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Markets Flat Ahead of Key Data; PYPL, PLTR Post Beats
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Markets were flat for the first day of a new trading week. The Nasdaq and S&P 500 worked to stay above the zero line for nearly the full session, while the Dow and small-cap Russell 2000 were just beneath it. The Dow and Nasdaq were -0.18% and +0.18%, respectively, while the S&P barely scraped into positive territory, +0.05%, and the Russell was the laggard for the day, -0.31%.
Later this week, we’ll see fresh inflation data with CPI and PPI prints for April, but earlier today we saw Wholesale Inventories for March, which were flat month over month, and for the third time in the past four months. Expectations were for +0.2%, so to the extent this is also a read on inflation, it’s a softer one. The previous month was revised to flat from +0.1% originally reported. The last time we saw a positive Wholesale Inventory headline was +0.8% back in November of last year.
PayPal (PYPL - Free Report) shares initially jumped on its Q1 beat on earnings and revenues this afternoon, but has since turned south by roughly -4%. Earnings of $1.17 per share outpaced expectations by 7 cents (well above the year-ago’s 88 cents per share) on $7.04 billion, which narrowly outperformed the $6.99 billion in the Zacks consensus. Total Payment Volumes rose +12% in the quarter, while full-year earnings are expected to come in at $4.95 per share — just 3 cents higher than analysts had previously surmised. The company also plans to shed 2000 jobs, or 7% of its workforce.
Cybersecurity software firm Palantir (PLTR - Free Report) , on the other hand, is jumping much higher on its Q1 earnings report after today’s closing bell, by as much as +28%. Earnings of 5 cents per share beat the Zacks consensus by a penny, with quarterly revenues coming in nicely ahead of expectations: $525 million versus $505 million analysts were looking for. U.S. commercial revenues rose +26% in the quarter, and CEO Alex Karp was enthusiastic about the company’s prospects for its A.I. platform, especially in the Insurance, Manufacturing and Supply-Chain spaces.
All major indices are back in the green for both the past month and year to date, thanks to Friday’s robust mini-rally. The longer we go without seeing recessionary conditions in the economy, the more emboldened market participants seem to become. That said, last week as a whole was still down; even Friday’s boost wasn’t enough to salvage it. As noted earlier, CPI and PPI figures melting down toward optimal inflation levels (according to the Fed) will be closely monitored; the better to persuade the Fed to keep interest rates steady rather than raise them again at its June 14th meeting.
Image: Bigstock
Markets Flat Ahead of Key Data; PYPL, PLTR Post Beats
Markets were flat for the first day of a new trading week. The Nasdaq and S&P 500 worked to stay above the zero line for nearly the full session, while the Dow and small-cap Russell 2000 were just beneath it. The Dow and Nasdaq were -0.18% and +0.18%, respectively, while the S&P barely scraped into positive territory, +0.05%, and the Russell was the laggard for the day, -0.31%.
Later this week, we’ll see fresh inflation data with CPI and PPI prints for April, but earlier today we saw Wholesale Inventories for March, which were flat month over month, and for the third time in the past four months. Expectations were for +0.2%, so to the extent this is also a read on inflation, it’s a softer one. The previous month was revised to flat from +0.1% originally reported. The last time we saw a positive Wholesale Inventory headline was +0.8% back in November of last year.
PayPal (PYPL - Free Report) shares initially jumped on its Q1 beat on earnings and revenues this afternoon, but has since turned south by roughly -4%. Earnings of $1.17 per share outpaced expectations by 7 cents (well above the year-ago’s 88 cents per share) on $7.04 billion, which narrowly outperformed the $6.99 billion in the Zacks consensus. Total Payment Volumes rose +12% in the quarter, while full-year earnings are expected to come in at $4.95 per share — just 3 cents higher than analysts had previously surmised. The company also plans to shed 2000 jobs, or 7% of its workforce.
Cybersecurity software firm Palantir (PLTR - Free Report) , on the other hand, is jumping much higher on its Q1 earnings report after today’s closing bell, by as much as +28%. Earnings of 5 cents per share beat the Zacks consensus by a penny, with quarterly revenues coming in nicely ahead of expectations: $525 million versus $505 million analysts were looking for. U.S. commercial revenues rose +26% in the quarter, and CEO Alex Karp was enthusiastic about the company’s prospects for its A.I. platform, especially in the Insurance, Manufacturing and Supply-Chain spaces.
All major indices are back in the green for both the past month and year to date, thanks to Friday’s robust mini-rally. The longer we go without seeing recessionary conditions in the economy, the more emboldened market participants seem to become. That said, last week as a whole was still down; even Friday’s boost wasn’t enough to salvage it. As noted earlier, CPI and PPI figures melting down toward optimal inflation levels (according to the Fed) will be closely monitored; the better to persuade the Fed to keep interest rates steady rather than raise them again at its June 14th meeting.
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