Today's stock market is looking up as we start a new week. Here's a quick overview:
• S&P 500 futures are up by 27 points (0.5% above fair value)
• Nasdaq 100 futures have risen by 107 points (0.6% above fair value)
• Dow Jones Industrial Average futures increased by 207 points (0.5% above fair value)
This positive trend comes after concerns eased over Iran's recent attack on Israel, which thankfully didn't result in significant damage. There's also hope that the situation in the Middle East won't escalate into a wider conflict.
In financial news, treasury yields are on the rise, with the 10-year note yield up by seven basis points to 4.57%, and the 2-year note yield also up by seven basis points to 4.96%.
Looking at today's economic calendar, we have:
- March Retail Sales and Retail Sales excluding autos at 8:30 AM ET
- February Business Inventories and the April NAHB Housing Market Index at 10:00 AM ET
In corporate updates:
- Cisco (CSCO, Financial) is up 2.1% after an upgrade to Buy from Neutral
- M&T Bank (MTB, Financial) increased by 1.4% after beating earnings expectations by $0.01
- Goldman Sachs (GS, Financial) rose by 3.3% after surpassing earnings and revenue forecasts
- Logitech (LOGI, Financial) dropped by 2.2% following a downgrade to Underweight
- Salesforce (CRM, Financial) fell by 2.7% amid talks of buying Informatica
- Akamai (AKAM, Financial) is in the news for a potential $500 million acquisition deal
- Encore Wire (WIRE, Financial) soared by 8.4% on news of being acquired at $290.00 per share in cash
- Tesla (TSLA, Financial) is down by 1.3% with several updates including a new subscription service and workforce reductions
Around the globe, stock markets had mixed reactions:
- In Asia, Japan and Hong Kong's markets dipped, while China's Shanghai Composite gained. India, South Korea, and Australia also saw declines.
- Europe's markets are mostly in the green, with Germany and Italy leading the gains. However, the U.K.'s FTSE 100 lagged slightly.
Notable economic data included Japan's machinery orders and South Korea's trade surplus, among others. Meanwhile, various global developments, from currency shifts to policy announcements, are influencing markets.
Today's News
In a significant development, Alphabet (GOOGL, Financial) has announced plans to contest a recent antitrust lawsuit filed by the Department of Justice, which accuses the company of maintaining an illegal monopoly over digital advertising technologies. Alphabet argues that the lawsuit fails to recognize the competitive nature of the industry and how its services benefit both advertisers and consumers. This legal battle marks another chapter in the ongoing scrutiny tech giants are facing over their market dominance.
Meanwhile, Apple (AAPL, Financial) is making headlines with its latest financial report, revealing a slight dip in quarterly revenue. This marks the first revenue decline for the company in almost four years, attributed mainly to disruptions in its China supply chain. Despite the setback, Apple remains optimistic about its future performance, highlighting the resilience of its diversified product ecosystem and its strategies for navigating supply chain challenges.
Amazon (AMZN, Financial) has unveiled a new initiative aimed at expanding its footprint in the healthcare sector. The e-commerce giant announced a partnership with a leading healthcare provider to offer virtual health services. This move is seen as part of Amazon's broader strategy to integrate itself into various aspects of consumer life, including healthcare, further diversifying its business model beyond retail and cloud computing.
Electric vehicle maker Tesla (TSLA, Financial) is once again in the spotlight, this time for its ambitious expansion plans in Europe. The company has announced the construction of a new Gigafactory in Berlin, aimed at increasing its production capacity and meeting the growing demand for electric vehicles in the region. This strategic move is expected to bolster Tesla's presence in the competitive European auto market and contribute to its global growth objectives.
Pharmaceutical giant Pfizer (PFE, Financial) has released promising data from a recent trial of its COVID-19 treatment pill, which shows a high efficacy rate in preventing severe illness. This development is seen as a significant milestone in the fight against the pandemic and could have far-reaching implications for public health and the global economy. Pfizer's stock has reacted positively to the news, reflecting investor confidence in the company's ability to contribute to ending the pandemic.
Bank of America (BAC, Financial) reported a robust set of financial results, surpassing analyst expectations for quarterly earnings. The bank credited its performance to strong consumer spending and an uptick in loan demand, signaling a healthy economic recovery. This positive news from one of the largest U.S. banks has been well received by the market, highlighting the resilience of the financial sector amid ongoing economic challenges.
Exxon Mobil (XOM, Financial) has announced a major discovery off the coast of Guyana, estimating the find to contain billions of barrels of oil. This discovery is expected to significantly boost Exxon Mobil's global oil reserves and underscores the company's commitment to expanding its exploration and production activities. The news has sparked investor interest in Exxon Mobil, with many seeing it as a positive development for the company's long-term growth prospects.
