Nasdaq Composite Today: Earnings Season Heating Up and Inflation Looming
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U.S. Consumer Sentiment down month-over-month
At 3:00 p.m. ET, the us markets looking to ride into the weekend on a high note.
- Dow Jones Industrial Average: Up 389.57(.+92%)
- S&P 500: Up 23.90 (+.41)
- Nasdaq Composite: Up 72.01 (+.40%)
- Russell 2000: UP 38.61 (+.1.78%)
Happy Anniversary to the Bull Market
At 11:55 a.m. ET, the us markets made up for earlier losses with all 4 major U.S. indices in the green.
- Dow Jones Industrial Average: Up 348 (.+82%)
- S&P 500: Up 21.45 (+.37)
- Nasdaq Composite: Up 54.38 (+.30%)
- Russell 2000: UP 37.68 (+.1.68%)
Tomorrow marks the second anniversary of the current bull market, with the Nasdaq up 75% over the past two years. Looking ahead to year three, history suggests the bull market may have more room to run. Since 1945, the average bull market lasts 5.5 years and typically gains 110% overall. However, returns tend to moderate after the early stages. Following 75% gains, the third year historically is more sluggish and averages just 2% growth.
Top Gainers:
Fastenal (FAST) Up 8.82%
Moderna (MRNA) Up 4.82%
DoorDash (DASH) Up 3.68%
Zscaler (ZS) Up 3.58%
MecadoLibre (MELI) Up 3.07%)
Top Losers:
Tesla (TSLA) Down 7.76%
Braodcom (AVGO) Down 2.29%
Adobe (ADBE) Down .99%
Amazon hasn't been this cheap is years
Amazon (AMZN) stock is up 42% over the past year and gained 25% in the past 6 months alone, bringing its market cap to $1.9 billion. However, the stock hasn’t been this cheap in over a decade.
With a forward price to earnings (PE) ratio of 39 and EV/EBIT of 33.85, one would need to go back to 2010 the last time the stock was this affordable.
Nasdaq opens down- but these stocks are moving higher
The Nasdaq Composite opened the last trading day of the week down -48.91 or -.34% but Fastenal (FAST) is one of the bigger gainers on the day, up 4%.
Software developer Atlassian (TEAM) is up 3.87% on the day and Amazon (AMZN) is up a modest .59%.
As of 8:45 a.m. ET today, US stock futures are trading lower as the unofficial start to earning season kicks off with large banks releasing quarterly earnings.
- Futures Implied Nasdaq Open: -56.50 (-.28%)
- Futures Implied Dow Open: -18 (-.04%)
- Futures Implied S&P 500 Open: -3.25(-.06%)
Investors are paying close attention to how the Fed’s potential rate hikes could affect lending margins and profits in the financial sector.
JPMorgan Chase (JPM) reported a decline in profits due to credit loss provisions, even as its investment banking arm posted strong results. The bank’s shares edged up 1% in premarket trading. Meanwhile, Wells Fargo (WFC) saw a nearly 4% rise after reporting a drop in both net interest income and profit.
Asset management giant BlackRock (BLK) recorded its third consecutive quarterly high in assets under management, benefiting from the stock market’s rally, while BNY Mellon (BK) reported a 16% increase in profit as net interest income climbed.
At the same time, investors continued to scrutinize the latest consumer inflation data, which left uncertainty about the Fed’s next move on interest rates. The lack of clear signals regarding potential rate cuts or hikes kept markets cautious.
In the Nasdaq, Tesla (TSLA) is an taking one on the chin down over 6% as investors were not impressed with the company’s Cybercab and Robotaxi event last night.
Joel South covers large-cap stocks, dividend investing, and major market trends, with a focus on earnings analysis, valuation, and turning complex data into actionable insights for investors.
He brings more than 15 years of experience as an investor and financial journalist, including 12 years at The Motley Fool, where he served as an investment analyst, Bureau Chief, and later led the Fool.com investing news desk. He has also co-hosted an investing podcast and appeared across TV and radio discussing market trends.
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