Saturday, December 7, 2024
HomeTraditional FinanceStock Market"Stock Market Snaps Losing Streak Amid Mixed Quarterly Earnings"

“Stock Market Snaps Losing Streak Amid Mixed Quarterly Earnings”

The stock market has been making headlines lately, especially with the recent performance of the Dow Jones Industrial Average. After a four-week losing streak, the Dow finally snapped its losing streak with a slight uptick of 0.1% or 22 points higher. The Nasdaq and the S&P 500 also showed positive growth with a 0.1% and 0.1% increase respectively.

Mixed Quarterly Earnings Report

Despite the overall positive growth, the market still experienced a fair share of mixed quarterly earnings report that continued to weigh on investor sentiment. In particular, the materials industry was hit hard with Freeport-McMoran Copper & Gold leading the way with a slump that drove the industry to be the biggest loser of the day.

Freeport-McMoran Copper & Gold did report quarterly results that topped estimates, but it was not enough to offset the more than halved profit, and the company warned of a further impact from ongoing labor shortages, sending its shares more than 4% lower. Meanwhile, Regions Financial Corporation reported first-quarter results that missed on the bottom line and showed a 4% decline in deposits.

On a more positive note, HCA Holdings Inc jumped more than 4% as it upgraded its annual guidance after delivering quarterly results that topped estimates.

Tech Industry and Big Tech Quarterly Results

The tech industry continued to experience a slump as investors await the quarterly results from big tech companies such as Alphabet Inc (NASDAQ:GOOGL) and Microsoft (NASDAQ:MSFT), who are kicking off earnings for big tech on Tuesday.

Amazon.com (NASDAQ:AMZN) did show a positive uptick with a more than 3% increase. However, the increase is due to its Whole Foods business reportedly planning to cut hundreds of jobs as part of a restructuring.

Tesla (NASDAQ:TSLA) also had a rough day following disappointing quarterly results that caused a more than 10% slump. However, the electric vehicle maker has steadied after announcing a hike in prices of its Model Y and Model S in the U.S.

Energy Stocks

Energy stocks did not benefit from the uptick in oil prices as sentiment was soured by a more than 4% slump in Schlumberger NV. Despite the oil field services company’s better-than-expected Q1 results, weaker margins and cashflow overshadowed the positive report.

Economic Front

On the economic front, manufacturing activity picked up in April, climbing to a reading of 50.4 from 49.2 previously, signaling a return to expansion. Services activity also inched higher to a reading of 53.7 from 52.6 last month.

Conclusion

Overall, the stock market today showed some positive growth despite the mixed quarterly earnings report. The tech industry continues to experience a slump as investors await the quarterly results from big tech companies. The energy stocks did not benefit from the uptick in oil prices due to weaker margins and cashflow. However, the recent uptick in manufacturing and services activity shows promise for the market’s future growth.

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