Week Ending May 9th, 2024 


Tuesday Market Moves 

Dow Jones - 40,829.00 (-0.95%)

Nasdaq - 17,689.66 (-0.87%)

S&P 500 - 5,606.91 (-0.77%)

Weekly Recap

• Two days of losses. Stocks headed south for the second straight day after a nine-session win streak ended on Monday.
• Futures rose. US stock futures rose after the Trump administration announced top US officials would meet with their Chinese counterparts this weekend to discuss trade.
• Economic news. The U.S. trade deficit widened to $140.5 billion in March, a record high, driven by a surge in imports, as companies looked to front-run tariffs.
• U.S. and China will hold first trade talks. Senior US and Chinese officials will meet in Switzerland this week to restart stalled trade talks. The discussions mark the first public engagement to ease trade tensions since Trump’s January return to office escalated the dispute. 
• Q1 earnings continue. First-quarter earnings season is well underway, with roughly 78% of companies in the S&P 500 having reported results thus far.
• Fed cuts? Today Wall Street will remain on edge with the Federal Reserve's next interest rate decision due. The central bank is expected to leave rates unchanged, but all eyes will be on Chair Jerome Powell on what could come next for monetary policy.
• Ford dropped 2.5% ahead of the open on Tuesday. While the automaker reported earnings that exceeded analysts' expectations, Ford suspended its 2025 guidance, saying tariffs could take a $1.5 billion toll. 
• Palantir dropped 7.2%. The stock slipped on Tuesday morning despite earnings that met analysts' expectations and a rise in full-year revenue guidance to 36% growth, better than analysts had foreseen. 
• Skechers soared 24% on Monday. News revealed that the company will be acquired by 3G Capital, which plans to take Skechers private.
• Clorox slipped 3.2% in pre-market trading on Tuesday. Earnings missed Wall Street's estimates and revenue fell. The company also lowered its 2025 sales forecast, citing "recent changes in the macroeconomic and geopolitical environment."
• AMD fell slightly ahead of earnings yesterday. Shares are down 17% this year.
• Him & Hers Health tanked 7.2% despite earnings that surpassed analysts' consensus. However, guidance wasn't as strong as analysts had expected in terms of Q2 revenue.
• DoorDash dropped 5% in pre-market trading after first quarter revenue rose 21% but missed expectations. DoorDash also said that it was making a $1.2 billion all-cash acquisition of restaurant booking platform SevenRooms.
• Coinbase Global fell 1.4% after it got downgraded. The company was downgraded by Monness, Crespi, Hardt to Neutral from Buy ahead of the company's quarterly results Thursday. The analyst said "near-term caution" is appropriate going into earnings.
• Apple continued to drop modestly on Tuesday amid growing tariff fears. Investors are waiting to see in a May 15 filing by Berkshire Hathaway (BRK.B) if Warren Buffett sold more shares.
• Opec made an announcement. OPEC+ will bring additional oil supply to the market beginning in June.
• What to still watch this week. On Wednesday, Wall Street's attention will turn to the wrap up of the Fed meeting and where rate cuts will be. China's April trade numbers will be out on Thursday and will be the first to reflect 145% U.S. tariffs. 

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"Unless something bad happens between now and June, it means the Fed doesn’t need to go." - Kevin Flanagan, head of fixed income strategy at Wisdom Tree. 

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Most Active Stocks

• Apple (AAPL)
• Nvidia (NVDA)
• Tesla (TSLA)
• Ford (F)
• Hims & Hers Health (HIMS)
• Meta Platforms (META)
• WeRide (WRD)
• Sarepta Therapeutics (SRPT)
• Lucid Group (LCID)
• Palantir Technologies (PLTR)

Weekly Notables

Nvidia CEO: Every Job Will Be Affected by AI

Nvidia founder and CEO Jensen Huang had some surprising news about AI and the workplace. "You will not lose your job to AI, but will lose it to someone who uses it," Huang said at the Milken Institute Conference on Tuesday. Added Huang, "I recommend 100% take advantage of AI, don't be that person." 

Chipmaker AMD Beats in Q1 Earnings

Semiconductor manufacturer Advanced Micro Devices reported earnings ($0.96 per share vs. estimates of $0.94) and revenue ($7.44 billion vs. estimates of $7.12 billion) beat in its first quarter. The stock jumped after reporting results in Tuesday's extended hours. This was helped by the chip company's second quarter guidance.

Earnings Spotlight: Walt Disney Company 

The Walt Disney Company is set to report fiscal second-quarter results this morning, and analysts are largely bullish on the media and entertainment giant's stock. Analysts expect revenue to have risen from the year-ago quarter, but profit to have declined. UBS analysts said they expect a strong quarter, but said a recession would pose risks to Disney's advertising and experiences segments.