We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
U.S. stock futures are mostly unchanged before the last trading day of an eventful week. This week, the market’s benchmark – the S&P 500 Index – exited from a bear market since October 2022 and formed a new bull market.
The broad-market index is heading for its fourth straight positive week. The Dow aims to close on a positive note for the second consecutive week. However, the tech-heavy \Nasdaq Composite, which has witnessed an impressive rally so far this year, is on pace to break a six-week winning streak.
In a major development in the auto sector, General Motors Co. (GM - Free Report) announced its plan to enter into an agreement with Tesla Inc. (TSLA - Free Report) to leverage the latter’s electric vehicle Supercharger Network. Ford Motor Co. (F - Free Report) had entered into a similar kind of agreement with Tesla two weeks ago.
Internationally, the Producer Price Index in China fell 4.6% year-over-year in May after declining 3.6% in April. On a year-over-year basis, this was the biggest monthly decline in seven years. China’s Consumer Price Index rose marginally by 0.2% year-over-year in May.
This situation is in sharp contrast to the rest of the world where leading central banks including the Fed have been struggling for the past one and half years to combat record-high inflation. China – the second largest economy of the world – is yet to recover from its strict COVID-19 restrictions. Earlier this week, China reported that the country’s exports dropped 7.5% year-over-year in May. This indicates lack of global demand for Chinese goods that are highly appreciated for their cheap price.
Yesterday, after the closing bell, business services provider DocuSign Inc. (DOCU - Free Report) came up with quarterly earnings of $0.72 per share, beating the Zacks Consensus Estimate of $0.53 per share. This compares to earnings of $0.38 per share a year ago. These figures are adjusted for non-recurring items. The company posted revenues of $661.39 million for the quarter ended April 2023, surpassing the Zacks Consensus Estimate by 3.16%.
Vail Resorts Inc. (MTN - Free Report) came up with quarterly earnings of $8.18 per share, missing the Zacks Consensus Estimate of $8.88 per share. This compares to earnings of $9.16 per share a year ago. These figures are adjusted for non-recurring items. The company posted revenues of $1.24 billion for the quarter ended April 2023, missing the Zacks Consensus Estimate by 0.58%. This compares to year-ago revenues of $1.18 billion.
Meanwhile, investors are keenly waiting for Fed’s June FOMC meeting scheduled next week. The CME FedWatch tool is currently showing there exists 78.2% probability that the central bank will keep the benchmark lending rate at 5-5.25%. However, 21.8% respondents are expecting a 25 basis-point hike in June.
Inflation has declined to a great extent from its June 2022 level though it remains highly elevated. Several key economic metrics have declined steadily in the past year. However, the key labor market remained stubbornly resilient. This makes market participants indecisive about the Fed’s next move regarding interest rate.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Major Development in U.S. Auto Sector
U.S. stock futures are mostly unchanged before the last trading day of an eventful week. This week, the market’s benchmark – the S&P 500 Index – exited from a bear market since October 2022 and formed a new bull market.
The broad-market index is heading for its fourth straight positive week. The Dow aims to close on a positive note for the second consecutive week. However, the tech-heavy \Nasdaq Composite, which has witnessed an impressive rally so far this year, is on pace to break a six-week winning streak.
In a major development in the auto sector, General Motors Co. (GM - Free Report) announced its plan to enter into an agreement with Tesla Inc. (TSLA - Free Report) to leverage the latter’s electric vehicle Supercharger Network. Ford Motor Co. (F - Free Report) had entered into a similar kind of agreement with Tesla two weeks ago.
Internationally, the Producer Price Index in China fell 4.6% year-over-year in May after declining 3.6% in April. On a year-over-year basis, this was the biggest monthly decline in seven years. China’s Consumer Price Index rose marginally by 0.2% year-over-year in May.
This situation is in sharp contrast to the rest of the world where leading central banks including the Fed have been struggling for the past one and half years to combat record-high inflation. China – the second largest economy of the world – is yet to recover from its strict COVID-19 restrictions. Earlier this week, China reported that the country’s exports dropped 7.5% year-over-year in May. This indicates lack of global demand for Chinese goods that are highly appreciated for their cheap price.
Yesterday, after the closing bell, business services provider DocuSign Inc. (DOCU - Free Report) came up with quarterly earnings of $0.72 per share, beating the Zacks Consensus Estimate of $0.53 per share. This compares to earnings of $0.38 per share a year ago. These figures are adjusted for non-recurring items. The company posted revenues of $661.39 million for the quarter ended April 2023, surpassing the Zacks Consensus Estimate by 3.16%.
Vail Resorts Inc. (MTN - Free Report) came up with quarterly earnings of $8.18 per share, missing the Zacks Consensus Estimate of $8.88 per share. This compares to earnings of $9.16 per share a year ago. These figures are adjusted for non-recurring items. The company posted revenues of $1.24 billion for the quarter ended April 2023, missing the Zacks Consensus Estimate by 0.58%. This compares to year-ago revenues of $1.18 billion.
Meanwhile, investors are keenly waiting for Fed’s June FOMC meeting scheduled next week. The CME FedWatch tool is currently showing there exists 78.2% probability that the central bank will keep the benchmark lending rate at 5-5.25%. However, 21.8% respondents are expecting a 25 basis-point hike in June.
Inflation has declined to a great extent from its June 2022 level though it remains highly elevated. Several key economic metrics have declined steadily in the past year. However, the key labor market remained stubbornly resilient. This makes market participants indecisive about the Fed’s next move regarding interest rate.