3 Hours Ago
Once again, the Dow ends Wednesday in the green
Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., May 8, 2024.
Brendan Mcdermid | Reuters
Here is how the major indexes closed on Wednesday:
— Pia Singh
3 Hours Ago
UBS says investors should ‘stay vigilant’ amid global uncertainties and diversify across asset classes
Several risks could still affect the market’s momentum, according to UBS.
“While we continue to see a constructive macro backdrop for risk assets, investors should stay vigilant on a range of economic and geopolitical risks that could send market volatility back up again,” said Mark Haefele, chief investment officer for the firm’s global wealth management.
Haefele pointed out that despite the recent gains in U.S. equities, including the S&P 500 having recorded its best four-day rally since November on the back of positive Fed speak, several concerns remain that could risk oil prices and increase investor concerns. Those include the ongoing uncertainty of a cease-fire deal in Gaza, a potentially “vulnerable” disinflation trend and the upcoming U.S. presidential election.
“With markets oscillating between pricing different scenarios, asset class volatility could remain elevated. Investors can mitigate such volatility and keep their portfolios on track by diversifying and balancing across asset classes,” the investment head said in the Wednesday note, adding that quality bonds in a portfolio, and oil and gold for portfolio hedges, are attractive plays for investors in this environment.
— Pia Singh
3 Hours Ago
The S&P 500 bounce shows ‘limited enthusiasm,’ Citi says
A bounce in equities, specifically the benchmark S&P 500, is showing signs of concentration and lackluster sentiment, according to Citi.
“The S&P bounce-back rally continues, but flows tell a story of limited enthusiasm with a trickle of new long positions and only marginal increase in risk appetite,” analyst Chris Montagu wrote Tuesday.
— Brian Evans
4 Hours Ago
U.S. crude oil recovers losses after surprise stockpile decline
A general view of the Phillips 66’s Los Angeles Refinery, which processes domestic and imported crude oil into gasoline, diesel fuel and other petroleum products, in Carson, California.
Bing Guan | Reuters
Crude oil futures rose Wednesday, recovering losses from earlier in the session as U.S. crude inventories fell.
The West Texas Intermediate contract for June rose 61 cents, or 0.78%, to settle at $78.99 a barrel. The Brent contract for July was last trading at $83.75 a barrel, up 59 cents, or 0.72%.
Oil was down more than 1% earlier in the session, after U.S. commercial crude stockpiles declined by 1.4 million barrels in the first week of May, according to official data from the Energy Information Administration. The decline was a surprise compared to industry data that indicated a 509,000 barrel buildup.
Oil prices have fallen nearly 7% since reaching their April highs when traders bid up prices on fears that Iran and Israel would go to war. Investors have largely sold off the war premium since then, with Morgan Stanley removing $4 per barrel of risk from its oil price forecast for the year.
— Spencer Kimball
4 Hours Ago
Utilities leading weekly sector gains
The utilities sector is 2.2% higher for the week, leading the broad market index’s sector gains.
Constellation Energy has gained around 5% week to date, followed by NextEra Energy and Sempra, which are up around 3%.
Communication services is also having a successful week, with the overall sector rising 1.9%. Netflix and Meta are among the top gainers, rising 6% and 4.2%, respectively.
The only sector in the red for the week is consumer discretionary, which is down 0.1%.
— Hakyung Kim
5 Hours Ago
Arista Networks leads S&P 500 on strong earnings
Arista Networks‘ post-earnings rally made it the best performer in the S&P 500 during Wednesday trading.
Shares climbed more than 7% in afternoon trading. That is not only the biggest gain of all the names in the broad index on Wednesday, but it would also mark its best session since late October, when shares jumped 14% in one day.
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Arista Networks, 1 day
Arista posted $1.99 in earnings per share on revenue of $1.57 billion for the first quarter, topping expectations of $1.74 in earnings per share and $1.55 billion in revenue from analysts polled by LSEG. The company also offered guidance for current-quarter revenue that was largely above analysts’ consensus forecast.
— Alex Harring
6 Hours Ago
Shoals Technologies Group stock falls on revenue miss
Shares of Shoals Technologies Group were more than 16% lower on Wednesday after the electrical balance of systems, or EBOS, company missed first-quarter revenue estimates.
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Shoals Technology stock.
Shoals reported revenue of $90.8 million…
Read More: Stock market news for May 8, 2024