Market Overview
Today, the stock market saw broad gains across major indices, with increases ranging from 0.3% to 0.9%. The S&P 500 notably broke past the 5,200 resistance level, marking its first close above this mark since April 9. The market's positive momentum was supported by a favorable ratio of advancing to declining stocks; at the NYSE, advancers led decliners by a 5-to-2 margin, and by a 3-to-2 margin at the Nasdaq.
Top Performers
Several stocks stood out in today's trading following strong earnings reports and guidance. Equinix (EQIX, Financial) surged by 11.5%, NRG Energy (NRG, Financial) climbed 7.8%, and Steris (STE, Financial) increased by 7.6%, making them the top performers in the S&P 500.
Underperformers
Conversely, EPAM Systems (EPAM, Financial) experienced a significant drop of 27.0%, marking it as the worst performer in the S&P 500, primarily due to disappointing earnings results and guidance. This decline also contributed to the underperformance of the S&P 500 information technology sector, which closed down by 0.3% despite gains in Apple (AAPL, Financial) and Microsoft (MSFT). Additionally, NVIDIA (NVDA) and other semiconductor-related stocks saw declines following only in-line guidance from Arm Holdings (ARM, Financial).
Sector and Economic Data
Apart from the information technology sector, all other S&P 500 sectors posted gains, with real estate leading, followed by utilities and energy sectors. In economic news, weaker-than-expected jobless claims and strong demand at a $25 billion 30-year bond auction helped lower Treasury yields, providing additional support to the stock market. The preliminary University of Michigan Consumer Sentiment and the Treasury Budget for April were also key economic data points released today.
Global Markets and Commodities
Internationally, European markets saw gains with the DAX, FTSE, and CAC all up, while the Nikkei in Asia dipped slightly. The Hang Seng and Shanghai Composite, however, ended higher. In commodities, crude oil, natural gas, gold, silver, and copper all recorded price increases.
Guru Stock Picks
Matthews Emerging Markets Small Companies Fund has made the following transactions:
- Reduce in BOM:532539 by 14.06%
- Sold out in BOM:531642
- Add in NSE:FINCABLES by 5.74%
- New position in XKRX:121600
Stanley Druckenmiller has made the following transactions:
- New position in DAKT
Ken Fisher has made the following transactions:
First Eagle Investment has made the following transactions:
Today's News
Marathon Digital Holdings (MARA) reported first-quarter earnings that significantly exceeded Wall Street expectations, driven by favorable accounting changes for digital assets. The company announced a new hash rate target for 2024, aiming to double its capacity, which boosted its stock despite a slight revenue miss. Meanwhile, the broader cryptocurrency market saw gains as Bitcoin reclaimed the $65,000 level.
BP (BP) is actively expanding its electric vehicle charging infrastructure, bp pulse, planning to invest $1 billion by 2030. This development follows Tesla's (TSLA) recent decision to scale back its Supercharger network, prompting BP to acquire sites and hire laid-off Tesla employees to accelerate its growth in the EV sector.
Funko (FNKO) announced the appointment of Cynthia Williams as its new CEO, effective May 20. Williams brings extensive experience from her previous roles at Hasbro (HAS), Microsoft (MSFT), and Amazon (AMZN), positioning her to lead Funko through its next growth phase.
Main Street Capital (MAIN) released its first-quarter results, showing strong distributable net investment income and a significant net increase in assets. The company also raised its dividend, reflecting confidence in its financial health and future prospects.
Meta Platforms (META) continued its upward trajectory, marking seven consecutive sessions of gains. The company's stock has doubled over the past year, outperforming the broader market significantly, attributed to its robust profitability and momentum.
SoundHound AI (SOUN) beat first-quarter earnings expectations and reported a substantial year-over-year revenue increase. Despite this, the company's stock experienced a dip, influenced by broader market sentiments and recent analyst downgrades.
Neuralink, owned by Elon Musk, faced challenges with its brain-computer implant in a key trial, affecting the device's performance. The company has implemented changes to improve the system's functionality, focusing on enhancing patient outcomes in future applications.
JFrog (FROG) provided an optimistic revenue outlook for the coming quarters, despite a recent pullback in its stock. The company's focus on expanding its enterprise market presence is expected to drive growth, supported by strong earnings performance.
Coca-Cola (KO) and Philip Morris (PM) both extended their winning streaks in the stock market, with analysts maintaining favorable ratings based on their profitability and market strategies.
Guardant Health (GH) raised its annual revenue guidance after a strong first quarter, driven by increased test volumes and favorable pricing dynamics. The company's enhanced financial outlook reflects its continued growth in the precision oncology market.
Array Technologies (ARRY) reaffirmed its full-year guidance despite a quarterly revenue decline, focusing on long-term growth strategies in the renewable energy sector.
Iovance Biotherapeutics (IOVA) reported a wider net loss and missed revenue expectations, but maintained a strong cash position to support operations into 2025, focusing on advancing its cancer treatment pipeline.
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