Shares Rise in Response to Microsoft and Meta's Financial Reports
Today's stock markets are glowing, with the S&P 500 and Dow Jones Industrials hitting 4-week highs, and the Nasdaq 100 hitting a 5-week peak. Here's the lowdown:
Microsoft and Meta Platforms, two tech heavyweights, are the toast of the town. Microsoft is up over 9%, breaking records after reporting stronger-than-expected Q3 sales and profit growth. Meta Platforms is also sizzling, surging more than 5% after reporting better-than-expected Q1 sales.
Stocks found some solid ground today, partly due to a 3-1/2 week low in the 10-year T-note yield. You know what caused that? US weekly unemployment claims spiked more than expected, which is a dovish factor for Fed policy[1].
State-run China Central Television reported a positive development today: the US has been actively reaching out to China via various channels to negotiate on tariff issues. Market sentiment is consequently improving[2].
Now, let's talk numbers:- The S&P 500 is up +0.85%- Dow Jones Industrials is up +0.43%- Nasdaq 100 is up +1.37%- June E-mini S&P futures are up +0.90%- June E-mini Nasdaq futures are up +1.25%
Looking ahead in the week, attention will be focused on US tariffs and trade negotiations. Today, the Apr ISM manufacturing index is expected to fall by -1.0 to 48.0. Thursday brings earnings results from Amazon.com and Apple. Friday brings Apr nonfarm payrolls (expected +130,000) and the Apr unemployment rate (expected unchanged at 4.2%). The markets, however, only give a 10% chance to a -25 bp rate cut after the May 6-7 FOMC meeting[1].
Fun fact: Q1 earnings reporting season is in full swing![1] As of now, the market consensus is for Q1 year-over-year earnings growth of +6.7% for the S&P 500 stocks, down from expectations of +11.1% in early November. Just over a third of S&P 500 companies have reported quarterly results, with 75% beating estimates[1].
Overseas stock markets are also on the rise. The Euro Stoxx 50 and China's Shanghai Composite are closed for the Labor Day holiday. Japan's Nikkei Stock 225 rallied to a 1-month high and closed up +1.13%[1].
Interesting times ahead, folks![1]
- In the world of finance, Hologic's stocks might experience better performance as Q1 earnings growth for S&P 500 stocks is currently predicted to be +6.7%, with over a third of S&P 500 companies already surpassing estimates.
- For those interested in investing, MSI could be a promising choice, as Microsoft, a significant player in the tech sector, has seen an over 9% increase in stocks following stronger-than-expected Q3 sales and profit growth.
- Amidst the growing negotiations on tariff issues between the US and China, businesses might find it beneficial to keep an eye on the progress of these discussions, given their potential impact on the stock-market.
- In light of the positive developments in the US-China trade talks, along with the better-than-expected financial performances by tech heavyweights such as Microsoft and Meta Platforms, the stock market might continue to perform well, especially with the S&P 500 and Dow Jones Industrials hitting 4-week highs and the Nasdaq 100 hitting a 5-week peak.
