The stock market experienced a volatile session, with indices starting and ending the day on a positive note, despite mid-day fluctuations. The Nasdaq Composite struggled to maintain gains due to pressure on major tech stocks, while the S&P 500 edged slightly higher than its previous close. The Dow Jones Industrial Average saw an increase of over 100 points.
The day's mixed trading activity reflected investor caution ahead of a busy week, with over 160 S&P 500 companies set to report earnings. Key companies such as Microsoft (MSFT, Financial), Meta Platforms (META, Financial), Apple (AAPL), and Amazon.com (AMZN) are among those slated to release their financial results.
In addition to earnings, several significant economic reports are on the horizon, including the Advance Q1 GDP Report, March's Personal Income and Spending Report, the April ISM Manufacturing Index, and the April Employment Situation Report.
Market movements were largely subdued, with no S&P 500 sector experiencing a move greater than 0.7%. The utilities and real estate sectors, both sensitive to interest rates, led the gains with increases of 0.7% each. Conversely, the technology sector lagged, posting a 0.3% decline.
In the bond market, the 10-year Treasury yield decreased by five basis points, settling at 4.22%, while the 2-year yield fell by eight basis points to 3.68%.
No significant U.S. economic data was released today.
Year-to-date performance for major indices is as follows:
- Dow Jones Industrial Average: -5.5%
- S&P 500: -6.0%
- S&P Midcap 400: -8.9%
- Nasdaq Composite: -10.1%
- Russell 2000: -11.9%
Looking ahead to Tuesday, investors will be keeping an eye on several key data releases:
Guru Stock Picks
Richard Pzena has made the following transactions:
Today's News
United Parcel Service (UPS, Financial) is reportedly in talks with Figure AI Inc. to potentially incorporate humanoid robots into its operations. These discussions, which began last year, have resumed recently. UPS, alongside FedEx (FDX, Financial), already employs robots but not humanoid ones. Figure AI, a company founded in 2022, aims to create autonomous bipedal robots to address labor shortages. This move could significantly impact UPS's logistics and efficiency strategies.
Nvidia (NVDA, Financial) saw its stock decline as Huawei Technologies plans to test its powerful AI processor, potentially challenging Nvidia's high-end offerings. The announcement affected other chipmakers, including Advanced Micro Devices (AMD, Financial), Broadcom (AVGO, Financial), and Qualcomm (QCOM, Financial), with each experiencing a stock dip. This development is part of Huawei's broader strategy to mass-produce its advanced AI chips for Chinese customers.
Domino's Pizza (DPZ, Financial) CEO Russell Weiner emphasized the success of their "Hungry for MORE" strategy during their Q1 earnings call. The launch of their Parmesan Stuffed Crust pizza, a significant new menu item, is expected to enhance market share. Domino's also announced a partnership with DoorDash to boost delivery orders, aiming for a national rollout by Q2 2025.
Cadence Design Systems (CDNS, Financial) reported strong Q1 performance, with a 23% revenue increase year-over-year, driven by robust demand for its technologies. The company raised its fiscal 2025 guidance, attributing growth to its resilient software business model and AI-driven innovations, which continue to attract customer investments in R&D.
AppLovin (APP, Financial) is set to report its Q1 results soon, with Piper Sandler highlighting potential bullish factors. The focus will be on app-app non-gaming conversions and a connected TV strategy. AppLovin's expansion into non-gaming markets is crucial, given their larger market size compared to gaming, where the company already holds a significant share.
Meta Platforms (META, Financial) is preparing for its first AI-focused LlamaCon conference, emphasizing its leadership in AI. The event is expected to showcase Llama 4 and discuss potential collaborations with Microsoft (MSFT, Financial), which could influence both companies' stocks positively. Meta's mid-term GPU capex plans with Nvidia (NVDA, Financial) and AMD (AMD, Financial) will also be of interest to investors.
Pfizer (PFE, Financial) is set to release its Q1 earnings, with analysts focusing on challenges like patent expiries and drug pricing controls. Despite these hurdles, some recent positive developments suggest potential for recovery. Investors will be keen on management's strategies to navigate these issues.
GuruFocus Stock Analysis
- Pfizer Q1 Preview: EPS, Revenue Slide Expected by Moz Farooque
- Netflix's Ted Sarandos Says Cinemas Are Fading as Viewers Stay Home by Faizan Farooque
- NVIDIA-Led Chip Sell-Off as Huawei Gears Up AI Processor Trial by Nauman khan
- Wedbush: AI Deals Insulate Tech from Tariffs by Moz Farooque
- Big Tech Slide Weighs on S&P 500 as Investors Eye Earnings, Trade Talks by Faizan Farooque
