Bad news may once again be good news on Wall Street, as signs of slowing U.S. growth fan hopes that the Federal Reserve may not need to tighten policy as much as previously expected. Home sales have fallen for a third straight month, while big misses from retail giants such as Target and Walmart shook their share prices last week. The Atlanta Fed's GDPNow estimate of real GDP growth for the second quarter, meanwhile, fell to 1.8% on May 25, from 2.4% on May 18.
Wall Street extended its rally on Friday as signs of peaking inflation and consumer resiliency sent investors into the long holiday weekend with growing optimism that the Federal Reserve's policy tightening can avoid tipping the economy into recession. All three major U.S. stock indexes were sharply higher and on track to snap their longest weekly losing streaks in decades. "We’re in one of those rebound periods," said Tim Ghriskey, senior portfolio strategist Ingalls & Snyder in New York.
“For those investors concerned it is too early to take the plunge in the U.S. market, maybe buying dips in Europe and EM is a safer call," Citigroup says.
This has been a terrible year for the Nasdaq Composite (NASDAQINDEX: ^IXIC) so far, sending the index into a bear market. Earnings season has been brutal for many key stocks listed on the Nasdaq, adding to the dour mood on Wall Street year to date. Today, though, investors were celebrating solid financial results from Autodesk (NASDAQ: ADSK) and Zscaler (NASDAQ: ZS).
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The Dow Jones rallied amid encouraging inflation data. Tesla stock jumped even as CEO Elon Musk issued a warning. Apple stock surged.
U.S. stocks trade sharply higher Friday, after the Federal Reserve's preferred measure of inflation continued to run hot in April, but cooled from March.
An upbeat core personal consumption expenditures price index for April is boosting investor sentiment at midday after it showed slowing inflation.
Costco stock is inching higher after the earnings report, but it remains below a key level on the chart.
The S&P 500 index could be on the brink of an oversold rally but valuations are not cheap yet.
The S&P 500 index on Friday was set for its best weekly gain since mid-March as upbeat earnings, strength in consumer spending and signs of inflation peaking eased worries about a sharp slowdown in economic growth. The benchmark index and the tech-heavy Nasdaq appeared set to snap their longest weekly losing streak since the dotcom bust in 2001, up 5.8% and 6% respectively for the week.
A team of analysts at JPMorgan told clients to expect a near-term rally in stocks as corporations regain their appetite for buying back their own shares
Snap issued a revenue warning late on May 23 — not so unusual this earnings season — but the company used some harsh words, saying “the macroeconomic environment has deteriorated further and faster than anticipated.” Many retailers also are warning of a worsening economy. Best Buy reported a mixed quarter, but also lowered its full-year revenue guidance.
Columbia Financial (CLBK) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimate revisions.
Nexstar (NXST) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimate revisions.
Huntsman (HUN) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimate revisions.
Core personal consumption expenditures — the Federal Reserve's preferred inflation indicator — rose 4.9% in April, slower than March's 5.2% increase, which could signal that price increases are slowing. The market action continues to strengthen after weeks of bearish action.
The major indexes were on track to end a weeks-long losing streak after a string of more upbeat corporate results at least temporarily offset fears of a steep economic slide.
ADP (ADP) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.