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Markets closed mostly higher on Tuesday as Alphabet posted its worst day in more than six years. The Dow and the S&P 500 managed to eke out gains, with the latter finishing at a record high for the third consecutive session. However, Alphabet’s dismal sales figures in the first quarter of 2019 weighed on the Nasdaq and the broader tech sector. For the month, however, the three major benchmarks closed in the green.
The Dow Jones Industrial Average (DJI) increased 0.2%, to close at 26,592.91. The S&P 500 increased 0.1% to close at 2,945.83. The tech-laden Nasdaq Composite Index closed at 8,107.77, declining 0.7%. The fear-gauge CBOE Volatility Index (VIX) decreased 1.3% to close at 12.94. Advancers outnumbered decliners on the NYSE by a 1.20-to-1 ratio. On Nasdaq, a 1.41-to-1 ratio favored declining issues.
How Did The Benchmarks Perform?
The Dow gained 38.5 points to close in the green. Gains for the 30-stock index were propelled by a 0.2% rise in the shares of McDonald's (MCD - Free Report) after the restaurant chain operator reported better-than-expected first-quarter earnings. The stock carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
McDonald's reported impressive first-quarter 2019 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. Following the quarterly results, shares of the company gained 2.5% during pre-market trading session. Adjusted earnings came in at $1.78 per share, which surpassed the consensus mark of $1.73. (Read More)
The S&P 500 gained 2.8 points to also end in the green. Of the 11 major sectors of the S&P 500, eight ended in positive territory, with utilities leading the advancers. The Utilities Select Sector SPDR Fund (XLU) increased 1.6% on Tuesday. Further, the broader index closed at an all-time high for the third day on the trot.
Meanwhile, the Nasdaq tanked 54.1 points to close in the red, pulling back from its record close in the previous session. Tech-heavy Nasdaq and the broader tech sector was dragged down by Alphabet Inc. (GOOGL - Free Report) , shares of which dipped 7.5% to post its worst day since October 2012.
Alphabet Inc.’s non-GAAP earnings of $11.90 in first-quarter 2019 surpassed the Zacks Consensus Estimate of $10.57 per share. However, the figure decreased 6.8% sequentially and 19.8% year over year. Moreover, the net revenues missed the Zacks Consensus Estimate of $29.99 billion. (Read More)
The Caixin China manufacturing purchasing managers’ index, a private gauge of the country’s manufacturing activity declined to 50.2 in April from 50.8 in March. However, the fact that the metric remains above the 50 mark, indicates expanding manufacturing activity.
Meanwhile, Eurozone’s economy has started showing resilience to global economic downturn. After hitting the doldrums in the beginning of this year, the region’s gross domestic product (GDP) increased at an annualized rate of 1.5% in the period between January and March.
Fed’s Two-Day Policy Meeting in Focus
Investors had a keen eye on Fed’s latest policy meeting scheduled to culminate on Wednesday. Marketwatchers largely expect the Fed to hold interest rates steady. The CME Group’s FedWatch tool predicts a 97% probability that the interest rates would remain unchanged.
However, Fed Chief Jerome Powell’s comments post the meeting is what investors would watch closely because it will shed light on what the members of Federal Open Market Committee (FOMC) think about the future of rate hikes in the country.
Economic Data
On the economic data front, U.S. Consumer Confidence rose to 129.2 in April, up from 124.2 in March. The metric also surpassed the consensus estimate of 126 for current period.
Meanwhile, the Pending Home Sales for April decreased 3.8% in April. Also, the Chicago PMI decreased to 52.6 in April, from 58.7 in March.
Monthly Roundup
For the month, the Dow, the S&P 50 and the Nasdaq surged 2.6%, 3.9% and 4.9%, respectively. After a fabulous March, Wall Street’s rally continued in April as well.
Strong first-quarter earnings, positive developments on U.S- China trade war front and a less volatile yield curve for government bonds negated recessionary fears and strengthened investors’ confidence in risky assets like equities. However, the International Monetary Fund (IMF) slashed its global growth forecast for 2019.
Meanwhile, the South China Morning Post reported that the government of China had decided to end economic stimulus and will focus on structural reforms in order to steady the economy.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.
Image: Bigstock
Stock Market News For May 1, 2019
Markets closed mostly higher on Tuesday as Alphabet posted its worst day in more than six years. The Dow and the S&P 500 managed to eke out gains, with the latter finishing at a record high for the third consecutive session. However, Alphabet’s dismal sales figures in the first quarter of 2019 weighed on the Nasdaq and the broader tech sector. For the month, however, the three major benchmarks closed in the green.
The Dow Jones Industrial Average (DJI) increased 0.2%, to close at 26,592.91. The S&P 500 increased 0.1% to close at 2,945.83. The tech-laden Nasdaq Composite Index closed at 8,107.77, declining 0.7%. The fear-gauge CBOE Volatility Index (VIX) decreased 1.3% to close at 12.94. Advancers outnumbered decliners on the NYSE by a 1.20-to-1 ratio. On Nasdaq, a 1.41-to-1 ratio favored declining issues.
How Did The Benchmarks Perform?
The Dow gained 38.5 points to close in the green. Gains for the 30-stock index were propelled by a 0.2% rise in the shares of McDonald's (MCD - Free Report) after the restaurant chain operator reported better-than-expected first-quarter earnings. The stock carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
McDonald's reported impressive first-quarter 2019 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. Following the quarterly results, shares of the company gained 2.5% during pre-market trading session. Adjusted earnings came in at $1.78 per share, which surpassed the consensus mark of $1.73. (Read More)
The S&P 500 gained 2.8 points to also end in the green. Of the 11 major sectors of the S&P 500, eight ended in positive territory, with utilities leading the advancers. The Utilities Select Sector SPDR Fund (XLU) increased 1.6% on Tuesday. Further, the broader index closed at an all-time high for the third day on the trot.
Meanwhile, the Nasdaq tanked 54.1 points to close in the red, pulling back from its record close in the previous session. Tech-heavy Nasdaq and the broader tech sector was dragged down by Alphabet Inc. (GOOGL - Free Report) , shares of which dipped 7.5% to post its worst day since October 2012.
Alphabet Inc.’s non-GAAP earnings of $11.90 in first-quarter 2019 surpassed the Zacks Consensus Estimate of $10.57 per share. However, the figure decreased 6.8% sequentially and 19.8% year over year. Moreover, the net revenues missed the Zacks Consensus Estimate of $29.99 billion. (Read More)
China’s Manufacturing Weakens, Eurozone Gathers Steam
The Caixin China manufacturing purchasing managers’ index, a private gauge of the country’s manufacturing activity declined to 50.2 in April from 50.8 in March. However, the fact that the metric remains above the 50 mark, indicates expanding manufacturing activity.
Meanwhile, Eurozone’s economy has started showing resilience to global economic downturn. After hitting the doldrums in the beginning of this year, the region’s gross domestic product (GDP) increased at an annualized rate of 1.5% in the period between January and March.
Fed’s Two-Day Policy Meeting in Focus
Investors had a keen eye on Fed’s latest policy meeting scheduled to culminate on Wednesday. Marketwatchers largely expect the Fed to hold interest rates steady. The CME Group’s FedWatch tool predicts a 97% probability that the interest rates would remain unchanged.
However, Fed Chief Jerome Powell’s comments post the meeting is what investors would watch closely because it will shed light on what the members of Federal Open Market Committee (FOMC) think about the future of rate hikes in the country.
Economic Data
On the economic data front, U.S. Consumer Confidence rose to 129.2 in April, up from 124.2 in March. The metric also surpassed the consensus estimate of 126 for current period.
Meanwhile, the Pending Home Sales for April decreased 3.8% in April. Also, the Chicago PMI decreased to 52.6 in April, from 58.7 in March.
Monthly Roundup
For the month, the Dow, the S&P 50 and the Nasdaq surged 2.6%, 3.9% and 4.9%, respectively. After a fabulous March, Wall Street’s rally continued in April as well.
Strong first-quarter earnings, positive developments on U.S- China trade war front and a less volatile yield curve for government bonds negated recessionary fears and strengthened investors’ confidence in risky assets like equities. However, the International Monetary Fund (IMF) slashed its global growth forecast for 2019.
Meanwhile, the South China Morning Post reported that the government of China had decided to end economic stimulus and will focus on structural reforms in order to steady the economy.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.
See 7 breakthrough stocks now>>