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Wall Street closed higher on Friday, boosted by energy and tech stocks. Strong earnings numbers coming in from mega-cap tech and energy companies lifted investor mood. PCE inflation came in low, in line with expectations. All three major indexes ended in the green.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.8% or 272 points to close at 34,098.16. Twenty-six components of the 30-stock index ended in positive territory, while four ended in negative.
The S&P 500 gained 0.8% or 34.13 points to close at 4,169.48. Ten of the 11 broad sectors of the benchmark index ended in positive territory. The Energy Select Sector SPDR (XLE), the Financials Select Sector SPDR (XLF) and the Materials Select Sector SPDR (XLB) advanced 1.6%, 1.2% and 1.2%, respectively, while the Utilities Select Sector SPDR (XLU) declined 0.1%.
The tech-heavy Nasdaq advanced 84.35 points, or 0.7%, to finish at 12,226.58, led by tech stocks.
The fear-gauge CBOE Volatility Index (VIX) was down 7.3% at 15.78. A total of 11.3 billion shares were traded on Friday, higher than the last 20-session average of 10.5 billion. Advancers outnumbered decliners on the NYSE by a 3-to-1 ratio. On the Nasdaq, a 1.91-to-1 ratio favored advancing issues.
Intel and Exxon Mobil Earnings Numbers Boost Trade
Exxon Mobil Corporation (XOM - Free Report) reported a record first-quarter profit on rising oil and gas output, doubling profits from the same quarter last year. The energy giant posted first-quarter 2023 adjusted earnings of $2.83/share, beating the Zacks Consensus Estimate of $2.65. Oil companies continued to ride a wave of strong demand, and energy stocks benefited, becoming the largest gainers in the session. Exxon Mobil’s shares advanced 1.3%.
Intel Corporation’s (INTC - Free Report) shares gained 4% and became a major tailwind for the market after it reported a loss of only $0.04 per share for the first quarter against the Zacks Consensus Estimate of a loss of $0.16. The company went on record saying that its slumping gross margins would improve in the second half of the year, and that the personal computers market is stable.
Headline PCE inflation, the Fed’s favorite inflation metric, came in at 0.3% for March, in line with expectations. This is one-third of the highs seen in October 2022, when it had gone up to 0.9% month over month. With this crucial metric coming on par with expectations, investors found comfort in the fact that the central bank is seeing its policies taking effect and would act accordingly. Even as the announcement of a 25 bps interest rate hike is almost a certainty from the Fed’s May meeting, market participants can see the rate-hike cycle coming to an end in the coming months.
Weekly Roundup
The three most widely followed indexes closed the week in the green amid choppy trading. The Nasdaq Composite advanced 1.3%, while the Dow Jones Industrial Average and the S&P 500 gained 0.9% each.
The week’s trade was boosted by strong earnings, especially from the technology sector. Even as economic data from various sectors kept investors wondering whether a broad economic slowdown was on the horizon, inflation numbers released later in the week cheered markets.
Monthly Roundup
The Dow closed April with a 2.5% gain, its best monthly result since January. The S&P 500 registered a 1.5% monthly gain in what was its second straight winning month. The Nasdaq Composite remained virtually flat.
Economic Data
The Bureau of Economic Analysis reported that personal income for March had increased 0.3% against a consensus of 0.2%. The February number remained unrevised at 0.3%.
Personal spending for March had increased less than 0.1%, against a consensus of a decrease of 0.1%. The February number was revised down from an increase of 0.2% to 0.1%.
The personal savings rate for March came in at 5.1%. The February number was revised from an increase of 4.6% to 4.8%.
Consumer Sentiment for April came in at 63.5, against a consensus of 63.5. For March, the number remained unrevised at 62.0.
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Stock Market News for May 1, 2023
Wall Street closed higher on Friday, boosted by energy and tech stocks. Strong earnings numbers coming in from mega-cap tech and energy companies lifted investor mood. PCE inflation came in low, in line with expectations. All three major indexes ended in the green.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.8% or 272 points to close at 34,098.16. Twenty-six components of the 30-stock index ended in positive territory, while four ended in negative.
The S&P 500 gained 0.8% or 34.13 points to close at 4,169.48. Ten of the 11 broad sectors of the benchmark index ended in positive territory. The Energy Select Sector SPDR (XLE), the Financials Select Sector SPDR (XLF) and the Materials Select Sector SPDR (XLB) advanced 1.6%, 1.2% and 1.2%, respectively, while the Utilities Select Sector SPDR (XLU) declined 0.1%.
The tech-heavy Nasdaq advanced 84.35 points, or 0.7%, to finish at 12,226.58, led by tech stocks.
The fear-gauge CBOE Volatility Index (VIX) was down 7.3% at 15.78. A total of 11.3 billion shares were traded on Friday, higher than the last 20-session average of 10.5 billion. Advancers outnumbered decliners on the NYSE by a 3-to-1 ratio. On the Nasdaq, a 1.91-to-1 ratio favored advancing issues.
Intel and Exxon Mobil Earnings Numbers Boost Trade
Exxon Mobil Corporation (XOM - Free Report) reported a record first-quarter profit on rising oil and gas output, doubling profits from the same quarter last year. The energy giant posted first-quarter 2023 adjusted earnings of $2.83/share, beating the Zacks Consensus Estimate of $2.65. Oil companies continued to ride a wave of strong demand, and energy stocks benefited, becoming the largest gainers in the session. Exxon Mobil’s shares advanced 1.3%.
Intel Corporation’s (INTC - Free Report) shares gained 4% and became a major tailwind for the market after it reported a loss of only $0.04 per share for the first quarter against the Zacks Consensus Estimate of a loss of $0.16. The company went on record saying that its slumping gross margins would improve in the second half of the year, and that the personal computers market is stable.
Consequently, shares of Devon Energy Corporation (DVN - Free Report) and NVIDIA Corporation (NVDA - Free Report) gained 2.3% and 1.9%, respectively. Both carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
PCE Inflation Numbers Provide Relief
Headline PCE inflation, the Fed’s favorite inflation metric, came in at 0.3% for March, in line with expectations. This is one-third of the highs seen in October 2022, when it had gone up to 0.9% month over month. With this crucial metric coming on par with expectations, investors found comfort in the fact that the central bank is seeing its policies taking effect and would act accordingly. Even as the announcement of a 25 bps interest rate hike is almost a certainty from the Fed’s May meeting, market participants can see the rate-hike cycle coming to an end in the coming months.
Weekly Roundup
The three most widely followed indexes closed the week in the green amid choppy trading. The Nasdaq Composite advanced 1.3%, while the Dow Jones Industrial Average and the S&P 500 gained 0.9% each.
The week’s trade was boosted by strong earnings, especially from the technology sector. Even as economic data from various sectors kept investors wondering whether a broad economic slowdown was on the horizon, inflation numbers released later in the week cheered markets.
Monthly Roundup
The Dow closed April with a 2.5% gain, its best monthly result since January. The S&P 500 registered a 1.5% monthly gain in what was its second straight winning month. The Nasdaq Composite remained virtually flat.
Economic Data
The Bureau of Economic Analysis reported that personal income for March had increased 0.3% against a consensus of 0.2%. The February number remained unrevised at 0.3%.
Personal spending for March had increased less than 0.1%, against a consensus of a decrease of 0.1%. The February number was revised down from an increase of 0.2% to 0.1%.
The personal savings rate for March came in at 5.1%. The February number was revised from an increase of 4.6% to 4.8%.
Consumer Sentiment for April came in at 63.5, against a consensus of 63.5. For March, the number remained unrevised at 62.0.