The benchmark S&P 500 (SP500) posted its worst weekly performance of the year on Friday, marking its fourth negative week overall in 2024. The decline was primarily driven by strong economic data in the labor market, increasing expectations that the Federal Reserve will take action. There is no need to rush to lower interest rates. Additionally, rising commodity prices have reignited inflation concerns, and a spike in U.S. Treasury yields has also weighed on stock prices. Friday’s nonfarm jobs report beat expectations, with the economy adding 303,000 jobs, the unemployment rate falling and the labor force participation rate inching up. The statistics support the view that the Fed is in no hurry to cut rates, and the market has lowered the odds that the Fed will cut rates by 25 basis points at its June policy meeting. The S&P 500 (SP500) has fallen this week. -1.0%the Nasdaq Composite Index (COMP:IND), which has many high-tech stocks, -0.8%the blue-chip stock Dow (DJI) fell. -2.3%. Read a preview of next week’s major events on Seeking Alpha’s Catalyst Watch.
In the most expensive proxy contest in history, director candidates proposed by Walt Disney Co. (DIS) were re-elected to the board over candidates proposed by activist investors led by Nelson Peltz. . “Now that this distracting proxy battle is over, we are committed to focusing on our most important priorities: growth and value creation for our shareholders and for our consumers,” Disney CEO Bob Iger said in a statement. We want to focus 100% on creative excellence.” Immediately after his victory, Mr. Iger laid out plans to turn the company into a growth company, including a formal crackdown on Disney+ password sharing starting in June. (100 comments)
General Electric has finally completed its separation, with its aerospace and energy businesses now trading separately on the New York Stock Exchange. The stock of GE Aerospace (GE), the conglomerate cash cow that has maintained the “GE” ticker; 22% decrease Changes will take effect on Tuesday. On the other hand, GE Vernova (GEV) in the power and renewable energy sector temporarily rose. 5% or morebefore reversing course and exiting 1.4% decrease. A third division, GE Healthcare (GEHC), was spun off last year, and the company’s stock has performed well so far, bucking the trend of many spinoffs that have led to poor stock performance. (6 comments)
Fed Chairman Jerome Powell reiterated Wednesday that it would be “unappropriate to lower interest rates until we have greater confidence that inflation is sustainably declining toward 2%.” However, some of the big points highlighted were that “recent data does not significantly change the picture” and that it would be appropriate to start cutting interest rates “at some point this year”. Market participants took these statements positively, and gold prices rose to record territory. It wasn’t just shiny metal. Other commodities such as crude oil also rose. (46 comments)
Many services have been discontinued by Google in recent years (Google+, Project Loon, Hangouts, Stadia, etc.), but this week Google Podcasts users were told to switch their subscriptions to the newly integrated service, so the latest Services have joined the tech graveyard. YouTube Music. Google (GOOG, GOOGL) wants to leverage YouTube’s traffic and brand awareness to strengthen its podcast base, and this move will help it invest all its podcast money into one platform.Episode of wall street breakfast It was available on Google Podcasts. You can also find it on Apple Podcasts, Spotify, and the Seeking Alpha website. (16 comments)
Treasury Secretary Janet Yellen made her second visit to China in the past year, following a phone call between President Biden and Xi Jinping regarding “unfair trade policies.” The visit will address China’s large exports, particularly in the clean energy industry such as solar panels, batteries and electric vehicles. “Too much time has passed with a lack of communication and misunderstandings have occurred,” Yellen said. “I want to share my belief that overcapacity poses risks not only to American workers, businesses, and the global economy, but also to the productivity and growth of the Chinese economy.” (57 comments)
