Markets Notch 7th Straight Green Day | Real Estate & Utilities Sectors Lead The Market | Earnings Recap Today
Markets Continue To Recover As Investors Eye Rate Cuts 👀
The market saw its 7th straight day of green as more data appeared showing the US labor market continuing to cool, bringing back a potential rate cut in the fall. Initial weekly jobless claims came out today at 231k which is an increase of 22k from last week, in response investors are betting on a rate cut for September. Let’s take a look at how the big boys played today:
The S&P500 saw 0.5% rise and reclaimed that $5.2k level
the Dow Jones popped for 350 points having its 7th straight green trading session
The Nasdaq Composite saw a mini rise of 0.2% on the day
The rally expanded to broader sectors in todays session with Real Estate & Utilities leading our sector action for today, on the flip side Technology and Communication services were the biggest laggers in our sector groups.
In our earnings segment reported its Q1 earnings on Wednesday after market that missed the streets expectations. Shares saw a 9% fall after that report came out, the company Q1 results beat expectations handily but was undercut by the doubtful woes of its AI future.
saw a 20% decline and closed the session down 22% after the company said it saw a decline in player in app purchases this last quarter. They are currently looking for new ways to drive DAUs, hours, and bookings growth rates back to 20% YoY. Guidance was also lowered on the full year from $4.14B to $4.28B to $4B and $4.1B respectively.
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Stocks Rebound in April: A Market Correction on the Horizon? 📈
Stocks have rebounded in April, led by the Utilities and Consumer Staples sectors, which typically outperform during economic downturns. This rebound follows a dismal performance at the beginning of 2024, leading experts to question if a market correction is imminent. Utilities (XLU) have led the charge, rising nearly 12% since April 16, accounting for all of the sector’s gains year-to-date. Consumer Staples (XLP) stocks have also risen almost 5% in the same period. This growth is likely due to investors rotating into undervalued sectors that have yet to participate in the recent market rally.
Utilities have seen a 26.7% increase in earnings this quarter compared to the same period last year, the second-highest growth rate of any sector. The Fed’s decision not to raise interest rates and weaker economic data have also contributed to the sectors’ growth. The move higher in Utilities, an interest rate-sensitive sector, has come as investors have digested the Fed’s message that another rate hike is unlikely. The stock market continues to exhibit volatility in an environment where market leadership is shifting. Stocks retreated in April, ending a streak of six consecutive months of positive performance. The S&P 500 achieved new all-time highs in March but experienced significant ups-and-downs in April, ending the month with a loss exceeding 4%.
While the rebound of Utilities and Consumer Staples is a positive sign, the market’s volatility and shifting leadership suggest a potential market correction. Investors should closely monitor inflation trends, consumer spending, and corporate earnings to understand the market’s direction better.
