Wall Street Today | Market Starts Q2 With Room to Grow
RECAP
Overall, U.S. stocks were trading lower on Monday to start Q2 with room to grow after a roaring start to the year. PCE inflation data Friday showed a slowdown in price increases while the market took a day off, but just by 0.1%.
Shortly after the market closed, preliminary figures showed the $S&P 500 Index(.SPX.US$ pulled back 0.31%. The $NASDAQ 100 Index(.NDX.US$ climbed just 0.03%. The $Dow Jones Industrial Average(.DJI.US$ fell 0.72%.
MACRO
Selloff extends at the Long End of the Treasury Curve
A selloff of long-duration U.S. debt gathered more momentum Monday morning as traders factored in Friday's PCE inflation data, which showed that price gains still need to be tamed. PCE data showed that prices climbed about 2.5% year-over-year, compared to 2.4% in January. Month-to-month prices climbed 0.3%, falling from 0.4% in Jan. Core prices rose at a lower rate, up 2.8% Year-over-year compared to 2.9% in Jan.
Federal Reserve President Jerome Powell spoke on Friday while the market slept, saying the PCE was well within Fed expectations.
Ten- and 30-year yields jumped by around 11 basis points each to 4.301% and 4.445%, respectively, from their 3 p.m. Eastern time levels on Thursday. Meanwhile, according to FactSet data, their 20-year counterpart was up by a similar magnitude, at 4.557%. The bond market was closed on Friday for the Good Friday holiday.
Investors can expect updated macro data this week, including unemployment numbers and multiple speeches by Fed officials on Wednesday.
SECTORS
If you could call newly listed stocks a sector, that sector would be down. Reddit and Trump Media & Technology fell Monday, pulling back after a volatile yet short trading week.
Reddit fell about 8.15%, while Truth Social fell 22%. Both stocks are now trading below the price levels investors set last week right after they were listed, though not below the IPO prices set by private investors. DJT traded back to levels set when the stock traded as DWAC.
Internet Companies, on the other hand climbed Monday, as $Alphabet-C(GOOG.US$ grew by nearly 3%, followed by $Baidu(BIDU.US$, pulling the entire sector tracked by moomoo up more than 2%.
Crude oil prices saw gains Monday on an improving demand outlook stemming from upbeat Chinese manufacturing data. Reuters reported Monday that this was on top of expectations of tighter supply from OPEC+ output cuts and attacks on Russian refineries. OPEC+ is due for a production meeting this week on Wednesday.
Brent crude stood at US$86.82 per barrel and West Texas Intermediate crude was at US$83.06/b at last look early Monday. $Crude Oil Futures(JUN4)(CLmain.US$ grew 0.91%. According to the report, both benchmarks posted a third consecutive month of gains in March.
COMPANIES
Within the S&P 500, $Micron Technology was the largest gainer, up 5% after praise from Bank of America Analysts. $Walgreens Boots Alliance fell 5% after analysts' pricing changes. Within the Dow Jones, $Home Depot(HD.US$ fell 4%. Walgreens fell to the lowest close for the stock since 1998, Bloomberg reported.
Google Pledges to Destroy Browsing Data to Settle 'Incognito' Lawsuit
$Alphabet-C(GOOG.US$ said it plans to destroy a trove of data containing millions of users' web-browsing histories as part of a settlement of a lawsuit that alleged the company tracked people without their knowledge. Monday, the stock opened up about 2.5% and remained there.
Apple Outlook Does Not Look Great
On Monday, Loop Capital analyst Ananda Baruah slashed his earnings estimates for the next few quarters of $Apple(AAPL.US$. He trimmed his target for the stock price to $170 from $180 while reiterating a Hold rating on the shares.
Microsoft and OpenAI going Galactic
$Microsoft(MSFT.US$ and artificial intelligence partner OpenAI are planning a data center project that could cost $100 billion and include an AI supercomputer called Stargate, The Information reported on Friday, citing multiple anonymous sources.
AMC CEO Says Domestic Box Office Has 'Finally Turned Upwards,' Stock Falls
$AMC Entertainment(AMC.US$ CEO Adam Aron says the domestic box office has enjoyed its best March in five years, despite ongoing concerns about the lingering impact of the Hollywood strikes. After a $250M stock sale announcement last week, and ongoing concerns about cash, the stock still fell 11% after the news.
Mooers: What do you think, how do you feel about the Market? What's the word from the Herd?
Source: Bloomberg, Dow Jones, CNBC, Reuters
Disclaimer: This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Indexes are unmanaged and cannot be directly invested in. Past performance is no indication of future results. Investing involves risk and the potential to lose principal. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information regarding your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. Moomoo makes no representation or warranty regarding its adequacy, completeness, accuracy, or timeliness for any purpose of the above content. See this link for more information.
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