The US stock market experienced some volatility
on Tuesday, with the S&P 500 inching above the
flatline, while the Dow Jones Industrial Average
and the Nasdaq Composite slipped below it. The
mixed performance came as several companies,
including Bank of America and Goldman Sachs,
reported their first-quarter earnings. Bank of
America beat expectations, thanks to higher
borrowing costs and rates, while Goldman Sachs
missed quarterly revenue estimates due to a
slowdown in deal-making and the offloading of its
Marcus personal loan portfolio. Other financial
institutions, such as Bank of New York Mellon,
beat profit estimates, benefiting from rate hikes that
boosted their interest income.
Outside the financial sector, Southwest Airlines saw
its stock dip by around 1% after the Federal
Aviation Authority announced that the airline had
requested a pause in departures due to an internal
technical issue. However, the pause was later
canceled. Netflix was due to report its earnings
after the market closed on Tuesday, with shares up
slightly ahead of the announcement, following the
company's announcement that it would wind down
its DVD-rental business.
On the economic front, housing starts for single-
family homes fell by 0.8% to a 1.42 million
annualized rate, while permits to build, a forward-
looking gauge for housing activity, fell by 8.8% to
an annualized rate of 1.41 million.
Meanwhile, several Federal Reserve officials,
including Atlanta Fed President Raphael Bostic and
St. Louis Fed President James Bullard, expressed
support for further rate hikes to meet the Fed's
inflation targets. However, Richmond Fed President
Tom Barkin, a non-voting member of the Federal
Open Market Committee, was more cautious,
stating that he wanted to see more evidence that
inflation was settling back to the Fed's target before
supporting further rate hikes.
Despite the growing optimism around the
economy's performance, investors remain skeptical
that the Fed will cut rates anytime soon. The 2-year
yield climbed to 4.189%, its highest closing level in
over a month, and markets have priced in an 86%
probability that the Federal Reserve will raise
interest rates by another 0.25% in May. However,
Bank of America noted that institutional and
individual investors pulled out their positions in US
equities for the third straight week amid the stock
market rally.
Here are some other trending tickers on Yahoo Finance:
. Johnson & Johnson (JNJ):
The large pharmaceutical corporation reported Q1 earnings and revenue that surpassed expectations. Additionally, they have revised their full-year adjusted earnings outlook from $10.45-$10.65 per share to $10.60-$10.70 per share.
. Lockheed Martin Corporation (LMT):
The major defense company released Q1 financial results that exceeded expectations from analysts and reiterated its previously stated full-year guidance, predicting net sales between roughly $65 billion and $66 billion and earnings per share in the range of $26.60 to $26.90.
. Teladoc Health, Inc. (TDOC):
According to a press release on Tuesday, Teladoc announced the introduction of provider-led care for its pre-diabetes and weight management programs.
. J.B. Hunt Transport Services, Inc.(JBHT):
The company's first-quarter earnings fell short of expectations and were lower than the previous year's, citing the impact of a "freight recession" in the brokerage unit.
. NVIDIA Corporation (NVDA):
On Tuesday morning, the stock prices experienced an upsurge following a ratings upgrade and price target from HSBC analysts. The analysts identified the chipmaker's significant potential in the AI sector, which resulted in the increase.
According to China's National Bureau of Statistics,
the country's economy grew by 4.5% in the first
quarter of the year, beating the economists'
expectation of a 4.0% expansion. The growth was
attributed to the lifting of Covid restrictions in the
country after nearly three years, leading to a
rebound in the economy.
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