US close, nos etc..1 May 2024 06:57
Of the 265 companies that have reported earnings 79% have beaten analysts expectations for Q1 nos compared to the long'term average of 67%. Yet investors remain bearish.
US equities have had a rough April as inflation nos have pulled back bets on rate cuts in H1 and all 3 major indexes are poised to record their first monthly loss in 6 months as US consumer confidence deteriorated in April falling to its lowest level in 18 months. Coupled with the 'sell in May' and 'go away' crowd the S&P had its worst month this year.
Ten of the 11 S&P sectors fell led down by big tech and an assortment of other big cap counters. Tesla ($181) led the sell off falling 7% as the company is set to sack hundreds of staff coming after the recent 14,000 lay offs and Musk firing 2 senior executives. Musk was quoted as saying 'only the excellent, trustworthy and necessary should be kept on'.
Mrkts were stunned by data showing slower than forecast growth and persistent inflation. Disappointing nos from Meta ($427) triggered the sell off along with IBM, Southwest and Caterpillar all falling. On the big board top 30 only 2 stocks gained (3M & P&G). Cat, Boeing and Msoft propped up the laggards ahead of Amazon earnings nos.
Nyse data
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Tot vol(bn) 4•0
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FF -2. DF +21.
Morning all.