The U.S. stock market showed signs of vitality last week, with the S&P 500 and the Nasdaq Composite climbing 2.7% and 4.2%, respectively, marking their best performance since November. The Dow Jones also saw an increase, though more modest at 0.7%. This surge was fueled by impressive earnings from several Big Tech companies and the latest U.S. inflation data. What to expect today?
FED Meeting Ahead
On the economic front, all eyes are on the Federal Reserve's upcoming meeting on Wednesday. While the Fed is expected to maintain interest rates at their current peak of 5.25% to 5.50%, the focus will be on Chairman Jerome Powell's insights. Despite challenges in reducing inflation to the Fed's 2% target, Powell's comments will be crucial in shaping expectations. This careful approach suggests that the anticipated rate cuts might unfold more gradually, aiming for a stable economic adjustment.
Investors and market analysts are now recalibrating their expectations, anticipating a more deliberate and sustained approach to interest rate normalization. As the market navigates through these adjustments, the outlook for investors and the broader economy is one of cautious optimism, with a focus on long-term stability.
Corporate News
Paramount Global (NASDAQ: PARA) is on the brink of significant leadership changes. Sources indicate that CEO Bob Bakish may be ousted as early as Monday, a decision driven by a loss of confidence from controlling shareholder Shari Redstone. This change comes just as Paramount is poised to enter critical negotiations with Charter Communications, potentially affecting its valuation and a prospective merger with Skydance Media.
Premarket Movers:
| Company | Ticker | Change | Description |
|---|---|---|---|
| Tesla | NASDAQ:TSLA | soared 11% | Received tentative approval from Beijing to launch its driver assistance software in China, leveraging mapping and navigation technology from Baidu. |
| Baidu | NASDAQ:BIDU | up 6% | Related to Tesla's approval in China. |
| Apple | NASDAQ:AAPL | rose 2.4% | Bernstein upgraded its stance on the iPhone maker to ‘outperform’ from ‘market perform’, encouraging investors to "buy the fear". |
| Alphabet | NASDAQ:GOOGL | fell 1.5% | Handing back some of Friday’s gains which saw the Google parent breach the $2 trillion market value mark for the first time since November 2021. |
| SoFi Technologies | NASDAQ:SOFI | rose 2.2% | Lifted its 2024 guidance following stronger-than-expected first-quarter earnings, with loan origination growing 22% Y/Y in the quarter. |
| Domino's Pizza | NYSE:DPZ | rose 5.3% | Beat first-quarter sales estimates as customers made use of the company’s loyalty programs. |
| Paramount Global | NASDAQ:PARA | rose 5% | Reports suggest CEO Bob Bakish may be set to leave as it explores a sale. |
| Philips | NYSE:PHG | soared over 40% | Announced a $1.1 billion settlement to resolve legal claims regarding the safety of its recalled respiratory devices in the U.S. |
| Coinbase | NASDAQ:COIN | fell 2.5% | Weighed by the lower prices of Bitcoin, the world’s most popular digital currency. |
The weekly podcast with Jim Stromberg
Tune into Jim Stromberg's weekly podcast for the latest on the Nasdaq's performance and strategic investment insights.
After a strong week with a significant rise in the Nasdaq, Jim discusses the success of the $1,000 challenge, now aiming for a $4,000 milestone. This week features key quarterly results from major companies like Starbucks, Apple, and many others, with a focus on the upcoming Federal Reserve minutes. Don't miss these crucial updates!
