US stocks increased thanks to technology stocks

US stocks increased thanks to technology stocks Picture 1

Closing the session on April 24, the Dow Jones industrial average decreased 42.77 points (-0.11%) to 38,460.92 points, the S&P 500 increased 1.08 points (+0.02%) to 5,071, 63 and Nasdaq Composite increased 16.11 points (+0.10%) to 15,712.75 points.

Seven of the eleven S&P 500 sectors rose, led by stocks in consumer staples, utilities, consumer discretionary and real estate.

Investors are also focused on quarterly earnings reports from companies, especially large-cap growth stocks.

Tesla jumped 12% after the electric vehicle maker's announcement of plans to ramp up production and launch more affordable models overshadowed weak quarterly results.

Texas Instruments added 5.6% thanks to a second-quarter revenue forecast that beat analysts' estimates. The Philadelphia Semiconductor Index closed higher as most chip stocks rose.

Drugmaker Biogen rose 4.5% as it beat first-quarter profit expectations, while Boston Scientific added 5.7% after the medical device maker raised its annual profit forecast.

Toy maker Hasbro climbed 12% as it reported first-quarter sales that fell less than expected and beat profit estimates.

Meanwhile, Meta Platforms shares plunged 11% in extended trading after the tech giant reported that its capital spending could reach $40 billion by 2024, even as first-quarter revenue beat estimates.

Microsoft and Alphabet are expected to report results later this week.

Boeing dropped 2.8% as the aircraft manufacturer reported its first quarter 2024 revenue continued to decline in the 7th quarter.

Solar inverter maker Enphase Energy lost 5.5% as its second-quarter revenue forecast fell short of analysts' estimates.

Trading volume on US stock exchanges was 10.2 billion shares, lower than the average of 11.07 billion shares in the past 20 days.

The auction for five-year US Treasury bonds worth a record $70 billion on April 24 helped push bond yields higher and put pressure on stocks. The benchmark 10-year Treasury note rose 5 basis points to 4.6459%.

Markets are also turning their attention to US GDP data for the first quarter to be released on April 25 and personal consumption expenditures (PCE) for March on April 26. A hotter-than-expected March consumer price report also pushed back expectations about when the Fed will start cutting interest rates.

In the energy market, oil prices fell on April 24 as worries about conflict in the Middle East eased and business activity in the US slowed.

Brent oil futures fell 40 cents, or 0.45%, to $88.02/barrel, while WTI crude oil prices fell 55 cents, or 0.66%, to $82.81/barrel. .

The development reversed some of Brent's gains earlier in the week when the dollar was weaker.

Goldman Sachs analysts said in a note that perceived de-escalation between Iran and Israel could cause oil prices to fall another $5-10 per barrel in the coming months. These analysts estimate a ceiling of $90/barrel for Brent oil.

Meanwhile, the market still believes that the US Federal Reserve (Fed) is expected to start lowering interest rates this year, which could boost economic growth and thereby stimulate demand. about oil.

Elsewhere, German business morale improved more than expected in April, according to a survey on April 24, raising hopes that the worst may be over for the economy. Europe's largest economy.

In the cryptocurrency market, Bitcoin is still struggling to maintain its upward momentum while witnessing a massive sell-off that has increased the anxiety of investors and analysts. At the time of writing, Bitcoin price is trading at $63,970, down more than 3% from its intraday high.

The recent sell-off comes as Bitcoin faces persistent resistance, despite efforts to consolidate above the $66,000 mark. Furthermore, technical indicators such as the TD Sequential have been sending out warning signals suggesting that Bitcoin's price trajectory could change.

Analysts warn that if Bitcoin cannot hold above the critical support level of $65,000, it could experience further sell-off pressure and potentially further price declines.

Lesley Montoya

Update 25 April 2024