Stock Market News for May 13, 2024

Market News

U.S. stocks closed mixed on Friday as investors awaited the April Consumer Price Index report, which is influential in shaping the Federal Reserve’s interest rate policies, alongside assessing quarterly earnings. The Dow and the S&P 500 ended in positive territory, while the Nasdaq Composite finished in the negative zone. However, last week was a positive one for U.S. stock markets.

How Did the Benchmarks Perform?

The Dow Jones Industrial Average (DJI) rose 0.3% or 125.08 points to close at 39,512.84. Notably, 12 components of the 30-stock index ended in negative territory, while 18 finished in positive zone.

The tech-heavy Nasdaq lost 5.40 points or 0.03% to close at 16,340.87.

The S&P 500 gained 0.2 % or 8.6 points to end at 5,222.68. Of the 11 broad sectors of the benchmark, four ended in negative territory, while seven ended in the green zone. The Consumer Staples Select Sector SPDR (XLP), the Financials Select Sector SPDR (XLF), the Technology Select Sector SPDR (XLK) and the Health Care Select Sector SPDR (XLV) rose 0.6%, 0.4%, 0.4% and 0.2%, respectively, while the Energy Select Sector SPDR (XLE) declined 0.6%.

The fear-gauge CBOE Volatility Index (VIX) was down 1.1% to 12.55. A total of 9.47 billion shares were traded on Friday, lower than the last 20-session average of 10.87 billion. The S&P 500 posted 58 new 52-week highs and one new 52-week low. The Nasdaq Composite registered 95 new 52-week highs and 105 new 52-week lows.

Market Waits for Inflation Data

Investors are eagerly anticipating the release of the April Consumer Price Index (CPI) report as it carries weight in shaping the Federal Reserve interest rates policy decisions. This key economic gauge will provide insights into inflation trends.

The remarks made by Federal Reserve officials have added an element of intrigue. While Fed Governor Michelle Bowman has expressed confidence in no interest rate cuts for the year there is a contrast with Fed President Lorie Logan’s stance suggesting that it may be premature to adjust rates based solely on recent inflation data.

Moreover, consumer sentiment has dropped to a six-month low as short-term inflation expectations rise. This disparity in outlook highlights the complexities of economic uncertainty about future monetary policy decisions.

Mixed Earnings

Guardant Health, Inc. GH reported first-quarter 2024 adjusted earnings of $0.46 per share against the Zacks Consensus Estimate of a loss of $0.72 per share. This Biomedical and Genetics company generated total revenues of $168.49 million, surpassing the Zacks Consensus Estimate by 11.94%

H&R Block, Inc. HRB reported third-quarter fiscal 2024 adjusted earnings of $4.94 per share, beating the Zacks Consensus Estimate of $4.66 per share. This consumer services company generated total revenues of $2.18 billion, beating the Zacks Consensus Estimate by 1.98%.

Array Technologies, Inc. ARRY reported first-quarter 2024 adjusted earnings of $0.06 per share against  the Zacks Consensus Estimate of $0.04 loss per share. This solar company generated total revenues of $153.4 million, missing the Zacks Consensus Estimate by 2.57%.

Shares of Guardant Health, Array Technologies and H&R Block returned 15.1%, 8.8% and 2%, respectively. H&R Block carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Economic Data

The University of Michigan reported that the preliminary reading of consumer sentiment came in at 67.4 in May, missing the consensus estimate of 76. The final reading for April was 77.2.

Weekly Roundup

For the week, the major averages closed on a positive note. The Dow surged by 2.16%, marking its strongest performance since December and its fourth consecutive week of gains. Meanwhile, the S&P 500 and the Nasdaq Composite also notched their third straight week of gains, with increases of 1.85% and 1.14%, respectively.
 

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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