Markets Saw More Red On A Day Of Disappointing Earnings & The Realization Rates May Stay Higher Longer 👀
The market endured another day of losses, while another round of lackluster earnings and fears of higher rates for longer looms over investors through todays session. Lets quit the foreplay and get straight into our index performances:
The Dow Jones Industrial Average shed just shy of 0.9% on the day
The S&P500 fell a modest 0.6%
The Nasdaq Composite saw a 1% drop
Today was a peer into the mind of the market as has shown it is not the market maker investors thought it would be, the rally we are all expecting is becoming more and more gloom as Federal Reserve members are saying patience will be the biggest factor bring rate cuts back. What does this mean for the average consumer? Rates will continue to stay up for longer until inflation can show that is in a consistent cool off period. New Government data showed that the US economy is growing at a slower pace than initially thought during Q1 of 2024, analysis’s second estimate of US GDP came in at 1.3% which is down from the 1.6% reading in April. Now investors are sitting and waiting patiently for Friday and the release of PCE numbers which follows the Feds “core” PCE which gives investors insights to their rate cut position.
On our corporate front delivered a lackluster earnings report which triggered a spark in the AI boom community. The SaaS companies shares suffered a 20% loss through todays trading session after it reported its slowest sales quarter to date. reported earnings after market close today and despite the PC maker surging 120% this year, shares fell 8% after a stellar earnings report showing growth in the infrastructure solutions group which includes AI servers. shares also saw a fall of 20% due to poor guidance with revenue being projected at $462M which fell 2% shy of the streets expectations.
In the retail front saw a 20% run after the company boosted its FY outlook for sales and operating income. However things aren’t all green on the retail side with falling 5% after the company reported less than stellar EPS of -$0.24 which came in hotter than the -$0.7 expected by the street.
Tomorrow investors will be on the lookout for PCE numbers to dictate the direction of the market so keep your eyes peeled!
