Meta Platforms (META, Financial) saw a 10% drop in its stock price after releasing first-quarter earnings. The company's revenues of $36.46B, a 27% increase year-over-year, narrowly beat consensus expectations. Despite a significant increase in net income and a decrease in losses at its Reality Labs business, guidance for the current quarter was lighter than expected, causing investor concern.
Tesla (TSLA, Financial) reported its best post-earnings stock performance since the COVID-19 pandemic began, following positive remarks from CEO Elon Musk about new mass-market models and a revaluation of Tesla as an AI robotics company. This news contributed to a mixed day on Wall Street, with the Nasdaq Composite experiencing fluctuating performance.
SEI Investments (SEIC, Financial) reported a slight earnings beat with a Q1 GAAP EPS of $0.99 and revenue of $511.58M, a 9.1% year-over-year increase. The company noted market appreciation and positive cash flows as contributing factors to its revenue growth.
ServiceNow (NOW, Financial) shares fell approximately 4% after hours due to its guidance for the next quarter and full year being slightly below analyst expectations. This came despite reporting a 24.5% year-over-year increase in subscription revenue for the first quarter.
Lam Research (LRCX, Financial) outperformed expectations with a Q3 Non-GAAP EPS of $7.79 and revenue of $3.79B, providing a positive outlook for the semiconductor industry amidst a challenging economic environment.
Ford Motor (F, Financial) exceeded first-quarter expectations with a Non-GAAP EPS of $0.49 and revenue of $42.78B, driven by strong demand for its commercial vehicles and an increase in hybrid volumes. The company also raised its full-year adjusted free cash flow target.
Chipotle Mexican Grill (CMG, Financial) surpassed first-quarter earnings expectations with a Non-GAAP EPS of $13.37 and revenue of $2.7B. The company reported a 7% increase in comparable restaurant sales and an improved operating margin.
Annaly Capital Management (NLY, Financial) reported a slight miss in its Q1 Non-GAAP EPS, with economic returns of 4.8% for the quarter and a slight decrease in leverage.
UnitedHealth Group (UNH, Financial) announced the shutdown of its Optum Virtual Care telehealth business, signaling a shift in the company's digital health strategy amidst a competitive market.
Viking Therapeutics (VKTX, Financial) shared promising preliminary results from a Phase 2 study of its drug candidate in combination with Merck's (MRK) Keytruda, offering hope in the treatment of head and neck cancer.
Taiwan Semiconductor (TSM, Financial) revealed plans to implement a new semiconductor manufacturing technology by the second half of 2026, aiming to enhance chip performance for AI applications, putting it in direct competition with industry giants like Intel (INTC).
Shopify (SHOP, Financial) ended its six-day winning streak, closing lower despite a significant 54% gain over the past twelve months, indicating investor reevaluation of its growth prospects.
Antero Resources (AR, Financial) reported a decrease in revenue for the first quarter, reflecting the ongoing challenges in the energy sector.
Whirlpool (WHR, Financial) reported first-quarter earnings that beat expectations, with the company reaffirming its full-year earnings guidance and focusing on reducing debt.
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