Wall Street Today: Waiting for macro data paid off
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Weekly Buzz | Waiting Pays Off
March kicked off on a high note on Wall Street Friday, with the $S&P 500 Index(.SPX.US$ and $Nasdaq Composite Index(.IXIC.US$ setting new record closes, fueled by the unstoppable surge of tech stocks.
The S&P 500 rose 0.95% for the week to close at a preliminary 5,137.43 record high, while the Nasdaq Composite added 1.74% for the week to a preliminary record finish of 16,274.72. The $Dow Jones Industrial Average(.DJI.US$fell 0.11% for the week to a preliminary 39.086.17 finish, short of the index's Feb. 23 record.
The week could be defined as "waiting for macro" as the market pulled back before GDP and PCE economic data came out. All the while, Bitcoin prices climbed to near-record highs, sending cryptocurrency stocks higher.
Wednesday, GDP updates for the quarter came in at 3.2%. Thursday, PCE came in right on target at 2.8%. Federal Reserve officials began signaling through offhand Fedspeak that this year would see cuts. Toward the end of the day, Cleveland Fed President Loretta Mester said she saw three rate cuts this year.
The U.S. House passed a bill to extend budget talks until next week, the final deadline before a full government shutdown.
Friday, despite the sharper-than-expected contraction revealed by the ISM Manufacturing PMI in February – with the overall index plummeting from 49.5 to 47.8, missing the anticipated 49.1 – investors remained upbeat. The data triggered downward pressure on the dollar and Treasury yields, maintaining firm expectations for Federal Reserve rate cuts.
Elsewhere, $New York Community Bancorp(NYCB.US$ faced renewed scrutiny after disclosing a "material weakness" in its internal controls related to loan review processes, causing shares to plummet by over 20%.
Meanwhile, gold rose some 2% to $2,085/oz, on track for the strongest session since mid-December and set to close at all-time highs.
In economic news, Fed speakers – including Goolsbee, Waller, and Bostic – offered a mixed bag of remarks, though collectively acknowledging the ongoing progress toward disinflation. Additionally, a Fed report highlighted that inflation expectations broadly align with the 2% target.
Let's dive into the weekly buzzing stock list this week:
EV giant Tesla announced the revival of full-self-driving (FSD) software transfers last month for customers delivering their new Tesla vehicles before the end of March. However, since then, estimated delivery times have changed, making new order holders concerned if they will be eligible to reap the offer's benefits. The official Tesla handle took to X on Friday to clarify that customers who ordered a new Tesla but are concerned about losing out on the FSD transfer offer solely because the company extended wait times will still be able to take advantage of the offer.
@101493017 : is it good time to buy?
Nvidia was edging down early on Thursday. The latest technology-company earnings might sound some alarms over the demand for artificial intelligence technology. Earnings reports from technology companies have generally been a boon for Nvidia this year, with Big Tech companies flagging huge investments in artificial intelligence systems. The latest tech results were more mixed, with disappointing guidance from data-software company Snowflake on Wednesday but AI analytics company C3.ai comfortably beat forecasts for its earnings.
@70753195: What's your prediction next Monday? Gap up or down?
$Marathon Digital(MARA.US$ , usually a contender for the top ten stocks with the highest daily average options volume, climbed 17% Monday alongside the price of bitcoin. The crypto currency climbed 3% by noon, while $Coinbase(COIN.US$ and $MicroStrategy(MSTR.US$ climbed 10% and 14%.
@Printing money : I think it's finally going to climb again.
AMC Entertainment Holdings Inc. reported better-than-expected revenue Tuesday and a narrower-than-expected loss in its fourth-quarter results Wednesday, boosted by the performance of Taylor Swift and Beyoncé's concert films. The movie-theater chain and original meme stock reported a net loss of $182 million, or 83 cents a share, compared with a loss of $287.7 million, or $2.64 a share, in the year-prior quarter.
@Revelation 6: Have you seen the dune popcorn bucket?
The stock price of space start-up Intuitive Machines fell this week after the company's lunar lander touched down on the moon's surface Feb. 15, but fell over. It's the first time NASA has returned to the moon in 50-plus years and the first time a private company landed on the satellite, but after transmitting some data, the lander powered down for likely the last time this week, sending the stock back to Earth.
@EZ_money : have to buy the ask price come on folks push
Shares of SoundHound fell 17% Friday after the company reported fourth-quarter results below consensus estimates. The Santa Clara, Calif.-based company, which focuses on voice artificial intelligence, reported revenue up 80% to $17.1 million, just short of analysts' projection of $17.7 million. The stock enjoyed an AI-fueled run-up that took hold after the firm announced an investment by Nvidia in a February filing. According to the filing, the investment was made back in 2017, but that did not stop analysts from expecting better earnings than the market received.
@Daniel Jeya Raman : Expect the unexpected
On Thursday, $SoundHound AI(SOUN.US$ reported quarterly losses of $(0.070) per share which missed the analyst consensus estimate of $(0.060) by 16.67 percent. The company reported quarterly sales of $17.147 million, which missed the analyst consensus estimate of $17.746 million by 3.37 percent. This is an 80.48 percent increase over sales of $9.501 million last year.
User said: Nb i sold off too early!
Electric vehicle deliveries from Chinese companies Li Auto, NIO, and XPeng fell year after year in February, impacted by the Lunar New Year holiday. NIO delivered 8,132 vehicles in February, down 33% year over year. For January and February combined, NIO delivered 18,187 vehicles, down 12%. Coming into Friday trading, NIO shares have declined 37% in 2024.
@102687906 : everyday drop
Bloomberg News first reported that $Apple(AAPL.US$ executives had made the announcement internally Tuesday, with some employees on the car team reportedly being shifted to other parts of the company, particularly Apple's AI division. Other workers will likely be laid off.
@72778662: lol if its down 1% when nasdaq is up 1%, I don't even want to imagine what if its a red nasdaq day
$Advanced Micro Devices(AMD.US$ reached an all-time high Thursday, limbing over $187/share. The graphics card company, alongside competitor $NVIDIA(NVDA.US$, with 95% of the market for graphics processing units, are poised to benefit because the "gaming upcycle is still strong," BofA Securities said Wednesday in a report on the semiconductor industry.
@Tyler0710: Still up ATH
Thanks for reading!
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Weekly Topic
With all-time highs continuing for a usually slow month of Feb. what do you expect the rest of the year to hold?
Comment below and share your ideas! We will select up to 15 TOP COMMENTS for a reward next week. Winners will get 200 points by next week, with which you can exchange gifts at Reward Club.
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102362254 : Despite February's historical sluggishness, the stock market soared to new record highs. Optimism is high as the S&P 500 continues to break records, and experts anticipate a positive trend for the rest of 2024. The Fed's efforts to control inflation raise hopes for interest rate cuts. Although uncertainties persist, the market's strong performance suggests a promising year ahead. I won't be chasing the highs. Instead, I'll stick to my strategy of diversification and patiently wait for opportunities to buy during pullbacks.
srimoen : positive trend to high and 5 years tradition index market
HuatEver : With all the time highs continuing for a usually slow month of February in the stock market, this suggests underlying strength and the potential for a moderately bullish outlook for the rest of the year. Personally, I prefer a passive approach, opting for Dollar Cost Averaging (DCA) and investing in ETFs to mitigate the need for constant market monitoring, which can be exhausting. Based on the current climate, I am considering reallocating more assets to money market funds for added stability.
mr_cashcow : With Elon suing openai, maybe he will finally be back in the spotlight again?
Closely monitoring $Tesla (TSLA.US)$ and the usual chip makers
HuatLady : Despite the stock market hitting all-time highs in the typically slow month of February, I maintain a steady approach by managing my expectations and avoiding market timing. Instead of speculating on future trends, I prioritize consistency by regularly investing in high-quality stocks for the long-term. This strategy aligns with the principle of disciplined investing, focusing on the fundamental value assets rather than short-term fluctuations in market performance.
ZnWC : In the first 2 months of the year, there were AI-related stocks share price fell after Q4 earnings are released. 3 magnificent seven stocks didn't perform well after earnings (Tesla, Apple and Google). Even AI related Chinese stocks like Baidu share price fell despite earnings met expectations.
For the rest of the year, despite what was said above I'm still bullish about certain stocks because of 2 reasons:
1. If the company's fundamentals are healthy, the share price will eventually rise when the uncertainties disappear. Meta Platform is a good example. No retail investors would buy this stock a year ago after earnings when the share price plunged more than 24% to less than 99 USD.
2. Some media like to report that 'the share price fell was due to poor earnings' but such headline may be over-simplified. The stocks may be affected by macro uncertainties like Fed delay interest rate to Q3 or later and China economy slips into stagnation. Analysts may be wrong because their forecast are based on past data.
Bottom line
The important thing is DYODD and invest in the right stock. First read the earnings detail objectively; don't rely on media headline. Second look at positive and negative reports to have a balance view about a stock. I won't blindly follow how others trade because they may have different risk appetite and avoid those with confirmation bias no matter what charts or data he showed.
Hua Moo Lan : Stock market is always full of uncertainties and heavily driven by sentiments in the short run. While I can’t even predict how it’ll be on the next trading day, certainty I can’t project for the rest of the year ( Wish I could, but I can't
).
As such, dollar cost averaging on those companies with good fundamental remains my strategy for year 2024. However, in view that current market is generally seeing a bullish trend especially AI sector, I will continue to scout for the correct entry price and accumulate AI stocks since I’m a huge believer that AI is gonna be a game-changer to our daily lives.
小trader : I expect the rest of the year to be influenced by factors like the strength of the US economy, interest rate cuts by the Federal Reserve, the labor market, and the upcoming US election. Market volatility may persist, with investors potentially favoring small to mid-cap stocks and international markets like China. As a long-term investor, it's crucial to focus on quality companies with strong fundamentals, particularly in sectors such as technology, healthcare, and energy. Diversification remains important to manage risk effectively.