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Wall Street closed lower on Thursday following disappointing economic data. Moreover, investors remained concerned following news that the U.S. government considering retaliation against China. All the three major stock indexes ended in the red. However, these indexes witnessed best monthly performance in more than three decades.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) tumbled 1.2% or 288.14 points to close at 24,345.72. Notably, 26 components of the 30-stock blue-chip index ended in red while 4 finished in the green. Meanwhile, the S&P 500 declined 0.9% to close at 2,912.43. The Materials Select Sector SPDR (XLB) and Financials Select Sector SPDR (XLF) tanked 3% and 2.5%, respectively. Notably, all eleven sectors of the benchmark index closed in the red.
The tech-heavy Nasdaq Composite closed at 8,889.55, shedding 0.3% due to the weak performance of large-cap tech stocks. Lam Research Corp. (LRCX - Free Report) plunged 8.8%. Lam Research Corp. has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
The fear-gauge CBOE Volatility Index (VIX) increased 9.4% to close at 34.15. A total of 12.8 billion shares were traded on Thursday, higher than the last 20-session average of 12.3 billion. Decliners outnumbered advancers on the NYSE by a 2.58-to-1 ratio. On Nasdaq, a 2.81-to-1 ratio favored declining issues.
Disappointing Economic Data
The Department of Labor reported that the jobless claims for the week ended Apr 25 came in at 3.839 million, higher than the consensus estimate of 3.839. Previous week's data was revised upward from 4.427 million to 4.442 million. This indicates initial claims skyrocketed to 30.3 million in the past six weeks. However, last week's jobless claims were the lowest since Mar 11. Notably, continuing claims stood at a little below of 18 million, reflecting a rise of 2.2 million from the previous week.
The Department of Commerce reported that personal spending plunged 7.5% in March compared with a rise of 0.2% in the previous month. March's data was wider-than the consensus estimate of a decline of 5.3%. personal declined 2% in March higher than the consensus estimate of a decline of 1.9%. Personal income increased 0.6% in February. Disposable personal income also decreased 2% compared with a gain of 0.5% in the previous month. The PCE (personal consumption expenditure) inflation increased 1.3% in March while the core PCE inflation - Fed's favorite inflation gauge - increased 1.9%.
U.S. Government Reportedly Thinking of Retaliation Against China
Washington Post reported that U.S. government is "crafting retaliatory actions against China' as the Trump administration is disappointed with China for its handling of the coronavirus pandemic. Moreover, the New York Times reported the U.S. government officials have "pushed American spy agencies to hunt for evidence to support" the theory that the novel strain of coronavirus was derived from a laboratory in Wuhan. However, this claim is still unsubstantiated.
Monthly Roundup
The last month was an impressive one for the Wall Street. The three major stock indexes - the Dow, the S&P 500 and the Nasdaq Composite - rallied 11.1%, 12.7% and 15.5%, respectively, in April. For both the Dow and the S&P 500, it was the best April since 1938 while Nasdaq Composite witnessed best April in its history.
The S&P 500 recorded its third best monthly performance and the best one since Jan 1987. The Dow posted its fourth best monthly performance and the best one since Jan 1987. Meanwhile, the Nasdaq Composite registered best monthly performance since 2000.
Gradual reduction of new cases of COVID-19, positive clinical trial data of drug for the potential treatment of coronavirus and possibility of opening the economy phase by phase bolstered investors' confidence.
Concho Resources Inc. reported first-quarter net income per share (excluding special items) of $0.72, in line with the Zacks Consensus Estimate and the prior-year period earnings. (Read More)
Helmerich & Payne Inc. (HP - Free Report) recently released second-quarter fiscal 2020 results. The company posted adjusted quarterly loss of $0.01 per share. (Read More)
Cabot Oil & Gas Corp.’s first-quarter 2020 net income per share — adjusted for special items — of $0.14 beat the Zacks Consensus Estimate of $0.13. (Read More)
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Image: Bigstock
Stock Market News for May 1, 2020
Wall Street closed lower on Thursday following disappointing economic data. Moreover, investors remained concerned following news that the U.S. government considering retaliation against China. All the three major stock indexes ended in the red. However, these indexes witnessed best monthly performance in more than three decades.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) tumbled 1.2% or 288.14 points to close at 24,345.72. Notably, 26 components of the 30-stock blue-chip index ended in red while 4 finished in the green. Meanwhile, the S&P 500 declined 0.9% to close at 2,912.43. The Materials Select Sector SPDR (XLB) and Financials Select Sector SPDR (XLF) tanked 3% and 2.5%, respectively. Notably, all eleven sectors of the benchmark index closed in the red.
The tech-heavy Nasdaq Composite closed at 8,889.55, shedding 0.3% due to the weak performance of large-cap tech stocks. Lam Research Corp. (LRCX - Free Report) plunged 8.8%. Lam Research Corp. has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
The fear-gauge CBOE Volatility Index (VIX) increased 9.4% to close at 34.15. A total of 12.8 billion shares were traded on Thursday, higher than the last 20-session average of 12.3 billion. Decliners outnumbered advancers on the NYSE by a 2.58-to-1 ratio. On Nasdaq, a 2.81-to-1 ratio favored declining issues.
Disappointing Economic Data
The Department of Labor reported that the jobless claims for the week ended Apr 25 came in at 3.839 million, higher than the consensus estimate of 3.839. Previous week's data was revised upward from 4.427 million to 4.442 million. This indicates initial claims skyrocketed to 30.3 million in the past six weeks. However, last week's jobless claims were the lowest since Mar 11. Notably, continuing claims stood at a little below of 18 million, reflecting a rise of 2.2 million from the previous week.
The Department of Commerce reported that personal spending plunged 7.5% in March compared with a rise of 0.2% in the previous month. March's data was wider-than the consensus estimate of a decline of 5.3%. personal declined 2% in March higher than the consensus estimate of a decline of 1.9%. Personal income increased 0.6% in February. Disposable personal income also decreased 2% compared with a gain of 0.5% in the previous month. The PCE (personal consumption expenditure) inflation increased 1.3% in March while the core PCE inflation - Fed's favorite inflation gauge - increased 1.9%.
U.S. Government Reportedly Thinking of Retaliation Against China
Washington Post reported that U.S. government is "crafting retaliatory actions against China' as the Trump administration is disappointed with China for its handling of the coronavirus pandemic. Moreover, the New York Times reported the U.S. government officials have "pushed American spy agencies to hunt for evidence to support" the theory that the novel strain of coronavirus was derived from a laboratory in Wuhan. However, this claim is still unsubstantiated.
Monthly Roundup
The last month was an impressive one for the Wall Street. The three major stock indexes - the Dow, the S&P 500 and the Nasdaq Composite - rallied 11.1%, 12.7% and 15.5%, respectively, in April. For both the Dow and the S&P 500, it was the best April since 1938 while Nasdaq Composite witnessed best April in its history.
The S&P 500 recorded its third best monthly performance and the best one since Jan 1987. The Dow posted its fourth best monthly performance and the best one since Jan 1987. Meanwhile, the Nasdaq Composite registered best monthly performance since 2000.
Gradual reduction of new cases of COVID-19, positive clinical trial data of drug for the potential treatment of coronavirus and possibility of opening the economy phase by phase bolstered investors' confidence.
Stocks That Made Headline
Concho Reports In Line Q1 Earnings, Slashes Capex
Concho Resources Inc. reported first-quarter net income per share (excluding special items) of $0.72, in line with the Zacks Consensus Estimate and the prior-year period earnings. (Read More)
Helmerich & Payne Incurs Q2 Loss, Beats on Revenues
Helmerich & Payne Inc. (HP - Free Report) recently released second-quarter fiscal 2020 results. The company posted adjusted quarterly loss of $0.01 per share. (Read More)
Cabot Oil Q1 Earnings Beat Estimates on Output Ramp-Up
Cabot Oil & Gas Corp.’s first-quarter 2020 net income per share — adjusted for special items — of $0.14 beat the Zacks Consensus Estimate of $0.13. (Read More)
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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