Stocks Edge Higher Amid Choppy Week
Stocks nudged higher on Friday, wrapping up a volatile week. The Dow climbed 120 points (0.3%), the S&P 500 rose 0.7%, and the Nasdaq Composite increased by 1.1%.
For the week, the S&P 500 is up a modest 0.1%, while the Dow is set to fall about 2%, ending a five-week winning streak. The Nasdaq outperformed with a 1.4% gain. Despite a stellar earnings report from Nvidia, concerns over the Fed not cutting interest rates this summer have overshadowed market sentiment. Strong economic and labor data led Goldman Sachs to push its forecast for the Fed's first rate cut from July to September.
"Inflation will likely improve by September, but it won't be perfect," noted Goldman economist David Mericle, suggesting rate cuts may not be an obvious choice yet.
Workday shares plummeted over 13% after reducing its subscription revenue forecast for the year, and Intuit dropped 8% due to weak forward guidance. In contrast, Deckers Outdoor surged 13% following strong earnings and revenue reports.
Reflecting on the rocky week, Quincy Krosby of LPL Financial remarked, "Even Nvidia's impressive performance couldn't lift the market, highlighting the Fed's significant influence."
Why this Matters:
The overall economic health and stock performance can ripple down to our industry, affecting everything from shipping rates to fuel costs. When big players like Nvidia report strong earnings, it signals tech growth, which often drives demand for logistics services. On the flip side, concerns about the Fed not cutting interest rates can lead to higher borrowing costs, impacting operational expenses and investment in new logistics tech.
Our Take:
Even the heavy hitters like Nvidia can't keep the market afloat if the Fed is hesitant to cut rates. It’s a reminder that while tech advancements drive demand, our industry needs to stay agile and prepared for financial shifts.
Apple's shares saw a significant jump, soaring over 7% on Friday after the tech giant reported impressive second-quarter earnings.
Tesla's shares are struggling, down 28% this year, while the S&P 500 Index gained 10%.
Inditex, the parent company of Zara, saw a surge in its stock prices, hitting record highs after reporting robust early spring sales.
Apple has decided to pump the brakes on its electric car project, a move that could positively impact its stock performance, according to a report by Morgan Stanley.
Rivian Automotive Inc. saw its shares bounce back slightly on Monday after a tough week marked by disappointing earnings.
Shares of Spirit Airlines surged approximately 10% following the announcement that both Spirit and JetBlue plan to appeal a federal judge's ruling against their merger on antitrust grounds.
Rivian’s stock took a bit of a dip - around 10% - after the company exposed its fourth-quarter performance.
Nike's shares tumbled over 10% after the company revised its revenue outlook for the fiscal year, anticipating just 1% growth instead of mid-single-digit growth, citing challenges in Greater China and EMEA, digital traffic softness, and a stronger U.S. dollar.
Warren Buffett-backed Occidental Petroleum (OXY) is set to report its third-quarter earnings, with analysts expecting a more than 60% drop in quarterly profit.
Walmart's stock reached an all-time high, hitting $166.30, as investors anticipate the retail giant to outperform its competitors during the holiday season due to its reputation for offering value.
Chevron's stock decline following an earnings miss has reduced the value of its all-stock acquisition offer for Hess Corp. by approximately $6.5 billion.
Taiwan Semiconductor Manufacturing Company (TSMC) reported a third-quarter profit of 211 billion New Taiwan dollars ($6.69 billion), which marked a significant decline in profit due to weak demand for consumer electronics.
Longtime Costco CEO Craig Jelinek will retire at the end of the year, and he will be succeeded by Ron Vachris, who has been with the company for 40 years.
The Federal Reserve is on the verge of achieving a rare "soft landing" by curbing inflation without causing a severe recession.
The projected revenue for 2023 has been adjusted downward by UPS, with the lowest estimated sales figure being around $97 billion.
Large retailers such as Home Depot and Walmart are projecting a weaker economy this year due to declining consumer spending.
Tencent is a Chinese multinational conglomerate holding company founded in 1998, with a diverse range of businesses, including internet-related services and products, entertainment, artificial intelligence, and technology.
After taking the social media conglomerate private in 2022 (sparking both praise and backlash), Musk is now facing the fallout from an ill-fated tweet he made in August 2018.
Tesla, once seen as the “prized jewel” of electric vehicles, is now suffering from a plunge of 65% in stock value.
If you’re an investor, you better hold onto your hat.
Regardless of Wall Street’s bet on the retail company, Target revealed a 52% profit decline in Q1.
As financial markets reopened after the attempted assassination of Donald Trump, it became clear that the Trump trade is gaining momentum.