Market Recap (4/28/24)
Market Recap of the Week of April 22, 2024 - April 26, 2024
Source: Apple Stocks Application
Overall Market Trends:
This past week, the stock market rebounded from a treacherous week for traders. The New York Stock Exchange Composite rose 288 points (+1.65%), the S&P 500 climbed 113 points (+2.28%), the NASDAQ Composite increased 545 points (+3.54%), and the Dow Jones Industrial Average posted weekly gains of 156 points (+0.41%). The market was largely dictated by earnings reports as over 33% of the companies listed on the S&P 500 released earnings last week.
On Monday, investors bought the dip after one of the worst weeks in the market this year.
Tuesday featured many positive earnings reports. Spotify (SPOT) soared 11.4% after beating first-quarter estimates and posting promising expectations for the second quarter of 2024. GE Aerospace (GE) also surged 8.3% after surpassing their earnings expectations. United Parcel Services (UPS) also climbed 2.9% higher on Tuesday. Additionally, the S&P 500 U.S. Manufacturing PMI fell - for the fourth straight month - from 51.9 in March to 49.9 in April, causing yields to fall and inversely supporting the market's steady rise during Tuesday’s trading session.
The market stayed relatively steady on Wednesday, as rising yields wiped out earnings gains. Despite missing earning estimates, Tesla surged over 12% as investors chose to focus on the company's renewed thrust for more affordable cars.
The market fell sharply on Thursday as new data showed the United States economy growing at its slowest rate in 2 years. The United States gross domestic product (GDP) for the first quarter was 1.6%, significantly worse than the 2.4% that was expected. This played into inflation worries as the slowed growth occurred while inflation rose. Meta also released disappointing earnings resulting in the stock sinking over 11% on Thursday. Similarly, IBM missed expectations and fell over 8%. These reports raised concerns about other tech giants' earnings which were set to be released after the market closed.
Stocks rebounded Friday with strong earnings from mega-cap companies like Google (GOOG) and Microsoft (MSFT) as well as modest inflation data. Google surged 10% on Friday after posting better-than-expected earnings, the company’s first-ever dividend, and introducing a $70 billion buyback plan. Microsoft rose slightly while also releasing positive earnings. Snapchat (SNAP) soared 28% after beating expectations as well. Regarding inflation data, the core PCE rose 0.3%, in line with expectations.
Past Earnings Report:
Looking Towards the Future
Upcoming Important Economic Events:
Tuesday: Employment cost index; Chicago Business Barometer (PMI)
Wednesday: Construction spending; ISM manufacturing; Federal Reserve Policy Meeting
Thursday: Initial jobless claims; Factory orders
Friday: U.S. unemployment rate; ISM services
Future Earnings Reports: