Stocks End May In Sea Of Red 🎯 | A Quiet Week On The Earnings Front With Eyes Peeled For May Jobs Report 👀 | AI Is Going Through A “Cool Off” & Investors Will Watch Apple WWDC 🤔
Stocks tumbled their way into the end of May wading in a sea of red after an overall positive month for the market. Over the last 5 days:
The S&P500 rose less than 0.2%
The Nasdaq Composite ended the week near flat
The Dow Jones Industrial Average ended the week down nearly 1%
Investors this week will be shifting their attention to updates on the labor market to kick off a fresh month of trading. May Jobs report is set to release on Friday morning with updates on job openings and private wage growth to follow. The jobs report is expected to show that 185k nonfarm payroll jobs were added to the US economy, with unemployment remaining steady at 3.9%. This is expected to be up from the 175k jobs added in April and unemployment ticked up to 3.9% as well.
On our corporate front we are getting earnings reports from , and but have an overall quiet week on the earnings front other than that. blowout earnings came to a steady halt throughout the trading week after disappointing reports came from , , & which have all reaped the rewards of the recent AI boom. Over the next couple of months, it will be crucial to watch movement of these companies especially with WorldWide Developers Conference on June 10th.
Corporate America Shies Away from Political Donations in 2024 Election 🗳️
As the 2024 election approaches, businesses are becoming increasingly cautious about getting involved in politics, while some billionaire CEOs are becoming more vocal. Elon Musk, for example, has been outspoken on social media about Donald Trump’s conviction for falsifying business records, calling it politically motivated. However, Musk’s companies, including Tesla and Twitter, have not made any political donations or statements about the verdict.
This trend is reflected across corporate America, with many companies choosing to avoid political donations or disclose their spending in order to avoid controversy. According to the Center for Political Accountability, 270 of the 345 companies on the S&P 500 since 2015 now prohibit or fully disclose spending on candidates or their committees. While billionaires like Musk may be more willing to weigh in on politics, companies are taking a more cautious approach to avoid alienating employees and customers. Despite this, corporations are still expected to play a significant role in the 2024 election, albeit in more subtle ways, such as through state-level donations and “527” committees.
